Rapid advances in technology have transformed the way businesses market their products. Digital tools can enhance every element of the marketing mix – product, price, place and promotion.
Technology and product
Computer‑aided design (CAD) and computer‑aided manufacturing (CAM) enable firms to design and produce goods more quickly and accurately. 3D printing makes rapid prototyping easier. Technology also allows the development of “smart” products with embedded sensors and connectivity.
Technology and price
Online platforms allow dynamic pricing, where prices change automatically based on demand, time and customer behaviour. Price comparison websites increase price transparency and intensify competition. Data analytics help businesses analyse price sensitivity and optimise their pricing strategies.
Technology and place
E‑commerce allows firms to sell directly to consumers worldwide without needing physical stores. Mobile apps enable customers to browse and purchase products on the go. Logistics and inventory management systems improve supply chain efficiency, reducing delivery times and costs.
Technology and promotion
Digital marketing channels include websites, search engine optimisation (SEO), social media, email marketing and influencer partnerships. These channels allow highly targeted advertising based on user data and behaviours. Analytics tools provide real‑time feedback on campaign performance so businesses can adjust messages quickly. Businesses must also manage online reputation and respond to customer reviews.
Advantages and disadvantages of e‑commerce
For businesses:
- Lower operating costs than physical retail outlets.
- Access to global markets and data about customer preferences.
- Ability to personalise marketing and offer a wide range of products.
But e‑commerce also presents challenges:
- High competition and price pressure.
- Costs of maintaining secure and user‑friendly websites.
- Logistics and delivery complexities.
- Risk of online fraud and data breaches.
For consumers, e‑commerce offers convenience, wider choice and often lower prices, though some may miss the physical shopping experience or have concerns about security and data privacy.
| Perspective | Advantages | Disadvantages |
|---|---|---|
| Businesses | Lower overheads; global reach; access to customer data; personalised marketing; ability to operate 24/7. | Intense global competition; initial set‑up costs; logistical challenges; cybersecurity risks. |
| Consumers | Convenience of shopping anywhere, anytime; wider choice; easy price comparisons; often lower prices. | Cannot physically inspect products; delivery times; shipping costs; concerns about payment security and data privacy. |
Examples and applications
An online retailer like Amazon uses sophisticated algorithms to set prices dynamically, adjusting them in real time based on stock levels, competitor prices and demand. Airlines and hotel chains also rely on dynamic pricing: ticket and room prices rise as occupancy increases or popular dates approach.
Technology enhances product design too: sports shoe manufacturers use CAD software to create prototypes and 3D printing to test designs before mass production. Smart products such as fitness trackers collect data about users’ activity and sync with mobile apps, adding value and encouraging repeat purchases.
Mobile shopping apps allow consumers to browse, compare and order goods from anywhere. During the COVID‑19 pandemic, many small businesses set up online stores to continue trading when physical shops closed. They faced challenges in setting up secure payment systems and organising deliveries but benefited from a wider customer base. Customers appreciate being able to order groceries or clothing from home but may still visit bricks‑and‑mortar stores to try on items or get advice.
