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

2. Describe the types of utility.

3. 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

4. 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!

5. 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?

6. 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.

7. 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.

8. Explain the relationship between utility and marketing.

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

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

11. 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

12. 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

13. 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

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