Market

The four Utlities of marketing

Each stage in the marketing system enhances the desirability of the good or service to the consumer by producing a from, place, time, or possession utility (satisfaction) (Figure 3-2). The form utility arises from having the product in the right form for the consumer to gain maximum utility from its consumption. For example, if consumers like their meat in the form of hamburgers at their local fast-food restaurant, they would gain little utility (satisfaction) if you

Form- having the product how the consumer wants it (e.g., prepared food for those who do not wish to cook) Place-having the product where the consumer wants it (e.g., convenient location, free delivery). Time-having the product when the consumer wants it (e.g., Christmas trees before Christmas). Possession-making it easy to get ownership of product to the consumer (e.g., credit cards, easy credit terms) |

FIGURE 3-2

The four utilities of marketing.

dumped a whole beef cow on their plate. Marketing people recognize this desire of consumers and transform the form of the beef from the cow to hamburger through processing.

The place utility arises from having the product where the consumer wants it. Continuing the hamburger is in Oklahoma while the consumer is in Massachusetts, little is added to consumer satisfaction. Thus the product needs to be transported to the consumer, since consumption of the hamburger at a local fast-food outlet in Massachusetts will give him more utility than if he has to drive all the way to Oklahoma to get it.

The time utility comes from having the product when the consumer wants it. If the consumer in Massachusetts wants his fast-food hamburger for luch but the truck does not arrive until late in the afternoon, this also does little to provide customer satisfaction (utility). Prossesion utility requires the transfer of ownership of thant hamburger to us upon payment of the money, and completes the circuit.

Marketing fulfills a...