BENEFITS OF MARKETING. 1. Adds value 2. Lowers prices 3. Creates new & Improved Products.
Benefits of Marketing Adds value Lowers prices Creates new & Improved Products.
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Transcript of Benefits of Marketing Adds value Lowers prices Creates new & Improved Products.
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Benefits of Marketing
Adds valueLowers pricesCreates new & Improved Products
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Added Value
Makes product more
useful
Added value =UTILITY
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Five Economic Utilities
Form UtilityPlace UtilityTime UtilityPossession UtilityInformation Utility
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Form UtilityChanges raw material or putting parts together to make them more usefulExample:
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Place Utility
Convenient location
Catalog shopping
Retail stores
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Time UtilityHave a product available at a certain time of year or a convenient time of dayExample:
New York February
Toys
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Possession Utility
Exchange of a product for some monetary value
CashCredit Card Check
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Information Utility
Communication with the Customer
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Lower Prices
Marketing activities increase demand
High demand = large quantities
Large quantity production = lower unit cost
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Fixed Cost
Cost of daily operation = $20,000
Quantity Fixed Cost
Produced Per Unit
10,000 $2.00
200,000 .10
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Competition
More competition = lower prices
= higher quality
Example:VCR’s original price $600.00
VCR’s price now $140.00
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New and Improved ProductsMarketing
Competition
Lower Prices
Better Products
Computers smaller, faster, powerful
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Why Study Marketing?
Career
Personal Knowledge
Understand Business
Interpersonal Skills
Communication Skills (huh?)
BLS estimates marketing employment to increase 20.6% between 1992 - 2005