Chapter 11, Problem 10AA

To determine

To state: The relationship between marketing and utility.

Explanation of Solution

When marketing a product market structure and consumer base needs to be understood in order to ensure product accessibility. Effective marketing is needed especially in a highly competitive environment to ensure customers value the goods and services offered.

Conveying the value and usefulness of a product refers to Utility Marketing. It is the way in which the marketer makes its product or service available to the consumer that results in the consumer believing that he will get maximum satisfaction in exchange of money.

The main types of Utility Marketing are as follows:

1. Form Utility- It refers to the product that is offered to the consumer. The conversion from raw material to the final product which is presented for example bread, electronics, vehicles, etc.
2. Place Utility- It refers to making the goods available at the right place which is easily and comfortably accessible to the customer.
3. Time Utility- It refers to making the product available at the disposal of the consumer at the right time.
4. Possession Utility- It refers to the value the consumer derives when purchasing and using the product.

Economics Concept Introduction

Introduction:

Marketing- it means the activities which are undertaken to promote the buying and selling of products and services. It includes various activities like advertising, selling, pricing, delivery of goods and so on.

Utility- it refers to the benefits or value derived by a customer from the purchase of goods or services or both in exchange of monetary benefit.