What Is Utility in Marketing? Definition, Types and Examples

In marketing, utility refers to how a product can be useful to customers in a way that convinces them to make a purchase. Marketing utility is the idea that the best way to sell a product to a consumer is to show them how the product could provide value to their life.

In an effort to improve customer satisfaction, boost sales, and boost profits, businesses work to increase the utility or perceived value of their goods and services. The field of study known as behavioral economics, which aims to help businesses run their operations and market their brands to draw in as many clients and sales as possible, includes the concept of economic utility.

Marketing Utility

What is marketing utility?

Utility in marketing refers to how a product can benefit customers in a way that persuades them to buy it. The concept behind marketing utility is that the best way to convince a customer to buy a product is to demonstrate how it will improve their quality of life. Marketing utility, also referred to as the utility marketing model, entails determining the needs of a specific consumer group and then figuring out how to match business activities with those needs.

Finding ways to incorporate a product into a customer’s lifestyle by highlighting how it can address a need or problem is known as marketing utility. A sound marketing utility strategy can assist in determining the variables that affect consumer purchasing decisions and incorporating those variables into advertising campaigns.

Businesses use marketing utility to highlight the various ways that each product can improve the lives of consumers and to associate the brand with particular types of usefulness.

Why is utility important in marketing?

To use a utility-based marketing strategy successfully, you must first comprehend the various ways that customers can benefit from a good or service. To target different market segments, a marketing utility model can focus on one type of utility or combine several aspects of utility. When assessing a product’s potential utility, there are a few main categories to take into account:


Form utility describes how a finished product’s physical state can add value for customers. Because the customer doesn’t have to spend time assembling the product before using it, a fully assembled final product typically provides consumers with more value than one that does. Products that are completely ready to buy offer customers utility.

For instance, a customer could buy all the components needed to assemble their own computer and put in the time to do so. This necessitates that the customer not only be knowledgeable about computer construction but also invest their own time in building the computer. The typical consumer would probably choose to purchase a finished computer because it offers them form utility.


For instance, a business that offers a two-day delivery guarantee can highlight this feature of their operations to encourage customers to value their time. Because they are aware that they can get a product within two days if they need it, customers can appreciate this time utility and associate the business with quick service.


Place utility refers to the ability of a customer to buy goods in convenient locations. The greater place utility you can offer, the more widely accessible a product is to your target customer. Choose the distribution channels that your target customers use the most when using utility-based marketing that is location-based. Customers benefit from not having to alter their daily routines to access a product when they are aware that it is available in a place they frequently visit.

For instance, a business selling car air fresheners might include place utility in its marketing strategy by investing in shelf space at the entrance to all the auto shops and car washes in a specific location. The company’s target market of car owners frequents these locations already, so they understand the value of being able to buy air fresheners while finishing other car maintenance tasks.


The concept of “possession utility” holds that consumers can benefit from a product just by owning it. When a customer owns a product, they gain value from being able to use it however they see fit. The techniques a business employs to guarantee that customers can physically access the products they buy can affect the value of possession. Because all three types of utility place an emphasis on making it simple for customers to make a purchase, possession utility is connected to both time utility and place utility.

For instance, businesses that promote in-store financing make use of the utility of possession in their marketing strategy. Customers who register for a line of credit are not required to pay the entire amount before they can take possession of the item. Simply because they have ownership of the vehicle, customers who purchase a car using a line of credit from the dealership may still decide to paint it or make interior changes.


Providing customers with product information can also be a significant type of utility. Businesses can persuade consumers to make purchases by giving them useful information because consumers value being able to make informed decisions about their purchases. Information utility can be provided through interactions with sales representatives in person, website descriptions of products, and product details.

By promoting your business’s industry expertise, you can market using information. The value of knowledge you can share with customers if they buy from you is demonstrated by placing an emphasis on free consultations or 24-hour customer service lines.


What are the 5 utilities of marketing?

The Five Types of Utility in Marketing
  • Why Marketing Utility Matters. Historically, marketing efforts have focused on making an impression.
  • Utility of Time. …
  • Utility of Place. …
  • Utility of Possession. …
  • Utility of Form. …
  • Utility of Information.

What are the 4 types of utility in marketing?

There are four different categories of economic utility: form, time, place, and possession. Companies can assess consumer purchase decisions and identify the factors influencing those decisions by recognizing the areas in their marketing strategies that need improvement, which will increase sales and profits.

What are the 6 utilities of marketing?

Six different types of marketing utilities that give consumers more value or satisfaction are available from intermediaries. The elements of form, time, place, possession, information, and service are among these marketing utilities.

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