What Are the Three Types of Utility That Marketing Channels

question 78

Essay

What are the three types of utility that marketing channels create,and what do they involve?

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Definitions:

Operating Cost

The expenses associated with running a business's core operations on a day-to-day basis.

Investment

The allocation of resources, such as capital or time, in expectation of generating future returns.

Required Return

The minimum return an investor expects to achieve by investing in a particular asset, taking into account its risk level.

Target Cost

The desired cost of a product as determined by its expected selling price minus desired profit, aimed to ensure competitiveness and profitability.