Implications of Digital Panopticism and Profiling for Consumers - Literature review Example

IMPLICATIONS OF DIGITAL PANOPTICISM AND PROFILING FOR CONSUMERS 20th April Introduction The need for marketers to expand their market share and increase the number of customers has led to the adoption of technologies as a key way of promoting their products. In the contemporary business arena, stiff competition has also resulted to the adoption of social media including face book and twitter to attract the attention of consumers globally. One of the major developments that led to the transition of marketing was initiation of marketing management. Having its root in the agricultural economics, marketing management was developed to cope with mass production that triggered mass consumption in the 20th century. Additionally, the establishment of market research was a major step that was undertaken by early marketers in order to fully understand the needs of their customers. In this way, organization would produce quality brands based on the requirement of their consumers. Another key strategy that local and international companies have adopted is the storage of consumer’s information in order to contact them in future. This paper critically discusses the implications of digital panopticism and profiling for consumers. As stipulated by Foucault (2004), profiling for consumers is imperative for organizations that are focused at in identifying and responding to the changing consumer needs. In the same way, Tredinnick (2008) indicates that the growth of modern technology is vital in undertaking consumer surveillance. In this regard, one of the major implications of digital panopticism is effective market research that is vital in identifying what the consumers want. During the 2oth century, companies market segments were significantly big a situation that affected effective management of markets thus making it difficult to provide personalized products and services. However, due to the digitization and development of new information technologies, smaller consumer clusters and smaller market segments have emerged. Likewise, the establishment of consumer database is a key transition that has led to effective management of customer segments. As argued by Jason and Detlev (2010) the development of a system of consumer segment that was referred to as A Classification of Residential Neighbourhoods ACORN that was focused at proper storage of consumer information was essential. One of the notable icons who significantly contributed in market segmentation through information technology is Jonathan Robbin. Based on his contributions and development of software in the marketing field, social clusters emerged. Another implication of digital Panopticism was improved market intelligence. Through storing of information that related to various market segments, marketers are now able to clearly understand socio-economic factors, consumer’s preferences and tastes that are fundamental in the production and delivery of products. Through collection of adequate market information that relates to the needs of consumers, firms are in a position to emulate effective marketing mix that matches the needs of their customers. Emergence of socio-demographic surveillance and real development in consumer surveillance is another major result of the digitalization. This was based on the extensive marketing studies that include algorithmic analysis and data mining (Jason and Detlev, 2010). As a result of the extensive use of information technologies, companies can now identify behavioural relationship and consumption patterns that could not be recognized before the use of modern technologies. For example, through the use of internet, consumers can now give feedback that is used by companies such as Coca-Cola to produce brands that are needed by their consumers. Based on the use of current technologies by market researchers and economic analysts it is now possible to make meaningful and accurate predictions of future consumption patterns. In this way, organizations are in a position to provide more products or reduce the quantity of their brands based on the market information. It is worth to note that before companies embark on production and marketing of any product it is always vital to have extensive information that relates to how the new product will be taken by the consumers. In this way, companies will avoid wastage of resources in cases where the possibility of a new product failing is high. Miller (2011) stipulates that as a result of digitalization, new marketing campaigns have emerged. Contrary to the traditional advertising and promotion strategies such as banners and roadside shows, modern marketing is now being undertaken through internet. Based on the high use of e-marketing especially by the international companies, companies have benefited from large number of customers who use internet to purchase their products. Despite the high costs associated by e-marketing, its benefits in terms of increased sales, large market share and more clients outdo the high costs. Through the use of websites and search engines such as Google and yahoo, companies can now portray images of their products while at the same time indicating various features of their brands. In this way, customer awareness is enhanced thus resulting to a stronger positive customer-product relationship leading to higher sales. Another implication of digitalization is the emergence of impersonal transactions. By use of cybernetic intelligence, organizations that are focused at putting at bay their competitors and providing quality brands that meets the needs of their customers can now easily collect personal information. As a result, they undertake personalized marketing that makes them preferred by more customers who like to be given personal treatment. Additionally, data mining process especially by the international firms is a major factor that has resulted to appropriate customer relationship management. It is vital to note that one of the major factors that results to increased sales among companies is positive relationship with their customers. This is achieved by ensuring that sales executives and customer care representatives are well acquainted with adequate communication skills. In addition, companies through the departments of information technologies have embarked on training their employees on how to use computers including opening customer databases. In this way, sales executives can easily access customer information such as location, age among others details that guides them during distribution and promotion of their products. Based on the availability of the products prices via the internet, customers can easily access such information during their purchasing process. Additionally, the availability of prices information has made it possible for customer to compare prices thus resulting to stiff competition. Based on the development of modern payment methods such as credit cards, the payment process has been made simple thus allowing consumers to maker payments regardless of their location. Despite its importance in informing the customers on product prices, internet does not allow discriminatory pricing. This means that companies that sell their products at different prices for various customer groups cannot use internet. This is based on the fact that customers all over the world can access internet and if they realize they are being charged different prices for same products it may result to poor customer-company relationship. Improvement of promotion strategies is another implication of digitalization as argued by Lyon, (2004). Major marketing changes have been experienced due to the improvement that have been experienced in different spheres of promotion that includes direct marketing, public relations, personal selling as well websites. In the field of advertising, companies that use brochures as their main tool of advertising have also adopted web address during their advertisements. Similarly, the development of digital television for example web TV has highly improved advertisement for smaller as well as large companies. Other forms of advertisement media that have transformed marketing include electronic posters, electronic banners and online directory among others. The emergence of database technology as well as digital printing of promotional materials has also resulted to sustainable development in direct marketing. By profiling the large number of customers and providing email lists, companies have now adopted quick and effective communication with their customers across the world. In order to ensure regular communication with their customers, international and local companies have established call centres modern voice telephony. In this way, firms are able to effectively advise their clients on how to use various brands that they provide in the market. Similarly, companies that are focused at involving their customers in their decision making process have emulated permission marketing. This is a situation where customers are at liberty to provide relevant and updated information regarding their needs and preferences thus allowing firms to provide them with quality products. Another field that has improved as a result of digitalization and technology development is public relations. As compared to the paper brochures and publications that were adopted by firms in the 20th century, companies have now adopted electronic materials during their public relations strategies (Lyon, 2004). One of the major benefits of improved public relations is that due to the use of emails and electronic communication the costs of postage has significantly reduced thus increasing companies profits. In their efforts to enhance customer awareness and attain strong positive relationship with their customers majority of firms are presently adopting web sites to release vital information that relates to their products. The improved internet environment is a major aspect that has not only enabled companies to attract young consumers but also it has resulted to effective way of facing off their competitors. Just like promotion selling has greatly improved due to the growth of technology. For example, marketers can now use teleconference and internet to undertake research on the buying behaviours of their customers. The use of internet by market researchers has enabled them to identify new market segments. One of the major ways that companies are adopting to engage their customers in the market process is through holding online surveys and polls. In this way, marketers can easily identify the location of their clients. As competition becomes stiff in the international market, companies are focused at providing extensive training of their employees. Besides providing them with general skills that relate to marketing, companies train their employees on technology skills for example the use PowerPoint presentations to communicate with their customers. Conclusion Based on the increased use of technology in the filed of marketing, the relationship between customers and companies has risen to a higher level resulting to more sales and increased revenue for companies. Some of the major areas that have experienced greater improvement as a result of digitalization are promotion, advertising, public relation and market segmentation. In their efforts to provide customers with quality brands that meet their needs, companies have adopted various strategies. For example, firms have embarked on impersonal transactions. It is through effective communication strategies that have been established by the use of modern technologies that customers can presently provide their personal information. In turn marketers and economic analysts can base their marketing strategies based on the information provided. Major implications of Digital Panopticism are being experienced in the marketing mix adopted by local and international firms. For example, in order to effectively deliver their products in new market segments, organizations are using internet to search for markets that their competitors have not entered. In the same way, companies have streamlined their promotional strategies through the use of electronic materials in addition to the use of websites. Effective consumer surveillance is a notable result of the modern technology. Based on the need to provide their customers with brands that meets their requirements, companies have now turned into conducting online polls. Similarly, through the use of feedback from the customers who purchase online has greatly assisted companies in producing brands that are inline with the customers needs. References Foucault, M. 2004. Panopticism in Webster, F. 2004. The Information Society Reader. London: Rutledge. Jason Pridmore and Detlev Zwick.2010. Surveillance and Society: Marketing and the Rise of Commercial Consumer Surveillance. Available from. http://www.yorku.ca/dzwick/S&S_Pridmore_Zwick_Editorial.pdf. Retrieved March 20,2013. Lyon, D. 2004. New Directions in Theory in Webster, F. 2004.The Information Society Reader. London: Routledge. Miller, V. 2011. Understanding Digital Culture. London: Sage. Tredinnick, L. 2008. Digital Information Culture: The Individual and Society in the Digital Age. Oxford: Chandos. Read More