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The Five Types of Utility in Marketing

Marketing Strategies
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The Five Types of Utility in Marketing How do prospective consumers spend their money? What matters to them when they make decisions about how much to spend, where to spend it, and which company earns their business? This is the role of sales and marketing teams in your organization: Designing and deploying consumer campaigns to showcase the unique value proposition of your product or service so you stand out from the competition. The challenge? It’s not easy. Customer preferences are constantly evolving in response to both external market forces and internal financial constraints. As a result, the reasons around how, when, and why consumers spend money are never static — companies must find ways to understand and articulate the value of service or product offerings in a way that both captures consumer interest and convinces them to convert. Here, the concept of utility-based marketing is markedly useful. In this piece, we’ll explore the basics of utility in marketing, why it matters, and then dive into five common types of utility in marketing. What is utility in marketing? Put simply? Value. While in a non-economic context the term “utility” typically means “usefulness”, the marketing-driven definition speaks to the specific value realized by consumers when they spend on products or services. Understanding utility in marketing can help companies both better-predict spending habits and design campaigns to capture consumer interest. Why Marketing Utility Matters Historically, marketing efforts have focused on making an impression. It makes sense — if consumers...