HONB 200-02 Marketing Concepts
Weekly Reflection 01/21/2018
One of the most common misconceptions about marketing is that it is synonymous with the word advertising. Advertising actually falls under one of the Four P's of the marketing called promotion. Promotion, Price, Product, and Place make up the marketing mix. Promotion refers to the communication from company to consumer. Companies spend millions of dollars a year on advertising to communicate to consumers about their goods to increase their sales and thus revenue. Product refers to the tangible good or service that a consumer can purchase. Additionally, Product includes packaging, warranties, and even company image. When operating in a competitive market place, the Product aspect helps differentiate one company from the other. Place refers to how a company will transport the good from where it is produced to where a consumer is able to purchase the good or service. The fourth P, Price, is what a consumer will pay for the product which translates to revenue for a business. Companies use and manipulate the marketing mix in order to attract customers to their products. One of the more dramatic examples of this manipulation is from Coca Cola. In the early 20th century Coca Cola began putting out advertisements with Santa Claus drinking Coca Cola. Santa Claus was transformed into a jolly man dressed in red and white clothing with of course a bottle of Coke. When a consumer thinks about Coke they will often think of joy and happiness because Saint Nick is displayed as a joyful man.
The transaction of goods and services is done in three main ways. The first is B2B or a Business to Business transaction. B2B is seen in nearly every company through transactions regarding supplies, inventory, or a service such as company insurance policies. B2C is a Business to Consumer transaction. B2C marketing is what consumers normally think of as it is a business selling directly to a consumer such as you and I. These companies can range from a local restaurant to Apple selling products directly to the public. The third way is C2C marketing. This typically refers to the resale of a product from someone who has purchased said product to a different consumer. The most famous example of this is the popular C2C site eBay. eBay is a public bidding site that anyone can post appropriate products on to sell an item that consumer no longer wants. For years my friends and I would often play Airsoft which is a similar concept to Paintball. I spent hundreds of dollars over 4 years on the latest equipment so I could play to the best of my ability. My sophomore year of high school we were all too busy with sports every semester and work in the summer to play much anymore. Eventually I decided to sell all of my gear. I used eBay and was able to sell everything at a higher price than what an Airsoft store would pay. eBay allowed consumer to consumer marketing to take place by providing a platform for myself and millions of others to buy and sell products at much more reasonable prices than a business would offer.
A third concept learned in the first two classes of HONB 200 is the idea of value and utility. Value is the result of an evaluation of the cost and benefits of a product. If the benefits heavily outweighs the costs then the product appears to have value. In order to buy a new computer a consumer has to determine a few factors. The cost will play an important role as well as deciding if their current computer has become outdated. Additionally, a consumer has to think about what else they could be doing with that money. These are referred to as trade-offs with the next best opportunity being called the opportunity cost. Utility refers to the value or benefit that a consumer receives from a product. Form utility refers to the inputs put into the finished product. Time utility refers to if the product is offered at convenient times. Place utility is offering the product in locations that are easily accessible for consumers. Finally, ownership utility refers to favorable terms of purchase of a product. In my Economics class we learned that consumer behavior is heavily influenced by the perceived utility they gain for purchasing a product. If a consumer believes they will attain more value or utility from a different product, then they will not buy the one your company is selling.
Lastly, I would like to learn about how the marketing mix varies from B2B to B2C marketing. Do businesses use different strategies when marketing as a supplier or vendor compared to when they sell to the public market? How do they use promotion since advertising is typically seen as a B2C interaction?
Weekly Reflection 01/21/2018
One of the most common misconceptions about marketing is that it is synonymous with the word advertising. Advertising actually falls under one of the Four P's of the marketing called promotion. Promotion, Price, Product, and Place make up the marketing mix. Promotion refers to the communication from company to consumer. Companies spend millions of dollars a year on advertising to communicate to consumers about their goods to increase their sales and thus revenue. Product refers to the tangible good or service that a consumer can purchase. Additionally, Product includes packaging, warranties, and even company image. When operating in a competitive market place, the Product aspect helps differentiate one company from the other. Place refers to how a company will transport the good from where it is produced to where a consumer is able to purchase the good or service. The fourth P, Price, is what a consumer will pay for the product which translates to revenue for a business. Companies use and manipulate the marketing mix in order to attract customers to their products. One of the more dramatic examples of this manipulation is from Coca Cola. In the early 20th century Coca Cola began putting out advertisements with Santa Claus drinking Coca Cola. Santa Claus was transformed into a jolly man dressed in red and white clothing with of course a bottle of Coke. When a consumer thinks about Coke they will often think of joy and happiness because Saint Nick is displayed as a joyful man.
The transaction of goods and services is done in three main ways. The first is B2B or a Business to Business transaction. B2B is seen in nearly every company through transactions regarding supplies, inventory, or a service such as company insurance policies. B2C is a Business to Consumer transaction. B2C marketing is what consumers normally think of as it is a business selling directly to a consumer such as you and I. These companies can range from a local restaurant to Apple selling products directly to the public. The third way is C2C marketing. This typically refers to the resale of a product from someone who has purchased said product to a different consumer. The most famous example of this is the popular C2C site eBay. eBay is a public bidding site that anyone can post appropriate products on to sell an item that consumer no longer wants. For years my friends and I would often play Airsoft which is a similar concept to Paintball. I spent hundreds of dollars over 4 years on the latest equipment so I could play to the best of my ability. My sophomore year of high school we were all too busy with sports every semester and work in the summer to play much anymore. Eventually I decided to sell all of my gear. I used eBay and was able to sell everything at a higher price than what an Airsoft store would pay. eBay allowed consumer to consumer marketing to take place by providing a platform for myself and millions of others to buy and sell products at much more reasonable prices than a business would offer.
A third concept learned in the first two classes of HONB 200 is the idea of value and utility. Value is the result of an evaluation of the cost and benefits of a product. If the benefits heavily outweighs the costs then the product appears to have value. In order to buy a new computer a consumer has to determine a few factors. The cost will play an important role as well as deciding if their current computer has become outdated. Additionally, a consumer has to think about what else they could be doing with that money. These are referred to as trade-offs with the next best opportunity being called the opportunity cost. Utility refers to the value or benefit that a consumer receives from a product. Form utility refers to the inputs put into the finished product. Time utility refers to if the product is offered at convenient times. Place utility is offering the product in locations that are easily accessible for consumers. Finally, ownership utility refers to favorable terms of purchase of a product. In my Economics class we learned that consumer behavior is heavily influenced by the perceived utility they gain for purchasing a product. If a consumer believes they will attain more value or utility from a different product, then they will not buy the one your company is selling.
Lastly, I would like to learn about how the marketing mix varies from B2B to B2C marketing. Do businesses use different strategies when marketing as a supplier or vendor compared to when they sell to the public market? How do they use promotion since advertising is typically seen as a B2C interaction?
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