ESL 91 SPRING, 2001
FOCUS DISCIPLINE ESSAYS
BUSINESS

Wai-Bong, Pang
ESL 91
Spring, 2001

 

Essay Topic: What is marketing? How have the principles of marketing changed as a result of the Internet?  

 

The definition of marketing is “the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals” (Marketing: An Introduction, http://www.davedolak.com/c-mktg1.htm). Marketing strategy involves using some tools such as research, statistics and surveys to target the customers. If the research is correct, the business will be able to access the needs and wants of prospective customers.

A successful business can use these tools to capture the customers and share a greater part of market. As a result they gain a successful and a profitable sale.

 

Actually, marketing is more than just a transaction or making a sale; it is much deeper than simply “Selling and Buying.” It understands the “Needs and Wants” of buyers and matches the “Goods and Services” of sellers. It tries to satisfy both parties through the transaction. The successful business must satisfy both sides and solve the problems effectively. “Satisfaction of both parties is an implicit aspect in the exchange relationships” (Marketing: An Introduction, (http://www.davedolak.com/c-mktg1.htm).

A profitable sale is the reward for accurate marketing.

 

The successful business is more complex than simply “Selling something to somebody” (Marketing: An Introduction, http://www.davedolak.com/c-mktg1.htm); there are four utilities on which marketing is based. These utilities, form, place, time and possession, are necessary for the business to consider before they start their business. Form utility is whether or not the products have the appropriate size to satisfy different customers. Place utility is whether or not the products are convenient to buy. Time utility is whether or not the products are available at the time the customers need them. Possession utility is any reason other than form, place, time utility that prevents the transaction. For example, if business only accepts credit card for payment, and I do not have one, I cannot complete the transaction. Business should satisfy the needs and wants of consumers through ideas, products, and services. I believe that all new companies should do a lot of research and surveys before they start their business.

 

Some companies have a successful profit sale at the beginning, but they decline dramatically after a few years. Why did these business fail? One of the reasons is that the company fails to continue to maintain a good relationship with their customers. The company does not understand the customers’ additional needs and wants, so they cannot provide updated products or services to satisfy the customers’ changing needs. Keeping the relationship healthy and strong over a long period of time is a guarantee to have the market share; moreover, it is most important for the long-term survival of the business.

 

For example, if my cell phone company does not provide Internet service that I want, I will simply switch to another company that provides this service. What will happen if my cell phone company does not provide this service on the existing network? It will simply lead to loss of existing customers who want this service and subsequently to loss of its share of the cell phone market. In addition, it will keep new customers who want this service from joining the company. If the business cannot provide better goods or services than the other competitors, their existing customers will be lost easily. The company will lose their business finally due to loss of old customers and lack of newcomers.

 

How can companies have an ongoing, healthy, and profitable relationship with the customer? In order to have a good relationship, value must be created for both parties. The resources must be invested from the company to meet additional wants by the customers because every customer is unique and must be treated differently. In order to gain a greater share of the market, a company’s market sense must be good. If the company knows in advance about customers’ changing needs, it can be well-prepared and invest resources earlier than other competitors. So the company will become a leader in this business. As a result, the company will be able to provide the products or services better than other competitors. For instance, the company should know in advance that peoples’ shopping mode is changing due to the popularity of home PCs. Therefore, the company will be able to invest the resources to develop an Internet presence to meet future requirements.

 

Nowadays, peoples’ shopping mode is affected by the Internet. This is because the home PC is very common in American families. People are changing from a mail order shopping mode to shopping on the Web. The expenses involved in shopping on the Web for both seller and buyer are much less than before. For example, compare the traditional advertising in a newspaper for one day; it almost equals the price of having a presence on the web for a year. The cost of production is much lower, and this can be reflected in the price. So the buyer can pay less to enjoy the same products. In addition, the Internet provides another channel for sales; it makes a local business become a global one. The business never thought that their sales volume could be that big. Moreover, the shopping mode is more interactive than before; buyers can advise the seller about what kind of products they are interested in. This means that sellers will be able to supply more suitable products for the buyers. Besides, buyers can also send or receive information quickly in an inexpensive way. It can save a lot of time and money locating the sellers’ product information and buyers’ comments.

 

By doing this research, I learned that as a business administrator the correct marketing strategy is not only to satisfy the customers’ needs the first time, but also to continue to meet customers’ additional requirements. I should follow the shopping mode of the people, e.g. shopping in the Web, in order to increase and expand my share of the existing market. In the near future, our daily life will be affected much more by the Internet. Most businesses will be online. “If I don’t want to be left behind, I must use the Internet as my advantage to face my competitors” (Marketing: An Introduction, http://www.davedolak.com/c-mktg1.htm)

 

To prosper business must learn how to make a successful match between their products and the wants of the market. They can do this by solving marketing utilities and using the tools such as research, statistics and survey. In addition, they have to continue to invest resources to meet their customers changing needs. This is not only the best way to have a strong relationship with customers, but it is also the best way to survive for a long-term business.

 

Works Cited

 

Kasper Loretta F. (1998) Interdisciplinary English (2^nd edition). New York: McGraw-Hill Inc. 

 

Marketing: An Introduction. [Online]. Available: http://www.davedolak.com/c-mktg1.htm 

 

Min Ci Rong
ESL 91
Spring, 2001

 

Essay Topic: Explore the area of marketing in business. What is marketing? How have the principles of marketing changed as a result of internet? 

 

The exchange of goods, services, or ideas for money or for the equivalent of these products, is called marketing. Marketing is defined as “ the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives” (The American Marketing Association, 2000). The concept behind marketing is to find what the consumers need and want, and then to provide goods and services to satisfy these needs. Successful marketing is a critical component for success in business.

Nowadays, marketing exists everywhere in the world, including on the Internet. Today, the Internet has become a marketing medium. The Internet is made of many independent networks. For business, computer and network technologies are an absolute necessity. Marketing on the Internet has changed the traditional operating methods of business and marketing determination. If a company wants to make a profit from the Internet, it must develop marketing techniques to suit the Internet. In other words, if companies want to be successful in Internet marketing, they must consider how changes in the four marketing utilities, form, place, time, and possession, have affected marketing strategies.

 

Form utility refers to providing a product that will satisfy consumers. It is frequently used to determine the size, shape, quantity, and features of a product. If a consumer wants to buy a white dress, and the store only has a blue one, then the consumer won’t buy it because she doesn’t like it. In this case, form utility doesn’t work for the consumer. If companies want to sell products on the Internet, they not only have to consider the form utility, but also have to consider how to design the products in order to attract consumers visiting their web sites and buying their products. Having an excellent design and variety of choice are the important factors for attracting shoppers. When consumers shop on the Internet, they want to have more different kinds of products to choose from, and they like to compare one product with others. For example, if you sell women’s clothes on the Internet, even those of the same style, you should have a variety of colors provided for consumers. If you fail to fulfill the needs of consumers, then you will fail to make a profit.

 

Time utility means making a product available when consumers want to buy it. For example, summer clothes might be manufactured in December, but they won’t be displayed until early February when consumers start buying them. Providing goods when consumers want them, enables the exchange to take place. Time utility is important for marketing on the Internet as well as for traditional marketing. When selling products on the Internet, especially seasonal products, companies must consider at what times the demand for the product increases and decreases.

 

Place utility refers to where the product is available to consumers when they need it. If you want to buy a product, and the product is only sold in Los Angeles but you live in New York, and you cannot order it by mail, then place utility doesn’t work for you. In this case, the company should consider how to satisfy place utility for consumers. In Internet marketing, place utility is available for all consumers. Before the Internet opened to commercial activities, if you wanted to buy a car, you had to go to several dealerships, look at what was in stock, then consider what was best for you. This arduous method wasted a lot of your time. At present, you can easily find what you want to buy on the Internet without leaving your home or office. The Internet also provides consumers with a lot of information. You can look at photos to find the model, price, performance, reliability of a car, and then compare it with others. The primary advantage for Internet shoppers is the convenience of the place--shopping at home. They don’t need to worry about the crowds, traffic and parking. Another convenience for Internet shoppers is time--Internet stores are opened 24 hours a day, so customers can shop on the Internet any time. As these conveniences are more available for consumers shop on the Internet, companies’ web sites must be convenient for buyers to find the product that they want. Shoppers always look for an easier way to purchase something and they don’t want to waste their time. If a company’s site is not easy to navigate, shoppers will not shop and will not return to that site.

 

Possession utility refers to the transferring of ownership of a product to the buyer. When you go to a store to buy a shirt, and the form, time, place utilities are present, but the store only accepts cash and you only have credit cards, then you won’t be able to get the product. You may go to another store which accepts credit cards, or maybe you won’t buy the shirt. In this case, the possession utility is not available for you. In Internet marketing, all transactions for products on the Internet require credit cards. This is a convenient way for consumers to pay for the product. One problem that companies must consider is how to protect consumers’ credit card information. When shoppers buy products on the Internet, they are always worried about the security of their credit card information. Thus, it is necessary for companies to provide a secure payment system for consumers in order to raise the consumers’ confidence in the company.

 

Additionally, companies’ guarantee, service, and return policies are important factors to attract consumers to shop on web sites. For example, when shoppers buy a product on the Internet, they may be worried about the quality of the product. If companies have a fair return policy, that may reduce consumers’ concern.

Today, the Internet has become a new marketing medium, and more people are going to shop on the Internet in the future. The new shopping method will change people’s thoughts about buying products. If companies want to be successful in Internet marketing, they have to consider not only the traditional principles of marketing, but also the changes resulting from the Internet. To understand what consumers need and to understand how to fit these needs are necessary for companies to succeed.  

 

Works cited

 

The American Marketing Association. (Online) Available: http://www.davedolak.com/c-mktg1.htm

 

Kasper, Loretta F. (1998). Interdisciplinary English (2^nd edition).  New York: McGraw- Hill.