5 types of utilities (original) (raw)

Production and Marketing supply various kinds of utility that are needed to provide consumer satisfaction
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Definition of terms

Within the world of "teaching marketing", and websites discussing the various "utilities of marketing", you'll find a variation on whether there are 4 or 5 Types, and sometimes different wordings of the type. Fundamentally, the concept is used to explain that the process of marketing creates several "things" which make a product/service useable to the end user, without these "things" being done, it is not possible to acquire, and use the product properly.

POSSESSION

The utility of Place and Possession are very much inter-related and depend on each other.

When someone buys something from a vendor, essentially, it is a "transfer of ownership".

Part of being successful in the competitive world of "selling stuff" is to make it easy for the customer to pay, and take possession.

The marketing utility that allows the customer to physically access what they bought, it referred to as "possession".

Having a variety of easy payment methods, cash, debit, credit card, paypal, etc. is part of facilitating possession as is the physical location of the product and how it is delivered to the customer.

	One of the competitive positions Leon's furniture stores utilize is the incentive that people can make very low payments to obtain large purchases, and walk out of the store with their selection immediately - allowing for "possession" in an easy way.

In B2B situation, leasing and credit purchase options, such as 2/10 net 30 are also part of "possession".