Describe the types of utility. Objectives: Describe the types of utility. Explain the relationship between utility and marketing.

Describe the types of utility.

Utility is added value to a good or service 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 usefulness created by changing the form of a good Businesses can change product styles, scents, flavors, or colors. the usefulness created by changing the characteristics of a service Businesses can do things in a new or improved way. Towel-dry service Fastest delivery in town!

Types of Utility Time utility = Businesses can make sure the product is available when you want to buy it. the usefulness created when products are 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 New! Place utility = the usefulness created by making sure products are available where they are needed Businesses can make sure the product is available where you want to buy it. New! A bus service could expand into your neighborhood. Your bank could set up online account management.

Types of Utility Possession utility = Businesses can make it easy for you to become the product’s owner. the usefulness created when ownership is transferred to the user As the owner, you can do what you want with your jeans.

Explain the relationship between utility and marketing.

Utility and Marketing Utility varies. One product vs. another product One consumer’s view vs. another consumer’s view Utility now vs. utility later

Form Utility and Marketing Marketers affect form utility indirectly when they: Study which features bring the most satisfaction Recommend the changes producers should make

Time Utility and Marketing 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

Place Utility and Marketing Marketers are directly involved in place utility when they: Figure out where the right location is Plan how to get the product there A snowsuit in Hawaii would have little place utility. Actually deliver the product to the right place

Possession Utility and Marketing Discount pricing Answer questions Marketers directly create possession utility when they: Address whatever holds consumers back from making a purchase Make the purchase as effortless as possible Discount pricing Answer questions If affordability stands in the way of a purchase, marketers can provide options: This allows a willing buyer to take ownership of a product as soon as possible. Layaway options Payment plans

Think of something you bought recently. Consider how the four utilities were provided. What improvements—or increased utility— would you like to see?