EFFECTS OF TECHNOLOGY ON

MARKETING

By Group 4

Raza Abbas (44279)

Muhammad Zaryab Khan (48689)

Nosheen Rajper (55474)

Muskan Mahboob (47013)

Noman (51518)

Research report

Submitted to Sir Irfan Haider

at IQRA University,

main campus, Karachi.

1.1 Overview

The purpose of this study is to evaluate the relationships between digital technology,

tangible/intangible assets and marketing capabilities to gain more insight into the factors related

to small- and medium-sized enterprises growth. Based on the resource-advantage theory, this

research addresses the question “to what extent does digital technology influence marketing

capability which leads to companies’ growth?”

New technologies have revolutionized nearly every aspect of human existence, including the

ways that firms market products and services to consumers. Along with now familiar innovations

like the Internet, greater computing capacity, mobile devices and applications, and social media,

more radical innovations are emerging. Related to artificial intelligence (AI), the Internet of

things and robotics, these technological advances are exerting .

1.2 Background of the Study

Technology refers to the gathering of tools that create it easier to utilize, generate, direct and

swap information. Technology refers to the information and consumption of tools, methods and

structures in order to provide a superior purpose like resolving troubles or making life easier and

better. The growth of innovative technology is succeeding speedily. Today service bringer

needs to assemble all the domestic energies regulated to face the rising rivalry and an altering

market surroundings. Companies are facing new challenges in requisites of enduring firm

presentation under forceful market circumstances. From a customer’s perspective, value is

recognized through low price, when the customer gets what they predicted to get, and when the

product superiority imitates the price that was paid. Customer’s technology willingness plays a
significant role in manipulating firm performance, customer supposed value and customer

reliability.

The development of digital marketing is inseparable from technology development (Ismail et al.,

2021). Companies want to realize their customers' improved and widen new ways of associating

with customers using a variety of interface tools such as mobile or collective technologies to

gather information and get information about customers. Technology and market-based

modernization varies in both the technology and the market proportions. On the technology side,

the former frequently signifies modern technological progress. Technology based modernizations

that basically modify the technological path and improve customer benefits are called “essential

modernism”. Innovations emerging in technology, data storage, analytics, and solutions highlight

opportunities for marketing practitioners to create, communicate, capture, and deliver value for

and with their customers (Grewal et al, 2019). Today scientific advancements representing

progressive expansion are rising to build use of technology’s competitive advantage. The the

convenience, price, service quality, self-efficacy and value are the factors affecting consumers’

acceptance in the presence of a moderator that is perceived usefulness (

1.3 Problem Statement

To study the changes or impacts occurring in the market and marketing strategies due to the

advancement in technology.
1.4 Research Questions:

1. What is the relationship between technology and marketing?

2. To what extent does technology have an impact on the marketing strategies of an

organization?

3. Does utilizing better technological equipment drive better marketing results?

4. Has the usage of technology in marketing increased the organization's sales?

5. To what extent has the use of technology in marketing impacted buyer behavior in the

current era?

6. To investigate the hurdles faced by companies in adopting new technologies in their

marketing strategy.

7. What is the impact on organization sales on companies who refuse to utilize the

technology tools in the marketing strategies.

8. How has the use of technology influenced the competition in the industry?

9. What are the positive outputs in adapting to the technological change in marketing of the

company's products?

1.5 Research Objectives:

● To identify the relationship between technology and marketing.

● To determine the drivers of technology that affect marketing.

● To investigate the downside of technological impact on the marketing sector globally.

● To identify what factors of digital technology impact in business.

1.6 Significance of Study:

Marketing research is one of the most important factors that can help you succeed in any

business. There are steps you can take to achieve success rather than just a few steps toward

success. What exactly is market research and why is it important for the success of your

business? Marketing research involves researching a variety of topics that will be of benefit to

your company over time. For example, we will better know our customer base.

Marketing has been enhanced in the following ways:

Businesses can now easily access their customer base through web statistics and social media.

People on the Internet are often willing to share their research and information online, which is

very helpful for market researchers because research has already been done.

This study will also help us learn about the expectations of your customers in your product. You

can learn what motivates your customers to choose your product over another by doing market

research. As a product, you should always be aware of market trends. We can improve our data

with the help of market research. What your customers want in your product: this will help you

set your standards. What changes can you make to please your customers?
1.7 Definition of Key Terms

1.7.1 Internet Marketing

Internet Marketing utilizes the Internet to convey promotional marketing communication to

customers. It comprises electronic advertising, social network advertising (Facebook, G-mail,

Hotmail etc), several categories of display marketing (as well as web banner marketing), and

mobile marketing. Similar to further promotional media, online marketing often engages together

a publisher, who combines ads into its online at ease and an advertiser, who offers the ads to be

demonstrated on the publisher's ease.

1.7.2 Technological Change

A technical change (TC) is an increase in the outputs that can be produced with a given amount

of inputs via the processes of invention, innovation, and diffusion. In terms of marketing, it

refers to the concept of upgrading existing technologies and developing new ones in order to

improve existing products and introduce new ones to the market.

LITERATURE REVIEW:

2.1 Theoretical Foundations:

Effects of technology in marketing are apparent. This study compiles the thorough understanding of

effects, causes and benefits. Moreover, this study concludes the concrete understanding and revolution

that marketing has seen with technology. Furthermore, the effects of technology on marketing and

evolution of data. Effects that have brought the immense amount of data to marketers and the potential

breach of data that are exploited in Digital Political Campaigns, Non-profits, and fundraising campaigns.

The background of study covers all causes, benefits and effects of technology in marketing.
Keywords: Technology, Marketing, Data, Buyer Journey, Advertisements, Revenue, Sales.

Marketing 1.0:

The industrial revolution that had still not been considered as the age of information technology. Yet

Marketing 1.0 emerged at that time. It was the very beginning of marketing without technology

interference. Marketing 1.0 was mainly based with humanistic touch with basic banners to hand written

pamphlets. The core concept hadn’t been revealed as the industry took the first ever revolution.

Regardless of the emergence of basic marketing, the gap was still apparent that technology had to fill.

2005 turned out to be the most successful marketing year. When the Email and website (WWW.COM)

emerged and revolutionized the whole world with the announcement of web 2.0. Marketing 1.0 lacked the

aspects and gaps that web 2.0 had.

Marketing 2.0:

With the emergence of technology, marketing 2.0 is deemed to be the most powerful tool to generate

income. Marketing 2.0 came up with technological innovations like the Internet, TV and 2 dimensional

visualizations. The Internet worked like a voice to organizations. The Internet had provided the quickest

reach to the customers. TV provided the most enticing way to show your audience a product or services

across the world. Technological emergence gave a first step towards the revolution of marketing to

sending your Message to Mailbox to Email inbox.

BAŞYAZICIOĞLU, H. N., & Karamustafa, K. (2018). Marketing 4.0: impacts of technological

developments on marketing activities. Kırıkkale Üniversitesi Sosyal Bilimler Dergisi, 8(2), 621-640.

Marketing 3.0:

Marketing 3.0 is an advanced version. Consistent technological revolution has changed the way of

marketing and contributed to the success of Marketing 3.0 which is interpreted as digital marketing.
Kotler, P., Kartajaya, H., & Setiawan, I. (2019). Marketing 3.0: From products to customers to the human spirit. In

Marketing wisdom (pp. 139-156). Springer, Singapore.

Marketing 2.0 that was first announced in the world in 2005 also called Web 2.0. Meanwhile, Marketing

3.0 has come up with advanced technology like Digital ads, Digital Currencies, Digital Brands, Info

Products, and Digital Transactions. Marketing 3.0 builds the direct relationship between customers and

organizations. Defends the brands with vital technological moves. Technology and marketing

correspondly dealt with the user data and whole consumer journey that was never possible in the

Marketing 1.0 and 2.0. There is over 74 zettabytes of available data on the internet at a moment of

consumption. It means that there is direct proportionality between technology and marketing. Over 1

million digital marketers exploit this data to reach their customers and convey the message and achieve

their goals.

Independent and dependent Variables:

z Marketing tools

Customer Data

Effects of
Organizations Technology in
Revenue
Marketing
Platforms like Meta,
Google and Apple

Marketing Cohorts

Costumer
Management

Dependent Variable
 2.2 Hypothesis Development:

H1 There is a strong relationship between success of Marketing and

Technology interference

H2 The Internet and TV are the most powerful drivers that positively
affect marketing.

H3 Use of technology has positively impacted the buyer trust in the

current era.

H4 Organization sales are positively associated with use of technology in

marketing.

H5 There is a negative impact of data exploitation of the use of technology

in marketing.

H6 Utilizing the better technological equipment drives the most

sophisticated results.

2.3 Proposed Theoretical Framework:

Advancement of technology has the major impact on marketing than any other sector.

Technology has totally changed the dynamics of how marketing used to be done after the

industrial revolution. Now organizations have multiple ways to convey their message to their

potential audience and show their offer.

Technological advancement has brought more flexibility in the marketing sector. Since reaching

customers is less of a hurdle. Organizations tend to exploit the platforms like Meta, Google,

Instagram and Snapchat to announce their offers inorganically and organically.

This creates the whole buyer journey on single clicks for organizations. Furthermore, technology

and machine learning helps organizations to generate sales. Technology has a positive impact on

marketing along with concrete data hubs.

With positive effects, there have been the data breach controversies that occurred in the past.

Controversies like, Cambridge Analytica which stole the data of over Millions of users on

Facebook and helped in Election Campaign. Berghel, H. (2018). Malice domestic: The Cambridge

analytica dystopia. Computer, 51(5), 84-89. It turned out to be the biggest scandal after the marketing

got advanced with technology.

The Cambridge analytica data breach case has changed the dynamics of the whole internet and

technological aspects that are related to marketing. There are now more concerns with privacy

than more advancement in technology. Regardless of marketing being the most advanced with

the Internet, Blockchain and 3 dimensional Commercials (Hologram). But organizations like

Apple, Google, Meta and Microsoft focus on the privacy protection of their users. Recently,

Apple has restricted the data of their users to the marketers. Apple users have opted out to share

their interests, behaviors, and recent activity to Meta. Verma, N., & Sambhav, S. (2020). Development of

iOS: A Revolutionary Transformation and the Future. International Journal of Advanced Research in Engineering

and Technology, 11(6). It is the biggest set back for an organization like Meta to track the consumers'

data that helps in advertising and to show the related ads to them. Apple data privacy policy has

negatively impacted Facebook. It means, Apple is better at technological aspects than Meta is.
Advancement of technology and effects to marketing are apparent. Along with it, drawbacks are

more daunting.

Unlike Meta, Google is affected by Data Protection Law. The European Data Protection

Authority has banned the some functionalities of Google Analytics in Europe.Gruschka, N.,

Mavroeidis, V., Vishi, K., & Jensen, M. (2018, December). Privacy issues and data protection in big data: a case

study analysis under GDPR. In 2018 IEEE International Conference on Big Data (Big Data) (pp. 5027-5033).

IEEE. Marketers that are associated with Google to market their product and services are having a

hard time in data tracking. Since a recent update has restricted the use of cookies on Google

websites. Just Apple privacy protection. Users that are based in Europe and California will be

having data privacy protections and their data will not be shared to any of the Organization like

Google, Meta Apple and the marketers.

Effects of technology on marketing are severe when the data leaks occur and user data are

exploited.

3. RESEARCH METHODOLOGY

3.1 Research Design

This research study aims to assess the relationships between digital technology,

tangible/intangible assets, and marketing capabilities to gain more insight into the factors related

to small- and medium-sized enterprises' growth. The research is deductive as based on existing

models and theories and researchers.

3.2 Sample size

The sample size for this research will be secondary data obtained from trusted sources. As per

the requirement of this research all samples will be concerned to organizations working in

private organizations.

3.3 Sampling Technique

The study suggests convenience-based sampling; which is a non-probability sampling technique

where respondents are selected upon the personal convenience of the researcher. The sampling

procedure has no allocations compulsory and it consists of those units of the population that are

easily reached.

3.4 Procedure of Data Collection

After selecting the type of data we want to collect, we are going to list out all the reliable and

valuable sources by which we can acquire useful information. Moreover, we are going to reach

out to professionals in the marketing industry to gain insight on how technology has impacted

their organization’s growth.

3.5 Instrument of Data Collection

The study requires data collected through previous secondary data from these instruments;

archival documents and marketers from private organizations found online or asked through

mail.

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640.

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management capability: achieving growth in SMEs. Qualitative Market Research: An

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Grewal, D., Hulland, J., Kopalle, P. K., & Karahanna, E. (2019). The future of technology and

marketing: A multidisciplinary perspective. Journal of the Academy of Marketing Science,

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