Saturday, November 9, 2024

Bricks And Clicks Must Mesh In Market Mix

Convergence strategy needs careful thought.

We live in an age of marketing convergence – where traditional methods and new technology come together to enhance business effectiveness.

Consumers armed with more information are consequently more demanding.

Banks and other mortgage institutions in British Columbia and Alberta have found that the old mental model of expecting customers to attend their offices to make mortgage arrangements is no longer good business. They now find themselves competing with new upstart “online” companies, working with customers to mutually tailor mortgage services with considerably better rates and conditions than advertised by the old bricks and mortar institutions. You must adapt, innovate and overcome these challenges – or die.

A business that relies on the traditional “four Ps” of marketing – price, product, promotion and place – will have a great deal of difficulty surviving in an increasingly competitive marketplace.

In order to remain competitive, businesses must:

* Combine traditional push/pull marketing models with technology.

* Know their customers.

* Identify the need/want in the mind of the consumer and cater to it to increase value.

* Integrate traditional promotion with information technology.

* Develop a seamless distribution channel that incorporates technology.

Convergence marketing adds to your bottom line. What happens to your business when new technology meets up with traditional marketing methodologies?

Plenty of a firm’s resources and energies are consumed in critically thinking about the traditional four Ps of marketing. With the advent of web-based digital technology, firms today must bring to bear fresh thinking about these four Ps in order to maintain their competitive advantage.

Consumers have undergone a profound change in how they view the marketplace. Today, most will use the Internet to research their purchase options. This shift has democratized the marketplace. Your customers will demand a change in service and product based on their research.

Accordingly, you will have to respond quickly to accommodate these new demands of your customers by adapting to the age of convergence marketing.

You can accomplish this by implementing an interactive approach to connect you with your customer in such a way that you can mutually exchange information before the sale. This is an interactive customization that results in a new relationship with your customer. It will become a critical part of your customer relationship management strategy.

Some examples of how you might adopt a new, innovative approach to critical thinking about the traditional four Ps in order to exploit technology might be helpful.

Have you considered offering your product components in new individual, targeted combinations? Consider a furniture company that allows its customers to purchase products by design, colour and fabric all separately. This personalization permits the customer to purchase exactly the product they want.

Your business can offer this service through your website. The website will permit customers to make selections and visually construct their desired products. Today, a number of large and web-based catalogue companies using the power of technology allow consumers to try on clothes on a computer-generated model that closely resembles the body shape of the individual consumer.

You must always be aware that the Internet enables the consumer readily to compare the competitive product prices before you’re ever in contact. If you are operating in an industry where comparison shopping is likely, it is important for you to provide your product information to potential customers online.

It is imperative that you are aware of the competitors’ pricing and that you have differentiated your price in some way that sets you apart, while specifically addressing the needs of your target market. You must ensure that your online pricing is consistent with your prices offline.

Digital technology will transform the traditional models of advertising and promotion that limited the consumer to viewing or reading promotional materials, calling or writing for information or visiting the store. Technology is now emerging where it is possible for all these functions to be integrated into an immediate and ongoing dialogue between buyers and sellers.

The new technology will enable us, while viewing our favourite television program, to take the cursor provided by the remote control and click on various products appearing in the picture on the TV screen. Do you like the clothes the actors are wearing? Pull down promotional information for review or purchase.

However, this exponential growth in convergence marketing technology results in what was innovative and new becoming quickly outdated. The standard static banner that was splashed across web pages during the dot-com revolution is no longer considered an innovative promotional tool.

You will also find that in the digital age, customers expect increased speed and convenience. They must be able to call, click or visit your business and quickly receive their goods or services.

For digital products and services, this is fairly straightforward because the product can be downloaded and built entirely online. But physical products are more complex. The digital component is still present, but how do you get the product/service to your customer? To do this you must develop a seamless, integrated, just-in-time network. Amazon’s supply-chain management relationship with FedEx provides a good model for benchmarking.

Reflective thinking about this strategic thinking concept, convergence marketing, must be undertaken by business practitioners – because your competitor has done it!

Subscribe to our newsletter

We'll be sending you our latest business tips, insider case studies, blog posts, latest news, offers and special announcements.

Terrance Powerhttps://terrypowerstrategy.com
Terrance Power is a Wharton Fellow and professor of strategic and international studies with the Faculty of Management at Royal Roads University in Victoria. This article was published in the Business Edge. Power can be reached at tpower@ancoragepublications.ca

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article