The New Economy Adapting to Marketing
Companies in 21st century have to adapt to constantly changing environment. At today, firms constitute a peculiar blend of old as well as the new economy. A great lot of study has already been done with regard to the old economy, but for the new economy, corporations are learning it rather hard way. Companies had to pick parts from old and new economy intelligently as to construct a business model which would deliver value to the organization.
Technology revolution, globalization and market deregulation forces are among several moulding the new economy. These 3 variables interact with one other at various levels generating the driving force for the new economy. The ancient economy was full with analog equipment, which were functioning on a continuous signal wave, for example, vinyl recordings.
In today’s world systems and gadgets are functioning on digital technology where information is conveyed in ones and zeroes. However, this digital information cannot be shared between devices without communication via cable or wireless networks. This connection is provided by intranet, extranet and internet.
Internet enables players like Yahoo, Amazon, ebay to provide things like music, books, clothes, etc. straight to consumers. This approach de-stabilized the conventional distributors and retailers prompting some to shut down their operations. However, some of the players built online sites to promote their goods and services which in turn de-stabilized new online players. Some of the old players were successful with support of their brand power and bad business plans of pure internet players.
In the old economy, attention was mainly on standardization, mass manufacturing and unitary marketing approach. However, with the quantity of information accessible in the modern economy, firms are best at understanding customers. This increased knowledge has led to personalised goods, a move from uniformity. However, this personalization has its downsides not only for corporations but also for consumer.
Companies find it challenging to sustain the cost level for customized items to generate profit. Customization is difficult for items, which need extensive industrial engineering. Customer does not know genuine product look until it completely done and also refund policy is not available in customizing.
The modern functioning of economics has transformed the way corporations approach their company. Companies are looking forward to growing across market categories to gain maximum market share while retaining concentrate completely on consumer demands. For these organizations are implementing organizational adjustments where divisions are formed to handle a segment rather than a product.
Companies are looking forward to establishing customer centered brand equity to create long term connection. Companies are coming up with products, which perform superior than consumer expectation there by creating a strong brand while the earlier branding task was accomplished through advertising. Companies are treating staff, distribution channel, and suppliers as their business partner and not client.
Since organizations have altered the way they work in the modern economy, it is vital that marketing tactics also adapt. As people are looking forward going online for most of their purchase, companies are turning at electronic commerce (e-commerce) as a way ahead. Research has showed internet consumers generally purchase music, software, books, clothes, etc. rather than things like autos, home, etc.
Business customers are increasingly going online as well as suppliers, so drastically decreasing the setup cost. E-Commerce has also up doors for consumer to customer connection via social networking and community forums, in which experience and conversation are done with regard to items. Through internet customers are able to submit quicker feedback to firms with regard to goods and services.
As companies are migrating online, the attention changes to creation of web sites to deliver trustworthy and proper experience to customers. Web site design, upkeep and security are of essential significance for making a pleasant impression on customer. Online marketing and advertisement have got prominence in this internet age.
The new economy has brought forth difficulties and possibilities not only for corporations but also for consumer.
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