How do prospective consumers spend their money? What are the most important factors that matter to them before they can choose a cleaning services company over the other? To have all these questions answered, this is where the role of sales and marketing comes in. These two departments are tasked with designing and deploying consumer campaigns aimed at showcasing the unique value proposition of products and services, to help a business stand out from the competition.
Consumer preferences are constantly evolving in response to both internal and external market forces and internal financial constraints. Companies must find ways to understand and articulate their value of service or product offering, in a manner that both captures consumer interests and convinces them to make a conversion. This is where the concept of utility-based marketing becomes increasingly useful.
Utility in Marketing
In a non-economic term, utility means usefulness. From a market-driven perspective, it speaks to the specific value that is realized by consumers when they spend on products and services. Understanding utility in marketing can help companies become better in their spending habits and capture the market more dynamically.
When it comes to marketing, there are different utilities.
Utility of time
This is the ‘when’ component of utility. It answers the question – is your product available when consumers want it? Will it arrive as quickly as possible and without any complications? Consumers want to spend as little time as possible waiting for their products to arrive in stock, and as a result, the utility of time becomes very important.
Utility of place
Place utility refers to the ability of consumers to get what they want, where they want it. It is in most cases applied in brick and mortar stores. It is very paramount especially for customers looking for a familiar item that is easy to obtain. The place offers a competitive edge if companies can showcase their capacity to keep items in stock all the time.
Utility of possession
Possession as utility is focused on the actual product possession. – It includes aspects such as consumers driving a new car off the lot or even having furniture delivered to their home. It also highlights the connection between possession and purpose. When companies can highlight the finished form of complex products such as vehicles and electronic devices, they can potentially reduce purchasing barriers and make it easy for consumers to receive features and products they need.
Utility of Information
Information utility is a new addition to our list. In a world where competition for every basic good now happens on a global scale, information can make the difference between successful sales and failed conversion efforts. Information utility is focused on any data that can help a consumer make buying decisions. It may include product details on eCommerce pages, targeted marketing campaigns as well as well-trained customer support specialists who can help customers with the information they need to facilitate their buying decisions. These five are very important utilities in the world of business.