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CHAPTER 1 PAPER ASSIGNMENT Anonymous Student #1 MKT 201-WEB FALL 2010 July 3, 2011 1According to your textbook, what is "Marketing?" Our textbook defines marketing utilizing the American Marketing Association’s definition as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large” (Tanner and Raymond, p.5). In other words, marketing is the process by which an entity’s offerings are presented to potential buyers or users; these could include individuals, businesses, government agencies, or nonprofit organizations. The offering is usually presented in a way that conveys value. 1What is the rationale for your textbook authors to use the term "offering" instead of products and services? Explain why this might be a good idea. An offering is more than just a physical product or potential service. An offering includes tangibles, the good or service offered, the price of the offering, as well as intangibles such as warranties, convenience of purchase, after purchase service and support, quality, ease of use, and the reputation of the seller or provider of the good or service. When I want to purchase cellular phone service, I could begin my search by shopping for a particular provider, such as Verizon, Sprint, or AT&T, or I could start my search by researching particular telephones such as the iPhone, DroidX, or Blackberry Curve. I could even begin by looking at phone manufacturers such as Apple, Motorola, or Blackberry. Wherever I begin, ultimately, my decision will probably be a compromise. I may prefer a particular phone from AT&T but Verizon’s coverage area and service dependability could be more appealing to me. Sprint might offer a better service guarantee. One phone manufacturer will probably have a better warranty than the others. There will be price differences in phones and plans as well. Ultimately, I will have to decide on one particular “offering”. I chose to go with the Apple iPhone through AT&T because I liked the intuitiveness of the phone and I liked the fact that I get rollover minutes with AT&T. Because of where I work, I also receive a better discount with AT&T than some of the other providers. AT&T’s coverage area was acceptable to me as is the support and return guarantees I received when purchasing the phone. I liked that I could turn to either Apple or AT&T for sales and support in most cases. I chose this offering among the many I had to choose from. For me, this was the best value. For another consumer, it might not be. This is why it is important to use the term “offering” vs. product or service. Most consumers, whether consciously or subconsciously, will consider “the whole package”, not just the physical product or service. It is important for those that market to consumers to consider this. 1Chapter 1 discusses a mathematical formula: Value = Benefits Received - [Price + Hassle]. Explain in your own words, how this formula works and why it is important. Unless one has virtually unlimited resources at their disposal, almost every purchase decision made by consumers takes into account more than simply the product or service. Perhaps now, more than in the recent past, consumers are more value conscious. That Dodge Viper might be fun to drive and I’ll look good doing it but is it the most value oriented purchase I could make? The benefits received by purchasing the Dodge Viper are obvious. It is a fun car to drive and it’s sexy. For a few buyers, this is enough to make their decision but most consumers have to weigh more than that simple fact. The Dodge Viper starts at around $90,000. If I want to purchase one I will probably have to find a Dodge dealer, not as easy as it used to be. The dealership will hopefully have one in stock to test drive, if I’m so inclined to do so before my purchase. I will probably have to custom order it and wait for it to be delivered. If I have a problem I may have to wait longer for repairs and pay more for parts when the basic 3 year/36 month warranty expires due to the relatively fewer number of these cars manufactured. Some dealers may not be as experienced at servicing these cars. I also might also consider the recent financial instability in the company. It will almost certainly be a hassle to get the car serviced if the manufacturer is bankrupt and dealerships close. The formula for this car might look like this…Value (fun to drive, sexy, exclusive) – [Price (relatively expensive to purchase and maintain) + Hassle (more difficult to obtain and service)]. Different consumers will obviously place different weights on each of the components of this formula which makes “value” something that is relative to each individual consumer. 1Explain, in your own words, why many companies use "Marketing Plans. Marketing plans are important so everyone from manufacturers, investors, executives, supply chain personnel, advertisers, sales staff, and providers of goods and services all understand their consumer’s needs and wants and how the company plans to deliver their products and services to the consumer in a way that conveys value to the consumer and profit to those entities (in the case of for profit enterprises). It is important for everyone to be on the same page when it comes to marketing an offering. The marketing plan will take into account the consumers desires and needs. It might consider their habits and almost certainly the demographics of the targeted consumers. It will be influenced by the company’s mission. A marketing plan is essential for every aspect of the business from obtaining funding to managing and moving the product through the supply chain into the hands of the targeted consumer. 1The textbook argues that Marketing is important for Society, Business and Personally. Explain several ways that Marketing is important to Society, business and our personal lives. Marketing enables the exchange of goods and services. My first degree is in nursing. The program was marketed by my college. In exchange for my time, money, and effort, I was provided with a college degree which allowed me to take an exam which provided me with a license to practice nursing. Today, I care for people who are too sick to care for themselves. I provide specialized expertise and skills to improve the health of the population I serve. This service is a benefit to society. While I was in school, I paid tuition, I purchased textbooks, I bought a computer and the associated software, and I bought uniforms and medical equipment. Instructors and ancillary staff were needed to support us. They were paid a salary and provided with other benefits. The businesses that I purchased supplies and equipment from as well as their employees and investors benefited. Today I have a rewarding career that pays well. I am provided with benefits that improve my life and the lives of my loved ones. Without marketing, things would be much different. I could not possibly create everything I needed in order to pursue a career in this field. All the goods and services I utilized for my education were made possible because they were marketed to me and others like me. All of the products I use daily in my career exist because they were created based on a marketing plan which ultimately took into account the needs and desires of both society and individuals to be healthier. How does marketing benefit society (not just in your personal career)? How big of an impact does marketing have on overall GDP? (-2) Overall Score: 68/70 Instructor Comments: You're off to a great start. Keep it up.
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