utility

Examples of utility in the following topics:

• Value and Relative Value

  • They find a greater utility in the object.
  • This increase in utility is called marginal utility, and this is all known as the marginal theory of value.
  • The utility for the seller is not as an object of usage, but as a source of income.
  • And here again it is marginal utility that comes in.
  • Here we also get into the utility for resellers.

• Services as Products

  • And although some utilities actually deliver physical goods — like water utilities which actually deliver water — utilities are usually treated as services.

• Perishability

  • An empty seat on a plane never can be utilized and charged after departure.
  • An empty seat on a plane never can be utilized and charged after departure.

• Other Inputs to Pricing Decisions

  • The utility of a product depends on its value to the customer minus its price.
  • In other words, a company can utilize its competitive advantage to implement a pricing strategy that will maximize its profits.

• The Importance of Market Segmentation

  • Segmentation splits buyers into groups with similar needs and wants to best utilize a firm's finite resources through buyer based marketing.

• Distribution Intensity

  • Retailers such as Lowe's are commonly utilized in selective distribution for large appliances.

• Distribution Centers vs. Direct Store Delivery

  • Depending on customer needs, marketing channel strategies can utilize distribution centers or move products directly to a store.
  • Depending on the product being sold and ultimate end user, companies can choose a marketing channel strategy that involves utilizing distribution centers (wholesalers) or moving their products directly to a store, or retailer.

• Product, Placement, Promotion, and Price

  • The decision regarding how to distribute a product has, as its foundation, basic economic concepts, such as utility.
  • Understanding the utility a consumer expects to receive from a product being offered can lead marketers to the correct distribution strategy.
  • The concept of price is in contrast to the concept of value, which is the perceived utility a customer will receive from a product.

• Product Orientation

  • The main task of an organization utilizing the product orientation approach is to continue improving quality and reducing costs as key factors in the fight to maintain and attract customers.

• Product Advertising

  • Internationally-acclaimed Apple Inc. has effectively utilized its Mac vs PC advertisements as part of its marketing efforts to increase its market share over the years.