In 500 words or less ( please make it at least 500 words.
Explain how marketing adds value by creating several forms of utility. referencing chapters 11 and 12. explain how marketing adds value by creating several forms of utility .
book is- foundations of business by Pride, Williams, M; Hughes, Robert J; Kapoor, Jack R,
How Marketing Adds Value By Creating Several Forms Of Utility
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Marketing refers to a set of activities or processes that facilitate the creation, communication, exchange, and delivery of offerings that possess certain value to partners, clients, consumers, or the members of society. Businesses thrive on the marketing relationships they develop with consumers and in most cases, they focus on building positive relationships with consumers to encourage loyalty. The marketing process adds value to goods and services through the creation of various types of utility. Utility refers to the extent to which a service or product can satisfy human wants. The main types of utility created through marketing include form, time, place, and possession utility (Pride et al., 2018, pg. 303-305).
Form utility refers to a product’s value after various components and raw materials are combined to result in a finished form. These products or services must be designed based on the needs of consumers to satisfy their wants. Marketing has an indirect influence on form utility because businesses rely on the data collected through marketing research to determine the specific features, size, and shape that would be preferred by consumers. The consumer must be able to see the value in the product they purchase and in other cases, form utility may mean availing a wide product selection (Pride et al., 2018, pg. 305).
Unlike form utility, the other three types of utility, time, place, and possession, are directly created through marketing. Businesses create place utility by ensuring that products are available to consumers in areas where they can easily access and purchase them. For instance, place utility is created when a manufacturer of beauty products ships them to stores where they can be easily seen and purchased by consumers (Pride et al., 2018, pg. 306). Marketers create time utility when they ensure that consumers can access products or services when they wish to do so. Timing is crucial especially for products that are purchased seasonally. For example, Halloween costumes and other decorations are mostly displayed in September and October since consumers are most likely to purchase them at that time. Similarly, Christmas decorations are displayed as the end of year approaches to set the festive mood (Pride et al., 2018, pg. 307)
Possession utility involves the transfer of ownership to the consumer when they purchase a product. For simple products such as clothes and shoes, possession utility is created using sale receipts. However, some products such as vehicles require a more complex process due to the transfer of both rights of use and title. Time, place, and possession utility have value about convenience to consumers and money. The value is added to products and services through marketing processes that begin with market research to product development, promotion, advertising, and placing them in convenient locations. The cost incurred in marketing is incorporated as part of the product cost (Pride et al., 2018, pg.307).
In conclusion, marketing involves coordinated activities that create the four forms of utility either directly or indirectly to ensure that the consumer accesses maximum utility. When consumers pay for a product or service, they get the exact value they paid for and their wants are satisfied. Consumer satisfaction is the aim of most businesses since it enhances loyalty and increases sales as well as revenue.
References
Pride, W., Hughes, R., & Kapoor, J. (2018). Foundations of Business (6th ed.). Cengage Learning.