Every day more and more consumers and enterprises depend on information technology and the Internet. We can say that our life and our work cannot be imagined without the Internet. So, business partners and technology are inseparable and interdependent working together to optimize their competitive advantages.
Information Technology and the Internet have revolutionized all aspects and dynamics of marketing by:
- Increasing consumer benefits by assessing customer’s needs online, adapting and personalizing products, enabling new media for interactive communication through multiple channels between business and consumer establishing 24×7 service to customers; providing information in real time, offering new pricing options and personal promotion (Makarem, et al., 2009).
- Reducing the cost for customer needs assessment, distributing information, presenting different channels for product/service purchase and sales, processing transaction, of customer service and improves the distribution channels, inventory and service management, and increases efficiency in the value chain.
- Increasing revenues because businesses may access global markets and can conduct online transactions when selling products, information, and advertising. It increases the customer base by reaching new markets, building relationships with customers and creating customer base loyal who are more likely to spend more in the same business (Strauss, et al., 2003).
Hence, e-marketing empowers the consumers but as stated Porter this has not reduced the attractiveness of e-business or e-marketing (Kotler & Keller, 2006), on the contrary online business reached staggering proportions for a very short period and had an impact to making it more attractive for companies and creating new value for customers.
So, the internet and computer systems associated with it, have expanded and improved traditional marketing functions through different software for customer relationship management (CRM), sales force automation, marketing automation, program management employees and partners.
Thus, it increased the speed and the opportunity of distributing the information, offered opportunities to customers to participate in product design and development, increased return on sales for products/services that can delivered digitally and on the other hand the cost to improve and deliver service consumer or to make any new products decreased or is zero. All this has increased customer value and customer awareness Timmers (2000).
Thus, information technology has placed the customer at the center and has made a fundamental change to the dynamics of marketing (Wind & Mahajan, 2001). Hence, businesses should have one thing in mind these dynamics of development require them to be very cautious and open to new ideas since as Urban says “Businesses should run, in order to stay in one place”