Download Utility - mrkilby

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