Question

Chapter 15 discusses six types of utility (pages 410-411) created by marketing intermediaries. Pick one of the companies below, describe how it creates/provides each of the 6 different types of utility with its goods and/or services.  You must use the 6 types of utility covered in CH 15.

form

time

place

possession

information

service

pick one of the company below:

Albertsons Grocery

Barnes & Noble bookstore

MacDonalds

Disney World

H&R Block tax preparation service

DirecTV satellite service

Time magazine

Answer 1

I have chosen one of the easiest to understand companies ‘ McDonalds’ to explain how it uses the six types of utilities in it’s services :

1. Form Utility : Form refers to the product or service a company offers to it’s customers by keeping in mind customer needs, tastes, habits, culture and so on. McDonalds caters to a wide range of age groups, right from children to adults. To attract children, they also have toys that are in craze with the children for example; Elsa, Doraemon and so on. For adults, there are a variety of food options on the menu like burgers, wraps, finger chips, nuggets etc. Also, the menu is customized according to the taste and culture of the people of the pertaining country. McDonalds in the UK and USA provide chicken and pork patties, various types of sauces and eggs items for breakfast. In the UAE and other Arab countries, their menu includes beef burgers, mushroom burgers and the likes. With the growing popularity of coffee and cakes, McDonalds have also started McCafe inside their outlets to provide their customers with a complete premium fast food experience. Thus, for any company to survive globally, it is important to know the vibe of the people.
2. Time Utility : In today’s fast-paced world, when everyone is on-the-go, quick service and delivery is one of the important aspects of an efficient business. McDonalds is known for it’s quick service and take-away options. So, it’s targeted audience, the working professionals can have a quick bite when hungry and get back to work. McDonalds also has home delivery options for those laidback, easy-on-the-pocket Friday nights and Saturdays. Students too enjoy the vibe at the outlets and can spend a good time.
3. Place Utility : The utility of place means being available to your customers at the right place so that a large number of audience can be captured. McDonalds outlets are most set-up in crowded areas such as shopping malls, business and office complexes, near schools and colleges, etc. In this way, it wants to be available to their target audience (working professionals and school-going children) all the time. Not just that, they also have outlets at highways so that travelers can have a quick stop and satisfy their hunger.
4. Possession Utility : Possession Utility refers to how easily a customer can possess the service/product they ordered for. The payment options at McDonalds is very easy and quick be it having at the outlet or take away. They usually have a systematic queue at the outlet and apart from that the payment and delivery in case of home delivery too is hassle-free. So, a customer can get possession of his order in an easy manner.
5. Information Utility : It refers to how well the company uses various channels to advertise their goods and services and provide information about the products to the customers. McDonalds advertises their new products by way of various media’s such as television, popular websites, hoardings etc. Their menu is available on their website and clearly accessible at the outlets as well. Thus introduction of new product or down-scaling the price of any existing product is well advertised to their customers.
6. Service Utility : As the name suggests, it means providing better service to the customer. McDonalds has a quick self-service facility which is done by means of issuing an order number to the customer and displaying the order number on an electronic board when the order is ready to be served. However, coffees and shakes are served by their staff at the table so that the customer does not have to move to different counters. Their home delivery service too is quick.