Top
| Victoriya B. |
| Yan W. |
| Miroslav L. |
| Ying Mei 1 |
| Ying Mei 2 |
| Ying Mei 3 |
| Nataliya K. |
Victoriya Bondar
ESL 91
Spring, 2000
Essay Topic: Define the four marketing utilities and explain how they are related to the law of supply and demand.
One part of the business is marketing. Marketing is a process of buying, selling and transferring goods or services from manufacturer to consumer. If companies want to have a good business they should keep marketing utilities, which are: form, place, time and possession. All those utilities have relation to the law of supply and demand. Supply and demand are the basic factors which define the price of a product.
One of the four utilities is form utility. This refers to the form of the product, which consumer really needs to buy. For example, I have a very uncommon size of shoes for adults (size 5), but store has size 6 and up. It means that item doesn't have form utility for me and I can't buy those shoes in that store.
The second utility is place utility. This refers to the place in which people can buy whatever they need. For example, I live in Brooklyn and I would like to buy a McAfee program, which I saw at a internet site. But later I found out that this item is only sold in New Jersey. As I don't have a car and I can't order it by mail (because I don't have any credit card), it means that item does not have place utility for me.
The third type of utility is time. This refers to the time, when I need something and it's available for me. For example, in summer I decide to go to the mountains. I plan to go in December, but I want to get ready early. I would like to buy a snowboard, but in summer time it is very difficult to find .Thus, the item doesn't have time utility and I can't buy a snowboard.
Further we have one more utility. This is possession utility in which the three types of utilities: place, form, time go together. For example, I go to the store to buy shoes and I am lucky, they have size 5.So there is form utility. This store is not so far from my house. I can get there very easily and fast, so there is place utility. Those shoes are available at the time, when I need them. So there is time utility. But there is another problem about which I didn't know before. This store accepts only cash, but I took just credit card with me. It means that possession utility is absent. And even though form, place and time utilities are present I can't buy the item. All those utilities are very important for consumer and for manufacturers.
All four utilities make up the law of supply and demand. Supply and demand, in economics, are the main factors, which define the price of a product or service. For example, the first utility (form) will raise the price on size 5, because it is an uncommon size. From this example we can see that price of a product is defined by the relationship of the supply to the demand. From this we can formulate the law of supply. When demand exceeds supply, the price of the item will be increased. Therefore if I really want those shoes I would pay any price for them.
In conclusion I would want to say that I am sure that the business of the company will grow, if the management follows utilities (form, time, place and possession), which have straight connection to the law of supply and demand. Supply and demand both influence the price of a product.
Yan Wang
Essay Topic: Define the 4 marketing utilities and explain how they are related to the law of supply and demand.
Marketing is a science that studies designing, advertising and selling goods and services. Marketing utilities and the law of supply and demand are the main subjects of marketing. Marketing utilities are the conditions that companies present to attract consumers to buy their goods or services. In fact, the utilities relate to companies' supply and consumers' demand. If we create a company, we have to be careful to deal with those utilities. The utilities will determine whether or not the companies can keep supply and demand in balance, whether demand will exceed supply. This in turn will determine whether the business succeeds or fails.
Form utility, time utility, place utility and possession utility are the four utilities of marketing. They influence the supply and demand. Form utility is the basic reason why consumers will buy the goods or services or not. Form utility refers to whether or not the item is in the necessary form for a consumer to buy it. If I need to buy a 0.5mm point pencil, but the store only has 0.7mm point pencils. I will not buy pencils because they don't have form utility for me. If more customers want 0.5mm pencils, they may need to get more 0.5mm pencils to sell, to let the supply fulfill the demand.
Time utility refers to whether or not the goods and services are in good supply when the consumers need them. For example, I want to eat some pizza at midnight, but most of the restaurants are closed, so it is very difficult to get my pizza. So I will not buy pizza or I will buy it from the restaurants that stay open late. If a lot of people want or need to eat pizzas at night, it may be a good idea to start a business for the people who have extra needs.
Place utility means that the goods are available in a place that is easy for consumers to get to. If the place is very close to the consumer, he or she may buy an item, even if the item is more expensive than an item, which is in a stort further away. This is because a consumer may prefer save their time over money.
The possession utility is the most difficult utility in marketing. It refers to anything that will stop the consumers from buying the goods and services, if form, time, and place utilities are all present. For example, price can be considered to affect possession utility. The market prices of goods and services are determined by the relationship of the supply to the demand. When demand exceeds supply, the sellers can raise the price, so that they can make more money than the goods at regular price. On the other hand, when supply exceeds demands, sellers must lower the price in order to sell their goods. It doesn't mean they must lose money, they may earn less than they earn at regular price. When the supply is very limited, can the companies raise the price as high as they want? The answer is "no". The price will keep the consumers away from product. If the price is very high, the consumers may change their minds and decide to buy another product with similar qualities and a lower price. This happens though merchandise has form, time and place utility. For example, there is a store where everything is on a big sale; people are willing to drive for a half hour to get there. Here the consumers prefer to save their money than their time.
In conclusion, marketing utilities relate to supply and demand. They determine whether the business can succeed or not. We can't study marketing without studying the relationship between marketing utilities and supply and demand. Businesses can get information or feedback from market and consumers then know their situations and their supplies fulfill demand or not. They will use the information and feedback to develop their products and improve their services.
Miroslav Lelchitskiy
Spring, 2000
Essay Topic: Discuss the psychological factors involved in advertising. How do advertisers use the basic determinants 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?
Advertising is a form of selling. Advertising is a kind of message transmission that is designed to promote a product, promote a service, or promote an idea. An advertisement must be interesting enough to attract the customer's attention. The audience must receive a clear reason why they need the product that is being advertised.
"Psychology in advertising has long been used as an effective means to sell a product or service. Understanding the underlying concepts that affect human psychology can help a company better sell their product or alternatively can help a consumer understand marketing strategies that get them to buy products." (Kasper 92).
Each advertisement has to involve at least one form of appeal: the factual appeal or the emotional appeal. A factual appeal tells how a product is made or how it works. An emotional appeal focuses on how a product will give us personal satisfaction. Emotional appeals try to influence us by exploiting our human needs for love and prestige. Most people are influenced by what others say, especially if the person saying it is someone famous or someone whom we admire. For example the singer Whitney Houston was selling Diet Coke. Her ads were posted every where in newspapers and magazines, on posters and billboards. Then when the ads ran on TV three or four times, this repetition had an incredible effect on the popularity of the product.
Television carries more national advertising than any other medium in the United States advertisers is that it reaches a vast number of people at the same time. One commonly used technique of persuasion is that of authority. Everyone has seen ads where 2 out 3 doctors recommend... This is based on the idea that people will respect the opinions of someone who is assumed to have a lot of knowledge about the product. People feel better knowing that someone with authority has recommended what they are about to buy. Of course, the authority has to have expert knowledge in that particular field. Would you buy certain toothpaste because a car salesman recommended it?
"The objective of any advertisement is to convince people that it is in their best interests to take an action the advertiser is recommending. The action may be to purchase a products, go to a showroom to try the products, use a service, vote for a political candidate, make a contribution, or even to join the Army. Like any personal salesperson, the advertisement tries to persuade. The decision is the consumer's" [Gresko and Kennedy]
I hope you realize that advertising is a serious business, and that certain appeals and techniques in advertising are used to convince people to buy certain products, services and ideas. It is important for us, as consumers, to be aware of these appeals and techniques, and it's also important, if you go into the advertising field, to use these appeals and techniques fairly and honestly.
Ying Mei Chen
ESL 91
Spring, 2000
Essay Topic: Define the four marketing utilities and explain how they are related to the law of supply and demand.
Do the customers realize that the law of supply and demand, the four utilities and prices are all related to each other? People buy things for things in the daily life. When they buy a material, the first thing they is look up the price. All of the customers want to get the lowest price and the best quality products.
We can use the method of supply and demand to see how the price of supply and demand to see how the price of goods and services are affected by changes in the economy. according to the law of supply and demand, there is a large supply and low demand, price goes down. With a large demand, and low supply, prices go up.
The supply and demand are related to four marketing utilities: Time, place, form, and possession. Time utility is created by marking a product available when customers wish to purchase it. Place utility is created by making a product available in a location where customers wish to purchase it. Form utility is created by converting production inputs into finished products. Possession utility is created by transferring title for a product to the buyers. The market, price, supply and demand all are related to each other. Large demand leads to higher price that needs to low supply, When the demand is low, the price is low and the supply is great.
The time, place, form, possession utilities are the most important for the economies progression. For example, at Christmas, most of the customers go shopping for the gifts. That means a large quantity of supply, The sellers sell the products at the exact time. They could sell for higher price and sell more products to make more profit. After Christmas, the consumers stop thinking about shopping. That means less demand. So, the price drops down. That is the reason most of the products are on sale after Christmas in the department store.
The supply and demand and place utility are connected to the market. People want to buy goods in the place where they live or work. Most of the consumers do not mind if the pay a higher price in a store close to home. For instance, people live in the United states, if they want to by an imported Chinese tea, they prefer to pay a higher price instead of traveling to China to buy it. In other words, the sellers who import the tea (supply) from China to sell in the USA (place) make a profit.
Also, convenience is very important to save the customers time. This helps to make more demand. A customer doesn’t want to wait on a long line to pay for the products in the supermarket. He may not have patience to stand there to pay. He will go to another store to buy it or just simply leave. The store will lose the customers. According to the supply and demand, When and where there are less customers, the price drops down and the store makes less profit. As a result, keeping the customers is the only way to grow the business and make the economy run.
In marketing, time, place, possession and form utilities are directly related to supply and demand and all affect the price. If we analyze the economy, we will know about why some counties make the business so successful. We have to continue to study how to deal with goods and services, and made the economy run.
Ying Mei Chen
ESL 91
Spring, 2000
Essay Topic: Discuss the psychological factors involved in advertising. How do advertisers use the basic determinants 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?
Advertising is one of the important ways to catch the customer's attention. When the sellers wants to sell the products, they put the advertising in newspapers, magazines, T.V people look at it and automatically imagine that they want to own this products.
What is a way for the businessmen to sell the products to customers? First, they have to understand consumer’s buying behavior. They have to provide information about the products for the consumers who have limited knowledge about the products. For example, every teenager wears sneakers, but when the new sneaker with air came out, nobody knew if it was good or not. The company wanted the customers to know the new product (sneakers) would make people more comfortable and be able to jump higher. So, they put the baseball star Michael Jordan in to the ad. He was wearing these new sneakers.
Teenagers look at Michael Jordan as a role model: They want to be as famous as Michael Jordan and as tall as Michael Jordan and as strange as Michael Jordan. They want to jump as high as Michael Jordan. The air sneakers first appeared in schools and then schoolmates looked at each other's sneaker. The sneakers was good -looking, and comfortable; that is the reason they also want to own a pair. Now you can see these sneakers everywhere. This is one of the ways successful advertising uses psychology to affect people’s buying behavior.
Advertising is not only shown on T.V, buy is also shown on magazines and newspapers. A few weeks ago, I needed a lipstick for a job interview. Because I am not familiar with the lipsticks, I looked at the magazines to find which color looks good on me and which color is the most popular one. When I opened the magazine, Cindy Crawford was shown on the first page. Wearing a beautiful lip color and looking healthy, sweet, and smiling. This page caught my attention and psychologically motivated me to choose this Revlon lipstick. I wanted to be as beautiful as Cindy Crawford.
Businessmen use so many ways to catch customer's attention with advertising, so that they can finally sell the products. They use psychological theory. Packaging is one of the various ways to persuade people to make the decision to buy. When people go shopping in a department store, they will look up item by item. If one of the beautiful packages catch their attention, the products, whether beautiful or not, will stick in their mind. The consumers will curiously go chose to the counter take the package down, and even open it. According to research, as soon as the customer opens the products, it means the company has high percentage to sell the products. Then the consumer tried it. If she likes it, she will buy it. That is why so many department stores have beautiful packages on the shelves and let people try the products, especially makeup.
In this country there are many economists who analyze how to grow the economy. James J. Gilmartin is a marketing economist In the article James J. Gilmartin wrote that " consumer behavior is a product of how the human brain and mind work which challenge some enduring tenets of marketing. Focusing on product features and benefits often is a losing strategy in advertising."
Businesses use various ways of the advertising to psychologically affect and catch consumers attention to persuade the customers to buy their products. Advertising directly affects the amount of products selling successful advertising will make the company successful and make the economy grow strong.
Bibliography
Consumer Behavior Marketing [Online]. http://www.Bankinfo.com/marketing/behavior.html.
Ying Mei Chen
ESL 91
Spring, 2000
Essay Topic: Examine the case of Genie and its results from the point of view of your own focus discipline, business. Explain how business principles are connected with and may be used to explain or describe the events in the Genie case.
In this 21st century, people love money more than ethics. Everything is surrounded by money, business. We sometimes worry more about money than people. In the 1970’s, there was the case of an isolated girl, Genie. Many people worked with Genie because of the money.
Genie was an isolated girl who was discovered in a small room. She was tied in a potty sit by her mentally ill father. She ate baby food and drank milk one a day. By the time she was discovered, she was 13 year old and only weighted 59 pounds. She had been completely separated from other people. As a result, she didn’t know how to talk and wasn’t socialized. She didn’t even know a word when she read.
The Genie case shocked the whole world because it was unique. It interested social workers, scientists, psychologists. They wanted to know whether isolation could affect a child’s normal life and later life. They received the money from the government for this research. After they researched, they published books for money, got famous and got a nice job.
Susan Curtiss, a graduate student from UCLA, is one of the people who got benefit from this case. At that time, Curtiss started teaching Genie the words by showing her pictures and speaking to her. Curtiss investigated the knowledge of language from Genie that related to Curtiss’ graduate work. She didn’t really live Genie. She just wanted to know the affect on child if she /he started learning in later life. As soon as Curtiss finished her research, she left Genie. Genie was abandoned again. She felt lonelier. Curtiss got a lot of information about the language development from Genie. She published books and got a nice job and nice pay.
Jean Butler, was a psychologist who is another person who benefited from working with Genie. She was the first one who tried to be a foster parent to Genie. She refused to let anyone else work with or visit Genie. She tried to become the next " Annie Sallivan", to become famous by teaching this girl successful. Unfortunately, Genie didn’t allow Butler to reach her goal due to Genie’s brain damage inherited from her father. Later, Butler lost custody of Genie. Genie again was moved from one place to another place.
The next new place for Genie was David and Marilyn Rigler’s home. The Riglers were couple of scientists who received a large grant from the government to research Genie. The Riglers thought the best way to research was to become Genie’s foster parents. After four years of research, the Riglers couldn’t get a good result for the government. They had only collected a lot of videotapes. For this reason, the government stopped funning for these couple. After this happened, the Riglers sent Genie back to the hospital. These scientists didn’t really pay attention to the investigation for the science. They only looked for the money. They just wanted to get a piece of money from the government.
The business exists anywhere. Even Genie’s mother, once she was Genie’s guardian lasted only a month. She kicked Genie out to the nursing home because of she couldn’t handle an 18-year-old girl who acted liked a three-year-old girl. How could a mother not be able to handle her own daughter? In my mind, she didn’t really love her own child. She just got custody of Genie and then used Genie to sue the people who had worked with Genie to get famous or get money from the government. She did this instead of taking care of Genie and really being concerned about her future. Genie’s mother got money as a result of her lawsuit. She didn’t take care of Genie either.
Genie was victim of all these people who took advantage from her instead of taking care of her. She never found her stable home. She was abandoned time after time. Her heart was hurt time after time. I feel sorry for her and sympathize with her. The people who took advantage from her made me feel that the world is full of economy, business, money. People had no heart for this pitiful girl, even her own mother. Everybody wanted to get a piece of money from this girl.
Nataliya Kolesnyk
ESL 91
Spring, 2000
Essay Topic: Discuss the psychological factors
involved in advertising. How do advertisers use the basic determinants 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?
Since television has come into our lives,
we have changed. Most of the time television or media create our thoughts. We
judge something or somebody by the information we receive from the media. Also
the media tells us the standards of our lives. It tells us how we have to look,
shape of the body, hair color, and dress fashion.
All the time we see beautiful men and
women in commercials. They wear beautiful dresses or exquisite perfume and tell
us that we have to buy the same to look like them. Top models share their
secrets with us and ask everybody to join them and look like them by using the
same expensive makeup.
Positive satisfaction of buying
merchandise affects consumer behavior (Britannica.com). Advertising involves
psychological factors as it appeals to our needs. It shows us products we need
to use every day; such as clothes, makeup, food, childcare products etc.
Commercials also show us motives for why we have to use those products. We have
to use baby wipes, instead of a napkin or towel because our children will be
happier and healthier. It also prescribes us how and when to use this certain
product. For instance, Wash & go shampoo from Procter &
Gamble. The ad says just wash your hair in any time you need and forget
about problems with hairstyling. These commercials all create our attitudes
about every product. If we see some new product we don't really know whether
this is good for us until the commercial tells us about it.
The design of advertisements and
product-placement is very important in advertising. Many companies use sex in
their advertising campaign. For example, Calvin Klein used sexually
explicit picture billboards to boost sales. Virgin Atlantic Airways, on
other hand, played with words. Their billboard slogan reads: "Ride on
Virgin Atlantic Airways". But from the distance you can only read
"Ride on Virgin" One more thing is a product-placement. It is very
popular to put the brand name product, package signature, or other trademark
merchandise within motion picture, television show or music video (Brennan,
Dubas and Babin). For instance, most movies with Jackie Chen include
advertising of Mitsubishi cars. Those cars make lots of dangerous tricks and it
shows their technical level. People can see how the main hero makes lots of
jumps and goes though many crashes and accidents and never hurts himself
seriously. That show boosts sales.
Successful advertising creates impulse
buyers. If the commercial you saw on the TV affected you, in the moment you see
a product from that commercial in the store or on the web site, some impulse
makes you buy it. But after you get it you think why did you buy it. Here is a
message I got from one person who won a bid on the ebay auction and had to buy
my product: "In a moment of weakness I made a bid on this item. After I
got your message that I won the auction bid I realized that I don't really want
to buy it. Do you mind if I retract my bid?" The products I sell are brand
named, which are well advertised and well known. When I type descriptions for
them I use words from the commercials on those products. Popular phrases give
the buyer an idea about that product, and it makes them bid immediately on that
product. After they made a bid they wonder why they did it. Usually retractions
on my products are not very often. In most of the times my customers are very
satisfied by their purchases. However, what made them buy something that they
were not planning to buy?
Many times successful advertisement makes
consumers change their attitude about a product. Research conducted between
1975-1996 shows that comparative ads are more effective than noncomparative ads
(ABCnet). Those ads generate consumer attention and increase purchase intention
and purchase behavior. A good example is the TV commercial about laundry
detergents such as Tide. You see children's clothes after using
different detergents and after using Tide. Just a few hours before you
had done your own laundry and you were not satisfied with the results. Tomorrow
you will go to store and ask for Tide.
Every day industry creates new products.
Advertising lets consumers know about them and makes the consumer buy them.
Even if some people have a strong opinion about the old products they used; sooner
or later the new product advertising makes them change their mind.
Bibliography
Brennan, Ian, Khalid M. Dubas and Laurie
A. Babin, "The Influence of Product-Placement Type and Exposure-Time on
Product-Placement Recognition" [Online]http://www.uncfsu.edu/w2/fac/brennan/mark610/Iloadv.htm [March 27 2000]
Message #9, ((c) 1998 APA/PsycINFO),
"Attention Consumer Behavior Net", ABCNet, [Online]. http://cwis.kub.nl/~fsw_1/eco/acbref.htm [March 25 2000]
"Theories of consumer behaviour"
Encyclopedia Britannica, Britannica.com,
[Online]. http://www.britannica.com/bcom/eb/article/2/0,5716,109012+3,00.html [March 25 2000]