Technology has transformed the marketing landscape, impacting product design, customers’ search and purchase behaviour, and marketing communication. Technology also provides a multitude of exciting opportunities for business. Here are three:
Technology Impact # 1: Types of products and services
Technology has reshaped and extended some services (for example, grocery shopping) and created brand new product categories in others (for example mobile phones, laptops, notebooks, iPads).
The Business Opportunity
Leverage technology in your product/service design
Technology Impact # 2: Changed search and purchase behaviour
Today, more households than ever before are connected to the internet. In the last ten years, the number has quadrupled to over 5.9 million households in Australia (ABS 2009), fuelling changes in customers’ product search and purchase behaviour. People are increasingly using the internet to locate information and purchase as the following statistics testify.
Search – ‘Let’s Google it’: Globally, in just one month last year, digital marketing intelligence agency Comscore reported 113 billion searches were conducted, representing a 41 per cent increase on the corresponding month of the previous year. Almost one-third of those occurred in the Asia-Pacific region. Google is the predominant search engine, accounting for more than two-thirds (67.5%) of searches.
Comscore also reported that more than 8 million Australians visited a retail site in December 2009, a 3 per cent increase compared with a year ago. Computer hardware was the most visited retail subcategory with comparison shopping sites (such as GetPrice.com.au and MyShopping.com.au) ranked second.
Purchase: The dollar value of online shopping is significant and growing. IBISWorld estimates that Australian online shopping revenue will increase by 5 per cent to nearly $20 billion this year.
The Business Opportunity
Ensure an internet presence. Provide customers with opportunities to purchase online.
Technology Impact #3: Communication with consumers
This is probably one of the most documented aspects of modern-day marketing.
No longer is marketing about broadcasting at customers and buying attention. Today, customers choose to engage. For organisations, it is now about interaction not interruption, developing trust and building relationships. Organisations earn attention by providing content of interest and value to their customers.
Power to the People
Via social media many organisations are building communities whose members promote or ‘evangelise’ the brand. Rather than one-way communications, these organisations share a dialogue with their customers and listen. Authenticity and transparency are key.
In action, communities are powerful. Last year, brewer Cascade changed its packaging and received a lot of negative feedback via its social media sites. The company reversed the decision and announced it on its Facebook business page.
In the US, Johnson & Johnson created BabyCenter – an online community reaching millions of expectant and new mothers. Via the technology and communities, these customers receive personalised advice on baby products and brands .
Building communities is sound marketing strategy, with recent data showing that 69% of online shoppers regularly use social media sites. (EMarketer, 2009)
The Business Opportunity
Engage, don’t broadcast. Go to where your customers already are.
Use social media to build communities and advocates for your brand.
Some Marketing Fundamentals Still Apply
Despite these changes, the customer (whether an individual or a business) remains at the heart of all marketing efforts. Successful organisations understand their customers’ wants and needs and shape their products/services accordingly. Some recent examples are: Berocca Twist ‘n’ Go (Berocca vitamin tablet and liquid in one convenient pack), Feet Fairies (fold-up purse-sized slippers for tired feet) and the Australian Business Women’s Network – (providing various service levels to suit members’ different needs).
An organisation’s understanding of its customers includes those market factors such as technology, which influence customers’ search and purchase behaviour.
A customer-focused approach while harnessing the technology reaps rich rewards.
Less marketing expenditure is required because customers become brand evangelists, promoting the company’s brands via word of mouth. Customer focused strategies forge customer goodwill, enhancing the brand; which not only attracts new customers, but increases customer retention and profitability.
Harness the benefits of Marketing 2.0.
It’s an exciting time to be marketing so leverage the technology, adopt a customer focus and go for it!
