According to O’Conner (1998), the impact of technology on marketing is dramatic. The industrial countries of today represent a growing information society which is based on technology. For an organisation “information is the most precious of modern corporate resources and its exploitation the key to competitive survival, the spotlight falls on marketing” (Mazur, 1994). To gather, handle and analyse the high amount of information, companies rely on technology. 1.5 billion pounds are invested on marketing related IT applications just in the UK (Leverick, 1998), which makes 15 percent of the total amount spent on IT, and this percentage is still increasing.
The aim of this paper is to evaluate the impact of all potential technologies on the marketing strategy, using a variety of industry and organisational examples, and addressing the implications and potentials for the future.
Therefore, it is necessary to firstly consider the range of current and potential future technologies that may or can be utilised in the company’s marketing function. Examples of how ‘real’ companies use this technology need to be provided and appropriate legal issues have to be discussed. Finally, possible technologies for the fictitious Business Technology PLC’s marketing function are suggested including a financial plan.
A wide range of technologies could be identified including hardware, software and communication technology. It could be shown that technology has a strong impact on the marketing strategy in terms of collect, handle, interchange, communicate, analyse, personalise and customise information, leading to cost reductions, more effective marketing procedures and improved customer satisfaction. The paper shows the technology-driven changes regarding the marketing mix.
The use of technology by marketers is regulated by the national Data Protection Act and European laws.
Finally, it is suggested that Business Technology PLC requires an internet presence, a database and a multimedia presentation of its products as a first step to increase sales, estimated set-up cost are approximately 5,500 pounds.
Table of Contents
1 Range of current Technologies
1.1 E-commerce
1.2 Email
1.3 CD ROM
1.4 Broadband
1.5 Phone, Mobile Phone, Short Messaging Service
1.6 Management Software and Database Marketing
1.7 Potential Future Technology: Interactive TV and ATM
2 Impact of Technology on Marketing Strategy
3 Legal Issues
4 Technology that can be utilised in the Business Technology PLC
4.1 Financial Plan
Objectives and Key Themes
The objective of this paper is to evaluate the transformative impact of various information technologies on modern marketing strategies, providing practical industry examples and identifying future potential. It addresses the shift toward technology-driven marketing processes, the legal landscape governing data privacy, and offers a specific technological implementation roadmap for the fictitious company Business Technology PLC.
- Evolution of information technology in corporate marketing functions.
- Transformation of the marketing mix through digital tools and database systems.
- Legal implications of data protection and privacy regulations.
- Strategies for leveraging e-commerce and CRM systems in small enterprises.
- Cost-effective technological integration for business growth.
Excerpt from the Book
1 Range of current Technologies
When the first modern computer was invented, experts from IBM forecast the market demand for such a machine for no more than half a dozen world-wide. This demonstrates that information technology can exceed all expectations when it matures (O’Conner et al., 1998). However, it is necessary to define the term information technology (IT). It is a “generic term encompassing a range of technologies to capture, store, process and transmit information” (O’Conner et al., 1998). It includes the three main technology groups of hardware, software and telecommunications. Thus, IT includes computers, internet, videotext, mobile telephones, digital communications, personal digital assistants (PDA) and many more.
This section presents a range of mature and emerging technologies, and provides organisational/industrial examples of their implications and potentials.
Summary of Chapters
1 Range of current Technologies: This chapter reviews various communication and information technologies, such as e-commerce, mobile messaging, and database software, illustrating their practical application with real-world case studies.
2 Impact of Technology on Marketing Strategy: This section explores how information technology reshapes the core marketing strategy, moving businesses toward more customized, one-to-one interaction models and improving organizational efficiency.
3 Legal Issues: This chapter discusses the critical regulatory landscape, specifically focusing on data protection laws and the shift towards permission-based marketing in the EU.
4 Technology that can be utilised in the Business Technology PLC: The final chapter provides a strategic, cost-evaluated implementation plan for a specific firm, focusing on website development, CRM adoption, and multimedia presentation tools.
Keywords
Information Technology, Marketing Strategy, E-commerce, Database Marketing, Data Protection Act, Permission Marketing, One-to-one Marketing, CRM, Broadband, Mobile Marketing, Customer Satisfaction, Digital Transformation, Business Technology PLC, Online Sales, Data Mining.
Frequently Asked Questions
What is the primary focus of this research paper?
The paper examines how modern information technologies, ranging from basic internet tools to complex database systems, influence and improve corporate marketing strategies.
What are the central thematic areas covered in the study?
The core themes include the technological infrastructure of modern marketing, the strategic shift toward personalized customer relationships, and the legal constraints imposed by data privacy regulations.
What is the main objective of the author regarding Business Technology PLC?
The goal is to provide a specific, actionable technological roadmap for the company, suggesting upgrades like e-commerce integration, database installation, and multimedia marketing to increase competitiveness and sales.
Which scientific methodology is primarily employed?
The author uses a literature-based analytical approach, synthesizing existing studies and industry examples to evaluate the broader implications of technology on organizational performance.
What specific topics are addressed in the main body of the text?
The main body details current technological tools, their specific impact on the marketing mix (product, price, promotion), and the necessary compliance with EU and UK data protection mandates.
Which keywords best characterize this work?
The work is characterized by terms such as Information Technology, Marketing Strategy, E-commerce, Database Marketing, Data Protection, and Digital Implementation.
How does the author define the impact of technology on marketing strategy?
The impact is described as dramatic, emphasizing a shift from traditional mass marketing toward customized, data-driven one-to-one interactions that improve both efficiency and customer satisfaction.
What role do legal regulations play in the adoption of new marketing technologies?
Legal regulations, such as the Data Protection Act, act as a framework that forces companies to manage consumer data ethically and transparently, necessitating a shift toward permission-based marketing models.
What is the estimated cost for the proposed technological improvements at Business Technology PLC?
The estimated initial set-up costs for the proposed digital transformation, including hardware, software, and training, is approximately 5,500 pounds.
- Quote paper
- Volker Schmid (Author), 2005, The Impact of Technology on Marketing Strategy, Munich, GRIN Verlag, https://www.grin.com/document/38123
