Principles of Marketing

Managing External Forces

Tutorial Contents
Managing External Forces Importance of External Forces The External Forces Facing Marketing Demographics Adjusting to Demographic Trends Economic Conditions Importance of Economic Conditions Governmental Environment Dealing with the Government Influential Stakeholders Cultural and Societal Change Evolution of Cultural Change Innovation Innovation in Marketing Competitors

Page 14 of 15

Innovation in Marketing

Marketers in many industries know that innovation through new product development is vital to remain competitive. But product decisions are not the only areas affected by new developments. As we’ve discussed throughout the Principles of Marketing Tutorials, innovation can affect almost all marketing areas. Below is a sampling of how innovation has affected different marketing areas:

Marketing Area	Effect of Innovation
Marketing Research	Creates new ways to conduct research including more sophisticated methods for monitoring and tracking customer behavior and analyzing data.
Targeting Markets	Allows for extreme target marketing where marketing-to-person is replacing mass marketing. For customer service, technology makes it easier to manage relationships and allows for rapid response to customer’s needs.
Product	Creates new digital products/services. Incorporation of innovation into existing product/service enhances value by offering improved quality, features & reliability at a lower price.
Promotion	New techniques allow better matching of promotion to customer activity and individualized promotion. Makes it easier for sellers to offer product suggestions and promotional tie-ins.
Distribution	Creates new channels for distribution and transaction (e.g., electronic commerce) that include making it easier for buyers to place orders. Allows more control over inventory management and closer monitoring of product shipment
Pricing	Enables the use of dynamic pricing methods.

Many of the benefits shown above are driven by the evolution of the Internet. The Internet is transforming how all functional areas of an organization perform work. However, it can be argued that no functional area has been more affected than marketing. Throughout the Principles of Marketing Tutorials we have seen evidence of how the Internet has impacted marketing. Over the next decade it is expected that the Internet’s effect on marketing will continue to grow and marketers are well served to embrace this.

<< Prev - Next >>