The market of the 21st century is changing at an incredible rate. And it doesn’t seem like the changes are going to stop. As it is right now, we can see an interesting mix of the new economy and the old one. That mix allows companies who have only the understanding of the old economy to survive. But that isn’t going to last for much longer. Companies have to adapt marketing to the new economy, or they will be forced to do it the hard way. Companies that want to succeed are going to have to combine the elements of the old economy and certain elements of the new one in order to design a value-bringing business model.
There are many factors that are shaping the new economy. Right now, we will consider three of them that represent the driving force for the changes. These three factors are the revolution in technological advances, the process of globalisation, and deregulation of the market.
The revolution in technology has changed the way the economy works. The connecting tissue of the old economy relied on analogue devices. However, nowadays, companies can rely on digital technology to carry information. It allows companies to share their details quickly and efficiently with little to no effort. Companies can use intranet, extranet, and the Internet to achieve complete connectivity.
How To Adapt Marketing to the New Economy
The Online Evolution
The technological advances brought about the age of online stores and retailers. Big players like Amazon and eBay have the ability to offer various products to their customers. Moreover, they can do so with fewer steps in the production-to-delivery journey.
But the growth of the online portals and services has made a dent in the operations of traditional retailers. Moreover, some distributing companies had to shut down their businesses.
On the other hand, some of the existing companies began offering their products online in order to keep up with the competition. These companies were capable of using their abilities to outplay pure online players thanks to their competitive experience.
Product Customisation
The old economy served the companies that offered mass-produced, standardised products and used a singular marketing policy. On the other hand, the new economy favours players that understand their customers.
The understanding of the wants and needs of the customers has forced a shift away from standardisation. Instead, companies are beginning to offer products that are highly customised for individual consumers. But this approach has a significant drawback. Namely, mass production was a way for companies to cut down on costs. And stepping away from standardisation is driving the costs of production higher. Moreover, in certain situations, the complex engineering of the product makes it impossible to customise products.
Treating Stakeholders as Business Partners
The new economy is changing the way companies approach their business relationships. For starters, most companies nowadays are trying to expand their market segments. They do so in order to maximise their market share. And even during the globalisation, the companies are focusing on customer needs first. It is of paramount importance to build strong brand loyalty before attempting to expand.
That means that companies have to create products that exceed expectations, establish long-term relations, and build a strong brand.
Furthermore, customer loyalty is not enough in this day and age. Companies should make sure that their stakeholders see themselves as valuable as well and feel loyalty to the company. In order to achieve that, companies have to treat their employees, suppliers, and distribution suppliers as partners.
Shift to E-Commerce
Consumers are more than happy to make their purchases online. It is quick, easy, and convenient. So companies are trying to jump into that environment to capitalise on the consumer desires.
Studies are showing that most consumers focus on buying digital goods. While they aren’t buying cars or houses online, they are willing to buy music, e-books, and clothing on the Internet.
On the other hand, business buyers are turning to online shopping for larger orders as well. Online buying can significantly reduce the costs of operating a company.
The power of e-Commerce also enables companies to use social networks to boost their customer relations through direct communication with their consumers.
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