1. Costumer v. Consumer & Utilities
Introduction to Business & Marketing

2. Customer v. Consumer Customer: “someone who buys the product”
Consumer: “someone who uses the product”

3. Utility
Utility: “adds value”

4. Form Utility
Form utility: “involves changing raw materials or putting parts together to make them more useful”
EXAMPLE: tree – wood – paper OR tree – wood – furniture

5. Place Utility
Place utility: “involves having a product where customers buy it”
Location, location, location
EXAMPLE: having produces & veggies at the grocery store

6. Time Utility
Time utility: “involves having a product available at a certain time of year or a convenient time of day”
EXAMPLE: Target is selling Halloween candy in preparation for October 31st

7. Possession Utility
Possession utility: “involves making it easier for a customer to own a product”
Offering credit terms, loans, etc
EXAMPLE: Carmax extends a 5-year loan to a customer with a $1500 down payment.

8. Information Utility
Information utility: “involves communication with the consumer”
Salesperson is used
EXAMPLE: The sales associate at Nordstroms educates the customer on the benefits of buying TOMS by using the in- store display.

9. Vocab. Notebook – cont.
VOCAB TERM
DEFINITION
PHOTO
15. Customer
someone who buys the product
You will draw a photo of something that helps you remember this term – keep it simple!
Vocabulary Terms: 15. Customer 16. Consumer 17. Utility 18. Form utility 19. Place utility 20. Time utility 21. Possession utility 22. Information utility