Introduction of information technology
Current years have watched an absolute revolution in information technology as to how information is being stored and manipulated in commerce, business, and government operations all over the world. Therefore, a major chunk of the working environment is shifted towards modernization and automation of processes. On the other side of the flip, for the sake of gaining a competitive advantage over a competitor, it has become mandatory for all those businesses that are living in a perfect competition climate. Thus, companies are focused enough on molding their office’s working patterns towards more liberty and customer care.
However, the offices have been altered from purely paper-based working procedures where errors/delays were commonly practiced due to the lack of the right set of skills and equipment. On contrary, employees used to feel chaos in maintaining records plus the accessibility of those records remained a hectic job for employees as well. Information technology has solved their problems with vast improvements in traditional and conventional methodologies of work as accuracy in timelines, easy-to-find results, database record-keeping, and instant information acquisition.
Information Technology Departments are gradually more anxious with data storage as well as administration of information handling procedures, in a chronological way to do the miscellaneous functions to perform effective work inside the organization. The modern Information Technology Departments are employing servers, computers, and cryptography and database management systems.
The information technology business has an immense influence on the people as it gives opportunities for employment for technological as well as non-technical graduates. On the other side of the flip, information technology had certain capabilities set to entice lucrative profits as in the pre-technological era, companies were not supposed to have automation in their manufacturing processes.
On contrary, service departments of respective companies were not equipped enough to get maximum consumer satisfaction. If we put a glance at a banking sector with an exemplary look, we would come to know that in the conventional banking system, there was no idea of online transactions, instant cash drawl, and electronic bookkeeping. Therefore, branches had to confront sundry errors and mistakes at the end of the month. Modern information technology has solved such dilemmas in a better sense. Now, the human can get liberty from computers for showing better performance.
On the other sides of picture, in the marketing departments, information technology is being used as a tool to boast sales and performance through utilizing different channel of information technology. For this reason, huge amount of marketing based companies came into existence for providing necessary customer care services. PSS (product service system) is keeping producers aware about necessary procedural requirements as what would be right blend of product and services for the sake of getting more customer satisfaction. There are numerous commodities that used to be grand failure because of bleak strategies of strategists.
For example, product A is being produced while it is passing through sundry phases. Manager should opt to set right blend of product-service as its success solely dependent on such decisions like in hotel industry, services portion need really care comparative to product issues. PSS is one another tool of information technology which gives necessary suggestions to manager in respective problems as well.
Information technology is continuously getting impetus, especially in telecom and wireless businesses (Tennant, Roy, 2002). The huge growth in networking technologies is anticipated to carry on subsequently decade also. Information technologies are talking about a radical development in the superiority of life as it effects on application domains and worldwide rivalry. Technologies that are rising are Data Warehousing and Data Mining.
They engage in collecting data to discover the patterns plus checking proposition in normal research. Inter-companies soft wares are getting boom these days due to outsourcing and international business. Every time top management wants to have information about performance of branches/ outsourcing unites. Therefore, data used to transmit on daily bases.
Role of IT in marketing
Marketing is the procedure through which commodities items are sold out in addition to buy. The aim of marketing is to obtain, hold and make customers happy. Modern marketing techniques are covering vast fields of daily life. Now these days, success of product is dependent entity of marketing policies and decisions. Therefore, marketing field has an ample range of particular functions like publicity, advertisement, public relations, mail-order business, and merchandising, retailing jobs, product sales, marketplace investigation and element of price of goods.
Therefore, businesses and other predominantly marketing feature of businesses base on the use of computers. Information technology participates with important function in processing and handling orders, inventory control and contact between satellite enterprises, blueprint and creation of commodities, production, product plus marketplace analysis, promotion, some time it has to monitor all procedural requirements of newsletter as well as annual reports of company. In other words, now it has captured the importance to cover overall operation of company.
In a modern era, tremendously cutthroat competitive production unites are probing for paths to perk up productivity in addition to keep their place in the bazaar as rivalry became more intensive in nature. Therefore, concentrated method for accomplishment has become harder.
There are few functions of information technology which almost every company is employing for a sake of promoting their products as worldwide web and CAD/Auto CAD.( Wharton school of business, 2007)
If we analyze inter organization working pattern patterns, the core essence of marketing will be clearly understood as marketers are snooping to access information through consumer databases, electronic demographic maps, multicultural calendar services, networking and one more thing which they are deliberately using for promoting their brands that are power of media.
Implication of theories
Information technology is performing supportive and assistance facilitations in any field either it is marketing field or it is human resource management field. On other side of flip, information technology tools basically give leverage to generic function of organization so, that organization can perform relatively better than previous circumstances.
Disruptive innovation model
The Disruptive Innovation model from Clayton Christensen is a theory that can be taken into use for telling the impact of novel technologies on a firm’s existence. By responsibility what good companies are theoretical supposed to perform? Companies are more concerned to provide to their most lucrative customers plus hub investments where revenues margins are most good-looking. Therefore, well-known industries leaders are on a path of supporting Innovations and leave themselves open for unruly technologies to bury them. All this happen because of resource allocation process of company is dedicated towards seeking optimal profit margins. Thus, for the sake of sustaining innovation environment companies have to put lot of effort to get it.
As far as its bookbinding relationship is concerned along marketing, novel technologies usher to generic function marketing as it would be difficult to run modern concept of marketing exclusion of information technology. A significant program has given liberty to companies in a whole world. This is computer-aided design and computer-aided manufacturing (CAD/CAM). It is basically mix up of two respective technologies. It has often been called the new engineering upheaval. As far as its link with marketing is concerned, you have seen advertisement of new residential area. In 2005, boom in real estate business have been seen in all over the world. Such particular ads basically are made in this typical software. On other sides of flip, CAD is normally being used for simple advertisement as well. Company hierarchies, sales force task schedule kind of objects is to be made in CAD.
These models are analyzed by computer and redesigned as necessary. This allows to companies flexibility in studying different and daring designs without incurring of high costs of building and testing of actual models, saving millions of dollars. In CAM, designers and engineers use computers for planning manufacturing processes, testing finished parts, controlling manufacturing operations, and managing entire plants. CAM is linked to CAD through a database that is shared by design and manufacturing engineers.
Though it is good way to get lucrative results but on the other hand, disruptive processes need to have separate strategically processes which is some time become bitter for companies. On contrary, it is more often talking about innovation regardless of its effect on companies’ structure and hierarchy in addition to product modification and customer demand doesn’t take in front of these processes therefore, cumulative effect can pinch to company’s repute and sales as well.
Though it is far better technique to grasp attention of your customer but for some time, it wouldn’t give you margin revenues. If we implement this technique into marketing field then we come to know that innovative products have high threat of being failure. As far as processes are concerned, completely innovative processes require right skill of employees too therefore; UN skill labor force wouldn’t let company sustain such changes.
Business reengineering process theory
This theory has been presented by Hammer the primary reassessment and the fundamental revamp of organizational processes in array to attain radical development of current performance in cost, services and speed. It has bookbinding relationship along marketing processes as well with the collaboration of information technology. It has been suggested rather to focus on each function of company. The company should make precedence procedure so, that they can perform well from every prospective. Value creation is genital role of BPR and for this reason information technology plays vital role for attaining objectives. In BPR, software applications usher to implement all those techniques which are valuable for marketing. (www.12manage.com)
BPR basically talks about improvement in every process but some time market doesn’t feel capacity to attain some optimal objectives like in BPR benchmarks have to be set therefore, average salesmen are effected more than any one else. BPR is somehow has biasness towards hardworking employees because average worker always feel trouble due to such system. It is intensive technology oriented therefore; it requires strong financial muscles to cope over several issues.
Customer led approach
As far as role of customer relationship manager is concerned, though he doesn’t have any direct contribution to revenues but on other hand, his job is enough for sustaining permanent and new customer of company. These it has been commonly practicing especially in highly concentric marketing orienting companies because mental satisfaction of customer is becoming more dare to companies. Information technology is playing crucial role for attaining lucrative results. Customer relationship manager needs to access over reports and sundry other functions. He is supposed to do therefore; he has bitterly need of technology. Each business works for its customers plus it ensures accomplishment and expansion; we require putting spotlight on the wants of the clientele. Therefore, CRM is the instrument which ushers to organization in organizing and analyzing client data and thus serving organization to realize customer preferences.
On other hand, CRM can make organization understandable about the liking and disliking of customers and this process can entice new customers as well. By storing all customer linked data steadily in a central location, CRM tools give simple access of information anyplace anytime. This kind of customer-centric method helps in building better customer relationships and thereby maximizes customer retention, which helps to improve business ROI (Rama Krishna, 2009)
Bitter realities of information technology
The use of IT in marketing has shocking effects on numerous formerly retail industries like song, movie, pharmaceuticals, banking, bug markets as well as the advertising companies itself. Internet radio markets are presently overtaking radio marketing in terms of big market share slice. Particularly, in film industry consumers are getting songs and movies from internet either through free downloading liberty or through purchasing. This step is basically harming to physical markets. CD retailers are losing their share gradual perhaps one day; nobody will buy CDs into physical markets.
Organization communiqué was conceptualized as IT related improvements in inter organizational and intra organizational communications. The quality and quantity of work performed in organizations using IT was viewed as productivity of work. The marketing operations construct measured IT improved marketing functions. The success of IT in improving decisions was seen as improvements in the speed, analysis, and ease of decision-making. Finally, the success of IT in improving marketing strategies was conceptualized as a construct representing IT as a source of differential advantage. Hereafter, these constructs are referred to as communication, productivity of work, operations, decision-making, and strategy respectively.
It is argued that communication as facilitated by IT, will positively impact productivity of work that in turn will improve decisions made in the organization. Thus, yield of work is framed as the causal precursor of successful IT improving decisions since as managers improve their output thus; a better foundation is established from which improved decisions can be created in marketing field as well. IT assistance in marketing is widely appreciated because it basically extends decision power of managers.
They can perform in efficient manners regardless of end results. On contrary, IT tools chiefly give assistance to managers in discovering new and new philosophies and methodologies of doing effective work plus such type of instruments give deep sense in the mind of mangers how can they be competitive to world industry as world is going towards international competition. (Montgomery, 1970)
Information technology in marketing has been mounting bang on the electoral process. In 2008 candidates for Presidency use heavily Internet marketing tactics to attain constituents. During the 2007, candidates added on averaged over 500 social network group per day to help scatters their message. President Barrack Obama rose over US$1 million in a single day throughout his wide Democratic candidacy campaign, largely due to online donors. (American marketing association et.al)
Limitation of information technology
The use of information technology in marketing requires clientele to employ recent technologies relatively than conventional media. If companies are developing new heavy design of websites then it would be complicated for users who don’t have high speed connection. On other sides, companies are using highly graphic containing software in designing marketing strategies. Therefore, it has become mandatory for labor force as well to learn about such a technique and software.
From the buyer’s viewpoint, the incapability of shoppers to a stroke, stink, savor to touchable commodities before doing an online buy. This is one another limitation of internet marketing as well which acts like fundamental law. However, there is an industry average for e business vendors to assure clientele by having broadminded return policies as well as providing in-store pick-up services.
Currently, junk emails are coming as one of the bigger problems for internet user as it is basically abolishing their privacy. Sundry low sales companies play a lot of fake tricks to enhance their own traffic. On a side of flip, companies are using ad sense as well on their particular websites.
Although information technology is the best element for marketing purpose but on the other hand, it is a big threat for employees as well because such programming systems are improving rapidly, and they are eroding the need of physical work.
The entire thought of the internet is free pour of information. Data stream through the primary obtainable system plus do well in providing rapid liberation of information. To fundamentally place up journey guards athwart confident networks and halt some data while leasing other data. That contain a senior priority budge alongside the system primary step seems like a worrying idea. Companies get competitive advantage through making their customer fool about product presentation. Infect, tariff rates didn’t mention on website because customer has to pay also that amount as well. (Wharton school of business, et.al)
Future of information technology in marketing
In presently, the information technology in marketing will be acting as necessary for a business tool as what the FAX and phone are today. Real time matter dispensation and customer self-service are just the initiating. We are transitioning from static sites to vibrant and modified sites from narrowcasting to broadcast from information distribution to definite business.
But, we can also watch onward to a prosperous future within conceivable magnitude, e-business that sprint into the millions of dollars to build and sustain and huge data warehouses about consumers that are networked together across companies and continents. ATM one link is one another example of consumption of technology for marketing purpose; at every corner of street you will machines which are true envoy of good marketing policies and procedure. (M. Mike, 1998)
The information technology in marketing has brought a lot of inimitable remuneration to marketing techniques. One of which is being inferior costs for the allocation of information and media to a global segment. The information technology has a bigger scope as it brings automation factors into the processes. If we talk about an e-commerce market then it has become a vital need for businesses. These days many transactions and interactive sections are being done through the internet facility.
There are a numerous model has been following with favor of information technology in marketing like an affiliated marketing concept gives birth to network marketing approach where customer gets benefit for each sale by member of his network. This concept is quite applicable in a medicine market, especially. On other hand, business got lucrative revenues in terms of selling another product. Both techniques keep record on any suggested database.
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