Decision Making to Improve Marketing Performance

New Technology and Marketing

Marketing is the function that anticipates and aims to meet the needs of potential customers profitably

The development and widespread use of the internet over the last twenty years has had a huge impact on marketing. Each of the 7Ps [see definitions below and 3.3.4] has had to change and evolve to meet the demands of this new means of reaching customers.

__Clicks and bricks __

  1. Clicks and bricks is a marketing term which describes the need for a business to have a web presence (clicks), plus a physical presence on the high street or in shopping centres (bricks). Examples of businesses using this form of widening of distribution channels include PC World, Argos and Tesco.

__Social media __

  1. YouTube, Instagram, Facebook to promote products through campaigns, include stars from sport, fashion, music, plus others who’ve become social media brands, like Zoella.
  2. Viral advertising is another form of social media advertising, with funny or stylish ads being sent from person to person. This form of marketing is of growing importance as fewer young people consume traditional media (TV and newspapers) and instead consume entertainment and information online.


  1. M-commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld devices such as mobile phones. This is ‘having your retail outlet in your consumers’ pockets’. Through mobile technology it is now possible to reach your customer 24 hours a day. M-commerce does not just mean buying: it is about providing your customers with product information, promotions and all other aspects of the marketing mix.
  2. Consumers use M-commerce to compare prices online, take photos for future reference and research their potential purchases online.

Marketing decisions have become quicker because technology:

  1. has improved the speed that information can be gathered.
  2. has increased the number of people who can be reached through marketing.
  3. has changed the nature of products that people demand and how it can be priced.

Digital marketing is the use of the web through computers, tablets and phones to reach customers.

Social media as used in marketing needs to be:

  1. Authentic
  2. Measurable

Social media lacks control because it can be shared amongst a wide and disparate audience, and it can be criticised in feedback.

Relationship marketing is about developing a long-term connection with the customers so they keep coming back to the brand. This is done through providing a high-quality product, after-sales services and then upgrades, extensions and complementary products.

Dynamic pricing is where a business changes the price on a product based on changes in demand. It’s also known as real time pricing. It can be done effectively on the internet.

A good example is Uber.

Decision Making to Improve Marketing Performance, figure 1

However, it’s important to note that not all products and services need technology to sell. A business needs to consider a multi-channel approach, where it might use a range of methods to reach its customers.

Ethical and Environmental Influences

Ethical decisions are decisions that are made on moral grounds.

Environmental decisions consider the possible impact of marketing decisions on areas like the climate change, nature and future access to clean air.

A business needs to consider its ethical and environmental objectives when making marketing decisions.

The Interrelationship Between Marketing Decisions and Other Functions

When writing longer answer questions, you should take into account:

  1. Corporate objectives
  2. Financial situation
  3. Operational situation
  4. Human resources


MarketingTo anticipate and aim to meet the needs of potential customers profitably
7PsPrice, product, promotion, place, people, process, physical environment
Digital marketingUsing the internet to reach customers
Dynamic pricingReal-time price where prices are changed according to changes in demand
EthicsA moral stance on an issue
What are the 7 Ps of marketing?
Your answer should include: Price / product / promotion / place / process / people / physical / environment
What is dynamic pricing?
Your answer should include: changes / change / demand
What sort of decisions are made on moral grounds?
Exam Style QuestionA-level Paper 1, 2017A business is experiencing a fall in its market share. To what extent might the greater use of digital technology enable the business to increase its market share? [25 marks]
Your answer should include: e-commerce / promotion / product / high / street / shops / social / media / brand / customer / insight / tailor / speed
Explanation: This is an "essay" question. You would spend around 30 minutes in the exam on this. Here, we suggest you outline the key points you would like to make. Also, what sort of points would relate to the context of this question: digital technology, market share and marketing. Finally, consider how you might introduce evaluation into this essay. You need to make judgements or provide solutions. One way is to think about different businesses and how they might respond to these changes. Would it suit their product or customer base?

Market Conditions and Competition

Businesses don’t work in isolation. Their marketplace is constantly changing. Customers are influenced by changes in their living standards while other businesses will be chasing the customer to buy alternative products.

All longer answer questions on marketing should take into account the changing nature of customers and the possible reactions of other businesses in the marketplace.

All businesses are trying to persuade customers to:

  1. Buy their product.
  2. Buy their product instead of another business’s product.

To do both, the business needs to establish with the customer:

  1. The benefits of their product.
  2. How the benefits outweigh the benefits of alternative competing products.

Marketing techniques are part of the persuading process and help improve competitiveness

The key method is branding. Good, strong branding associates benefits with the product and establishes that association in the customer’s mind so that the customer knows immediately what the brand stands for.

For example, EasyJet, cheap flights. British Airways, comfortable flights.

Decision Making to Improve Marketing Performance, figure 1