Unit 1 Flashcards
(23 cards)
Place utility
is added by providing a product or service at a convenient location—like a hot pizza at your doorstep. The delivery service provided by Mama Mia’s Pizza is an example of place utility. Another example of place utility is the fast-food restaurant located two blocks from a school. Vending machines in the halls at a school would also be examples of place utility.
marketing concept
Form utility
is added by changing the form of something to make it more useful. A freshly baked pizza is more useful than the individual ingredients in Mama Mia’s refrigerator. Mama Mia’s has added form utility by putting the ingredients together in a more desirable form. A loaf of bread is more useful than flour, salt, sugar, and yeast. The production process of marketing adds form utility.
Possession utility
is anything that is done to make it easier or more attractive for you to own or possess the product. In the pizza example, you own and have the right to use the product, so you decide to gobble it up. When you take possession of the product, it becomes more useful to you (the consumer). Just seeing the pizza on television did not really satisfy your appetite. You must take possession of something to make it useful. Examples of possession utility include offering credit or putting goods or services on sale.
providing a product or service at a convenient location
Place utility
sales concept
trying to sell something before knowing what the customer wants
buyer’s market
an abundance of goods and services
the increased value that comes from being informed about the product or service
Information utility
Total company effort
all parts of the business work together
Anything that is done to make it easier or more attractive for you to own or possess the product
Possession utility
Consumer
one who uses the product
Nondurable goods
Goods that last a short time
Durable goods
Goods that last
marketing concept
the practice of meeting the needs of the customer while making a profit
Information utility
is the increased value that comes from being informed about the product or service. The product is more useful because of information presented on the package or in the advertising. Having Mama Mia’s phone number repeated several times in the television ad made it easy for you to remember the number to make the phone call. Instruction booklets provided with products increase their usefulness. Recipes on the label of a can of tomato soup make the soup more useful. A road sign identifying the location of a gas station is another example of information utility.
Service
A non-tangible good
changing the form of something to make it more useful
form utility
seller’s market
there is a shortage of goods and services
Customer
one who buys the product
having products or services available when you want them
Time utility
Time utility
is added by having products or services available when you want them. You placed an order for a large pizza from Mama Mia’s and it was at your doorstep in fewer than thirty minutes. You were able to get the pizza when you wanted it. Other examples of time utility would include extra turkeys available in November and December, swimming suits in June, yearbooks in May, and fresh flowers for the prom
customer concept
doing what the customer wants, not what the business wants
