Download Sec. 1.2 Notes - Union High School

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BE 175 Marketing Education
Chapter 1 section 2
The Importance of Marketing
Economic benefits of marketing
1. New and Improved Products

Example:
2.
Lower Prices


Example: Quantity produced
Fixed cost per Unit
Also, when products become popular, more competition enters the marketplace; to remain
competitive businesses must find ways to lower their prices.
Example:
3. Added Value and Utility
The functions of marketing add value to a product. This value in economic terms is called
UTILITY.
Utilities-
There are 5 economic utilities involved with all products: FORM, PLACE, TIME, POSSESSION,
and INFORMATION
Form utility is NOT directly related to marketing because it deals with the actual
formation (making) of the product.
BUT, it is an important part of marketing because marketing deals with the planning of
new ideas, product designs and market research.
After all of these aspects of marketing are completed, the product must be
FORMED!
5 Economic Utilities
1. Form Utility-
Examples:
2. Place Utility
Examples:
3. Time Utility
Examples:
4. Possession Utility
Examples:
5. Information Utility
Examples: