Marketing can be a tough competition when every company is investing in its way in utility products. There are several types of utilities without which it is impossible to run your business. Therefore, investing in reducing the utility charges that you might face in bringing your product into the market. 

Utilities are things like water, electricity, etc. These used to be under government distribution but due to difficulty in procurement and availability companies in incumbent stages find it hard to have access to basic needs. This is when the government decided to give the right to private companies. To get a license from the government, the company has to agree to certain rates and regulations which can get the government some profits back as well as regulatory risks are involved. Utility marketing is a model used to design and deliver products that are of value and demand to customers to increase sales. Here are some types of utilities that businesses need to invest in.

1. Form Utility

Form utility is making a product from raw materials thus making the product more valuable to customers. This process is done in several partner companies and involves a marketer to reach the customers. For example, if you give your customer wheat instead of its finished product,i.e bread, it is of no use to customers. This is why form utility is important. This way the consumer can see the value of the finished product like bread, vehicles, PVC strip doors, etc. This is called the consumer base of a business.

2. Place Utility

This is the step that big business firms take to reach out to many customers. By making their products available everywhere which are easily accessible to people. Place utility is connected to the distribution channel. This is equally important as place utility is all about finding the best place that is accessible by people, transportation, the seller (wholesale and retail), shelf space and many more. By making your product readily available to people, you are increasing the chance of your product getting purchased instead of not easily available alternatives. This method thus increases sales. Make sure your product is available in major stores as well as remote locations where you have a customer base. 

3. Time Utility

When you plan everything strategically you will not have to devote much time in manufacturing and selling your product. Planning and being ready for any issue beforehand can save so much money, labor and time. From product manufacture to selling, time efficiency is crucial. The same applies to resolve customer issues. The company’s reputation depends on how quickly you respond and resolve the issues. The key to increasing profit is making your company available when the customer needs you. 

4. Possession Utility

Possession utility is referred to using the product for some other purpose other than what is actually made for. When your product offers this quality your sales can go up. For example, people use honey as sweetener whereas some people use it as medicine for cough. It is a very different concept when it comes to having artifacts, paintings and souvenirs in possession. 

There are several risks in investing in utilities. 

1. Regulatory risk

Utility investments can change depending on regulatory changes, federal policies as well as state and country regulations. The regulatory risk can depend on input and delivery requirements. Jurisdictions, where the regulators are elected can be more customer-friendly. 

2. Interest-rate Risk

Utility investments are sensitive to Rising interest rates. The income-seeking business develops an interest in higher-yielding investments and move away from lower stocks. 

3. Technology Risk

Development in technology is a risk to investment in utilities, especially electricity. Disruptive technologies such as battery power or rooftop solar can sometimes lead to disconnecting from the grid. This way technological advancement can sometimes lead to risks because of non-reliability and less effectiveness in testing stage.

Using this technique of investing in utilities one company can save and at the same time get a lot of profit with reduction and easy access to basic utilities.