The Five Economic Utilities

5 Economic Utilities Form Utility Place Utility Time Utility Possession Utility Information Utility

Form Utility Changing raw materials or putting parts together to make them more useful Not directly related to marketing Example: Chain Wheels Handlebars Gears What do these parts make??

Form Utility (Example 2) When you cut down a tree and use the lumber to create pencils, paper, furniture, etc. The tree now becomes more valuable to the customer.

Place Utility Having a product where customers can buy it. Most convenient Most efficient Catalogs, retails stores, internet

Time Utility Having a product available at a certain time of year or a convenient time of day. Give me some examples!

Possession Utility The exchange of a product for some monetary value. Cash Credit/Debit Cards Checks Layaway

Information Utility Communication with the consumer Salespeople Displays Packaging and Labeling Advertising

EXAMPLE OF THE FIVE UTILITIES USING ILLUSTRATIONS

ACTIVITY Make a PowerPoint on the 5 ECONOMIC UTILITIES FOR YOUR CANDY BAR (2-3 pictures on each slide)

5 Economic Utilities Form Utility Place Utility Time Utility Possession Utility Information Utility