Product Development Utility

Utility “the things added to a product to make it valuable” 5 Types Utility can be about a: Benefit Difference Information 5 Types Form, Information, Place, Time, Possession

Form Utility Form Function Form Utility – the relationship between a product or service’s form and function Form Function “look” “What it does” Includes: material, scent, flavour, colour, design, packaging Example: Pringles chips, winter coats, pens, perfume, m&ms,

Form vs Function For each of the following products, explain how form is dictated by function: Gatorade Crest Toothpaste Cell phone Pen

Information Utility Information utility – provides consumers with instructions, directions, help lines, website FAQs and user manuals People value complete information Examples: Sympatico 24 helpline, Butterball website (recipes), Consumer Reports

Place Utility The easier a product is to find, the greater the place utility The Internet has made offering place utility pretty easy Examples: Gift cards – there are now racks in grocery stores filled with gift cards from restaurants and retail outlets that have nothing to do with grocery stores

Time Utility Time Utility – the availability of a product or service WHEN a consumer wants it The Internet has also made time utility easy to deliver on Examples: convenience stores where among the first to offer 24-7 hours Sobey’s has a time utility advantage Seasonal products (Cream Eggs, pumpkin pie)

Possession Utility Possession utility – when a good or service is easy to purchase How can a business give possession utility to it’s products? Low prices Credit terms (Leon’s, the Brick) Discounts, coupons and other sales promotions

You Decide Examine the following products and services and record (explain) which of the 5 types of Utility they have: MP3 music file (bought legally) Digital Camera Ticketmaster.ca Little Caesars Medium Hot n Ready IKEA “Billy” bookcase