Page 99 - Foundations of Marketing

66 Part 1 | Strategic Marketing and Its Environment

are generally more realistic and operational. In addition, effective self-regulatory programs
reduce the need to expand government bureaucracy. However, these programs have several
limitations. When a trade association creates a set of industry guidelines for its members, non-
member firms do not have to abide by them. Furthermore, many self-regulatory programs lack
the tools or authority to enforce guidelines. Finally, guidelines in self-regulatory programs are
often less strict than those established by government agencies.

Technological Forces

The word technology brings to mind scientific advances such as iPads, electric vehicles,
smartphones, cloning, lifestyle drugs, the Internet, radio-frequency identification tags, and
more. Such developments make it possible for marketers to operate more efficiently and pro-
vide an exciting array of products for consumers. However, even though these innovations
are outgrowths of technology, none of them is technology. Technology is the application of
knowledge and tools to solve problems and perform tasks more efficiently.
Technology determines how we, as members of society, satisfy our physiologic needs.
In various ways and to varying degrees, eating and drinking habits, sleeping patterns, sexual
activities, health care, and work performance are all influenced by both existing technology
and advances in technology. Because of the technological revolution in communications, for
example, marketers can now reach vast numbers of people more efficiently through a variety
of media. Social networks, smartphones, and tablet computers help marketers to interact with
customers, make appointments, and handle last-minute orders or cancellations. Currently,
24
about one-third of Americans have exchanged their landlines for cell phones. An estimated
25
46 percent of American adults own the more advanced smartphones.
The proliferation of cell phones, most with text-message capabilities, has led market-
ers to employ text and multimedia messaging on cell phones to reach their target markets.
Restaurants, for example, can send their lunch specials to subscribers’ cell phones.
Computers have become a staple in American homes, but the type of computer has been
changing drastically in this past decade. Traditional desktop computers appear to be on the
decline. Laptops became immensely popular due to their mobility, but analysts estimate that
laptops might be entering the maturity stage of the product life cycle. Conversely, tablet com-
puters such as the iPad and the Samsung Galaxy Tab are experiencing immense growth and
technology The application of 26
knowledge and tools to solve may soon supersede laptops in sales. In response many companies are creating apps specifi-
problems and perform tasks cally made for the iPad and similar devices. The rapidly evolving state of technology requires
more efficiently marketers to familiarize themselves with the latest technological changes.

Marketing Debate

Copycats or Innovators?

ISSUE: Is Rocket Internet a hub for innovation or just Critics have discredited Rocket Internet by saying
another copycat? the company is uninspired and lacking in originality.
However, company models cannot be patented, and
Copying has been around for years, but has one com- trademarks only apply within the country issued. In a
pany taken it too far? Rocket Internet is a German-based sense, Rocket Internet’s approach seems unethical. On
company that clones successful U.S Internet-based the other hand, it could be seen as an innovative way to
business models and launches them on an international take a successful business plan and capitalize on it in an
scale. Rocket Internet has launched numerous dupli- untapped market. Technically, Rocket Internet is operat-
cated businesses, most famously Citydeal, copied from ing legally.
a
Groupon. Citydeal was eventually acquired by Groupon.

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