Marketing Utilities

Utility◦ Utility defined◦ Form Utility◦ Information Utility◦ Place Utility◦ Time Utility◦ Possession Utility

Agenda

Utility- refers to what is added to a product to make it valuable on the market.

Utility affects the value equation by providing consumers with something they did not have before.◦ Ex. Easy to open cans, flavoured water

Utility Defined

Form Information Place Time Possession

5 Types of Utility

Form- is the relationship between a product or service’s form and its function.◦ Form refers to the product’s look or the type of

service provided.◦ Function is what the product or service is

intended to do.◦ Usually form follows function: what the product is

meant to do will often dictate what it looks like.

Form Utility

Information- provides consumers with instructions, directions, and user manuals.◦ Ex. Service representatives (Bell, Dell, Linxus)

Advertising delivers information utility. Many consumers read advertisements to

determine what products are available, where, and at what price.

Consumers with information receive more value from their purchases.

Information Utility

Place- when marketers make it possible for the consumer to purchase the product.

The easier the product is to find, the more place utility it has.

Ex. If a product has incredible form utility, advertisements are done and provide information utility, but the product cannot be obtained in Ontario, does it have place utility?

Place Utility

Time- Businesses add time to a product or service when the product or service is available when the consumer wants it.◦ Ex. Businesses that are open 24-7, Banks that are

open late, convenience stores These characteristics provide access to

consumers to utilize a product or service provided by a company.

Time Utility

Possession- When goods and services are easy to purchase, they are said to have possession utility.

To add possession utility to a product or service, the business makes it easier for people to buy that product or service.◦ Ex. Companies provide their own credit cards for

consumers to easily possess a product/service (Home Depot)

Possession Utility

Utility is value added qualities and attributes which make products and services more attractive to the end-user.

Making products affordable and accessible while offering substantial product information are qualities which add utility to a product/service.

Conclusion

Questions/Concerns?

Thank you