Technology in the Marketing of Products
Technology changes the way people live and has done so since the invention of the wheel. Since the creation of the first business, technology has influenced the way products are marketed to consumers. Radio first changed marketing in the 1920s. Television changed marketing in the 1940s and 1950s. Since the 1990s and the rise in popularity of hand-held devices and the Internet, marketers have learned that constant technological innovations require ever-evolving marketing strategies.
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Customer Relations
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Before electricity, customers could get feedback from customers through face-to-face interactions only. It remained this way until telephones were used as the central technological component for call centers. Then, Internet technology gave consumers a seat at board meetings. In "Marketing: A Brief Introduction," David Stokes and Wendy Lomax write that "marketing management constantly needs up-to-date information in both demographic structure and culture as changes can present threats to current strategies or offer opportunities for new ones." Successful markets predict the impact of innovations and prepare accordingly while managing current efforts.
Distribution and Sales Channels
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Because technology also changes the way products can be distributed, marketers have to account for the evolution of distribution methods. Even though postal services have been used in the U.S. since 1673 (and officially since 1775, according to the U.S. Postal Service), consumers had to travel to central markets to buy goods. With advances in technology, consumers can get home deliveries. The expense to promote every available distribution outlet can supersede cost effectiveness. Marketers should plan strategies for the top distribution outlets.
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Brand Reputation
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In the 1920s, radio advertising was a one-way street. Companies could create any image they wanted consumers to have of them. Internet technology makes it more difficult to manage brand reputation. Customers have more access to background information on the company. Brands can't hide behind marketing. The employees and the product have to exemplify the brand. All departments--IT, marketing and customer service--work together to create a harmonious brand reputation.
Market Research
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Aside from direct customer contact, technology allows organizations to study consumer behavior. Stokes and Lomax explain that devices such as electronic point-of-sale devices allow retailers to capture information that identifies and tracks consumers' purchasing habits. With this information, retailers control inventory efficiency. Discount coupons are used to get the customers to come back to the store to buy more of their favorite products. It also offers competitors the opportunity to sway consumers to buy their products over their competitors.
Marketing Information Systems
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Technology impacts the speed at which company's can market to consumers. Online travel sites have perfected the method of providing a service while marketing other products and services at every stage of the booking process. These "end-to-end solutions," as described in "Improve Your Marketing to Grow Your Business" by Hunter Hastings and Jeff Saperstein, are a way for "users to obtain information, set up notifications to receive special-offer alerts, make reservations, buy tickets, and keep a personal profile of their travel preferences." Businesses store this information to help with marketing strategies.
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References
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- Photo Credit technology image by Stanisa Martinovic from Fotolia.com
