INFORMATION TECHNOLOGY IN MARKETING KNOWLEDGE
'1nformation has always played a major role in marketing. The effective utilisation of information leads to better products, prices, distribution, and promotion. Technology combined with info.rmation is especially powerful.
Although many forms of technology have influenced marketing, the Internet is currently having a major-perhaps unprecedented-impact.
Electronic networks are created when individuals or organisations are linked via some form of telecommu¬nications. Internal electronic networks are called intranets. There are several types of external. electronic networks, including electronic date interchanges, elec¬tronic information transfer, electronic transactions, electronic commerce, and extranets. A,II of these now make use of the Internet.
Internet marketing changes the dynamics in markets.
The commercial application of the Internet required the development of the World Wide Web and several tools to make it accessible, including browsers, directories, and portals. Now the Web is available to virtually any¬one with a PC. Customers gain greater control of inter¬actions with businesses and have the opportunity to compare products and prices. More products are cus¬tomized, and fewer prices are fixed. New ways are de¬veloped to deliver products to buyers, and buyers share more information. The Internet also influences market¬ing strategy. Areas most affected are marketing re¬search, channel relationships, and promotion.
The information economy poses both challenges and opportunities for marketers. Among the most significant are managing the quality and quantity of information, providing customer service, ensuring the security of transactions and the privacy of customers, and devel¬oping international electronic commerce.
The Internet will continue to grow and evolve. At this point companies dealing in information are best able to take advantage of the economies provided by the Internet, wher~as those selling goods face the most challenges. Although its impact will be felt by all busi¬nesses, it's not likely that the Internet will entirely re¬place traditional marketing.
