ENVIRONMENTAL TECHNOLOGICAL FACTORS AND ITS EFFECT ON MARKETING An organization’s success is influenced by factors operating in it’s internal and external environment; an organization can increase it’s success by adopting strategies which manipulate these factors to it’s advantage. A successful organization will not only understand existing factors but also forecast change, so that it can take advantage of change within the environments in which it operates. As group 5 members, we shall discuss on Technology and its effect on marketing. The technological environment refers to new technologies, which create new product and market opportunities. Technological developments are the most manageable uncontrollable force faced by marketers. Organizations need to be aware of new technologies in order to turn these advances into opportunities and a competitive edge. Technology has a tremendous effect on life-styles, consumption patterns, and the economy. Advances in technology can start new industries, radically alter or destroy existing industries, and stimulate entirely separate markets. The rapid rate at which technology changes has forced organizations to quickly adapt in terms of how they develop, price, distribute, and promote their products. Unsurprisingly technological advances have greatly changed the manner in which businesses operate. Organizations use technology in many ways. Many marketing managers are already aware of the four Ps and how pleasing customers has become a major priority in marketing today. With increases in technology, however, customer approval is more important than ever before, and all aspects of business are rapidly advancing to conform to expectations of today's varied consumers. Technology factors include everything that affects your product, its market, or information-gathering efforts of your market that come as a result of changes in technology. This would include the Internet, wireless communications, handheld electronic devices, and anything else technology-driven that is affecting your product or service. Technological factors include technological aspects such as R&D activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation.
Technological advancement has enable innovation and development of new products with advanced features and functionality in the market. The effect of this on production is that today's products are tested and engineered to be of the highest quality and also accommodate many customer needs. With the increased availability of information on a variety of different products, today's consumers are more educated than ever before, demanding products that are made from the safest materials and production methods that are safer for the environment. Increased consumer demands for hybrid vehicles and cleaner fuel alternatives have also prompted further government regulations, incentives for vehicles that benefit the environment, and also increased government funding for research into other forms of fuel. Customers too have a bigger say in the kind of products in the market through surveys and direct communication from them regarding products through the internet, usage for example In terms of marketing management, it means being able to listen to the customers and not only what they like and dislike but what their needs are and how they can be met. One great example of how businesses have adapted to customers can be seen in the auto industry. Today's vehicles come standard with such things as mp3 players, navigational systems, Bluetooth capability, and even added cup holders and grocery bag hooks. Also, cars are now equipped with more added safety features than ever before. The pace of technological change is so fast that the average life of a computer...
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