In an era of digital media coverage, high-speed internet, digital media coverage and super smart-phones usage in everyday life, it is essential for companies to evolve from using traditional marketing approaches and adopt digitalization of advertising, brand promotion, and brand management. Marketing has changed from a traditional sales promotion and advertising to complex and customized strategies towards clients and creating an entirely new level of experience and environment to the customers (McDonagh & Prothero, 2014, P. 1186). The sole purpose of this essay is to evaluate technology change as a contemporary issue in marketing. The essay has derived accurate illustrations from Google Company to provide a profound analysis of how the evolution of technology has influenced Google’s marketing strategies and an explicit discussion of basic marketing theories that relate to the impacts of technology change in marketing.
Marketing can be defined as a management process responsible for identifying, predicting and fulfilling the needs of the customers profitably. Proper marketing demands continuously responding to the changing needs of the customers and fulfilling them in a profitable way (McDonagh & Prothero, 2014, p. 1187). In the current highly competitive and diverse marketing environment, employing technology in the marketing process is unavoidable (Lazer, et al., 2014. P. 1204). Indeed, companies cannot ignore the fact that technology imposes a great influence on the marketing process. Technology has continued to change the way enterprises interact with their clients. Also, marketing has continued to become increasingly technology-oriented.
Honestly, Google is an example of an organization that has successfully utilized technology in its marketing approaches. In 1988, the company was established in the form of a simple search engine, and today it has grown to an average worth of about 35 billion US dollars, with around 20000 employees across the globe (Prescott, 2014, p. 573). In the following paragraphs, I will be providing an in-depth analysis of how Google has continued to embrace technology in its marketing operations and procedures.
Google uses technology to achieve several marketing goals, which can be classified into three- marketing communication, marketing research, and new idea development. First, marketing research is a systematic collection, recording, and analysis of data about the customers, products, and services (Fowler et al., 2013, P. 1203). Flower et al. (2013, p. 1204), further expounds that marketing research enables the organization to examine whether its product portfolio is satisfying customer needs and the improvements that it may make to improve its profitability. Marketing research is majorly vital in instances whereby a company wants to create and distribute a new good or service into the market as it helps to determine the modifications that should be done to a new product and whether the product will attract many customers.
Google has been known for its continued search optimization and refinement over the decades. It has continuously gained success in trying to predict what a client is looking for and posting appropriate ads on their search result proposals (Google, 2018). The analysis of how Google embraces technology in its market research would not be complete without discussing the types of technologies it uses to execute its marketing research. These include a collection of anonymous data statistics, insight search, and Google analytics.
Insight is an interactive tool used by Google to drive comparisons for various similar search terms. It lists some suggestions on the best keywords that must be utilized to increase the revenues from advertisement. Google (2018), restates that Insight Search is a highly technical tool that works on complex programming algorithms, unique to Google. For instance, if Google is to post an advertisement for a hotel manager, Insight Search will assist the company in predicting the most appropriate message to resonate the ad. For marketing a specific hotel, it will know the features to highlight such as space, meals, drinks, and safety among others.
Furthermore, Google can analyze the data received from its search engine. It can propose the age group, search keywords, the location of the user among other features. It can then use the available data to produce more filtered and customized results to the customers, thus necessitating a more effective advertising approach (Google, 2018). Also, the information collected by Google has usually held anonymously and used only for demographic classification. Whenever there is an error or bug, it often sends an error report to the organization, so that it can be corrected. From the explanations given by Google (2018), this is usually a cost-effective feature, based on reliable data generated from the company’s servers.
Anonymous data statistics collection can also be evaluated regarding consumer involvement. Typically, the data collected has the express permission of the users specifically for improving its purpose (Spiekermann et al., 2015, p. 161). Google also has precise privacy policies that state that the information collected remains anonymous and that it does not store user’s personal information (Berg & Krishna, 2014, p. 1). The consumers are also given a choice of opting out of the search in case they do not want their data to be evaluated.
Google analytics consists a Google’s web solution which gives information on the number of visitors, website traffic and the subject of interest of users. This enables the company to increase its marketing efficiency by examining the clients’ preferences (Berg & Krishna, 2014, p. 2). It also enables Google to create strategically placed and better-targeted advertisements. Google also provides the analytics with a solution to a vast range of companies and corporations assisting them in putting their advertisements at strategic points and increasing their ROI.
Google Analytics also relays sophisticated data to Google relating to its website traffic and its loss or gain on market share compared to other rival companies. This is a new strategy as compared to other traditional research techniques like seminars and surveys (Coker & Mukundan, 2013, p. 1). It is also more technically and mathematically precise. Analytics can derive data from accessing location-based web identities, tracking mobile devices, and conducting web comparisons for different search results. The most recent illustration of the uses of this tool is when it discovered that Bing was copying Google’s search algorithms and results.
New product development is another way Google uses technology in marketing. Primarily, product development is a complete process of establishing a new service or product in the market (Holahan et al., 2014, p. 329). It is the initial step in product development and entails a series of steps. New product development is essential in keeping up with the changing market trends and technology.
Google is an organization with a vast range of products under its portfolio. Some examples of these products include Google mail, Google Checkout, Google maps, Google Search, Google Add-Words, YouTube, Google Books and Android operating system among others. As explained by Google (2018), Google offers many services because it insists on releasing products and services that are more appealing to the consumers. It has also been able to develop and introduce its products into the market before its rivals, mostly in the form of pilot projects and Beta Testing. Some aspects of new product development in Google include idea generation, Beta testing, and prototyping.
To start with, Google always releases its services and products in Beta Stage. This is why it can release its products into the market earlier than its competitors. The releasing of products by Google in Beta stage allows it to rectify any problems that may arise in time and make the final launch more appealing to the clients (Erevelles et al., 2016, p. 897). Releasing products at Beta stage allows the customers to review the products before they are fully launched.
Beta Testing refers to testing and improving the unfinished software. It is usually essential when programmers want to derive meaningful feedback from potential users of the software. Also, it is essential because when unfinished software is put to use, some errors and bugs may be detected and sorted. Additionally, Google also runs a project known as Google Labs. Under this project, Google runs products that are unfinished and not yet ready to be launched (Sherwin, 2015, p. 1). These products include Google Wave and Google Translation. It is, therefore, worth to note that most of Google’s products like Google Calendar, Google Docs, and Google Mail among others have been developed as a result of Beta Testing.
According to Elverum & Welo (2015, p. 71), prototyping encompasses developing a physical prototype for a product. For example, Google Company has been conducting a pilot test programming for Google Chrome OS; its newly obtained App Google has also established the ‘CR-48 test to test the functionality of the App (Google, 2018). In doing this, Google has allowed the software users and developers to use a prototype laptop provided freely and provide feedback to Google to enable it to customize and perfect the product before its full launch into the market.
Last, as expounded by Ayub, et al. (2013, p. 91), idea generation involves SWOT analysis and brainstorming. However, Google adopts a unique technological strategy for generating its operational ideas. For instance, it hosts the ‘CodeJam’ competition yearly at its headquarters located in California, Mountain View (Google, 2018). In this competition, new programmers and engineers are invited to obtain the leading talent among them. The new engineers are given structural and arithmetic problems to solve and also asked to create new ideas for different software and products. This is usually a creative and technical technique used to generate ideas. As a result, many of the Google’s, software and services like the Android Operating system have been created.
Furthermore, Google embraces technology in its marketing process through market communication. Market communications relate to messages and other related media used by a business to communicate with the market (Burchell et al., 2013, p. 1). It mainly occupies the promotion section of the marketing mix. It is critical for any organization to reach out to its clients in a practical way. Therefore, communication is an essential aspect of any successful business. Interestingly, Google has adopted a technology-oriented means of communicating its marketing ideas. It advertises its products and services using non-conventional ways like Ad-Words, online payment integration, Click to Call and NFC Marketing.
In Google Checkout or online payment system, customers can check for products from Google and initiate payment online. In this method, customers can link their bank account details to the Google’s secure web to allow them to directly buy a product of interest from Google and have it delivered at their places of residence (Brandt & Stamp, 2014, p. 273). This is precisely efficient relative to the development of digital marketing. It only shows that Google adopts unique marketing approaches to respond to the changes in technology.
Near Field, Communication marketing is one of the most recent technologies in marketing which is used by Google. In this method, different radio frequency waves are used to communicate with other devices like smart-phones (Brandt & Stamp, 2014, p. 274). NFC can be used to identify and tag places with Radio Frequency Identification Device Readers thus rendering useless the need to carry around debit cards and cash.
Another communication device used by Google is Click to call. As stated by Brandt & Stamp (2014, p. 276), the use of this device began in 2007. By using this device, advertisers can put their phone numbers on the Google website, so that clients can click and call them when necessary. The main advantage of this device is that it enables the Google advertisers to connect with the customers freely as the communication charges are paid by Google.
The final communication device used by Google is Ad-Words. This is the company’s leading advertising program. It necessitates ads by the specific words a customer is searching for in Google (Brandt & Stamp, 2014, p. 278). It relays relevant ads on different websites where the advertisers need to place the specific adverts. The Ad-Words operates by pay per click. In this model, Google is paid on each click made by the users.
This essay cannot be satisfactory without analyzing the marketing models used by Google to combat advancements in technology and achieve its marketing goals. An appropriate Model used by Google can be analyzed using the 4 Ps of a marketing mix- promotion, place, price, and product.
Product refers to an enterprise’s market offer. It is the specific good or service that a company places on the market (Tomczak et al., 2018, p. 1). Most of Google’s products are technologically diversified. They can be grouped into different lines such as Web-based products, desktop apps, Hardware products, operating systems and mobile apps. Google has continued to develop its products in unique ways to respond to the technological advancements. Such activities as prototyping and beta testing are geared towards ensuring that its products are competitive in the digital market. Also, the diversity of the products offered by Google as a show of the firm’s growth and expansion strategies.
The place or distribution is the second component of the 4 Ps of marketing. It refers to the location of the products, and how they are made accessible or distributed to the customers (Tomczak et al., 2018, p. 2), Google typically uses online platforms to market its products. Therefore, most of the company’s services and products are available through the internet. For instance, Google apps can be accessed and downloaded anywhere provided there is internet connectivity. This is also a technologically informed marketing approach.
Another component is Price. This is the value attached to a particular product or service (Tomczak et al., 2018, p. 4). Google’s marketing model encompasses different pricing strategies, and are mostly conducted through online platforms. They entail penetration, Freemium, value-based and market-oriented pricing. Freemium pricing mainly encompasses distributing free products. This is achieved by Google through prototyping (Tomczak et al., 2018, p. 4). On the other hand, the market-oriented pricing model involves pricing with regards to the market conditions. The Google’s marketing model also entails penetration strategies, whereby it prices some of its products slowly to penetrate the market. For instance, Google Fiber internet and cable television services are priced lowly to compete with Comcast.
Due to the increased online presence, Google involves in the very minimal promotion of its products. The company has used technology to enhance its global popularity and dominance. However, it still promotes its products occasionally. For instance, online advertisements for its Gmail for work are sometimes still used.
The marketing model used by Google Company can also be evaluated using Ansoff’s Matrix. This model was developed by Igor Ansoff (Hussain et al., 2013, p. 196). It evaluated that product marketing was a joint process that combined four different sections- market penetration, product development, diversification, and market development.
Google Company uses a low-cost strategy to achieve market penetration. For instance, it prices some of its technological products such as Google Fiber lowly to penetrate the market (Hack, 2013, p. 140). Also, market development is used by companies to target a new market already occupied by competitors. In these areas, Google uses prototyping to run software test and expand into new markets. Its online presence has also served as a significant aid in market development.
Google as a company has an excellent online presence, as most of its products are available on the internet. It, therefore, has a good market share for most of its products. Consequently, it seeks the reviews of its customers to continually develop and customize its products to suit its customer need. Furthermore, diversification is usually applicable when the product being introduced is still new in the market (Yin, 2016, p. 3). This is a dominant strategy used by Google to introduce some of its products into the market. For example, the company has already expanded from operating as a purely web-based enterprise to provide some goods like Nexus smartphones.
The advancement in technology as a contemporary issue affecting marketing practice is particularly essential in understanding the factors that influence marketing as a practice. Google has come up with various approaches to keep abreast with the advancement in technology and developments in the digital marketing world. Technology is one of the complex issues affecting companies when designing their marketing strategies (Drnevich & Croson, 2013, p. 1). However, Google’s marketing approach can be evaluated using the 4 Ps model and the Ansoff’s growth model. These Models are also significant in assessing the whole field of marketing.
One of the principal aims of studying contemporary issues in marketing is to enable us as students to appreciate the influence of current and future trends in the implementation and role of marketing. By evaluating advancement in technology as a significant determinant of business success in marketing, I can analyze the current technological trends and even predict the future developments in technology and how companies are trying to cope up. For instance, Google as a company is trying to keep up with this advancement by increasing its online presence, continued market development, product development and diversification.
In conclusion, advancement in technology is a major contemporary issue affecting companies. Specifically, Google Company has tried to cope with this advancement, by developing new products, increasing its online presence, market development, and diversification.
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