The Utilities Created by Marketing


 

All of marketing’s functions are performed to move goods from products to consumers. During this process, marketing adds utility (value) to goods and services. There are five types of utilities: 1) form, 2) time, 3) place, 4) possession, and 5) information.

1)      Form utility: refers to the changing of raw materials into a finished product. Taking grains and turning them into cereal is an example of form utility. Form utility is usually considered a production function rather than a marketing function.

2)      Time utility: it helps consumers by making products available when the consumer wishes. Supermarkets that are open 24 hours a day provide time utility. Making fresh fruit available in the winter is also a form of time utility.

3)      Place utility: it makes sure that the goods and services are conveniently located where consumers want them.

4)      Possession utility: it helps make the exchange of goods between buyers and sellers easy.  Anything that helps complete the sale – delivery, installation, warranties, credit – is considered part of possession utility.

5)      Information utility: it informs buyers of the product’s existence, how to use it, the price, and other facts. Such information is provided through advertising, salespeople, and packaging.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

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Risks: Building Blocks of Success


A person’s confidence is best measured by his or her willingness to take risks. Fear is best reflected by the degree to which a person seeks to avoid risk. The old saying, “Nothing ventured, nothing gained” will always be true. Risk, the possibility of loss, is a necessary to success as air is to life.

Imagine what would happen if everyone decided to try to live 100 percent risk-free:

  • No farmer would plant a crop because there might be too much rain or too little. Or the market price for the grain might collapse.
  • No one would start a business because comptition might cause it to fail.
  • No television programs would be produced because there might be too few viewers to attract advertisers.
  • Investors would not put money into new construction, into oil well exploration, and into new ventures.
  • Artists and authors would stop work because people might reject their activity,

To be completely secure, people would take their money out of banks (the banks may fail), hoard food (there may be an atomic war), refuse to drive cars (I may have an accident), and patients in hospitals would refuse blood transfusions (the blood may be contaminated). A goal of 100 percent security would almost overnight destroy our economy.

To avoid risk completely, no one would apply for a job (you may not get it), submit a poem to a literary journal (it may be rejected), speak up in a meeting (you may be laughed at), or ask for an order (the prospect may say No).

Here is an important point: Success-oriented people take risks and sometimes the risks turn out to be losses. Thirty-seven percent of today’s millionaires went broke after accumulating wealth. But they came back to win. No investor is always “right,” and people who build shopping centers, rersidential neighborhoods, and office buildings sometimes lose money. In the oil drilling business, a majority of wells turn out to be dry holes.

How we react to defeat is the key. You have heard people who have failed in a job or in a business of their own say, “I’ve had it. Never again!”

At times, we all feel like giving up. And if we’re not careful, we will give up. Pressure from peers to surrender can be powerful. They tell you, “Look, you tried. The plan didn’t work. Why beat your head against a wall? Don’t feel bad. Most people who try something new fail.”

These people – your peers and “friends” – are often glad to see you surrender. It’s disappointing but it’s true. They don’t have the courage to do something on their own. If they see you fail, they feel better about themselves; you are one of them – another mediocrity.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Lectures, Line of Sight