INFORMATION TECHNOLOGY, INTERNET AND MARKETING
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INFORMATION TECHNOLOGY, INTERNET AND MARKETING



ABSTRACT

Information technology has developed very fast and today marketing activities are not
possible without help of information technology. Furthermore, nowdays it is difficult to
think of a policy domain that is not affected by usage of information technology.
Information technology is making possible and is creating connections between
businesses and organizations. The implications of information technology usage in
marketing activities are profound too. Using information technology, companies have the
potential to reach more customers, introduce new products and services quickly and
collaborate with suppliers and business partners from all over the world. We should
emphasize that information technology usage in marketing supports an integral approach
to all marketing activities of a company and produces a large amount of information on
buyers and market. The aim of this paper is to describe information technology usage for
marketing purposes. This paper starts with a description of information technology usage
in business. It goes in highlighting of information technology and its role in marketing.
The last part draws out the main conclusions and suggests that more attention should be
paid to the potential of information technology usage for marketing purposes since this
technology today is the key to better marketing activities and succeed in business.

Keyword: Information technology, internet, marketing activities, electronic marketing.



1. INTRODUCTION

Dynamics of development of information technology and its fast usage has brought major
changes in modern business development and marketing activities. In the last decade
researches show an increase of the impact of information technology in organization
structure of enterprises and their business activities. In the field of marketing, information
technology is used to realize significant marketing functions such as information on
market and business in general, marketing research, product development and service and
distribution.

As a result of the information technology usage, enterprise business systems are
characterized by major changes in their marketing systems, with standard products, low
prices due to the impact of competition, short distribution channels, non-linear
promotion, electronic funds transfer, management information systems and databases, as
well as improvement of relationships with business partners and customers enabling them
closer relations to their buyers in global markets.

In this paper the use of information technology in marketing starts with an introduction
and a brief description of the use of this technology in business and continues with a
special emphasis of usage of information technology in marketing activities. Finally,
although the scientific literature has begun to put out the role and importance of
information technology in business processes in the organisation and empirical researches
show an exponential growth of the needs of organisations for information and
information technology usage they have not yet understood the importance of usage of
information technology for business and marketing purposes and do not pay enough
attention. Therefore, more research is required in this regard.



2. INFORMATION TECHNOLOGY AND ITS ROLE IN BUSINESS

With the introduction of science of cybernetics in 1948 in Paris and later informatics and
computer sciences (1963) began to put out the role and importance of information
technology in business processes. However, only in the era of information society and
knowledge economy, information becomes important economic resource and information
technology and integral part of business processes. Today, information is the most
precious commodity in the market, raw material, resource of the future, power, money
and key factor of productivity growth and business success.

We live in a time when we can easy gather a large amount of information. Once was the
main problem how to appropriately, quickly and easy provide the necessary information.
Today, the main problem is the availability of great amount of information. Within the
day through the electronic and communication media circulate millions of information.
Moreover, in the contemporary conditions of development information is important
resource in the enterprises. In order to gather the necessary data on the market about
customers, their needs and habits and process data to information, companies use
computers, information technology and information systems. Therefore, the role of
information technology in marketing can be compared with the role of blood in human
body.

Furthermore, according to Haag, Baltzan and Philips [15], business activities and
marketing activities can not be realized without the use of information technology,
marketing managers can not make quality decisions marketing strategies can not be
designed and can not be oriented business policies. Therefore, in the modern enterprises


all important managerial positions must be connected to computer networks and use
information technology1.

We should note that the role and importance of information technology in marketing
increases with the increasing complexity of business [4]. Moreover, as never before,
enterprises today are in the situation of developing of their activities in a competitive
business environment, which is characterized by high competition and often are forced to
receive quick decisions. In these situations they must possess marketing information2 to
reduce risk and uncertainty in decision-making and increase the probability of making
right decisions [4]. To achieve this, it is necessary to collect data, evaluate them and
process information. In the absence of the use of information technology these goals it
would be impossible to achieve. Especially, if we consider that contemporary business
and marketing activities are based on processes, on tasks and products and not functions.

In terms of marketing the availability of information is needed because information is an
economic resource for companies in order to achieve strategic advantage compared to
competition. For marketing purposes this information can provide information
technology, which supports the marketing function and can facilitate the movement of
goods and services from producers to customers [8].

Furthermore, according to Milicevi [23], the most important factors of competitiveness
in knowledge economy are innovations, quality of products and services, time and lower
costs. Usage of information technology in the function of development of marketing
activities generates information needed which provide knowledge about consumer
behaviour, namely fast and on time, enabling the reduction of uncertainty for marketing
decision makers. This knowledge helps in planning assortments, price setting, promotion
of products and services, selecting sales channels etc. [2].

Replaceable source of marketing information is the Internet3, which enables the creation
of close relationship between the business partners involved in selling and purchasing
transactions for all market segments, ranging from enterprises to buyers and potential
customers [3]. The Internet is used as a place to promote products and services and to
provide information about potential buyers and their power. Recently, some authors
rightly point out that information technology is not only processing of information and



Information technology is a set of tools which people use in order to work with information and support

needs of organizations for the processing of information. For more see: Haag, S. Baltzan, P. Phillips, A.:
Business Driven Technology, Mc GRAW-Hill, New York, 2006.



) Marketing information are processed marketing data which deal with certain aspects of marketing

system or its surroundings and are in a function of reduction of uncertainty in the process of marketing
decisions. For more see: H. Hani : Marketing informacijski sistemi – za menadžere, Beograd, 1998



Global computer network and the network of computer networks - the Internet was created in 1969,

known as ARPANET project of Ministry of Defense of the United States of America aimed to page link military
and research centers. By the time the ARPANET network began to page link the computer network of
universities and scientific centers, including networks Usenet and NSFNET, so that in the 1990s of the 20th
century by expanding the use of this network outside academia and for commercial service with the
introduction of his most famous WWW (World Wide Web), Internet became the medium global
phenomenon and the largest and most massive medium.


only offers the look of data of real system, but also offers techniques that are used in the
field of artificial intelligence [24]. In fact, these are modern marketing systems which are
in the function of the process of marketing decision making.

Milicevi , [23], pointed out that in modern conditions of business development
competition between enterprises or classic companies and Internet companies is not in
technology but in the better way of fulfilment of the needs and wishes of consumers,
while the information technology is the factor of success and efficiency of business.
Furthermore, to be competitive companies are forced to increase their competitive
abilities and their presence in the global market. That a consumer will purchase a
physical book in bookstore, or will order it in digital company do not depend which
company has the best Web-site or who is faster on the Internet, but it depends on who
understands better customers needs and who may have the best offer in comparison to
competition [9].



3. INFORMATION TECHNOLOGY AND ITS ROLE IN MARKETING

No doubt years of the 1980s of last century with the orientation towards the enterprise
market are gold years in the area of marketing, because marked the largest achievements
of marketing compared with the orientation of enterprises in manufacturing and sales.
Today, marketing is much more than a business function and is coordinated with other
business functions in company activities. Peter Drucker, pointed out that marketing is an
essential function of business and can not be seen as an independent function [14]. The
role of marketing is interactive, because present a bridge between the enterprise
opportunities and customers needs, as well as economy and society in general for
products and services. Therefore, one of the conditions that must be met in order that
products and business enterprises not remain unknown for the market is the knowledge of
marketing development through the networks.

Usage of information technology in marketing has enabled rapid and efficient
communication, transfer of a large amount of information over distances, the integration
of multimedia documents, digitalisation of shipment of goods and services, direct
payments via the Internet, creation of virtual organizations etc. All these are elements of a
new form of business, the so-called electronic business (e-business)4. If traditionally,
classic marketing is defined as a set of adaptation of actions of company activities
surrounding and market conditions in order to meet better customers’ needs and
requirements, the question becomes what is electronic marketing?

In the contemporary marketing literature has become common that marketing is defined
by Kotler. He defines marketing as the social and managerial process through which
individuals and groups benefit from what they need and what they want through the
creation, delivery and exchange of products available to others [13]. This definition also
serves as the basis upon definition of electronic marketing.


4


) Electronic business is a general concept of business which includes all forms of business transactions

which are realized with the help of information and communication technology (ICT technology).



In fact, electronic marketing is a general term which we started to hear in the last decade,
which includes all marketing activities online and enable producers and sellers to contact
their customers quickly and easily in order to meet their needs, wishes and requirements
[11]. Some authors define electronic marketing as a process of creating and maintaining
online relationships with customers and fulfilment of their needs

Furthermore, electronic marketing is a form of electronic business which uses
information technology and electronic media to carry out marketing activities in an
organisation [17]. Electronic marketing focuses more on online communication and usage
of direct dialogue with customers in order to increase their loyalty towards the products
of the organisation. Electronic marketing finds its applications on the Internet and mobile
technology and can be supplement to traditional marketing or represents a completely
new form of contemporary business. Therefore, we often hear some terms used such as
Internet marketing, digital marketing, online marketing, virtual marketing, cyber
marketing and Web marketing. It should be pointed out that electronic marketing is
usually used with other media and in coordination with online and offline activities.


Electronic marketing means not only creating Web-site, but focuses more on
communication online, using direct dialogue with customers in order to enable them to
carry out business activities easier. Electronic marketing includes several activities such
as communication with customers, their loyalty and positioning of products or services
on computer networks. Therefore, electronic marketing means everything organizations
do online to find and maintain customers.

Internet companies must follow traditional marketing concept so that users find the same
content regardless of which media they use, creating relationships with customers and


while the traditional marketing expenses for realization of marketing activities are high,
in the electronic marketing everyone who owns Internet connection is potential customer
or suppliers to one another and the costs are very low.




4. CONCLUSION

Application of information technology in marketing as well as in all other forms of
business has changed the classical way of marketing activities, and has brought major
changes in the marketing system. Electronic marketing is a characteristic of
contemporary business and marketing activities are rapidly transformed as a result of
usage of information technology, while as information technology usage to support
marketing activities is an imperative. Enterprises that do not know what is happening in
their business environment and what is electronic marketing, in the short term can be
successful but will never gain strategic benefits from information technology and its use.

The speed and success of the application of information technology in marketing is a key
factor to business success. On the global scale has been proven that the use of
information technology in marketing is a necessity. Noting that usage of information
technology in business continuously generate new business models, new types of
partnerships and new ways of success, we believe that enterprises should benefit from the
usage of information technology in marketing and its unique potential of interactivity to
electronic marketing.
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