The Economic Utilities PDF

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The Economic Utilities of Marketing Note Taking Guide Learning Objectives  Explain the concept of utility  Explain the types of utilities and cite examples  Explain the relationship between utility and marketing

What is utility? Utility describes the added benefit and value to the consumer from acquiring and consuming the product. They are the attributes of goods and services that make them capable of satisfying the consumers wants and needs

What is Form Utility? Usefulness when the form of a good is changed

What is Task Utility? An organization provides value by preforming a service for customers.

Example: Baskin robin flvors

Example: Uber eats

What is Place Utility? Variety of stores and locations that have to product available adds value because it makes it more convenient to get

Example:

What is Time Utility? Usefulness when companies have a large availability of their products so that people can get them at times convenient to them

Apple products in every big name store

Example: Mc donalds all day breakfast menu

What is Possession Utility? The perceived value that costumers get from having a product

What is Information Utility? When customers have all the information about the product to make an informed decision on their purchase

Example: Layaway

Example: Ingredients on a food label

How Does Utility Relate to Marketing? If costomers know that a product has added value to their lives they will likely buy the product again

Marketers Affect Form/Task Utility When They…

Utility can vary on… One product seen better then the others What one person liked may not be what another person liked Seen as good for now but maybe not later.

Marketers Affect Place Utility When They…

. when they study which products/service features bring the most satisfaction, recommend changes producers should make, give options and features to choose from, and create new ideas for companies

Find best locations to sell products, how to get product to store, and actually deliver product to the right store

Marketers Affect Time Utility When They…

Marketers Affect Possession Utility When They…

Find out when customers need the products, consider promotional/seasonal activites into consideration, how to get products to stores in time, and make changes necessary to make sure deliveries

Address issues that hinder customers purchases, make purchase as effortlessly as possible, offer payment plans, and delivery

Marketers Affect Information Utility When They… Create message for product, find channels to deliver message, and respond to feedback on the product....