Mitchell F, Karina G, Nicole S, Matteo M, Katherine Z, Kyle V
Definition of Product Utility
An economic term referring to the total satisfaction received from consuming a good or service. Time, place, possession, and form make up the utility marketing model. This marketing model educates business owners, marketing and advertising professionals about consumer spending habits. The utility marketing model takes into consideration all aspects of consumer spending and convenience of purchasing the product and obtaining the product when it is wanted.
Types of Marketing Utilities
There are five types of marketing utilities that marketers use in their process of selling goods. The concept explains that the process of marketing makes 'things'. These 'things' make a product/service usable to the end consumer. Without these 'things' being done, you couldn't acquire or use the product.
Form, what a product's shape and size is. An example of an item's form would be clothes' sizes, shape, fabrics, everything it's made of. An example of a service's form is a version of software like Windows 7 or 8.
Task, that's when someone provides you a service and does something for you. They may do it because you don't have time, you don't know how, or you don''t want to do it. Examples are if someone mows your lawn or washes your car.
Time, it is important to get a customer's chosen item to them as quickly as possible. You need to make sure it's available when the customer orders it or else they will have to wait longer. In-store items are a good convenience to get products faster.
Place, means products are easily available to the buyers when they want it and at a location near them. For warehouses that easy because the products are delivered there and unloaded without another trip, like Costco.
Possession, essentially means transfer of ownership from the seller to the buyer. You have to make it easy for the customer to buy the product and own it. Cash, a variety of credit and debit cards, and ATM machines make help them buy.
Which utility is not classified as a marketing utility?
Time is not classified as marketing a utility because a utility is for a product to be something we can use and get some usefulness out of. Time is something that the company wants to get the customer to physically obtain the chosen product as quickly as possible, which isn't really related to a product that people can use and get some usefulness out of .
Why is Product Utility an important factor in marketing?
Product utility is an important factor in marketing because it allows you to make better business decisions. For example, knowing which regions that sell the most and which stores that sell the most products determines how much inventory you want to send and where to send it. Understanding product utility helps create a more successful marketing campaign.
What utilities are used when products are sold through the Internet
Utilities used when products and/or services are sold through the Internet are time, task and form.
Time: ensure a product is available when the customer wants it adhere to time utility, and demanding products varying on weather.
Task: while ordering something through the Internet, someone provides a service and a product, which the customers orders.
Form: utility which is the value a consumer sees in a finished product. Consumers purchase items such as furniture, electronics or vehicles in part because the consumer is incapable of finding and putting all the parts together to create the product. The customer sees value in the finished product, or the form created by each product part.
Seasons and Holidays
According to a Department of Energy report, holiday lighting consumes more than six terawatt-hours a year. This is equal to the electricity consumed by a half-million homes in one month. Moving to LEDs for holiday lighting would cut this by 90 percent and reduce some of the side effects of wasted electricity. Improvements in weather forecasting from temperature forecasts to severe weather events can have a large economic impact to a utility's bottom line. Extrapolating the estimated costs of unit startup - shutdown due to weather error in the temperature forecasts alone may well be in the hundreds of millions annually nationwide for the utility sector. Better QPF forecasts and improvements in how water resource managers utilize these forecasts can save millions annually nationwide and reduce shoreline impacts as a result of high water operations.
Types of Utility: http://www.witiger.com/marketing/5utilities.htm
Definition of Product Utility: "Economics Basics: Utility." Investopedia. N.p., n.d. Web. 09 Feb. 2014. "What Are the Four Types of Utility Marketing?" Small Business. N.p., n.d. Web. 10 Feb. 2014.
Seasons and Holidays 1: http://sciencepolicy.colorado.edu/socasp/weather1...
Seasons and Holidays 2; "Energy Adviser: LEDs Can Lighten Holiday Utility Bills." The Columbian. N.p., n.d. Web. 10 Feb. 2014.
Utility That is Not Classified..: http://www.witiger.com/marketing/5utilities.htm
"5 Types of Utilities." 5 Types of Utilities. N.p., n.d. Web. 12 Feb. 2014.
Utilities used through Internet: http://smallbusiness.chron.com/four-types-utility-...
"What Are the Four Types of Utility Marketing?" Small Business. N.p., n.d. Web. 10 Feb. 2014.