Download Economic Utilities - Westmoreland Central School

Sports Marketing
TICKET: ______________________________________
THE MENU:
• Read and discuss the opening
TICKET
• Review marketing foundations
• Discuss economic utilities
• Economic benefits of marketing
• Economic Utilities Project
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OUTCOMES:
By the end of class, you
will be able to:
List and describe each of the
economic utilities
Discuss the economic
benefits of marketing
Choose a product and present
its economic utilities
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UNIT 3
Economic Utilities
Economic Utilities
_______ added by producers and
________ to materials before they
reach the consumer





Form utility
Place utility
Time utility
Possession utility
Information utility
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2
Economic Utilities
Key Terms
 utility
 form utility
 place utility
 time utility
 possession utility
 information utility
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3
Economic Utilities
Form Utility
Changing raw _______ or putting parts
together to make them more ______.
 Example: The parts of a lounge chair—
the wood frame, the fabric, the glue and
nails, and the reclining mechanism—are
less useful by themselves. Putting them
together adds form utility.
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4
Economic Utilities
Place Utility
Having a product _____ customers can buy it.
 Example: Selling directly to the customer
through catalogs.
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5
Economic Utilities
Time Utility
Having a product _________ at a time
convenient for customers.
 Example?
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6
Economic Utilities
Possession Utility
Exchange of a product for some ________
value.
 Example: Taking credit cards and checks
rather than just cash enables customers to
buy products.
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7
Economic Utilities
Information Utility
Providing _________ so the customer is
comfortable buying.
 Example: Salespeople explain
features of products.
 Example: Packaging explains qualities
and uses.
 Example: Advertising informs consumers
about products.
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8
Economic Utilities
Lower Prices
When demand is high, manufacturers can make
products in ______ quantities, which ________
the unit cost of each product.
 Example: When fixed costs are $20,000:
Quantity Produced Fixed Cost Per Unit
10,000
$2.00
200,000
10¢
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9
Economic Utilities
New and Improved Products
As businesses continue to look for
opportunities to better _______ customers'
wants and needs, the result is a larger
________ of goods and services.
 Example: Personal computers have become
smaller, more powerful, and less expensive
through competition between makers.
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10
Economic Utilities
Economic Benefits of Marketing
Bridges the ____ between you and the
maker or seller of an item.
Makes buying _____ for customers.
Creates new and ________ products at
lower prices.
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