Company LOGO Unit 2: The Marketing Mix BMI3CMr. Whiler

5.4 Product Utility  Utility refers to what is added to a product to make it valuable on the market  For example, a computer chip has more utility when it has a computer attached to it.  There are 5 types of utility…  Form  Information  Place  Time  Possession

5.4 Product Utility  Form Utility  the relationship between function & form  Function is what the product is intended to do  Form is the product look or type of service  Usually form follows function!  What a product does dictates what it looks like  A shoe has to allow you to walk first and then looks should come second  However, form is often an important selling point

5.4 Product Utility  Material  New materials can add significantly to the value  For example winter coats of today are much warmer, lighter and water repellent  Scent  Very important in some products – which ones???  Flavour  In any food or drink product, flavour is critical  These change over time too!

5.4 Product Utility  Colour  Colour trends are an important part of marketing  Design  A badly designed product has no utility  A toaster that doesn’t toast is an example  Ergonomic design is an important issue (iPod)  Longevity, safety, comfort, beauty, aesthetics  Packaging  Convenience, safety, environmentally friendly, re-usability, appearance, function

5.4 Product Utility  Information Utility  Provides the consumer with info about the product  Well written manuals, customer support, technicians, internet sites, etc.  Advertising often offers info about the product  Place Utility  Place utility is high if the customer can easily purchase the product  If the product is available in a local store, it is good  How has the Internet changed this?

5.4 Product Utility  Time Utility  Is the product available when the customer wants it?  Both time-of-day and seasonal considerations  Possession Utility  High when the product is easy to purchase  Credit can be made available, price reductions, etc.

SituationUtilityExplanation Highway billboard indicates the distance to and features of a local hotel Twist-off milk carton caps Exciting new colours for computer hardware Roller ball technology for pens E-commerce (i.e. ordering products off of websites)

5.4 Product Utility Homework Assignment:  Think of a product that, in your opinion, has a poor design  1) describe why you believe the design is poor  2) evaluate this product in terms of utility  3) suggest improvements to its design that might affect its utility