Download Sports Marketing - Hardin County Schools

Economic Goods, Services & Utility
Marketing Principles
Chapter 1
General Purposes of Marketing
• People have economic needs & wants
• Producers create goods & services to satisfy
consumer’s needs & wants
• Marketing adds usefulness to goods &
services by bringing sellers(producers) &
buyers(consumers) together so exchange
can occur.
Economic Goods & Services
• Things produced that satisfy consumer’s
needs & wants
• Goods: Tangible (can touch)
• Services: Intangible (can not touch)
Before Exchange Can Occur Goods
& Services Need Utility
Utility(usefulness): The attributes of
a product or service that make it
capable of satisfying consumers’
wants & needs.
Utility is added through Marketing
& the 7 Marketing Functions
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Distribution
Financing
Marketing-Information-Management
Pricing
Product/Service Management
Promotion
Selling
Goods & Services Must Have
Utility(usefulness) – 5 Ways Utility is
Added to Goods & Services
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Form
Place
Time
Possession
Information
Economic Utilities
1. Form Utility
Changing raw materials or putting parts
together to make them useful to consumers.
 Example: A tree is not useful to consumers
until it is cut down and produced into a good
like a chair or desk. Putting raw materials
together so it satisfies consumers’ needs adds
form utility.
Economic Utilities
2. Place Utility
Adding usefulness by having a product
where customers can buy it.
 Example: Selling winter coats in Alaska.
Winter coats would not have utility in Florida.
 Example: Selling products at stores that
are located in cities where populations are
large.
Economic Utilities
3. Time Utility
Adding usefulness by having a product
available when it is convenient & needed by
customers.
 Example: Retailers offer large supplies
of backpacks in the late summer, near
the beginning of the school year.
Example: Selling candy @ Valentines
Economic Utilities
4. Possession Utility
Adding usefulness by helping consumers take
ownership of products.
 Example: Taking credit cards and checks
rather than just cash enables customers to
buy products.
Offering 0% free financing.
Offering free delivery with purchase of a
product.
Economic Utilities
5. Information Utility
Adding usefulness to goods & services by
providing information so the customer is
comfortable buying.
 Example: Salespeople explain
features of products.
 Example: Packaging explains qualities
and uses.
 Example: Advertising informs consumers
about products.
Goods & Services Must have Utility
All types of utility are added
throughout the marketing process so
products have value to consumers.