3Utility is added value to a good or service What is Utility?Utility is added value to a good or serviceForm/Task utilityTime utilityPlace utilityPossession utility
4Types of Utility Form utility = Task utility = the usefulness created by changing the form of a goodBusinesses can change product styles, scents, flavors, or colors.the usefulness created by changing the characteristics of a serviceBusinesses can do things in a new or improved way.Towel-dry serviceFastest delivery in town!
5Types 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?
6Types of Utility New! Place utility = the usefulness created by making sure products are available where they are neededBusinesses 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.
7Types 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 userAs the owner, you can do what you want with your jeans.
8Explain the relationship between utility and marketing.
9Utility and Marketing Utility varies. One product vs. another product One consumer’s view vs. another consumer’s viewUtility now vs. utility later
10Form Utility and Marketing Marketers affect form utility indirectly when they:Study which features bring the most satisfactionRecommend the changes producers should make
11Time Utility and Marketing Marketers are directly involved in time utility when they:Find out when consumers need the productPlan how to get the product there on timeMake the necessary changes to get it done
12Place Utility and Marketing Marketers are directly involved in place utility when they:Figure out where the right location isPlan how to get the product thereA snowsuit in Hawaii would have little place utility.Actually deliver the product to the right place
13Possession Utility and Marketing Discount pricing Answer questions Marketers directly create possession utility when they:Address whatever holds consumers back from making a purchaseMake the purchase as effortless as possibleDiscount pricingAnswer questionsIf 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 optionsPayment plans
14Think of something you bought recently. Consider how the four utilities were provided.What improvements—or increased utility— would you like to see?