The impact of information technology on E. marketing (1)

The impact of information technology on E. Marketing

Azam Hamidia, Maryam Safabakhshb

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Islamic Azad University, Aliabad Katoul Branch, Aliabad Katoul, Golestan, IRAN Islamic Azad University, Aliabad Katoul Branch, Aliabad Katoul, Golestan, IRAN

Abstract

Information technology has been considered the greatest innovation of the new era because it has a lot of fruitful social economic and scientific impacts. Regarding the economic effect, information technology has been of the essence into bringing the E. marketing into existence. The main purpose of this study is to investigate the effect of information technology in E. marketing. The data are gathered in different ways: from the balance sheet and income statement of the companies; from government agencies; from a questionnaire among the E. Marketing users, E. marketing designers and the suppliers and the effects of information technology in the literature. The analyzed data and the review of the literature both manifest the following effects made by information technology: providing the opportunity at every place and time for advertisement; increasing the overall potential of advertisement; increasing the income for the companies; and decreasing the pollution and energy consumption. c2010PublishedbyElsevierLtd.Selectionand/orpeer-reviewunderresponsibilityoftheGuestEditor.⃝

Keywords:Information Technology; E. marketing; advertisement; income; pollution; energy consumption

1.Introduction

In the last decades the personal computer has become an essential in almost every house. We have come to depend on it in many aspects of our life from communicating with friends and relatives to perform better in our job or school. It has become part of our lives so much that many of us don't even imagine how our lives would be without it. The Internet has also become an integral part of our everyday life. Books, encyclopedias and in some cases even newspapers have been gradually replaced by the Internet. They call it 'the information highway' and we rely on it to find the answer to our questions, to find interesting information, to share our knowledge and in turn benefit from someone else's knowledge, to meet new people (many times far away). The Internet has made the world a smaller place because now it's easier to talk to people from one end of the earth to the other.

As it can be witnessed every day the world is changing. Things are not the same as they were 10 or even 5 years ago. This is something you have to notice and take advantage of in you business just as you do in your day to day life. The widespread usage of the internet has made it an inexpensive yet very useful resource for your marketing objectives. Email marketing, special offers, seasonal promotions, multimedia marketing, all these just cost a fraction of what their offline counterparts cost. Most of the time all you have to invest is time. The world is changing, and it's changing to our benefit. You just have to keep a keen eye and seize the opportunities as they present.

The number of studies on the role of Information Technology within the business it supports is on the rise. The role of IT is constantly evolving and has changed significantly from the days when the IT organization was often referred to as “data processing.” Today, in many industries, IT enables some businesses to differentiate themselves from their competitors.

* Azam Hamidi. Tel.: +9817122250 ; fax: +981712232714 E-mail address: hamidi.azam@yahoo.com

c2010PublishedbyElsevierLtd.1877-0509⃝

doi:10.1016/j.procs.2010.12.061

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Those companies that leverage IT for competitive advantage often differ from their competitors in two ways with respect to their IT organizations: they view IT as a strategic business enabler instead of as a cost center, and they work to maximize the efficiency of their IT operations so that they can focus their resources on providing value to the business and respond to today’s environment of rapidly changing business conditions.

Regarding marketing, the role of information technology cannot be over accentuated. Over the past three decades, subtle changes in the theory and practice of marketing have been fundamentally reshaping companies. These changes have also been evident in marketing and management related information systems. More and more, companies are faced with the need to control an ever larger and rapidly changing marketing environment. The information processing requirements of companies are expanding as their competitive environments become more dynamic and volatile. To handle the increasing external and internal information flow and to improve its quality; companies will need to take advantage of the opportunities offered by modern information technology (IT). Information technology has a key role to play in new flexible organization forms such as strategic partnerships and cross-functional networks. While new organizations will be designed around business processes rather than functional hierarchies, we definitely have a need also for new kinds of IS in marketing. In fact, IS will be the cornerstone of a new approach to marketing. Therefore management and systems designers should be better aware of the avenues available to integrate marketing and management processes in new innovative ways.

The purpose of this study is twofold: first, it examines the effects of information technology on E. marketing; next, it tries to show other possibilities to make better use of IT in E. marketing. 1.1 Research Questions:

1.2.3.

Does IT have a meaningful effect on providing the opportunity at every place and time for advertisement so increasing the overall potential of advertisement?

Does IT have a meaningful effect on increasing the income for the companies? Does IT have a meaningful effect on decreasing the pollution and energy consumption?

2. The Review of Related Literature

In the past two decades, we have witnessed a dramatic increase in the value of information technology (IT) to business organizations. Sophisticated, new information technologies have been a catalyst for many markets for goods and services becoming truly global in nature. IT plays an important role in the coordination of research and development, production, and marketing activities across borders (Roche, 1992). The globalization of markets and industries and the changing role of IT within business organizations have made the strategic use of IT a key element in determining the success of a company their bank accounts from any geographic location they want.

The management information systems (MIS) literature is rich in studies on the use of IT as a competitive \"weapon\" These studies indicate that IT plays an important, if not crucial, role in the strategy of a domestic corporation. At the same time, studies in the international management literature have analyzed the strategic forces affecting global competition, and have shown the differences between these and the competitive forces faced by domestic corporations. It seems, however, that both the MIS and the international management literature have largely overlooked IT as a facilitator for gaining competitive advantage in the international field (Deans and Ricks, 1991). Further research is needed on how technology drives a global organization's structure and strategy (Ives and Jarvenpaa, 1991; Jarvenpaa and Ives, 1993).

Managing marketing information by means of IT has become one of the most vital elements of effective marketing. By collecting and sharing marketing information and by using it to promote corporate and brand image, IS offer new ways of improving internal efficiencies of the firm. Information systems allow dynamic marketing communication

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between personnel in corporate planning, accounting, advertising and sales promotion, product management, channels of distribution and direct sales. Information technology-based marketing information systems (MkIS) have been with us for many years. The importance of computers in marketing was highlighted by Kotler. Traditionally, MkIS has been seen as a system to support marketing management in its decision making. In addition to the management perspective, MkIS can be an essential tool for the entire marketing organization. Some researchers have classified IS in marketing by the tasks for which they are customarily used. Moriarty and Swartz [3] proposed a concept of marketing and sales productivity (MSP) systems which consists of four subsystems: salesperson productivity tools, direct mail, telemarketing and sales management. However, these new, more operational, IS have not yet been used in the context of the MkIS concept.

With the emergence of e-commerce and spread of e-governance in the country new opportunities are expected to be thrown open. E-governance can change the way dealings between people, organizations and the government are undertaken. It will herald emergence of ‘e-person’ and ‘e-society’ which will transform the society into knowledge based society. E-services will be part of daily life and a demand on organizations to meet these requirements would arise. 3. Method

T he research of this study is descriptive. The data are gathered in different ways: from the balance sheet and income statement of the companies; from government agencies; from a questionnaire among the E. Marketing users, E. marketing designers and the suppliers and the effects of information technology in the literature. The researcher tallied, scored and tabulated all the responses in the provided survey questions. The researcher conducted the survey personally with the respondents. Further library research using companies’ data, government agencies, books, journals and magazines was carried to see whether they support the primary data collected to show a clearer picture of the information technology's effect on E. marketing.

3.1Sampling Design

The sampling design of this study is Random sampling; in order to find answers regarding the second question, the data out of financial statements of 80 great companies were gathered. To answer the last question, the data out of government agencies are also gathered. 4. Findings and Conclusion

The companies and the government bank data and the results of the questionnaire surveys along with the library research made it clear that information technology has high impact on E. marketing. All the above mentioned sources show that IT leads to providing the opportunity at every place and time for advertisement; increasing the overall potential of advertisement; increasing the income for the companies; and decreasing the pollution and energy consumption.

The details of the study can be shown as follows:

Research Question 1: Does IT have a meaningful effect on providing the opportunity at every place and time for advertisement so increasing the overall potential of advertisement?

All the data of all the above mentioned sources led support to the positive answer to the first question. Research Question 2: Does IT have a meaningful effect on increasing the income for the companies?

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The comparison of the companies’ data pertaining to traditional time and IT time along with the results of the results of the questionnaires leads support to the meaningful effect of information technology on increasing their income.

Research Question 3: Does IT have a meaningful effect on decreasing the pollution and energy consumption? The data of government bank show that IT led to a great decrease of transportation and decreasing energy consumption and pollution consequently. References

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