Marketing and Information Technology
Question 1:
Describe the Internet properties that affect marketing and the fundamental changes the Internet has brought to marketing.
Answer:
According to Strauss and Frost (2009), the Internet properties have affected the way marketing should be done and delivered to the consumers.
1. Internet data is sent in bits and not in atoms – all the data and information are being stored and sent to the consumers in digital form. The digital form cannot be touch, tasted or smelled. In contrast to other types of marketing, the seller do not need to deliver the items itself for inspection by the consumer before it is being purchased.
2. Internet is a mediating technology – anywhere in the world, music and other data is being passed on and shared. This encourages communication for businesses in a supply chain.
3. Internet encourages global reach - regardless of location, the internet is accessible to all. Businesses can be conducted globally easier while encourages worldwide partnership and products distribution even better than before.
4. Internet works as network externality – target markets are being reached easily and faster with automated communication.
5. Internet is a time moderator – time is a valuable essence where consumers would expect faster service as in the communication with the company itself and faster feedback response.
6. Internet is an information equalizer – information on the product is easily accessible to consumers via the internet, therefore consumers have better access upon the information and pricing of the product itself
7. Internet practices open standard – Large and small companies have the same standard where both types of companies can access each others’ database and customer relationship management
8. Internet practices task automation – most of the costs are lowered due to the self serving functions where automated payment and transactions are being done by the consumers
The fundamental change the Internet has brought to
Describe the Internet properties that affect marketing and the fundamental changes the Internet has brought to marketing.
Answer:
According to Strauss and Frost (2009), the Internet properties have affected the way marketing should be done and delivered to the consumers.
1. Internet data is sent in bits and not in atoms – all the data and information are being stored and sent to the consumers in digital form. The digital form cannot be touch, tasted or smelled. In contrast to other types of marketing, the seller do not need to deliver the items itself for inspection by the consumer before it is being purchased.
2. Internet is a mediating technology – anywhere in the world, music and other data is being passed on and shared. This encourages communication for businesses in a supply chain.
3. Internet encourages global reach - regardless of location, the internet is accessible to all. Businesses can be conducted globally easier while encourages worldwide partnership and products distribution even better than before.
4. Internet works as network externality – target markets are being reached easily and faster with automated communication.
5. Internet is a time moderator – time is a valuable essence where consumers would expect faster service as in the communication with the company itself and faster feedback response.
6. Internet is an information equalizer – information on the product is easily accessible to consumers via the internet, therefore consumers have better access upon the information and pricing of the product itself
7. Internet practices open standard – Large and small companies have the same standard where both types of companies can access each others’ database and customer relationship management
8. Internet practices task automation – most of the costs are lowered due to the self serving functions where automated payment and transactions are being done by the consumers
The fundamental change the Internet has brought to
References: Reiher, N. and Metzschke, S. (2010) Privacy on Social Network Sites and Its Impact on Computer-Mediated Communication, GRIN Verlag Strauss, J. and Frost R. (2009) E-Marketing 5:E, Pearson Education, Inc. Publishing as Prentice Hall