Archive for October, 2009
THE TECHNOLOGY REVOLUTION IN MARKETING
As we enter the new century, we also enter into a new era in communication, considered by some as unique as the fifteenth-century invention of the printing press or the first radio and television broadcasts early in the twentieth century. Technology is the business application of knowledge based on scientific discoveries, inventions, and innovations. Interactive multimedia technologies such as computer networks, video conferencing, online services and the Internet, interactive kiosks, CD-ROM catalogs, and personal digital assistants have revolutionized the way people store, distribute, retrieve, and present information. Computer networks and other telecommunications technologies link employees, suppliers, and customers in different locations through the Internet or in-house Intranets.
These technological advances are revolutionizing marketing. Companies can reach specific groups of customers in a variety of ways: from hotels’ in-house television channels targeting guests to toll-free telephone numbers and in-store videos with point-of-purchase product demonstrations. Now that nearly half of all U.S. households have personal computers, online services and the Internet offer a new medium over which companies can market products and offer customer service. Marketing and sales departments can quickly access vast databases with information about customers and their buying patterns. They can develop targeted marketing campaigns and zoned advertising programs for consumers located within a certain distance from a store and even within specific city blocks.
Shoppers can visit kiosks in shopping malls that feature video displays, discount coupons, and product information for a variety of merchants. They can browse through a CD-ROM product catalog on their computers or conduct specific searches to quickly find desired items. Surfing the Web or online services is another way to get product information and order merchandise from catalogs. Firms can quickly update this information at minimal costs. Online retail spending in the United States is growing at an alarming rate—from $7.8 billion in 1998 to an expected $100 billion by 2003. Consumers’ willingness to spend online is growing as is the amount they spend on each visit.
Technological developments play an important role in every phase of marketing, as you will see throughout the text. Each chapter begins with an example of a company that uses technology to develop more effective marketing strategies. We also include many examples of the impact of technology on marketing. Every chapter ends with a number of ‘net Work assignments that let you explore the Internet and take advantage of its capabilities in solving marketing problems. The text has been expanded through the creation of the Boone & Kurtz Home Page, which contains additional case materials, up-to-date reports of recent marketing developments, and updates on people and organizations featured in the text. As an example of the effect of the technological revolution on marketing, consider two key developments: interactive marketing and the Internet.