Assignment #04

Effect Of Technology On Marketing

SUBMITTED BY:

MUHAMMAD ALI RAZA

SIBGHATULLAH KHAN
DANISH AHMED ALVI

MBA(WEEKEND) SMESTER-1

Effect of Technology on Marketing

Talking about marketing in todays digital world, it wouldnt be
wrong to say that we are living in an era of Digital Darwinism.
There is tough competition for the survival of brands and
customer relationships, Because Technology has provided brands
with multiple channels for proliferation of message but it has also

empowered consumers. Now brand conversion is very difficult

without associating and providing unique digital experience
(Jacques Bughin, Feb 2015). Although it seems that
technology has redefined the role of marketing, but the fact is,
marketing is still doing the same function, it was performed ten
years ago before the proliferation of internet i-e establishing and
maintaining customer relationships. Then what has changed? The
answer is simple; Technology has changed the power dynamics of
the buyer - seller relationship, marketing approach and corporate
attitude towards marketing function. (Nisha McIntyre,2013).

Historically, there was one way communication between marketer

and consumer. Since marketers were in charge of communication
process therefore power balance was in their favor, they decide
message, channel and place. But the advent of technology has
shifted the power balance in favor of consumers, especially with
web 2.0 consumer can create, upload and share contents. Web
2.0 hosts, platforms where users can express themselves freely
with no restraints. Some examples would include blogs (online
journal entries), web mashup (combined information and services
from multiple sources), and Wikis (Free access to edit information
on a web page). In this Web 2.0 reality, in particular with the
advent of social media sites such as Facebook, users form
communities, create, and share content across multiple platforms
at an alarming rate. With access to such rapid and
multidirectional flows of information, consumers can now make
more informed decisions, which ultimately influence their behavior
( Daphne Khoo,Sep 2014). This enormous conscious of
consumer has eliminated brand supremacy and loyalty, now they
demand economical prices for brands and it has become very
difficult for marketers to maintain brand loyalty. Marketers are
forced to listen to consumers and adjust according to their
demands (Nisha McIntyre,2013).

Second change that occurred with the advent of technology is

corporate attitude towards marketing within the business.Now
marketing has to infuse within every aspect of a business in order
to devise a dynamic strategy. Technology has provided consumers
with options to create more connection with business, and these
connections are touch points. Since consumer no longer
differentiate between product, customer service, marketing and
business function he will create touch points with every aspect of
a business. In order to effectively engage consumer every
department must be infused with marketing function. Companies,
such as Starbucks and Zappos that have embraced this new
marketing concept have lived to experience tremendous success
in this highly transparent world (Nisha McIntyre,2013).

Third and the most significant change that technology has

brought is approach towards marketing. Consumers no longer
want irritating advertisements bombarded on them, they rely and
trust more on UGC (user generated content) about product more
than message carefully crafted by companies for their own
advantage. Now marketing is more inbound than outbound,
business has to establish itself at strategic points in digital word
so the consumer can approach it. Popularity of generalized
product offering is in decline, consumer wants more personalize
and customize offering. In a sense consumer has become a cocreator. (Daphne Khoo,Sep 2014).

In a nutshell, the evolution of the internet has fundamentally

changed how consumers perceive brands as well as purchase
goods. There is a clear power shift from the marketer to the
consumer, as the consumer is empowered to make informed
decisions based on information the internet provides easy access

to. With consumers becoming co-creators, marketers should

adopt a more participative, personalized and user-centric
approach in order to succeed. Marketers should pay attention to
developing positive brand-related UGC in order to establish their
brand and grow their brand equity. Building conversations around
their brand is also essential in establishing credibility in our techsavvy age. Even though the means of marketing has evolved
along with technology, the role of marketing still remains the
same. Its aim in fostering quality customer relationships will
definitely drive its function to positively correlate with the
changing behaviors of its consumers (Daphne Khoo, Sep
2014).

References:
1- McIntyre, Nisha., 2013. How Has Technology Changed the Role of Marketing in the Past Ten
Years, and how do you see it Changing in the Next Five. [online]
Available at: http://www.mba-exchange.com/candidates/mba-knowledge-article.php?kpo=285
2- Khoo, Daphne. Sep 2014. How has the internet changed consumers over the past 10 years and
how can marketers best adapt? [Online]

Available at: http://www.brandba.se/blog/2014/8/11/how-has-the-internet-changedconsumers-over-the-past-10-years-and-how-can-marketers-best-adapt

3- Bughin, Jacques. Feb 2015. Brand success in an era of Digital Darwinism

Available at:
http://www.mckinsey.com/insights/high_tech_telecoms_internet/brand_success_in_an_era_o
f_digital_darwinism