Download Possession Utility and Marketing

Objectives:
Describe the types of utility.
Explain the relationship between
utility and marketing.
Describe the
types of utility.
What is Utility?
Utility is added value to a good or service
Form/Task utility
Time utility
Place utility
Possession utility
Types of Utility
Form utility =
Task utility =
the Businesses
usefulness created
can
by
change
changing
product
the
form
styles,
of scents,
a good
flavors, or colors.
Businesses
the usefulness
can
created
do things
by changing
in a new
the
or characteristics
improved way.
of a service
Towel-dry service
Fastest
delivery
in town!
Types of Utility
Time utility =
Businesses
can makecreated
sure the
product is
the usefulness
when
available
when
want
to buy it.
products
are you
made
available
at the time they are needed.
How useful is holiday candy
available after the holiday?
How helpful is a tax service if
offered after the deadline?
Types of Utility
Place utility =
the
Businesses
usefulness
can
created
make sure
by making
the product
sure
products
is available
are available
wherewhere
you want
theyto
are
buy
needed
it.
New!
A bus service could expand
into your neighborhood.
Your bank could set up online
account management.
Types of Utility
Possession utility =
the
Businesses
usefulnesscan
created
makewhen
it easy
ownership
for you
to become
is transferred
the product’s
to the user
owner.
As the owner, you can do what
you want with your jeans.
Explain the
relationship between
utility and marketing.
Utility varies.
One product vs. another product
One consumer’s view vs. another consumer’s view
Utility now vs. utility later
Marketers affect form utility
indirectly when they:
Study which features bring
the most satisfaction
Recommend the changes
producers should make
Marketers are directly involved
in time utility when they:
Find out when consumers
need the product
Plan how to get the
product there on time
Make the necessary
changes to get it done
Marketers are directly involved
in place utility when they:
Figure out where the right
location is
Plan how to get the
product there
Actually deliver the
product to the right place
A snowsuit in
Hawaii would
have little place
utility.
Marketers directly create
possession utility when they:
Address whatever holds
Make
the purchase
as
consumers
back from
effortless
as possible
making a purchase
If affordability stands in the
This allows a willing buyer to take
way of a purchase,
ownership of a product as soon as possible.
marketers can provide options:
• Think of something you bought recently.
• Consider how the four utilities were provided.
• What improvements—or increased utility—
would you like to see?