Wireless and Fundamental Changes

Exhibit 1.4 highlights the marketing implications of Internet technologies in the following categories: Bits not atoms, Mediating technology, Global reach, Network externality, Time moderator, Information equalizer, Scalable capacity, Open Standard, Market deconstruct, and Task Automation. What fundamental changes has the Internet brought to marketing?
The balance of power is shifting to buyers—one of the most fundamental changes to marketing. Marketers have practically lost control of brand images due to blogs, online bulletin boards, and other online communication, and must consistently underpromise and overdeliver. Other changes:

Market fragmentation. The Internet put finality to this trend by extending to its ultimate—a market size of one customer—and prompted marketers to create products and communication to small target groups.

Death of distance. Geographic location is no longer a factor when collaborating with business partners, supply chain firms, or customers, or just chatting with friends.

Time compression. Time is not a factor with Internet communication between firms and their stakeholders. Online stores can be open 24/7; people can communicate as their schedules permit; times zones disappear for managers collaborating with partners on other continents.

Critical knowledge management. In the digital world, customer information is easy and inexpensive to gather, store, and analyze. Managers can track marketing results as plans are implemented, receiving play-by-play reports. However, turning huge databases into meaningful knowledge to guide strategic decisions is a major challenge.
Interdisciplinary focus. Marketers must understand technology to harness its power. They do not have to personally develop the technologies, but they need to know enough to select appropriate suppliers and direct technology professionals.

Intellectual capital rules. Imagination, creativity, and entrepreneurship are more important resources than financial