How the changes in technology and the growth of online marketing have affected the design of marketing channels?

The increasing use of mobiles and wearable devices is leading to a transformation in marketing. One of the challenges brands face is how to effectively connect with the audience through all these devices in real time and generate relevant and result-oriented marketing campaigns. New technologies and techniques impact digital marketing in an enormous way. To aspire to be a pioneer of the novel marketing tactics, businesses must act considerately.

It is probably a bad idea to throw all of your resources at a newly introduced technology. Businesses need to adapt their marketing strategy to the needs of modern consumers by integrating new technologies for more personalized and fruitful communication. It’s important to understand how you can embrace new possibilities and adapt. Let’s take a look at the impact of some of the following digital marketing trends and technologies which will continue to flourish in the coming years:

Mobile marketing

Most of the future-minded companies have addressed the need to adopt mobile responsive web designs. However, there is a plenty of room for improvements. A research suggests that retail conversion rates, as compared to desktop, are low on smartphones. As a business owner, you should focus on optimising conversion on mobile. As Google strongly emphasises on creating mobile responsive experiences, mobile has a great impact on search marketing. It is important to understand the needs of mobile users and create web designs accordingly.

Marketing automation

Using automation solutions has become absolutely essential for marketers. Marketing automation technology enables businesses to streamline, automate, and measure various tasks. It not only improves operational efficiency but also generates valuable insights to help develop better digital marketing campaigns. Streamlining various activities such as segmentation, lead generation, content marketing, customer retention and ROI measurement can produce incredible results for your business. All you have to do is to figure out what technology or automation software can best facilitate your marketing efforts.

Social media marketing

Expectations of non-stop entertainment and instant communication have become inevitable. The reach and diverse options to engage audiences are the reasons why companies find huge interest in social media. There is a continuous growth in the usage of social media marketing. Social channels such as Instagram, Snapchat, and Pinterest are flourishing in terms of usability and growth. However, following the efforts of the social channels to monetize, businesses have to pay in order to have an impact.

Personalized content

Content is an inseparable component of every marketing campaign. As online marketing evolves, so does the nature of content. Personalizations is one of the most crucial factors in generating content that connects and converts. A study reveals that 94% of marketers see personalization of the web experience as critical to current and future success. Whether it is website development, paid search, email marketing, or social media, it is crucial to make personalization an important element of every campaign.

Video marketing

According to Cisco, video will continue to dominate internet traffic with volumes increasing fourfold between 2015 and 2020. Businesses focusing on creating effective video marketing campaigns are likely to achieve greater success in the future. Adding memorable videos to your website, landing pages, social profiles, and other platforms will help you drive plenty of traffic and conversions.

There is no denying that technology will keep changing the way we market businesses online. Rapidly evolving marketing tactics will continue to help companies connect with the consumers more effectively. As a business owner, you must focus on integrating innovative marketing solutions into your campaigns so that you can achieve sustainable growth and higher ROI.

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With technology rapidly changing and evolving, it can be hard to keep up. The impact that technology would have on the workplace was certainly not anticipated as in the early 1940s, IBM’s CEO, Thomas J Watson, reputedly said: “I think there is a world market for about five computers.”

Technological advances can create many opportunities for businesses, but it often means changing their marketing mix e.g. to enable them to interact with customers through increasingly popular technologies such as online messaging and digital advertising.

The marketing mix (first introduced by McCarthy in the 1960 book called Basic Marketing: A Managerial Approach), includes multiple areas of focus as part of a comprehensive marketing plan. The term often refers to a common classification that began as the four Ps: product, price, placement, and promotion. However, in 1981 Booms and Bitner created the extended marketing mix which added another three Ps: physical evidence, people and process. The extended marketing mix is more suitable for services marketing and online services.

Let’s have a look at the individual elements of the marketing mix and assess the impact of technology on each of them:

Price

This factor decides the pricing strategy for each product/service. After the emergence of the digital world, competition among organisations has increased rapidly. Competitor information is more easily accessible and more transparent for consumers, so it has become essential for a business to strategize the pricing of their product or services. A business needs to understand what their online consumers are expecting from them and how much they are likely to pay for the value of their product.

Product

Product characteristics play a major role in the successful marketing of a product, however, on the internet, a consumer cannot see the products in their real form. Therefore, the form of some products is modified with the use of technology. For example, electronic books, e-tickets, digital photographs, and online bill paying are all changes in the form of traditional products.

This element in the marketing mix involves a business selecting the right product for their customer (rather than selecting the right customer for their product). With the use of the internet, many companies mass customize a wide range of products. For example, Nike and Vans offer online shoppers the opportunity to customize their shoes, such as colour and design. Other custom manufactured products include eyewear, clothing, golf clubs, bicycles, fishing rods, and CDs.

Place

This element of the marketing mix involves analysing the different distribution options and looking for the best placement strategy to reach customers. As a result of e-commerce, there is a much wider geographical reach than was previously possible. Technology decreases transportation costs and enables the movement of people and products. The lowered costs associated with entering new markets and moving operations to new countries can create new marketing and business opportunities.

Consumers typically use the internet to reduce costs, find products otherwise unavailable, or increase their shopping convenience. Because the speed of the internet is almost immediate, customers tend to expect quick access to customer-support information regarding products, prices, and shipping options. They often also expect the speed of distribution to be fast as well and may be unwilling to wait days or weeks for product delivery. Online consumers expect ordering and payment systems to be easy and secure and also want assurance that orders will be filled immediately and that there is an easy, low-cost way to return a purchase if it does not meet their needs.

Promotion

This is where a business decides how it will utilise various traditional and online media to promote its products efficiently and effectively. In traditional marketing, advertising was typically impersonal involving a one-way mass communication approach paid for by sponsors. With the internet, interactive marketing was introduced, which enables advertisers to interact with customers directly and allows information to be accessed without geographical location constraints.

The use of social media has changed how much businesses use traditional promotional activities (e.g. TV advertisements) and advertising in other media types (e.g. newspapers). Nowadays, sponsorships and social media influencers are commonly used to promote products and services. Many businesses are using social media networks, such as LinkedIn, Facebook, Instagram, or Twitter, to promote their businesses. By simply creating an account on these networks, they can easily reach the target audience in a few days and messages can be shared within minutes.

People

This element involves the people behind the company- anyone directly, or indirectly, involved in the business side of the enterprise that advocates for the company and communicates the business value to their customers. Good customer service is vital in an online setting as interactions with the consumer are not physical, therefore organisations need to plan their responses and strategy of keeping their customers happy at all times. Many businesses now use chatbots on their websites to contact users directly to answer their needs. Social media also offers a great way to help customers answer their questions regarding a product.

Physical evidence

This refers to the various elements of service experience, such as facilities, interior designs, and employee uniform. However, in an online setting, these pieces of evidence will not have a physical element to them.

Therefore, a website’s design is essential as, in most cases, it’s the most important channel for an online business. The website’s design impacts the service experiences that customers face when interacting with an online business. Customer reviews are another example of physical evidence that can be found online, and many social influencers promote and review products, which helps the customer make a decision during the buying process.

Process

This refers to the processes involved in delivering products and services to the customer. The ‘journey’ of a user entering a website, then buying a product, and being kept informed about delivery after the transaction has been concluded, is more important than ever. Businesses may benefit from a UX (User Experience) designer to make sure that the user journey is as smooth as possible through attractive website design. Other technical aspects of a website can also affect the process of a user’s journey such as website speed, device optimisation and e-commerce optimisation.

Any business that understands the above-mentioned 7 P’s of the extended marketing mix, and the effect that technology has on these, should be able to execute their marketing activities well with the integration of digital strategies.

Literature references:

https://www.smallbusinessbonfire.com/marketing-mix-digital/

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.1047.5342&rep=rep1&type=pdf

https://www.martechadvisor.com/articles/digital-transformation/the-impact-of-changing-technology-in-the-marketing-field/

https://www.avatarcreative.co.uk/blog/how-do-the-7-ps-work-in-digital-marketing

How have changes in technology and the growth of online marketing affected the design of marketing channels?

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How does technology affect digital marketing?

How has the development of digital technologies affected the marketing mix decisions that companies make?