Marketing: Changing the Business Paradigm

Running Head: MARKETING: CHANGING THE BUSINESS PARADIGM

What other means of communication has become as pervasive as advertisement and marketing which can reach millions at a time, influence popular opinion and convince individuals to make purchases for items that they otherwise would not even normally consider buying? With business spending millions on advertising every year, advertising and its effects on society and the overall bottom line of most businesses has become increasingly important topic. As advertising techniques and practices have evolved over the years, current advertising is not only used for promoting products and services to the public but also to improve the image of one particular brand name over another.1 Research suggests that businesses in America spend more on advertising to change the hearts and minds of society than sixty-six other countries combined.2 With this amount of money being spent to influence the thoughts and wallets of society, it is not surprising that almost the same amount of money is being spent on research to help increase the effectiveness of advertising. Such can be seen with the increase of targeted ads that are seen all over the internet. Another modification of adds on the internet has been the introduction of interactive advertising which has the ability to further increase the effectiveness of advertising by allowing a clearer, more concise message to be directed towards the consumer. Other businesses, not to be left behind in the ever changing advertising and marketing landscape have also been making changes to their marketing strategies to continue to be competitive. Businesses have begun to incorporate the help of economists, statisticians, and most recently have begun to contract out to other businesses to perform data mining and data analytics for a better understanding of their consumer base.3 Overall the sweeping changes in marketing and advertising have forever changed the way companies do business. As the knowledge base a business has of its consumers continues to grow, so will the way that company does business. The knowledge gained from consumers has allowed businesses to become more efficient in terms of production, distribution, research and development, inventory management and future planning for the trends of tomorrow. Much of this can be seen with a company such as Apple, which over the years has practically accrued a cult following through brand recognition, careful planning, marketing, and product development. From all of the changes within the business and consumer culture, one can come to several hypotheses. As consumer tastes and trends continue to change, so will the advertising and marketing strategies of business to maintain competitiveness. Businesses will continue increasing advertising dollars to predict the next big thing. Business will develop new ways to influence consumers beliefs, views and perceptions through brand reorganization, price cuts ect. Consumers expectations will change as business can more quickly react to new trends.

1 2

Graham Murdock, Advertising and Society from the section Advertising as we know it. Kim B. Rotzoll & James E. Haefner Advertising in Contemporary Society (1996) 3 Richard E Quandt, Pitfalls in Econometric Methods (1964)

Running Head: MARKETING: CHANGING THE BUSINESS PARADIGM

References
Murdock, Graham. Advertising and Society. Department of Social Sciences

Pavlou A. P. & Stewart D. W. (2000). Measuring the Effects and Effectiveness of Interactive Advertising. Journal of Interactive Advertising

Quandt E. Richard. (1964). Estimating the Effectiveness of Advertising: some Pitfalls in Econometric Methods. Journal of Marketing Research, Vol. 1, pp. 51-60

1 2

Graham Murdock, Advertising and Society from the section Advertising as we know it. Kim B. Rotzoll & James E. Haefner Advertising in Contemporary Society (1996) 3 Richard E Quandt, Pitfalls in Econometric Methods (1964)