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