Claire H., Logan M., Ethan E., Sasha D., Sam H.
What is Meant By Product Utility?
Product Utility means the condition of usefulness of a product or service. The usefulness refers to when, how, where, and in what ways a product provides sustenance.
What are the Types of Utilities? What Do They Have in Common?
There are four types of product utilities:
- Time: When the product is available to the customer; season, weather, holidays, etc.
- Form: The value a customer can see in the product, especially the value in products a customer could not create themselves; such as electronics, vehicles, furniture, etc.
- Possession: The value customers put on purchasing products and using it for any use, including intended use.
- Place: Place is the value that costumers put on where they purchase the product. Customers prefer stores conveniently located near them as opposed to factories and manufacturers.
Each utility is focused on making a product more valuable to the customer. It helps the product adhere to the customers wants and needs.
Which Utility Is Not Classified As A Marketing Utility? Why Not
Possession is not a marketing utility. It is not a marketing utility because the way a customer uses or intends to use a product can not be used to market the product. Advertisements may suggest how to use the product or service but how the customer themselves plans to use a product affects whether or not they buy it.
Why is a Product Utility an Important Factor in Marketing?
Product Utility is an important factor in marketing because a product's usefulness can identify customers' wants and needs and can increase or decrease demand for the product. Identifying product utilities allows marketers to advertise their products effectively so that customers will find more value in them.
Which Type(s) of Utility is Being Used When Products and Services are Sold Through the Internet?
When products and services are sold through the internet, two utilities are used. These two utilities are time and form. The utility of time is used in that a customer can order a product or service whenever they want from the internet as opposed to only being able to purchase them in person during store hours. Form is used in that customers can find value in products online as well as they can in person. Many online shopping websites provide images of the product and detailed description of its condition, usage, and manufacturing. The customers can find different value in products from well-being of the product and personal preferences that affect choices from these images and descriptions.
How Do the
Seasons and Holidays Affect Utility?
Seasons and holidays make customers place value on different utilities. Holidays are sometimes a stressful time, and costumers may put a lot of value on time utility. For instance, on thanksgiving people often have a lot of work to do preparing to have the whole family over. Frozen turkey that can quickly be picked up in the store will be valuable to those customers. The form utility will also be useful; in the winter, a hot coffee from starbucks will be especially attractive to customers because of the cold outside.
- "What Are the Four Types of Utility Marketing?" Small Business. N.p., n.d. Web. 10 Feb. 2014.
- "Utility." The Free Dictionary. Farlex, n.d. Web. 11 Feb. 2014.
- "MY MARKETING NOTEBOOK: Here Are the Five (5) Marketing Utilities Your Product Must Possess." MY MARKETING NOTEBOOK: Here Are the Five (5) Marketing Utilities Your Product Must Possess. N.p., n.d. Web. 11 Feb. 2014.