Does Technology Affect Marketing? Term Paper

Pages: 15 (3808 words)  ·  Style: MLA  ·  Bibliography Sources: 3  ·  Level: College Sophomore  ·  Topic: Business - Advertising

¶ … TECHNOLOGY AFFECT MARKETING?

The objective of this work is to develop knowledge relating to the marketing discipline historically and to the present and in terms of the future. The question this work seeks to answer is whether new technologies are a major threat to marketing as posited in the work of McKenna (2002) and to state either an agreement or a disagreement with McKenna's statement.

Marketing has been defined as "...a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of values with others." (Kotler, 2003) the work of McCarthy (1978) entitled: "Basic Marketing: A Managerial Approach" relates the 'Marketing Mix: 4Ps" which are: (1) place; (2) price; (3) product; and (4) promotion. The factors known to affect the marketing success of the organization on the micro level are: (1) people; (2) structure; (3) integration; (4) systems; and (5) leadership. Strategic success factors on the macro-level of the organization include: (1) environmental fit; (2) timing and success; (3) efficiency vs. effectiveness; (4) speed and decisiveness; (5) ambitious intent (operational, tactical and strategic); and (6) outstanding competencies of the organization. (Skukla, nd)

BACKGROUND to the STUDY

The work of Lusch (2004) relates that the Pre-1900 model for marketing was one known as the "Goods-Centered Model of Exchange." This model was Justas it sounds centered on goods and focused on resources. The 'Formative Marketing Thought' defines the period between 1950 and 2000 and includes: (1) customer orientation and marketing concept; (2) value determined in the marketplace; (3) management of marketing functions in achieving optimal output; and (4) emergence of marketing science and emphasis using optimization techniques. The period from 1980 through 2000 and to the present is a period characterized by the use of 'Marketing as a Social and Economic Process' including: (1) market orientation processes; (2) services marketing processes; (3) value and supply management processes; (4) resources management and competitive processes and (5) relationship marketing processes; and (6) network management processes. (Lusch, 2004) the present model is the 'Service-Centered Model of Exchange' characterized by: (1) intangibles; (2) competencies; (3) dynamics; (4) exchange processes and relationships; and (5) operant resources.

LITERATURE REVIEW

The work of Aker, et al. (2005) relates that marketing has the potential to be a powerful mechanism in some sectors and most notably in the report of Aker et al. that marketing: "...can be an importance mechanism for farmers and traders to reduce risk inherent in the production and sale of agro-food products. Existing economic literature typically does not integrate these tools into adoption frameworks." Technological change at a high rate is a "primary feature of modern agriculture, and to a large extent, is manifested by the adoption of new practices." Aker et al. states the fact that technological change "...is often associated with modifications in the production function that alter the relationship between inputs and outputs, rendering them more technologically efficient. This often results in improved production efficiency and implies increased profit maximization for users of the new technology." (2005)

Aker et all further relates that the constraints on producers to adopt technology "arise from a variety of economic and non-economic sources. For example, financial capital availability can be a constraint to adoption if farmers do not have the funds to purchase new technology or are unable to secure a loan for it. Human capital may be a constraint to the adoption of specific technologies for which proper knowledge is important." (2005) Another factor affecting technology adoption is the awareness of the technology and Aker et al. states: "If the potential adopters are unaware of the existence or specific attributes of a technology, then there is little probability of adoption." (Aker, et al., 2005)

It is predicted by Dexigner online that "The biggest cultural influence in 2005 (and beyond) on marketing is TIME and TECHNOLOGY." The perception is that we do not ever have enough Time." (2005) This report relates at Bureau of Labor Statistics report in 1986 which relates that "the ratio of food to technology expenditures was 300:1; in 2006 that ratio is projected to be at parity, which underscores our complete reliance on technology. Technology has become sustenance in a very short period of time and it has dramatically changed how we live our lives and how marketers need to address us." (DEXGNER, 2005)

Mobile marketing is another area that must be considered for marketing purposes and certainly this is a growing area of technology that can be utilized in marketing ones product or service. Yuri Radzievsky, in the work entitled: "Technology's Impact on Branding: In a Tech-Driven Customer World, CEOs need to stay on top of brand building" states: The scene: somewhere in the advertising future, between science fiction and science fact. You look up at the moon and staring back is the Coca-Cola logo. Your daughter smiles and her braces flash the word "Crest." Your rental car is free because you drive one with the Target bull's-eye glistening on the hubcaps." (2006) While, "...it's easy to laugh at the possibilities..." according to Radzievsky "What's not easy is to laugh at technology's impact on branding and advertising. Technology is transforming the way brands and customers interact. Wired. Networked. Multiplexed. Call it anything you want. Your customers are more in control of your business and brand. Marketing must adapt, or your brand will wither. How can a CEO formulate an agile approach to branding in a tech-driven customer world? " (2006)

Radzievsky states that there are five questions, which require an answer with the most important trend being identified as that of: "Transparency. Thanks to technology, nearly everything you do as an enterprise or brand can be observed and published to the world at large. Dell Computer learned this in a series of incidents. A reporter named Jeff Jarvis became enraged with what he called poor service from Dell and he turned his blog, "Buzz Machine," into a rant against the company. His outrage spread rapidly through the Web and erupted into mainstream media. The result? Dell recently committed $100 million to improve sales and support. Dell was victimized next by photos and videos of exploding laptops whose batteries malfunctioned. These were published on the Web and flashed around the globe. " (2006) the question is asked of: "Where does convergence really fit in the branding equation? " (Radzievsky, 2006) According to Radzievsky, new methods of communication and interaction are being discovered by consumers and brand marketers through converging technological applications and software. Radzievsky states the following example:

For example, the phone -- for younger generations, at least -- is the all-terrain media vehicle of choice for navigating the digital landscape. It can display your latest TV spot, turn commercial and theme music into ring tones and alert customers to discounts and special deals by text messaging. The phone turns passive customers into engaged brand loyalists. It can involve them in brand-based games, challenge them to create commercials for brands, bring them together for brand-sponsored events, galvanize brand feedback, energize brand sharing and transform your brand into a powerhouse of convergence." (2006) the second question posed is that of: "What is measurement's role in the bigger branding picture?" (Radzievsky, 2006)

According to Radzievsky, it is not just the ability to collect the data but as well is 'deciding what to do with the data." (2006) the third question posed is "What should my role be in the new marketing and branding world? Radzievsky (2006) states: "Two words: leadership and motivation." Radzievsky relates that the custodian of the brand is the leader. Radzievsky states that: "Today's market space demands that your marketing teams vigorously embrace technology." (2006) it is critical that experimentation be rewarded due to the fact that "technology has created a fluid, fast changing array of marketing channel. Few know how to exploit them all." (2006) Another question that is critical to ask is "How can I stay on top of what's happening and what's next?" Radzievsky states that this involves exploration, experimentation and observation of technology and its' possibilities in marketing.

The work of Margarit entitled: "Using Web Technology as a Means to Strengthen Competitive Advantage" relates that websites are often undervalued by firms for use in gaining competitive advantage in their markets because "most businesses only utilize their website as a means of displaying their corporate profile, lists of products as well as things like their contact details and email address." (nd) the web portal is one way that distribution networks can be used to enhance logistics and create new market channels. Margarit states the fact that an Internet Portal "can substantially strengthen the firm's current product offering. Methods of using the web site to enhance the product offering are varied and range from "offering new web related products through to establishing outgoing affiliate programs." (Margarit, nd) Providing better services to the customer that drives the core product's appeal is an effective method of relating products to the needs of customer. Margarit states: "This usually involves the… [END OF PREVIEW]

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