EM - Marketing and the Economy [LESSON]

Marketing and the Economy

There are many advantages provided by marketing:

Marketing serves as a bridge between the customer and the seller of products and services.
Marketing makes buying easy for customers.
Marketing creates new and improved products at lower prices.
The marketing field provides a wide range of careers for professionals in brand management, public relations, and communications.
Marketing teams promote a culture of entrepreneurial thinking via initiatives in and outside the organization. Entrepreneurial company cultures can foster innovation and creativity.

Marketing provides consumers with utility

Utility--The functions of marketing add value to a product.
The added value is called Utility.
Utilities are the attributes of a product or service that make it capable of satisfying consumer's wants and needs.

Benefits of Product Utility

Added value increases demand, increased demand allows manufacturers to produce in larger a quantity which reduces the cost of each item.
When a product becomes popular, the number of merchants offering the product will increase. This increases competition, which reduces the price.
Competition also makes manufacturers improve products to better satisfy customer wants and needs.

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