ESL 91
SPRING, 2003

Yun Ji
Yelena 1
Yelena 2

Yun Ji Pan
ESL 91
Spring, 2003

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

Marketing includes products’ creation, production, pricing, merchandising, and the exchange services after the selling that satisfy the consumers. The key of marketing is to figure out what the customers want, and then to achieve the customers’ need.

When the companies develop a product, the first thing that the companies need to do is design a good package that will attract the consumers’ sense to buy the products. When the market accepts the products, the companies need to do is balance the production and the price. According to the text” Product Development and Merchandising” by Loretta F. Kasper, “Merchandising refers to the planning and control of goods or services to provide effective product development and to ensure that the product will be available at a place, time, price, and quantity that will be conducive to profitable sale” (p. 81). Companies must plan to create a lot of ways to sell their products in order to get more profits. Companies must consider that their products are available at a good timing, a right place, a popular price and that quantity of products they sell is profitable. Sometimes companies will do a lot of promotions in order to increase the selling rate. They will use media such as TV, radio or on the bus and subway to promote their products. Also, there is another way to promote products; companies will cut the price or send some coupons to the customers. Even though companies just have slight profit to sell their products, the more products they sell, the more profits they get.

If companies wish to be successful in their efforts to develop and sell products, they must consider marketing utilities. There are four types of utilities to be considered in developing and marketing a product. The utilities determine whether or not an exchange will take place. This exchange is the definition of marketing. The four utilities are: form, place, time, and possession. These four types of utilities are very important rules for companies sell their products. If one of these four types of utilities is missing, probably the exchange won’t take place. Companies must consider these utilities when products are to be sold, make sure to let customers know that their products are sold in the right place, at a good time that the form of products are all available and customers are allowed to use all kinds of payment.

Companies determine their products’ price is basic in the law of supply and demand. If supply exceeds demand, the price must go down; if the demand exceeds supply, the price must go up. When companies provide a lot of products to the market, the price must go down so that customers will consider purchasing; if the products are limited, companies must increase the price in order to get a competition with others.

The key to companies achieving success in their business is to allow consumers to exchange or return the products. The reason why companies create this exchange or return policy is because some customers may not be satisfied after they use the product. Or maybe the customers feel that the products are not fit for them in some cases, so they want to return it or exchange for other products that are useful for them. However, a return policy is the best opportunity to find out what the consumers need. The companies may find some tips from the customers return policy because the customers will share their feelings when they are using the products. So, the companies will know what kind of products will be useful for the consumers and they will develop the products closer to the consumers’ needs in the future.

When the Internet came out, a lot of companies put their products on the Internet not only improve their competition, but also to let customers buy them whenever they want and without worrying about the four utilities. In fact, shopping on the Internet is more convenient than shopping in a store. First of all, the customers don’t have to waste their time to go to the store and find what they want. Second, they can buy everything on the Internet. When they go on the Internet, they will see a lot of pictures in front of their eyes, or when the customers check their email, they will have a lot of commercials in their box.

According to the article” Marketing on the Internet” by Gary Witt at “It is about the psychology behind influencing the people who visit your site”.  The companies catch the consumers’ psychology because they think that most people prefer to stay home and use the Internet to buy what they want. The advantage for people shopping online is that they don’t worry about the four utilities, which are the time, place, form and possession. People will think that all they need to do is click the mouse and get the products. They don’t have to worry that the product is not available in their neighborhood or the size is not fit for them. Shopping on the Internet is just like people walking in the big department store. The difference is people will find more products than in the real department store; sometimes the product will not be sold in the store but you can find them on the Internet. Also people will find a lot of surprises shopping on the Internet, such as low prices or all sizes available.

In order to attract more customers to visit the web page, the companies need to create a very specific site and provide a special price for some products. The most important thing for the web page is that the speed must be fast because the customers will lose their patience waiting there for a long time; it’s the same as waiting in line in the store. Also the companies need to provide a security system in order to protect the customers’ personal information when they are visiting or buying products from the web page. They must make sure that the customers won’t worry that their information will be stolen. The consumers go on the Internet, not only because it’s convenient to buy products, but also because the price is always lower than the same products sold in store. Some companies will give the customers lots of specific discounts such as shipping, rebate, buy one get one free.

In short, not only does the Internet give companies a specific way to raise up their market competition, but also gives all the consumers more ways to get what they need. When the companies put their business on the Internet, the more people search it, the more benefit they will get. Even the people who want to open their own business can also put it on the Internet. For example, on ””, you can find everything: cars, houses… sometimes you will find some old fashioned things. So the Internet gives a wide space to the marketing and gives the fastest way for people to buy things. It makes it easier for people to buy what they need. It helps people to save time to find what they need.

Although shopping online is more convenient and is cheaper than outside, I prefer to go to the store and buy the product. Because I can’t touch and I can’t see the product very clearly on the Internet, maybe the size is not fit for me when I try it on. Another thing is that Internet doesn’t accept cash, so it’s not good for people who don’t have credit cards but want to shop on the Internet. In this situation, there are two types of utilities that don’t take place, which are form and possession and it means that the exchange won’t take place.

Since the Internet came up, it has changed companies’ marketing direction from store to computer. It gives companies another way to sell their products; however, it also gives more competition to companies. Not only can the big companies put their products on the Internet, but also the individuals. The Internet gives people the opportunity to create their own business; all they need to do is create a web page and put products on the Internet. But the point is they need to provide the fastest program on their web site to make sure that the customers don’t have to wait a long time to finish the procedure. In order to survive in this strong competition, companies must keep their Internet service fresh, interesting and good. They must make sure the products are the new release and the web page is unique.

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Yelena Vilents
ESL 91
Spring, 2003

Essay Topic: Explore the area of marketing in business. What is marketing? How have the principles of marketing changed because of the Internet?

According to the text  “Business” by William M.Pride, Robert J.Hughes, and Jack R.Kaproor, “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 objectives” (page A57). In another words, marketing is one of the main parts of the business process. It involves the exchanging of goods or services and has the basic concept of finding the consumer’s needs and  filling them. There is no marketing without merchandising. According to “Retail Management: A Strategic Approach” by Barry Berman and Joel R.Evans “Merchandising is all activities involved in acquiring particulars goods and services and making them available at the places, times, and prices and in the quantity to enable a retailer to reach its goals”(page A24). Therefore, merchandising involves selling and buying.

Because the goal of merchandising and marketing is the successful development of products and the satisfactory all customer needs, companies should complete four marketing utilities: form, place, time, and possession. However, even if the all of marketing utilities have been completed, the company should remember about the law of “supply and demand”. This is the basic factor that determines the price of item. If the supply exceeds demand, the price must go down. If the demand exceeds supply, the price must go up.

I describe the marketing as a science of business. Nevertheless, as any science, business marketing has development and change. The Internet has become a reality. As a result of the Internet, the principles of marketing have been transformed.  To best understand the terms of marketing and the way they have been changed by the Internet, let me tell the story “How I Bought My Student Book”. In this story, the book is the object of merchandising.  I am the consumer or customer, and different bookstores are the companies that provide costumer service for me.  The current example from my own background can help me explain what   “marketing”, “marketing utilities”, and “supply and demand” mean. As well as how the principles of marketing have been changed by the Internet.

In September of last year, I had to buy a student book “Principles of Financial Accounting” by Belverd E. Needles and M. Powers. It not a secret that most student books are very expensive.  Before making a purchase, I did a small marketing research: how much does this book cost in different  bookstores?

First, I came to the bookstore inside Kingsborough. There were used and new books. Moreover, the same book was published in different forms with soft and hard covers. A new book was offered with two notebooks and without them. The huge form utility has been worked. However, prices depended on the current item. It started as $40. The most expensive book with two working notebooks cost $120. I summarized the information and went to the next store.

The next stop of my research was the bookstore outside the college.  There were used books only. Prices started at $50. Therefore, I preferred to come back to the store inside Kingsborough the next day. Next day, when I came back to the inside store, I found a used book which cost $60. Form utility worked for me, but place utility did not.

I felt blue. At home, I called my brother and told him the horrible story of how I couldn’t get my book. He said:

- It’s easy. Why didn’t you look on the Internet?

- You know, I don’t have a credit card. If l sent a money order, it would take too much time! Maybe three or four weeks. I need this book as soon as possible.

- I’ll help you. We’ll use my card and then you pay me back.

He started at He found the book for $45. I said: “Good, I like it”. But my brother interrupted me: “No, I want to make sure that it is the cheapest.”

He put the name of the book in the research system. He spent less than ten minutes, got all the information and found the best result.  Finally, he got this book with all accessories for $22 plus $6.25 shipping. Time utility was efficiently completed for me. The item that I needed was available at the same time. My brother saved the time that I would have spent walking from store to store. He completed the application and used his card, so possession utility  worked too.

Thanks to the Internet, all utilities, time, place, form, and possession, were satisfied. It was my first experience buying on the Internet. After that, I realized a new reality. The Internet has the great possibility to change the principles of marketing. This is not only about marketing utilities. This is the best way for manufacturers to plan and control the supply and demand of products.  A good example for this case is the book “Harry Potter” by J.K.Rowling.  Readers had to order this book from a special site.  The publisher could make the product according to the number of orders. They didn’t waste more money that they needed to hold room. The effective advertising of the first book gave good results for the next purchases of this item. And it shows that the Internet offers three significant opportunities.

First, it is one of the choices for communicating information about goods and services directly to customers. Many companies have published all kinds of information including delivery information about themselves the same way as in newspapers, magazines, TV. The second capability is to conduct transactions online especially for business-to-business between buyers and sellers. The third opportunity is tagging consumers, using a cookie as an electronic identification that indicates interests, hobbies, and activities of a site’s visitor.

On another hand, let us think about the typical Internet consumer. People use the Internet to seek information and interactive communication. For some customers, shopping on the Internet is like having a “fun” of a Web retailing.  The shoppers are attracted by prices, convenience, and more choices. However, the consumers also perceive a loss of privacy due to the information that is collected about them as they browse and shop online. Cookies gather the information about users without their knowledge.  The next reason for not shopping on the Internet is giving the credit information. Moreover,  buying on the Internet is buying blind.  Most shoppers prefer to see the products first; they want to feel a product, try it, and talk to the salesperson. As result, the business-to-business segment of the Internet is much larger than the business-to-consumer segment.

In my response, I am not so familiar with the Internet. Now, I have a start as a consumer.  At the same time, I think about my own business that I have already begun. My partner and I have the agreement to open a Web site for the company. So, the information that I learned was very useful for me. The understanding of form marketing activities will help me to manage my own business activities.

The central question of my essay was exploring the area of marketing in business.  In that case, marketing is all business activities to satisfy customers. For the best satisfaction, companies should be successful in selling and developing their product. That is impossible without knowledge of marketing utilities and the theory of “supply and demand”. We live in a world where the business has been changed technologically. The challenge for marketing is to determine how the Internet fits in traditional marketing models.  And the Internet is not an area for replacement of traditional marketing activities.  The Internet is a new field of activities for marketing techniques, such as advertising, promotion, and public relations.  Therefore, all companies that engage in traditional forms of marketing must include the new forms that are coming because of the Internet.

Yelena Wilents
ESL 91
Spring, 2003

Essay Topic: Discuss the psychological factors involved in advertising. How do advertisers use the basic determinations of consumer behavior – needs, motives, perceptions, and attitudes – in designing product advertisements? What types of ads are most likely to appeal to or change our needs, motives, perceptions, and attitudes?

When the companies start to sell a new product, they must build a special program to attract the consumers. The advertising is the most important part of this program. The advertising gives the costumer the greatest part of information about the new product. To celebrate a product, the company has to do research on consumer behavior, needs, attitudes, perceptions, and motives. The incorrect use of psychological factors involved in advertising can destroy all the companies’ activities

According to “Retail Management: A Strategic Approach” by Barry Berman and Joel R.Evans “Consumer Behavior involves the process by which people determine whether, what, when, where, how, from whom, and how often to purchase goods and services” (page A18). There are lots of different answers on those questions. It depends on who is the consumer. What is his age, lifestyle, social group, current income? The study of consumers helps firms improve their marketing strategies. The company should think about how they can adapt and improve their marketing campaigns to more effectively reach the consumer. For this situation, the best choice to connect company and consumer is advertising.  Advertising helps the company to develop a new product, get information about their users, and decide which market-coverage strategy to use. A company must identify a special market segment and make a focus on special population group.

There are three types of market-coverage strategies. Market coverage strategies include undifferentiated, differentiated, and concentrated strategies. To  better understand the different  market strategies, let us talk about The Gap. The Gap has regional variation in product assortments. If there were only one Gap name, the market coverage strategy would be undifferentiated. But we know there are at least two Gap brand names: Gap and Baby Gap, so Gap uses a differentiated market coverage strategy. If there were only Baby Gap, the market coverage strategy being used would be concentrated market coverage strategy, which operates in one or only a few segments of market.

In the past, I worked for the company DIVA, which makes and sells hats. In Russia, DIVA uses the differentiated marketing. The company operates in all segments of the market from low-priced hats to very expensive  fashionable products.  The company has its own store in Moscow, a huge distribution chain in Russia, and many foreign clients.  I started as a sales manager and finished as a director of sales. Step by step, I collected different information about product advertising and market targeting.

The target market is the customer group that a business company seeks to draw and satisfy.  DIVA had two different types of consumers: business consumer or retailers, and consumer customers.  When the company made an advertising program for a new collection, we had to care about the difference in the motives of those groups. When the business customer and the consumer customer make the decision to purchase, both of them have the same basis for that – needs, motives, perceptions, and attitudes.  According to “Consumer Buying Behavior Notes”, “a motive is an internal energizing force that orients a person’s activities toward satisfying a need or achieving a goal”( All actions are affected by a set of motives. This theory of motivation is based on a hierarchy of needs. Maslow had assumed that humans act to fulfill five categories of needs: psychological, safety, social, esteem, and self-actualization. The needs determine the motivation to purchase. But the company-buyer and single customer have different motives. The business customer buys to produce other goods and services, but the customer buys for personal use. Because of that, our company starts to advertise the summer hats to business consumers in December and to single customers in April.

But this is not all. The base for any advertising message is the understanding of consumer’s psychology. What can be the motivation for making a purchase? The motivation can be described by several properties. Consumers are motivated to achieve the goals. Every consumer has his own goal or purpose for purchasing, such as he or she wants to try something new. The person may want to buy, because he or she likes the product or because this will give her a different status (a look like the artist). In same cases, motives can be multiple. A person can buy an expensive reliable car because he wants to save money on repairs.

The next psychological factor that determines consumer behavior is perception. Perception is the process of selecting or “what do you see?” and “how do you interpret information?”  The two pictures from the first line with a beautiful woman send a message to the business consumer: “Those hats give your store a new style”.  At the same time, we always make a picture without the face for the personal customer. Any woman can try it. The face’s shape changes the way the hat looks.  For the same purposes, our company used the models in the show for buyers but in our store, the salesperson could not put the hat on their own head to show the costumer.

An attitude is one more important psychological factor. The consumer attitudes are the mix of what consumer beliefs about the product and what he feelings about the product. Those components together can show how the consumer will react to the object. In my response, many women like hats, but at the same time, they do not believe that they can put a hat on. Women do not have a feeling about the object. Therefore, they cannot wear the hats. In order to use the hats, they have to grow a special feeling and change their beliefs.

My own attitude had changed not so fast. … “A hat is more than a mere accessory”… Some years ago, this quote from advertising newspaper acquainted me with this company and gave me a different lifestyle. At first, I worked with hats as with any product to sell. But then, when I fell in love with hats, it changed my lifestyle, my style of dress, and my behavior. When I was a child, my grandma told me: “A hat influences a woman”. Now I have the same meaning.

Consumer behavior and market targeting look like “two different sides of the same coin”. If the company is successful in market targeting, the consumer spends his or her money and the business collects it. If not, the company is going out of business and the consumer is looking for purchases without finding them. The study of consumers helps the companies to improve their marketing strategies. Understanding the psychology of how consumers think, feel, choose between different products and brands is the most important part of product development.  For the best satisfaction, companies should use knowledge of   psychological factors in consumer behavior in their advertising program. 

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