When considering how the internet and digital technologies have changed and developed the marketing strategies of specific industries, there are probably three in particular that will spring to mind first. For me, I immediately thought of retail, tourism and media, both social and tradition platforms. The most obvious reasoning behind this thought process is simply because these are the industries I am personally most exposed to online or through digital marketing attempts made by companies within these industries.
Digital marketing has to be the number one choice of delivery, especially during the times of Covid-19 since interpersonal interactions are monitored and restricted purely based on location. An industry that I don’t immediately connect with to the internet and digital technology in the mining industry. The mining industry is a fundamental part of Australia’s history and economic growth, but what methods has this industry taken to branch out and develop into the digital realm. In this blog today, we will explore what efforts and structural changes have occurred in the industry regarding the element of the marketing mix focusing on mining giant Rio Tinto.
The Marketing Mix
Within the mining industry, digitalisation is a force set to change the nature of companies and their interaction with employees, communities, government and the environment at every step.
From exploration and valuation through mining, to sales and distribution, digitalisation is blurring the traditional industry lines and testing business models of the past (Digital Transformation Initiative Mining and Metals Industry, 2017). Environmental awareness, conflicts with indigenous groups over land rights and higher than average health and safety risks to employees, mining companies need to harness digital technologies to their advantage to keep a consistent positive image and sales in high volumes.
'Our strategy is to create superior value for shareholders by meeting our customers' needs, maximising cash from our world-class assets and allocating capital with discipline.'- Rio Tinto.
New digital technologies, such as AI, is allowing the mining industry to tackle challenges such as global competition and commodity prices. It's imperative in this industry due to the inevitable decline in resources, increased nationalism and regulation on the sales of its products. Ore-sorting technologies work to separate valuable materials from waste and reduce the amount of material that requires processing. This method also allows Rio Tinto to produce a higher grade and more refined product with minimal processing involved. With this kind of emphasis on product quality, the mining giant can implement a value-based pricing strategy.
When taking a look at Rio Tinto's promotional techniques, they take a firm stance on the importance of digital technology and depict the prominence progression takes within the mining industry. It also shows how the resources they produce is needed to develop more advanced products to support a digital world. Take the time to watch the video below, which is at the forefront of Rio Tinto's 'Pioneering Progress' Campaign.
The introduction of robotics and semi-autonomous equipment are now removing people out of mines, minimising costs and risk of injury. "In Western Australia, miners using autonomous haulage technology have reported a 20 per cent improvement in productivity" (Behind the mining productivity upswing: Technology-enabled transformation, 2020). The introduction of AI into the mining industry has enhanced or redesigned more than three-quarters of traditional jobs dramatically increased health, safety and employee empowerment.
Within the supply chain, platforms can automate the transfer of information such as projections or delivery schedules with consumers and suppliers. Beyond the supply chain, local districts are mobilising digital media to inform and empower. Elevated stakeholder access to data and information, with the capacity to receive it in real-time, can sometimes challenge mining corporations but is an essential tool for increasing transparency and assurance.
References:
Academy, P., 2020. Marketing Theories - The 7Ps Of The Marketing Mix. [online] Professionalacademy.com. Available at: <https://www.professionalacademy.com/blogs-and-advice/marketing-theories---the-marketing-mix---from-4-p-s-to-7-p-s>
Accenture.com. 2020. Natural Resources Consulting | Mining & Metals | Accenture. [online]
McKinsey and Company. 2020. Behind The Mining Productivity Upswing: Technology-Enabled Transformation. [online] Available at: <https://www.mckinsey.com/industries/metals-and-mining/our-insights/behind-the-mining-productivity-upswing-technology-enabled-transformation>
Mining Technology | Mining News and Views Updated Daily. 2020. How Technology Is Changing Australian Mining Jobs. [online] Available at: <https://www.mining-technology.com/features/how-technology-is-changing-australian-mining-jobs/>
Riotinto.com. 2020. Partnering To Innovate. [online] Available at: <https://www.riotinto.com/en/about/innovation/partnering-to-innovate>
Riotinto.com. 2020. People. [online] Available at: <https://www.riotinto.com/sustainability/people>
Riotinto.com. 2020. Value Chain. [online] Available at: <https://www.riotinto.com/en/sustainability/ethics-integrity/value-chain>
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