Out with the old and in with the new...traditional strategy formulation is no longer apt for the digital age

Abstract

There has been much discussion on everything `new?: new products, new consumers, new technologies, new services and even the new knowledge economy. While some may consider it merely trendy to discuss such issues, and others may scorn this obsession with everything `new?, the fact remains that marketing managers ignore newness at their peril. Information and Communication Technologies (ICTs) are described by many as always `new? in that they are constantly evolving, becoming faster, more useful, and more intelligent.

In an era in which firms face an increasingly competitive environment, it is essential that they explore the opportunities next generation ICTs provide. Experience worldwide shows that the effective use of ICTs is now one of the most successful ways to increase sales, productivity and profits, if incorporated effectively into the strategic planning process (Shiels et al., 2003; Durkin and McGowan, 2001). While much has been written about the potential impact of the Internet on marketing strategies, very little of the debate has been focused on the adoption of technologies and techniques that go above and beyond the scope of today?s Internet.

To survive and succeed in the complex business world all companies ? from feisty upstarts to established industry leaders ? must develop a strategy that embraces and takes maximum advantage of the latest trends in technology. Yet, many organisations have been slow to develop and exploit an ICT-heavy strategy, and have certainly not yet considered the ramifications of future and emerging technological developments.

This paper reviews the attributes of next generation ICTs, with a view to appreciating their potential impact on the role of, and strategy to be developed by, the marketing manager. New information and communication technologies are constantly emerging, altering business methods, and particularly, the relationship an organisation establishes with its customers. It is argued that emerging technologies will revolutionise the marketing world (Snyder, D. and Edward G., 2004; Tapscott, 1998; Spero and Stone, 2004). Some next generation technologies identified in the literature include RFID (Radio Frequency IDentification), pervasive communication services (Vrechopoulos et al., 2003; European Commission, 2005) and biometrics (Shugan, 2004).

Therefore, this research will make a necessary and timely empirical contribution by examining the current academic research and practice relating how the major attributes of emerging next generation ICTs will impact on marketing strategy. The outcome should provide marketing practitioners and students with a greater insight and understanding of how best to integrate these technologies with existing marketing practices.