![]() ![]() Place utility refers to the idea that a product made available to the customer at a preferred location is worth more than one at the place of manufacture. Thus, the customer benefits from the specialization that allows the manufacturer to more efficiently create a chair than the customer could do himself or herself. A customer buys a chair, for example, rather than the wood and other components used to create the chair. Form utility involves the idea that the product is made available to the consumer in some form that is more useful than any commodities that are used to create it. The marketing process involves ways that value can be created for the customer. Some segments have very unique and specific desires, and may value what-to some individuals-may seem a “lower quality” item-very highly. A very expensive product-relative to others in the category-may, in fact, represent great value to a particular customer segment because the benefits received are seen as even greater than the sacrifice made (usually in terms of money). Some customer segments value certain product attributes more than others. ![]() ![]() It should be noted that value must be examined from the point of view of the customer. It is not necessary for a firm to physically handle a product to add value-e.g., online airline reservation systems add value by (1) compiling information about available flight connections and fares, (2) allowing the customer to buy a ticket, (3) forwarding billing information to the airline, and (4) forwarding reservation information to the customer. #Aims web testing iclip art softwareOther firms make products whose tangible value is supplemented by services (e.g., a computer manufacturer provides a computer loaded with software and provides a warranty, technical support, and software updates). Some firms manufacture basic products (e.g., bricks) but provide relatively little value above that. ![]() Value can be created in a number of different ways. The central idea behind marketing is the idea that a firm or other entity will create something of value to one or more customers who, in turn, are willing to pay enough (or contribute other forms of value) to make the venture worthwhile considering opportunity costs. Processes involved include “creating, communicating, delivering, and exchanging offerings.Marketing frequently involves enduring relationships between buyers, sellers, and other parties.Marketing has an impact on the firm, its suppliers, its customers, and others affected by the firm’s choices.Marketing usually involves an exchange between buyers and sellers or between other parties.A main objective of marketing is to create customer value.Note that the definitions make several points: The 20 definitions offered by the American Marketing Association are relatively similar, with the 2007 appearing a bit more concise. Memorizing a definition is unlikely to be useful ultimately, it makes more sense to thinking of ways to benefit from creating customer value in the most effective way, subject to ethical and other constraints that one may have. Each tends to emphasize different issues. Several definitions have been proposed for the term marketing. Assistant Professor of Clinical Marketing ![]()
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