Download Economic Utility Guided Notes

Economic Utility Guided Notes
What is “Utility”?


Useful products make our lives ________________. They provide us with something
_______________. They have utility - _____________________.
Utility is about satisfying wants and __________________
o If customers are satisfied with what a product offers because it fulfills a desire,
_______________________________________________
o If no, the product _____________________
Self Interest Fuels Utility


Consumer and businesses buy products that _____________them – the products with the most
___________________
The first products consumers buy are the ones that benefit them the __________________ - the
products with the most utility
What to make?



Businesses work to satisfy consumers demand for products and ____________
Marketing tries to:
o Improve existing _____________________________
o Develop better ______________________________
o Change how products and services are delivered
These changes are called “__________________________”
Form and Task Utility


A products Form is tangible – whatever can be noticed by the ____________
o Styles
o Scents
o Flavors
o _______________
o _______________
o _______________
Marketers change the tangible parts of goods to create utility
o _______________________ is created when the physical characteristics of a product
are changed to make it __________________________
o ______________________ is created when the characteristics of a service are changed
to make it more ______________________
Time Utility




Getting the timing right to make a product available to ______________
Requires looking ahead and _________________ what will be needed in the _____________
Marketers make changes to avoid or correct problems with timing
Time Utility is created when products are made available at the time they are needed or
____________________________
Place Utility


Place is the right location for products and _______________________ - on a shelf, in the
showroom, at the fair, in the warehouse, at the office…….
Making changes to a product or service’s location can create ______________________
o The usefulness created by making goods and services available at the place they are
needed or wanted by consumers
Possession Utility




Possession involves selling ________________________________________________________
The exchange of money for a product or service shifts ____________________
Possession utility is the usefulness created when the ownership of a product is transferred from
the seller to the _________________ or when a service is performed by the
______________________
Marketers make changes that affect the purchasing process by making it easier to buy a
_________________________________________
How does marketing influence utility?







Marketing is about making a connection between a product or service and
_______________________________
To do this they share information on product benefits with consumers and encourage
_____________________________________
Marketing tools:
o Displays
o Advertising
o Mailings
o _________________________
o _________________________
Form Utility – Product changes are made in production – Marketing recommends
_________________ to the product ___________ after analyzing what consumers want.
Time Utility – Marketing works to understand when consumers want a ____________________
and work to plan and schedule all of the steps in the product ____________________________
Place Utility – Marketing determines the best __________________ to place the product where
it will meet consumer’s needs.
Possession Utility – Marketing analyzes what barriers prevent consumers from buying the
product or service and design ways to ___________________