Establishing a presence is arguably the most important step in building a successful organization. In the past a presence referred primarily to a physical location and any advertising efforts made to build an organizations reputation and spread the word of its existence. With the endless advancements in technology and the expanded approach that society takes to nearly every aspect of life, the word presence as it relates to an organization takes on an entirely different meaning.
There are very few people if any at all who remain untouched by the technological advancements that now dictate the way that business is transacted.Most organizations have adjusted their marketing strategy to include both a physical and digital presence. Advertising on the internet has become equally if not more important than doing so using the traditional methods. This document is intended to offer an analysis of both physical and digital organizational presence and the marketing implications for using both mediums. It examines how different market segments are affected by both methods and also takes a look at both from a customer’s perspective. Also included in this document are examples of companies who have successfully established a space and/or place presence.
Market segmentation is the process of grouping a market into smaller subgroups (Market segment, 2010). Advancements in technology offer customers options when it comes to shopping and getting the things they want and need. No industry has been completely untouched by technology. Companies are being forced to broaden their considerations when they begin to reach out to the different segments they target. It’s not only the younger generation who is utilizing new technology to transact daily business affairs.
A recent study showed that 42 percent of Americans ages 65 and older have computers with internet access in their homes (Exner, 1010). These trends have many companies asking themselves “Do we need an internet or other new-economy-based strategy (Mullins, Walker, and Boyd, 2008)? ” Most would argue that the obvious answer is yes. Today’s fast-paced society is continues to demand more ways to make daily tasks more convenient and less time consuming. Retailers are responding by offering products and services online and the consumer response has been positive.
For example, Netflix, an online DVD rental service, has reached an all time high of six million customers and that number continues to grow (Retail, 2007). The Netflix 2003 annual report contains the following facts: 1,487,000 subscribers; a library of 18,000 movie, revenue of $272 million; and positive income of $6. 5 million (Friesen, 2005). These types of marketing strategies are becoming common-place as companies strive to stay one step ahead of the competition in a world where most markets are changed daily by technological advancements.According to a recent survey from online retailer Safe Home Products, 89% of consumers prefer online shopping over in-store shopping (Knight, 2007).
While it is unlikely that online shopping well ever completely replace traditional shopping, these statistics offer a very strong indication as to how important a “new-economy” marketing strategy might be for companies. Some segments may prefer one medium over the other but there was no information to be found that suggest that specific market segments should use space or place exclusively.Some consumers prefer a hand-on, face-to-face approach to shopping. They like to feel, touch, and smell the items they are purchasing. However, some of the same individuals turn to the internet for convenience and when they are unable to find items at a physical location.
The Christmas season forces many shoppers to explore different options as they search for those hard to find items on the list. Very few companies are more effective in their approach than Wal-Mart when it comes to offering an effortless and convenient way to shop at their store locations and online as well.Shoppers, who are unable to find items at a store location can go online, locate the item and have it shipped to the store nearest to them free of charge or to their home for a small fee. How easy is that? CONCLUSION Whether conducting business at a physical location or digitally via the internet, it’s important to establish a presence. Marketing a product or service can be done in a number of ways and the level of success that a company enjoys depends largely on its ability to reach the target market.
New technology affords today’s consumers options that were unavailable years ago. They have the option of shopping from home or going out to the retail location. They can also research products and services, read and post reviews, and make more informed purchase decisions. It’s unfortunate for some companies who are unable to make the necessary adjustments to survive the competition created by new-economy strategy.
There are many who fell prey to the dot-com era and equally as many who have grown and prospered as a result.So, ultimately it’s simply important to establish a presence regardless to what medium is chosen. In conclusion it is important to point out the growing acceptance of the internet and new-economy technologies and the obvious advantages they offer. This suggests that nearly every company should examine how it will be affected and can take advantage of these new technologies. With internet adoption growing in developed and developing countries outside the United States, the marketing implications for reaching new segments is obvious.
This examination should prompt the companies to develop their own new-economy strategy in an effort to stay ahead of their competition who will likely be doing the same. At the end of the day, e-businesses and e-consumers are no different than traditional buyers and sellers. The buyers are seeking the most cost and time efficient way to get the things they want and need. The successful businesses are the ones who are able to find the most effective means of providing these things.
