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Information Technology and its Relationship to Marketing and
Marketing Relationships
Mairead Brady, Dublin Institute of Technology, DublinMichael Saren, University ofStrathclyde, UK
Nikolaos Tzokas, University ofStrathclyde, UK
Abstract
Information technology (IT) and its use in marketing is radically altering how companies
practice marketing. The widespread availability of information and heighten
communication abilities are changing the relationships between marketing and other
functions and between marketing and suppliers and customers. Marketing in the 90s
operates in a totally altered landscape demanding a radical rethink and redirection for
marketing.
As IT in marketing develops and moves from automational use to transformational use
these changes will be magnified. There are conflicting views u^ to the impact of IT on
marketing with many heralding the widespread acceptance and use of IT as the
beginning of the end of marketing, or as the greatest threat to the marketing department.
Others view this development more positively and see IT as the saviour of marketing,
which can now assume its glorious and central position in the company, with an
increased customer and relationship focus.
This paper traces the impact of IT on the marketing function and discusses the major
implications of the new IT enhanced marketing practices. It reports a study of 204
marketing personnel in medium to large companies in Ireland It confirms the perception
that marketing is changing, and to a certain extent benefiting from the introduction and
use of IT, though predominate!) to reinforce existing behas iour rather than initialing
radical ne\\ directions for marketing development
1 * Correspondence- Mairead Brady, Dublin Institute of Technology. 23 Mountjoy Square. Dublin 1, Ireland Telephone: 00 3531 2830032, e-mail: MBrady(o/dit.ie.
in McLoughlin, Da mien, and C. Horan (eds.). Proceedings of The 15'1' Annual IMP Conference,University College, Dublin 1999
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Introduction
A current view of marketing is that the search for a new marketing paradigm has begun,
with relationship marketing as the new transformational marketing model (Gronroos,
1997; Gronroos, 1996; O'Malley and Patterson, 1998; Piercv and Craven. 199S Sennit/
etal., 1996; Piercy, 1998; Snow, 1997; Payne, 1995; I/okas and Saren. 1997: Sheth and
Parvatiyai, 1995). Relationship marketing is seen as a IKXL-V,UV lor MJIIIC companies and
industries (Gronroos, 1996) and 'a clear sign of the bright future' for marketing ( 1 /okas
and Saren, 1997; 105).
Paralleling this development, marketing is, and will continue to be, heavily influenced
by IT, with much speculation that marketers who do not adapt to this new technological
era will not survive (Bruce et al., 1996; Boshoff and Terbanche, 1996; Furness, 1996;
Fletcher, 1995; Komenar, 1997; Rapp and Collins, 1995). Some see IT playing a
dominant role in the reshaping of marketing (Bruce et al 1996) as 'the cornerstone of
new approaches to marketing1 (Talvinen and Saarinen, 1995:18) and particularly
important in relationship marketing (Gronroos, 1996). IT's importance lies in spanning
the boundaries between marketing and other functions, and companies and their
environment, by connecting customers and partners to the firm IMtimatcK the ne\\
management model could be the virtual organisation, with groups of separate enterprises
linked through high-speed networks (Byrne et al , 1993. Pieic) and ( iu\en>>, I'^
Schlegelmilch and Sinkovics, 199X), the network and interactions approach to
relationship marketing (Gronroos, 1996).
Marketing Reorganisations
Marketing is in a state of change, redirection, refocus searching for relevance and
applicability in this era (Brownlie et al., 1999; Thomas, 1994; Brownlie and Saren,
1997). From a practical perspective increased marketing reorganisations in companies
highlights a major marketing rethink and a threat to the marketing department (Mitchell,
1994; Thomas, 1996; Piercy and Cravens, 1995; Bruce et al., 1996). There appears to be
a move away from the functional perspective. Traditionally marketing was hierarchical
within a functionally divided company (Mitchell, 1994). Doyle, (1995) argues that
marketing's difficulties are due to this functional focus, rather than viewing marketing as
an integrated business process, with sole responsibility for some tactical issues, bin in
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general needing co-operation with other departments. Marketing should never have had
a functional perspective (Thomas, 1996) and should permeate throughout the
organisation (Gummesson, 1987).
This relates to customer oriented management, which of itself is a goal of the marketing
concept, viewing all staff and particularly staff that interact with customer as part-time
marketers (Gummesson, 1991). It could be that 'the presence of new information
networks may indeed be seen in the future as the single greatest facilitator of the
marketing concept, with their potential to alter both the relatnc balance ofpoucr and
the directness of contact between firms and customers' (Peattie and Peters, 1997 145).
This building and managing of relationships is the corner stone of relationship
marketing (Ford, 1990; Gronroos, 1996). Bruce et al., (1996:203) contend that 'this
would weaken marketing as a function as IT can facilitate such a reconfigurement of
marketing activities', as marketing tasks are diffused throughout the organisation. As
O'Driscoll, (1997:4) states 'marketing can no longer boast of its pre-eminence position
in the firm' nowadays it must focus on 'embracing relationships, networks, new forms of
communication and organisation 1 .
Marketing's Lack of Change
Within the discussion of marketing reorganisations and redirection resides the
contention that marketing has been slow to change with much criticism and debate on
the lack of marketing development and growth (Marion, 1993, Mint/berg et al., 1995,
Brownlie and Saren, 1997; Mitchell, 1994; O'Malley and Patterson. 199S; Bro\\nlie et
al., 1999). This has led to the contention that marketing may be heading for extinction
(see Brown, 1996). Brownlie et ,al., (1994:8) concluded that, 'marketing as u domain of
knowledge and practice is itself becoming as myopic, complacent and inward looking as
all the once great but now defunct myopic companies' It is clear that there is a
transformation in marketing but the question is 'how might marketing translorm itself in
order to continue to have relevance into the next century and beyond 1 (Brownlie et ,al.,
1994:8).
Is Marketing Adopting IT?
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p>The preceding discussion is also mirrored in the IT and marketing literature, \\ith the
view that marketing has been slower than other function^ to embrace 11 ( MiiJu'll, I 9 (;4
Peattie and Peters 1997; Ranchhod and Hackey. 1990. I c\cnck ct al , !^9N)
Palihawadana and Delfmo (1994) found that the use of IT in marketing was 'still quite
patchy1 and 'still in its infancy1 More positively research does show that marketing
intends to adopt IT further (Bruce et al., 1996; Shaw, 1994).
The use of IT by marketing has had a predominantly automational focus, used for
routine and tactical activities to improve efficiency (Teng et al., 1994; Bruce et al.,
1996; Leverick et al., 1998; Peattie and Peters, 1997; Hewson and Wilson, 1994). It can
be argued that marketing development was limited by the lack of speed and applicability
of IT, but that as connectivity, speed, power and diffusion issues are overcome,
marketing personnel will see the real impact and benefits of IT (Ranchhod and Hackey,
1996; Peattie and Peters, 1996; Butler et al., 1997; Mooney et al., 1995).
Though research centring on IT and marketing is scarce, there are numerous studies on
the general impact of IT in business (see Leverick, et al., 1996). Ihe\ contend that the
impact of IT on marketing is similar to its impact on other functions. Other disagree and
emphasis that marketing is different, citing the creative nature of marketing (Hvans,
1992), that marketing people are different (Holtham, 1994), that marketing staff have
limited knowledge of technology (Shaw, 1994), but the ultimate difficulty may lie in the
fact that IT threatens traditional marketing approaches (Martell, 1988).
Is IT Marketing's Saviour?
Though the introduction of IT into companies is predominantly assumed to be positive,
many companies in actuality find IT baffling, and to some extent it appears that
expectations are high and actual benefits are low (Bird, 1994; Brynjolfsson. 1993. Hitt
and Brynjolfsson, 1996; Peppard and Rowland, 1995, Van (jrembergen and Van
Bruggen. 1997; Walsham. 1993. Harl and Feene\. 199"7 ) with mam riskv cosu and
problems hindering the successful introduction and use of I'l (C apon and tjla/ier. I9N"7 ,
Drummond, 1998; Galliers and Baets, 1998).
Douzou and Legare (1994) argue that network technologies can actually serve to
reinforce existing practices rather than to change them, and that IT on its own will not
in McLoughlin, Damien. and C. Hoi an (eds.). Proceedings of The 15"' Annual IMP Conference,University College, Dublin 1999
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change practices. This was also affirmed by Bjom-Andersen (1994) who contends that
the introduction of IT showed only marginal effects on structure and performance.
Applegate (1994) emphasises that organisational change must occur first and only then
can IT enable change. Davies and Mitchell (1994:243) emphasis the dual nature o| 11 as
an enabler but equally as a constrainer of organisational change They stale categorically
that IT 'has no singular inherent ability to enhance or control organisational
transformation'. An important aspect of IT is the power and control ol II and the
dominant authority on the level and use of 11 \\ithin firms. Scarbourough (I99M) Juund
that many of the decisions on marketing related IT, came from the IT specialist, related
to technical spefications, rather than from marketing. This has enormous implications
for marketing and its use of IT as Gronroos (1996:9) states, 'computerised systems and
IT ... have to be designed from a customer-service perspective and not only or mainly
from internal production and productivity-oriented viewpoints'.
Some firms are reaping benefits from IT, but mainly where it reinforces good existing
management approaches (Willcocks, 1996). Ultimately there are limits to what IT can
do without the benefit of good marketing (Burnstein and Kline, 1995). IT based systems
'cannot work miracles. They will not offset a poorly conceived or poorly executed
marketing strategy. They will not compensate for an inferior sales force, and the) will
not sell inferior products' (Moriarty and Swartz, 1989,180). II on its ovsn \\ill nut
deliver benefits, what is need is a transformation in marketing activities to harness the
opportunities from IT (Ward et al., 1996). Ultimately with IT 'the wisdom of its use,
depends on the wisdom of the user' (Glaser, 1997:251).
So though it is generally argued that IT is radically altering marketing practices 'what is
less clear is, inter alia, the extent to which such changes are being realised, the
implications of such changes for marketing management and strategy, and the costs of
such changes in terms of finance, resources and time' (Bruce et al., 1996:194).
Research Methodology
This exploratory study, which is part of a larger study, with the aim of assessing the use
of IT in marketing, was conducted through a quantitative postal survey of 500 marketing
personnel in Ireland. The sample was selected randomly from the membership database
in McLoughlin, Damien. and C. Horan (eds.)< Proceeding* oj T/ie /5'" Annual IMP ( onfereiu-i-.I niversit) College, Dublin 1999
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of the Marketing Institute of Ireland. The questionnaire was pretested with I 5 marketing
managers. The final version was sent to marketing managers and 204 useable
questionnaires were returned, yielding an effective response rate of 41%. The firms,
were predominately medium to large in employment numbers, consisting of 39%
manufacturing and 61% service companies.
Of interest to this paper are the levels of communication and information sharing IT in
marketing, the perceptions of marketing managers to 17' in marketing and the major
beneficial usage of IT in marketing.
Automation, Information and Transformation
Within the research a three stage framework of automation, information and
transformation (Zuboff, 1988, Mooney et al., 1995), was utilised to track the impact of
IT. These stages are similar to Haeckel's (1985) efficiency, effectiveness, unthinkable,
and Hammer and Mangurian's (1989) efficiency, effectiveness and innovation and traces
business benefits from IT. The transformational stage defines a company with new
business operations and practices and it is at this stage that marketing reap the most
benefits (Brady et al., 1999).
Enhanced Communication and Information Sharing through IT
A range of information and communication technologies (R'T) were researched, a
sample appears in figure 1.
in McLoughlin, Damien. and C. Horan (eds.). Proceedings of The 15"' Annual IMP Conference,University College, Dublin 1999
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Table 1; ICT Use and Type of I'se by Marketers in Ireland
Communications
Email for internal use
Email to customers
Own company web
site
Helplines
Computer Links
with suppliers
with customers
Use
80%
64%
62%
35%
33%
43%
Type of Use
Automate
15%
14%
4%
9%
26%
2 1 %
Informate
44%
41%
74%
63%
33%
36%
Transformate
41%
45%
22%
28%
41%
43%
Valid Number
of firms
163
128
129
71
69
84
Use of information and communication technologies are growing but with widely
different stages of development and benefit. Email is popular and as expected is used
more for internal communications than links with customers and is probably indicative
of the fact that certain customer bases do not have email. Email for internal and
customer use provided information but was also transformational, which leads us to
contend that it is starting to alter the way that marketing is performed, rather than simply
used for efficiency gains (Thomas, 1993).
Computer links is a focus on specialised company to supplier or company to customer
links, including EDI. Computer links with suppliers is low, predominantly
manufacturing companies with a cross section of automational, informational and
transformation benefits. This highlights the slow development of external networks and
online links, and the delayed realisation of the incredible business potential of hi.)],
while also confirming the varied rate oi adoption and impact across different sectors and
types of organisation (see Naude and Holland, \W) Compulci link.-, u> cuMomei^ ,n<.
higher and but with no difference between manufacturing and ser\ ice companies.
Customer on line development is growing and this is indicated here, and with a stronger
//; McLoughlin, Damien. and C. Horan (eds.), Proceedings of The 15"' Annual IMP Conference,University College, Dublin 1999
Page 7ofl7
transformational benefits though these findings also highlight the growth in
manufacture/distributor links.
Own company website were predominantly viewed as providing information. I his may
be explained by the lack of e-commerce and trading over the Internet, highlighted in
previous reports (Ellis, 1998; Brody, 1995). Finally helplines are used mainly for
obtaining information about the customers. As customer helplines can be percei\ed as
an opportunity for direct contact with customers and a forum for discussion of the
customers 1 problems and concerns, we would have expected this technology to be used
for knowledge creation and decision making. This research has shown that this is not the
case. It seems that although helplines provide additional information on the customer
base, they are not perceived as transforming the relationship.
It must be noted that previous research on the main uses of IT by marketers did not
show any internal communication uses of IT by marketing (Bruce, et al., 1996; Higby
and Farah, 1991, Shaw, 1994) though external links (EDI) were mentioned (Bruce,
1996). This research shows a greater ICT focus and use by marketers in Ireland.
Benefits of IT within Marketing
Linking to the discussion on marketing and change, most respondents fell that marketing
had changed. Contrary to much of the previous discussion marketing managers
considered themselves to be very technofriendly with the majority agreeing that IT in
marketing had made marketing easier and better, and that IT in marketing contributed to
their success. It was interesting that only half of the respondents felt that marketing was
highly dependent on using IT. More importantly the marketers who were highly
dependent on using IT were the companies who were experiencing transformational use
of IT. There is a contention that IT is increasingly viewed as simply a part of normal
business operations (Van Der Zee, 1997; Willcocks, 1996; Webber, 1993; Furness,
1996) and a majority of respondents agreed with this.
Benefits to Marketing from IT
Increased information and increased efficiency and effectiveness were percei\ed as the
major IT contributions, which indicates the movement through the trajectory of IT
in IMcLoughlin, Damien. and C Horan (eds.)> Proceeding of The 75"' iiunial IMP (. onfen'm r,I ni\ersit> College, Dublin 19M9
Ha <s "I I
flbenefits (see figure 2). It is heartening from a marketing point of view that improved
customer relationships were mentioned, but with a low score. The advances in internal
communication shows increased contact via IT from the marketing department to other
departments and vica versa. This could be indicative of the marketing concept in
operation with more open communication between departments and concurs with the
Bruce et al. (1996) study which showed an increased visibility of marketing and
increased demands on marketing from other departments.
Figure 2 - Main IT benefits to Marketing
Increased information
More efficient and effective
Improved customer relationshipImproved internal communications
Product developmentAccess to International markets
With a more specific focus on actual marketing practices and IT, the ability to hone in
on target markets was highlighted. Increased targeting ability has been suggested as the
main benefit of IT and the required marketing focus of this era (Schmitz and Rovner,
1992; Furness, 1997; Komenaar, 1997). Other benefits related to efficiency and
effectiveness of the marketing function and the speed and access to information and
improved customer relationships were mentioned.
Figure 3 The Main Benefits to Marketing Practices
More target marketing
More efficient and effective
Increased informationImproved customer relationships
Tracking and monitoring of results
24",,T)c> (i
IS",,
8%4",,
Discussion of Results and Implications
This research explores the use of IT in marketing in Irish firms. This was initiated by the
fact that despite widespread acceptance of the benefits of IT for marketing, our
knowledge of the way marketers use IT and its eventual benefits for marketing are not
well understood. Following Zuboffs (1998) framework we can conclude that IT is
prevalent in Irish marketing, but not all marketers make use of the full potential of some
of the technologies. The vast majority of IT is still used for automation and information
in McLoughlin, Damien. and C. Horan (eels.), Proceeding* oj The 15lh Annual IMP Conference,University College. Dublin 1999
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purposes. We would not deny that this is a critical step to\\ard.s any efforts to increase
the marketing knowledge of" the firm (Morns, 1990, /uboll, I9ssj Yet. lor
transformation to happen, firms need to approach IT as a means for questioning
marketing assumptions and existing practices.
In general the research portrayed a very positive attitude to IT and its influence on
marketing The benefits of IT to marketing must centre on successful IT management,
changes in processes (Fletcher, 1995), the use of unfamiliar and challenging IT, and
creative innovative strategies to cope with this different and dynamic market
(Schlegelmilch and Sinkovic, 1998).
We can state that, business use of IT is only at the development stage and there will be
further challenges, difficulties, opportunities and benefits (Cjalliers and Baets, 1998;
Komenar 1997; Peattie and Peters, 1997) As l.e\ei'Kk el al (199".92) Uatc-, 'mum <ii
the more adventurous IT applications (virtual stores, customer participation in product
design, and so on) apparently remain to be exploited' With this continued development,
marketing and relationship marketing needs to embrace IT for marketing benefit and
realise 'given that change is inevitable, the real issue for managers is whether that
change will happen belatedly, in a crisis atmosphere, or with foresight, in a calm and
considered manner ... whether transformation will be spasmodic and brutal or
continuous and peaceful 1 (Hamal and Prahalad, 1994: 128). IT is imperative as we enter
the new millennium that marketing can 'encompass all of the new market and
organisational contexts to which it is now being applied' (Brownlie et al., 1994:10), and
links to and uses IT to this end.
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