Explanation:

Functional benefits are based on a product attribute that provides the customer with functional utility.

The goal is to select functional benefits that have the greatest impact with customers and support a strong position relative to competitors. However, it is important to keep in mind that functional benefits often fail to differentiate, can be easy to copy and may reduce strategic flexibility.

Examples of functional benefits include the phone capability of an iPhone, the thirst-quenching offered by a bottle of water and the warmth of a wool sweater.