Introduction
After the creation of the World Wide Web in the early 1990s, many companies started to shift their focus towards utilizing digital methods to advertise and sell their products. AT&T was the first to successfully use digital marketing by creating an online banner for their website. The banner, which cost $30,000, displayed the message "Have you ever clicked your mouse right HERE? You will," on the creative page of HotWired.com. This resulted in 44% of viewers clicking on the banner and being directed to the AT&T homepage. This showcased the potential of technology to the public and marked the beginning of a new era in marketing. In this essay, I will examine how the process of revolutionizing the marketing industry impacts the occupation holistically and internally.
The Origins of Marketing
To understand how the marketing industry has been impacted by the forces of rationalization, it is important to examine the history that transformed marketing from a paper industry to a multi-billion-dollar digital industry. The concept of marketing began to develop as early as 1500 BCE in the form of stamping products with a company branded logo. This form of marketing evolved into a complex analysis of consumers, forms of distribution, and theories, which led to the creation of the contemporary form of marketing that is known today.
The definition of marketing is constantly evolving due to shifts in rationalization and the introduction of new theories. One significant change occurred when marketers shifted their focus from value to community. In the late 1800s to early 1900s, marketers developed value theory, which believed that demand was driven by purchasing power and that a product's worth was determined by the labor invested in producing it. However, this approach proved unsuccessful, and marketers began to realize the importance of understanding their consumers' values. In 1912, Parlin coined the phrase "consumer is king," which marked the beginning of the consumer movement and a shift towards community-focused marketing. This new theory led to the Golden Age of marketing, during which personalized marketing efforts, such as creating characters specifically for advertisements, became popular. Personalized marketing allowed for a stronger connection between consumers and brands and improved marketing success. As marketing continues to advance, personalized mass services and direct market targeting will become increasingly important.
Modern Marketing
Modern day marketing is developing at a rapid rate and is expected to only continue growing in popularity and complexity. This is due to the numerous advancements that allow employees to engage with the marketing industry in more direct and indirect means. It further introduces new opportunities for successful operation within the industry. Within the marketing industry, Gig work and AI are two notable evolutions within marketing.
Gig Work
Gig work is a type of industry where businesses hire individuals for a temporary period to finish a specific project. This arrangement follows a formal contract and an employer-employee relationship but offers more flexibility to the worker in terms of work schedule. Within the field of marketing, there are several sections that are focused on gig work, as many of the projects require short-term labor. Marketers are commonly employed on a project basis to accomplish a specific task and then move on. Small companies often prefer this approach over hiring a marketing firm since it is more cost-effective. However, larger companies that work with marketing agencies for an extended period tend to avoid gig work, as they prefer a longer-term relationship that provides more consecutive market research. The trend towards rationalization has heightened the need for gig work, as companies often need to rely on gig workers to complete smaller marketing tasks when demand increases significantly.
AI
Introduction to AI has shifted modern marketing to be significantly more data driven and successful in matching consumer to brand. In a 2018 report by McKinsey, over 400 advanced use cases showed that marketing is an industry where AI would contribute the most value to. (Davenport, 2021). In modern marketing, AI plays a significant role in data collection and sales forecasting. Through access to consumers online behavior, AI can sort through the data and determine what individuals match specific characteristic that the brand shares. Furthermore, AI helps collect and interpret data once the advertisement has been released to conclude if it is successful or not. Having AI complete the data collection tasks allows marketers to shift their focus towards interpreting the data and creating more strategic marketing techniques.
Rationalization
Rationalization within the marketing industry is developing to increase efficiency, calculability, predictability, and control through Ritzer’s definitions.
- Efficiency: the optimal method for getting from one point to another
- Calculability: The firm’s ability to quantify their results.
- Predictability: The customers assurance that a product will remain the same quality over a long period of time.
- Control: How a customer will act based upon the firm’s actions
Efficiency
Converse's journal, The Development of Marketing Theory, presents the idea that the cost of marketing can increase, decrease, or remain constant depending on factors such as location, land, labor, capital, and entrepreneurship. Research combining Converse's and Mantell's estimates reveals that the cost of marketing dropped from 52.2% to 50.5% in 1939, and it is predicted to continue decreasing after 1949 due to productivity efficiency and technological advancements (Converse).
The shift from physical to digital marketing was a major step towards efficiency, resulting in the introduction of new roles within the marketing industry. In the early 1900s, economists were the main position in marketing as they used mathematical models for market research. However, this method was considered inefficient as it failed to consider the consumer. The expansion of marketing roles and positions led to specialization, with modern marketing industries having dedicated positions for market research, consumer communication, digital design, technology operation, and more (Medium, 2017).
The transition from physical to digital marketing had positive and negative effects on employee efficiency. The initial shift required training employees on new technology, but it resulted in more efficient outcomes. Marketers gained access to their competitors' advertisements, data from previous advertisements, and company expectations in one place online. The digital process eliminated the need for employees to manage physical distribution, allowing for faster advertising and distribution through the internet.
Calculability
In the context of marketing rationalization, the shift towards calculability involves moving from qualitative to quantitative measurements. Calculability depends heavily on the quantitative data that companies obtain from their products or services. As part of their market research, marketers are responsible for gathering and analyzing data to determine the most effective approach for their advertisements. In the early 1950s, obtaining this quantitative data was challenging because there was no reliable way to determine how many consumers purchased a product as a result of a specific ad. This led to the use of surveys and questionnaires, which provided qualitative information but were often biased and inaccurate due to inconsistent measuring techniques (Bartell). With the shift to digital marketing, marketers now have access to a wider range of data sources, including ad clicks, views, and purchases. Quantitative data provides more useful and accurate information for strategizing future advertisements.
Digital marketing has also transformed the way companies interact with consumers. For example, McDonald's, one of the top digital ad users, saw 8,400 navigations to their business after partnering with a car navigation app to display their ad to Waze customers for just eight weeks. Similarly, Vertical Impressions' digital elevator ads led to a 17% increase in engagement among glass wearers (Co). Such quantitative data allows companies to understand which techniques work and which do not.
Predictability
Ritzer defines predictability as an expectation from the consumer to receive high quality products every time and for the employees to provide the same standard of work. Rationalization within the industry works towards making the occupation more predictable; however, it also introduced many new adaptations that combatted this idea. With constant innovation, marketers have changed their practices from physical print to word-of-mouth strategies, and now to digital. The numerous platforms that marketers can distribute on requires practice and effort to ensure that the same quality is present throughout.
With the introduction of AI, consumers can receive a more predictable experience from marketers and their online experience. AI works to collect data on customer preference and then provides tailored ads in response. This allows the customer to expect an advertisement from a company that they previously bought something from or searched on the web. Although this introduces numerous privacy concerns, it allows for greater efficiency by increasing the likelihood that the consumer will enjoy the product advertised.
Control
According to Ritzer (2018), non-human technologies are often used by companies to subconsciously control employees and consumers. In the marketing industry, advanced technology is increasingly being used to directly influence what advertisements a consumer sees and for how long they see it. Targeted advertising is a key tool in controlling consumer behavior, made possible by the development of artificial intelligence and data collecting sites. These technologies allow marketers to deliver personalized ads to consumers and connect them with specific brands or companies (Froehlich, 2022). This is why many consumers notice receiving ads for products they recently searched for online. The goal is to increase the number of times a consumer views a product in the hopes that it will motivate them to make a purchase. Advanced technology with sensors can even display ads based on a customer's image (Co).
Control over employees has also significantly increased due to the advancements of calculability. Firms have shifted their focus from employee stamina and motivation to meeting quotas and customer satisfaction. AI has made it possible to obtain data on the success of advertisements within hours or days of their release.
Irrationalities through Rationalization
George Ritzer defines irrationalities as inefficiencies that arise due to the process of rationalization (Ritzer, 1993). Marketing is one of those industries that has and is still going through the process of rationalization, as it is a growing industry. This process is mainly seen in the tactics that are put in place to increase customer engagement and the introduction of technology/AI to make the marketing process more efficient. However, from research, some of these steps towards rationalization include introducing irrationalities to the business. In marketing, this can be seen through dehumanization and false friendliness.
Dehumanization
Dehumanization in the workplace occurs when a company becomes too rigid in its systems, focusing solely on meeting quotas and customer satisfaction at the expense of employee motivation and creativity (Ritzer, 2018). This is particularly prevalent in the marketing industry, where the shift to digital marketing has made it easier for companies to quantify and measure the success of their marketers through lead targets, revenue targets, and more (Hong, 2016).
However, this focus on quantifiable metrics can also lead to dehumanization, as marketers may feel pressure to prioritize the tactics that have worked in the past over creative and innovative approaches. Despite this, the Industry Forum notes that digital marketing has the potential to encourage more creative approaches and expand the industry beyond traditional media (Serrano, 2017). Ali Rez even suggests that advertising has become a business solution practice that extends beyond just marketing for brands, emphasizing the importance of innovation in the industry (Serrano, 2017).
By promoting innovation and providing opportunities for marketers to expand into new industries and challenges, the marketing industry can combat dehumanization and allow employees to thrive rather than just meet quotas.
False Friendliness
Ritzer's concept of false friendliness arises from the rationalization of companies, which prioritize pleasing the customer over building genuine connections. One way companies attempt to foster brand loyalty is through email campaigns managed by brand managers who aim to create a sense of connection with the customer (Coursera, 2023). However, this often leads to false friendliness as marketers use technology to personalize mass emails, creating the illusion of direct communication with each customer. While customers may be unaware of this, it benefits the company by expanding their potential customer base. Additionally, digital marketing relies on technology for communication, resulting in a lack of in-person interaction that further reinforces the idea of false friendliness. Despite these limitations, digital marketing allows for efficient and personalized content delivery through the use of smart algorithms that analyze user behavior to show relevant and beneficial ads (Ho, 2020). By reducing the number of irrelevant ads, both the marketer and the consumer benefit from more efficient use of time and resources.
Conclusion
The rationalization of the marketing industry has brought about significant improvements for marketers and consumers alike. With increased efficiency, predictability, calculability, and control in marketing operations, marketers have improved their success rates and demonstrated the high demand for their services. In the early days of marketing, the industry dealt with print media and unreliable data collection. However, through rationalization, the industry has shifted towards a technology-led industry with data obtained through AI. Automation has significantly improved the efficiency and calculability of the industry, especially in simple tasks like data sorting, which allows marketers to spend more time interpreting and strategizing. Despite these improvements, rationalization can also lead to dehumanization and false friendliness. By focusing too much on quantifying success, employees may lose their ability to be creative and try new techniques.
In my opinion, the future of marketing is likely to be heavily automated and technology-driven. The work that goes into data collection, customer targeting, and graphic development is already being replaced by machines that can do it more quickly and efficiently. As a result, I predict that many creative roles in the industry will gradually disappear and be replaced by employees who specialize in maintaining the technology. Although technology advancements require continuous upgrades and can develop small issues that require fixing, these tasks will not require the same level of creativity as the current marketing roles. However, I am interested to see how the creative component of marketing will shift as the industry becomes more automated. Regardless of these changes, marketers will still have a crucial role to play in the industry.
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