How does technology impact marketing and marketers? In this lesson, you will gain a better understanding of technology, marketing and marketers and of how each one impacts the other.
What Is Technology?
Technology is defined as inventions or innovations from applied science or engineering research. We use some form of technology daily. From our alarm clocks that wake us to televisions that allow us to watch our favorite shows, we benefit from technology because it makes almost everything we do possible.
Factors marketers must consider when planning a marketing strategy.
Technology evolves at an extremely rapid rate. Can you believe there was no iPhone just seven years ago? When you see an advertisement promoting the latest laptop with dancers and fancy colors, obviously the goal of the advertisement is to make you want to purchase the laptop. This advertisement is a form of marketing. Marketing is defined as the process of planning and executing the development, pricing, promotion and distribution of goods and services to achieve organizational goals.
For example, the planning involved in coordinating the ideas, venue, models and product to promote in a commercial is an example of marketing. In marketing, marketers are vital. Marketers are the individuals involved in developing and executing marketing tactics that will influence consumers to purchase a product or service. The individuals organizing the commercial are marketers. Marketing tactics are detailed day-to-day operational decisions essential to the overall success of marketing strategies. Technology impacts marketing and marketers in several ways, but there are two general ways technology impacts marketing: product enhancement and informing consumers.
An enhancement of a product is any change or upgrade that increases software or hardware capabilities beyond original client specifications. Enhancements allow software and hardware to have product performance scalability. Product enhancements usually include:
- Additional functionality
- Error/bug repair and handling
- Greater processing speed
These enhancements can be an example of any upgrade to a gadget we use every day, like tablets. When was the last time you upgraded your mobile phone? According to TechnologyDigital.com, consumers update their smartphones every 18-20 months. Marketers know consumers want the latest in technology. The consumer's desire for the latest in technology could range anywhere from the need to feel accepted or the need to be more efficient. For example, a smartphone advertisement targeting a person who works in corporate America would look different from a smartphone advertisement targeting a college student. The ad for a corporate America person would focus primarily on how the features of the phone would make you more efficient. The ad for a college student would focus more on features that are fun, such as the camera quality.
Companies market certain product features to different consumers based on their needs.
The effect of this on production is that today's products are tested and engineered to be of the highest quality and also accommodate many customer needs. Today's vehicles come standard with such things as mp3 players, navigational systems and Bluetooth capability. Because of the high demand for efficiency and convenience, cars are now equipped with more added safety features than ever before. For instance, never in a million years did I think I would see a car park itself!
There are several ways marketers use technology to inform consumers of new products and services. The obvious forms of media that use technology to market products and services to consumers are television, radio and social media websites, such as Facebook, which would not be possible without the Internet.
Marketers typically follow the current need of a consumer when launching an advertisement. For instance, you may see more advertisements for big-screen televisions around football season. The timing and delivery of advertisements is a prime example of how technology impacts marketing and marketers through informing consumers.
The Internet offers consumers the ability to not only view products and services but rate them. Most websites have a consumer reviews section where consumers who have purchased the product have expressed their opinion and rated the product. More and more consumers turn to the Internet to research products and services by reviewing feedback and by comparing prices between competitors. In a recent survey, it was determined that 58% of online shoppers felt that all e-commerce sites should offer a price comparison service that enabled them to make the best choices on the spot. Amazon.com is a great example of how consumers can not only review feedback but view items selected by previous customers with similar interests.
What would this world look like if technology did not exist? Technology has a significant impact on marketing and marketers. Without technology, consumer demands for a more efficient and convenient lifestyle would not be met because technology drives innovation. Marketers would also be very limited when promoting products and services.
At the end of this lesson, you'll be able to:
- Define technology, marketing and marketing tactics
- Describe the importance of product enhancement to technology
- Explain how marketers use technology to promote products