Attention Economy - Relationship between the Business, the Media, and the Customers - Essay Example

Attention Economy Name Institution Tutor Date Introduction The rate at which the corporate sector is growing in the 21st century has seen businesses going past their weaknesses and limitations. Perhaps this trend could be linked to the wide range of options at their disposal. For instance, today, any business, regardless of its size and market share, can have access to virtually any kind of information that may be deemed useful and relevant to its operations. The global market is also flexible enough to accommodate small scale businesses whose sales volumes might not meet international demands. The limitations that were the stumbling blocks for businesses five years ago are no longer a hindrance to the growth of today's businesses. Furthermore, one cannot help but notice the transformation that has taken place in the global economy as far as science and technology are concerned. The major drivers of the global economy have seen organizations from all over the world come together and pursue common goals. The business sector is a pretty good example of a transformed world. The various aspects of business operations have greatly changed leading to a much simpler way of doing things. The media, which is perceived as a powerful tool since time immemorial, has played a significant role in the developments experienced in the business sector. However, despite the fact that businesses have overcome most of their operational constraints, one thing is clear. Attention is becoming one of the scarcest things in the business world. The quest for attention has become the trending issue not only for global companies but also the local ones. The influence of technology and social media has seen organizations investing colossal amounts of money to try and gain the attention of the audience. The audience, in this case being the customers, their preferences and tastes have the tendency of changing at irregular intervals; hence making it difficult to sustain. In this essay, we shall analyze the concept of an attention economy and its influence in the relationship between the business, the media and the consumers. Consumer Attention Scarcity A review by Davenport and Beck (2013) established that the scarcity of attention in the corporate sector has been created by the influx of corporations in the global market. The influx has made it necessary for businesses to come up with custom-made strategies that are geared towards maximizing the chances of gaining attention. The implementation of technology in organizations has come in handy to enable them sustain their markets. This is possible through the use of sophisticated equipment in the production process, which allows for the input of computerized processes. The final result of using sophisticated machinery is high-quality products that can compete at a global scope. The use of technology in the production process is not only applicable during the production process, it is also possible to incorporate such equipment at the sales and marketing levels. This is done through the production of equipment that supplements the services of the main product. For instance, Samsung Inc. has recently resorted to the manufacture of equipment such as the Samsung Galaxy Gear, which accompanies the Samsung Galaxy Smartphone and offers supplementary services. Other technology companies have followed suit in a bid to gain the attention of the consumers. The role of technology in the attention economy is seen through the individual efforts by organizations to create lasting impressions in their production processes and service delivery. Technology gadgets such as smartphones, tablets, notebooks and netbooks are powerful tools through which organizations wrestle for the attention of the consumers. Unlike the case five to ten years ago, today firms can advertise their products and services through such media and rest assured that the information will reach its destination, thanks t o technology. The scramble for attention has seen organizations utilize the least of opportunities to sustain their markets. This is made possible by the ever-growing technology in the 21st century (Beller, 2012). Social Media Use Social media, a result of technology, is a discovery that gave business organizations yet another channel through which businesses and their clients can keep in touch. The use of social media is especially popular among the youth implying that organizations whose target market is the youth make use of this medium to disseminate information. Skageby (2009) stated that this is not only convenient, but it also saves the organization time and resources. For instance, the cost of doing advertisements through mass media is relatively expensive compared to any other means of advertisements. In the past, that is, before the invention of social media, small firms used to find it difficult to make media advertisements due to their small scale of operations. Such organizations used to have little or no attention due to their small public picture. However, the presence of social media has literally brought a smile to their faces by making it possible to claim the attention of the consumers. The influence of social media in the new age attention economy is manifested in the escalating use of strategies aimed at implementing cheap means of advertisements. Recent studies in the field of marketing have revealed that social media is the choice of many since it is cheap and reaches a wide range of the market due to its popularity. For this reason, one never goes wrong when they choose social media. The economic gains attached to social media are enormous enough to justify the risk for first-time attempts. This is because, in a world with demand for information rises by the day, it is rather risky to channel it through social media since most of the audience still consider it a social platform and they do not expect serious information from social media sites. For instance, Twitter, one of the popular social networks in the world gives users a limit of 140 characters. It is not possible to communicate substantial information in 140 characters. The casual nature with which social media is perceived is yet another weakness making it a less effective means of gaining and sustaining attention (Davenport & Beck, 2002). The tastes and preferences of consumers exhibit one common characteristic all over the world; they are highly dynamic, which is a good thing as it steers competition in the right direction. One of the most important aspects about consumer preferences is the fact that they determine the decisions made by the producers. This way, the quality of products and services in the market is catalyzed by the preferences of the consumers. Further, Terranova (2012) argued that the media comes in the picture as the channel through which members of the public access the information regarding the products and services offered. It is, however, important to note that the media is just a channel; hence, it does not have anything to do with the content of the advertisement. The battle for attention between organizations is reconciled by the relationships established between the business and the customers. In today's market, brand loyalty is a common phenomenon, which is fuelled by the need by consumers to identify with a particular product. Media Reliant Marketing Strategies The efforts put together by organizations to sustain the loyalty from the customers are what constitute marketing strategies. In one way or another, the consumer has the final say as he/she gets to dictate what strategies the organization will implement in order to gain their his/her attention. The dissemination of information by organizations to the targeted groups in the population is a costly venture especially because the tastes and preferences of the consumers are highly dynamic. Bergquist and Ljungberg (2001) described that the advertisement cost is also costly because consumers, in today's competitive corporate world, have a wide range of variety to choose from. Those organizations taking it upon themselves to appreciate the influence of the media on consumer loyalty have managed to retain the attention of a significant percentage of its customers. This is because such organizations control the content relayed to the media, which is done through publicity and public relations The speed at which organizations are growing does not seem to be suitable for small organizations. Various factors are considered when determining the size of a firm. Small firms are those requiring relatively little capital to start, have small premises, serve a small market segment and involve minimal logistics. Most of the small businesses remain small not because they are unable to grow but because they find their small size convenient and less complicated. They view large businesses as risky and complex. However, the wave of change in terms of consumer superiority in the market is one force that every business will reckon with in order to remain operational. The competitive nature of the corporate world in the 21st century calls for enormous investments into the marketing sector in order to gain the attention of consumers at a global scale. This calls for strategies not only internal but also community-oriented ones so as to involve both the stakeholders and stockholders (Hennig-Thurau, Malthouse, Friege, Gensler, Lobschat, Rangaswamy & Skiera, 2010). Strategies to empower small firms would include the formation of regional cartels and mergers. This will go a long way in lowering operational costs for the firms involved; hence giving them the opportunity to focus on marketing, which would help them gain the attention of the consumers. Hennig-Thurau and Hansen (2000) stated that the fact that the mass media is a rather expensive means of promoting the products and services of small firms means that for them to gain the attention of the public, they have to resort to other means of communication, which are less costly. This will help such firms to concentrate their investments in other sectors/departments that have the capacity to improve the entire business. Such departments include the finance and the human resource departments. It will also be a golden opportunity for the small organizations to bring together concerted efforts to compete with their large scale counterparts. In the long run, the attention of the consumers, which is scarce, will be distributed without bias across the businesses regardless of their size. Specialisation Development Despite the fact that large organizations have all the privileges of exploring the global market, they also are pressed by the issue of scarce attention. The scarcity experienced by the large businesses is due to the tightening competition in the global market, which is fuelled by technology. The interrelationships existing between technology and mass media are a major contributor to the ever-growing competition in the global scope. As large organizations continue to expand their global reach, the tastes and preferences of consumers keep diversifying. The various ways through which different organizations respond to the diversification of consumer preferences give rise to specialization. The areas in which organizations specialize in the global market constitute the market segments from which such organizations rack in their returns. This is to say that large organizations that manage to specialize in their field tend to enjoy some degree of monopoly. These monopoly privileges arise from the fact that significant attention is gained by specialized organizations, especially those with a global reach (Baird & Parasnis, 2011). Berman and McClellan, (2002) argued that the rate of growth for the information and communication technology sector is directly proportional to the growth of the attention economy. According to the authors, this is due to the fact that as consumers find more and more alternatives to accessing information, their tastes and preferences change at a rapid rate; hence, giving large organizations a reason to step up their strategies. It is also true that firms with a global audience require the services offered by the information and communication technology, which makes it easy and fast to relay information. The extent to which access to information gives consumers an opportunity to choose from a wide variety is debatable. This is because, despite the fact that ICT has made it possible to transfer information, some organizations are still limited by other constraints that hinder them from availing information to the consumers. Competitive Advantage Competitive advantage is yet another concept in the economy of attention. It is the reason some organizations are better than others in the market. One needs not to wonder why consumers would prefer one product to the other even when they both serve the same purpose. The differences that exist between similar goods and services are caused by what is known as competitive advantage. It is when a certain organization finds favour among the majority of the population because it meets the demands in terms of quality and quantity. Mangol and Faulds (2009) stated that the secret to succeeding in the 21st century is maximizing competitive advantage through the use of tools such as the media, which is perceived to be a powerful tool in promoting product brands. The cost, however, is high, but it is worth the expense considering the fact that new firms are coming up on a daily basis. The competitive advantage of a firm gives it priority among the consumers even in an industry with close rivals. The areas of an organization that determine its competitiveness include the production process and promotion mix. In the production process, the cost of production and the type of equipment employed will determine the extent to which the organization is competitive. Sophisticated and computerized equipment result in high-quality products that are uniform in their appearance. The fact that computerization of production equipment results in high-quality uniform products means that firms whose production processes are computerized have the competitive advantage in the sense that they benefit from significant attention from the consumers. On the other hand, Bushee, Core, Guay and Hamm (2010) described promotion mix as an important determinant of the organization's competitive advantage. This is because a carefully selected promotion mix will ensure that the intended market segment is addressed. It also ensures that the organization spends the least finances possible in the promotion of its products. This is achieved through careful selection of the means of advertisement. The use of technology is economically viable. This is because, in the long run, the organization gets to enjoy enormous attention from the consumers due to the high-quality products and services. Technology is also a tool that enables firms to disseminate information to its target groups. This is made possible by the incorporation of new technology by the media companies. However, Islam, (2002) argued that it is important to note that as much as technology is a desirable aspect in business, the initial cost of implementing it is relatively high, something that discourages most small organizations from adopting new technology. Something about social media that makes it such a popular medium of communication is the cost as well as the ease with which it can be adopted, not to mention the convenience with which consumers can access information. However, the weakness of social media in the attention economy is the fact that the amount of information available is highly limited. The influence of attention-seeking organizations on the economy is evidenced by the ever rising levels of competition among global brands. In the midst of all this competition, one thing is clear, only the best will survive. The kind of survival implied here is the organization's ability to gain and sustain attention. The interesting thing about competition is that it bears a close resemblance to natural selection whereby strategically positioned organizations bank on the stability of their foundations in the international market. This stability is further cemented by the organization's choice of promotion mix and production equipment (Arsenault & Castells, 2008). Both small and large businesses can gain and sustain the attention of the consumers. It all depends on how they make use of the media to draw attention to themselves. While large businesses have the flexibility to draw attention without feeling the financial pinch, their small counterparts require strategies that would cushion them from the financial impacts associated with the search for attention. Attention Economy Expected Future Trends The attention economy is one of the emerging issues and trends in the 21st century. As it were, one would expect every business to tow the line by implementing strategies, which see to it that the chunk of the consumers' attention is equally distributed. Among these strategies is the implementation of social media as an advertisement tool. This is a critical point that will enable organizations to spend as little finances on advertisements as possible. Peigong and Yifeng (2010) stated that other than enabling organizations to lower their expenditure in advertisements, social media can also be a useful tool in keeping in touch with customers. This is because of the emphasis laid on customer care and its impact on the customer retention tendencies of organizations. The mainstream media companies are becoming phenomenal in aiding organizations in establishing lasting relationships with their customers. This is evidenced by the rising media advertisements that are inclined towards organizational concerns about the welfare of the customer. A good example is the series of media advertisements put forward by the Reckitt Benckiser Company that produces world brand soaps and detergents Both internal and external relationships in organizations are important as they determine, to some extent, the level of employee relations to the organization and customer relations to the organization. The best way to improve relationships among the members of the organization is by taking care of their welfare. An evaluation by Manaev (1995) established that this can be achieved through exclusive provision of medical covers to the employees as well as extension of benevolent favours whenever an employee is going through difficult times in their life such as loss of a loved one. The relationship with customers, on the other hand, can be improved through the efforts that ensure the customer's expectations regarding the quality of services provided are met. This relationship can also be cemented through initiatives such as the provision of after-sale services. It occurs that customer service plays a central role in the success of an organization in its operations Conclusion In summation, the relationship between the business, the media and the customers revolves around the key aspects of growth in the 21st century. These aspects include technology, social media, size of the firm, competitive advantage and consumer preferences. The combination of these aspects brings about an ever stiffening knot among organizations that work around the clock to gain and sustain the attention of the customers. This trend has set a repetitive loop whereby each of the aforementioned aspects grows at high and radical rates, thus organisations strive to keep up the pace. In the long run, consumers take home high-quality products and services as they get organizations to work tirelessly to satisfy their dynamic tastes and preferences. Finally, the essay establishes that the media occupy a unique position in the midst of all the competition with its major role being the dissemination of information to the consumers. References Arsenault, A. H., & Castells, M. (2008). The structure and dynamics of global multi-media business networks. International Journal of Communication, 2, 43. Baird, C. H., & Parasnis, G. (2011). From social media to social customer relationship management. Strategy & Leadership, 39(5), 30-37. Beller, J. 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