Technology-driven transitions in marketing
by Nitin Mukadam

Technology is touching our lives in many ways. It is changing the way we travel, the way we communicate, the way we bond ourselves into communities and the way we get things done. Marketing is no exception to the impact of technology. Most marketers do know that technology has changed the rules of the game, but technology tends to have surprising dimensions. Who would have ever expected SMS to become such a potent communication tool? Who knew that miniaturisation would percolate benefits of mechanisation through all socio-economic layers — witness the revolution in how even village housewives process food in their kitchens. If a marketing professional does not understand how these are creating fundamental shifts in consumer behaviour, he is soon going to find himself hopelessly out of touch with reality. Technology-driven shifts are not just in the realm of communications and marketing processes. There are subtle shifts, and shifts that are mega-marketing-opportunities. It’s a mixed bag. So here’s a little crystal ball gazing. The marketing communications model will shift from the one-to-many mass media model to the one-to-one database model. Direct communications used to have a serious handicap — a high cost per contact. In fact, the cost per contact proposition of media was so overwhelmingly in media’s favour, it wasn’t even real competition. However, now, the cost of developing and maintaining a database has crashed. The cost of using email or even voice to communicate with the constituents of the database is declining every day. It will soon come to a point where the cost per contact of even a highly focused audience profile will be lower than the cost per contact of any alternative mass media option. The sheer cost-effectiveness of the database model will compel marketers to think less about branding through media, and think more about custom communication for a specific recipient through a database. Incidentally, feedback to mass media messages is difficult and delayed, while feedback to a direct communication is invariably cheaper, quicker, better (it is individualised) and more dependable (it can be audited more easily). We all accept that marketing is becoming consumer-driven. But do we really appreciate how, and to what extent? Technology empowers consumers and marketers equally. Consumers are now forming online communities where they share information and opinion which can directly impact the demand for the product. The Amazon model will inevitably spread to all product categories. Technology products themselves are already feeling the impact. Consider the powerful opinion-forming process on a site like techrepublic.com to get an idea of what is to come. Marketers are slowly learning about marketing through blogs and online chat boards. Yes, dear, it isn’t just about search engines and web sites any more. Technology is changing the risk propensities of the marketplace. Innovations have smaller windows of opportunity as challengers spring up at a much faster rate. In mobile phones, innovations are driving the market, but every innovation is challenged by an even better innovation. As the marketing manager of such a product line, your major problem is simply keeping up with the spate of innovations. In short, marketing is almost entirely dependent on the productivity of the R&D lab. The marketing department can do little else beyond feeding them with the latest bells and whistles to overcome, and give insights into what the customer seems to want in his cellphone, and at what price. The communications channels are changing from the unidirectional mass media channels to the more interactive new media channels. As media and personal communication pipes converge (with voice, data, and image coming through a single multi-dimensional channel), the individual gets more control over the messages she chooses to receive. Technology helps to filter out unwanted content. That’s what anti-spam software is all about. Marketers will have to figure out ways to get consumers to agree to receive their communications. If this isn’t permission marketing, you tell me what is. But there is a more significant impact here. If the consumer has to give permission, guess what she would like to hear. Certainly not your sales spiel. She will have to be seduced with attractive, useful, entertaining, and most importantly, what she perceives as “unbiased” content. The marketer will have to take on two roles. One, that of publisher — providing information and entertainment as a reward to the customer for simply listening. And the second, a far more interesting one — that of providing a community platform for consumers to get together and interact, and help them form opinions, even if they are against him. He would take solace from the fact that he is getting an opportunity to hear it first hand, and early enough for him to take corrective action. Here again, technology can help. Such content becomes richer when it involves the consumer herself. Technology now allows almost anyone with even a modicum of comfort in using a PC or similar device to generate content. C2C content models are going to become huge opportunities for savvy marketers. Think about an online recipe exchange sponsored by a kitchen appliances marketer.

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