BENEFITS OF MARKETING

1. Adds value

2. Lowers prices

3. Creates new & Improved Products

ADDS VALUE Can you imagine???????

If ……… All smart phones were priced right, promoted

continuously, sold at the appropriate times, etc. BUT……

Were not distributed to any store!!!!!!!

We wouldn’t be able to purchase them!

Therefore, Marketing adds value by using all nine functions, which in turn is a benefit to

us

LOWERS PRICES

Lowes vs. Home Depot Two competing business build within one

mile of each other What do the businesses do?

BENEFIT TO US – YAY!!!!!!!

CREATES NEW & IMPROVED PRODUCTS

Two competing businesses have lowered their prices as much as possible What’s next?

What can they do?

THIS????

OR

THIS????

ADDED VALUE

Makes product more useful

Added value = UTILITY

FIVE ECONOMIC UTILITIES

Form UtilityPlace UtilityTime UtilityPossession Utility Information Utility

FORM UTILITY

Changes raw material or putting parts together to make them more useful

Example:

PLACE UTILITY

Convenient location

Catalog shopping

Retail stores

TIME UTILITY

Have a product available at a certain time of year or a convenient time of day

Example:New York February Toys

POSSESSION UTILITY

Exchange of a product for some monetary value

Cash Credit Card Check

INFORMATION UTILITY

Communication with the customer