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Product Development Utility.

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Presentation on theme: "Product Development Utility."— Presentation transcript:

1 Product Development Utility

2 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

3 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,

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

5 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

6 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

7 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)

8 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

9 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


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