Economic Benefits of Marketing

• Value Addition: Marketing functions add value to products, known as utility.

• Five Types of Economic Utilities:

  The five marketing functions that add value to a product, also known as utilities, are:

  1. Form Utility: Enhancing the product's physical characteristics.

  2. Time Utility: Making the product available when needed.

  3. Place Utility: Making the product available where it is needed.

  4. Possession Utility: Facilitating the transfer of ownership.

  5. Information Utility: Providing relevant information about the product.

The five marketing functions, also known as utilities, include:

1. Form Utility: Transforming raw materials into finished products (e.g., a smartphone assembly).

2. Place Utility: Making products available where customers need them (e.g., online shopping).

3. Time Utility: Providing products when customers want them (e.g., seasonal promotions).

4. Possession Utility: Facilitating the transfer of ownership (e.g., financing options for cars).

5. Information Utility: Offering information about products (e.g., product reviews and specifications).