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.

 

Full Warranty


A full warranty means:

  1. The warrantor will fix or replace any defective product, including removal and reinstallation if necessary, free of charge.
  2. It is not limited in time (say, to one or two years).
  3. It does not either exclude or limit payment for consequential damages unless the exclusion or limitation is printed conspicuously on the face of the written warranty.
  4. If the product cannot be repaired or has not been repaired after a reasonable number of efforts to repair it, the consumer may choose between a refund and a replacement.
  5. The warrantor cannot impose duties on the consumer except reasonable duties (the warranty cannot require the consumer to ship a piano to the factory) or a duty not to modify the product.
  6. The warrantor is not required to fulfill the warranty terms if the problem was caused by damage to the product through unreasonable use.

A full warranty does not have to cover the whole product. It may cover only part of the product, such as the picture tube of a television set. Also, anyone who owns the product during the warranty period may invoke or use the warranty.

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.

Definitions of Strategy


Strategy: the science of planning and directing military operations, a plan or action based on this; skill in managing or planning, esp. by using stratagems. (Collins Pocket Dictionary, 1986)

Stratagems: a trick or plan for deceiving an enemy in war; any trick or scheme. (Collins Pocket Dictionary, 1986)

Strategic: sound in strategy; advantageous; needed for carrying on war; directed against the military and industrial installations of the enemy. (Collins Pocket Dictionary, 1986)

A strategy is a plan of action designed to achieve a particular goal. The word strategy has military connotations, because it derives from the Greek word for general. A strategy is a long term plan of action designed to achieve a particular goal. Strategy may also refer to:

  • Business strategy, the art and science of enabling an organization to achieve its objective
    • Marketing Strategy, a process that allows an organization to increase sales and achieve a competitive advantage
    • Technology strategy, a document that explains how information technology should be used as part of a business strategy
    • Digital strategy, the process of specifying an organization’s processes to deploy online assets
  • Trading strategy, a predefined set of rules to apply in finance (Wikipedia)

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.

What’s Your Opinion?


A key part of the optimum result method is to get people to express themselves. Everyone has an opinion about a lot of things: What the company is doing, right or wrong; what’s good and what’s bad about the economy; how the mayor or president is performing; and whether any policy will survive.

 

And many people in a business have opinions about how the enterprise could be better run. The problem is, in most organizations the people who do the work are never asked, “What is your opinion?” “Got any ideas for doing this better?” and “Can you suggest a way to do this in less time?” As a result, a large amount of intelligence is untapped, the people with ideas feel frustrated, and the organization’s performance suffers.

 

A number of things explain, but one thing you should be doing is to get the opinions of your people before making key decisions. The best intelligence often comes from front-line staff. We install the steel we fabricate all over the country. Make it a point to talk with installation crews; ask for their opinions about what our customers are thinking. Maintain a steady flow of opinions, gathering information from your installation and sales people.

 

All people think. Encourage them to tell you what they’re thinking about. When you ask for opinions from employees doing different functions, you accomplish two things. First, you win their cooperation because they’ve had a chance to give you their views. Second, you pick up a lot of good ideas you can turn into profit.

 

Nevertheless, there is a problem when you teach the what-is-your-opinion technique to few managers. Some of them are conditioned to believe that asking other people, particularly subordinates, for their ideas is a sign of weakness. Letting other people express their opinions is a sign of strength.

 

Use the optimum results. It works wonders in getting what you want—a sale, a better job, and cooperation and support.

  • Find out what is the ideal benefit the other person seeks.
  • Tailor what you have to offer to provide that ideal benefit.

 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, Line of Sight