The QR code was first developed in 1992 when Masahiro Hara, a barcode scanner developer, was asked by a client to design a faster scanning device. During his research, Masahiro Hara identified several limitations of traditional barcodes: they could store a maximum of only 20 characters, offered limited information storage, and could only be scanned in a fixed direction.
To address these issues, Masahiro Hara created a new barcode system designed to store more data and allow scanning from multiple angles. The QR code was first put into use in 1994 by Denso Wave—a subsidiary of Toyota specializing in technology based in Japan—to track the car manufacturing process.
QR codes began to gain widespread popularity in 2011 when Macy’s (the New York-based fashion retail giant) and Best Buy (the American multinational consumer electronics retailer) rolled them out in their stores. However, at that time, QR code adoption faced significant challenges: slow internet speeds, smartphones were not yet ubiquitous, users had to download separate scanning apps, and landing pages were not optimized for mobile devices.
According to Forbes Magazine, in 2012, “QR codes were a technology entering their twilight” as both businesses and consumers were misusing them. However, the surge in QR code usage since the onset of the COVID-19 pandemic has proven otherwise. Evidence shows that this 2D barcode has been scanned on over 14 million mobile phones in the US. A Statista study conducted in the US and UK found that 85% of respondents had used a QR code, and 30% had scanned one within the past week. As WIRED magazine (US) aptly put it: “QR codes were ahead of their time.”
QR code usage soared during the COVID-19 pandemic
Advancements in information technology and mobile networks have transformed the role of QR codes. The global online population now exceeds 5.2 billion people. In July 2021, the average mobile download speed reached 55.07 Mbps—a 98.9% increase over the previous year. Additionally, both Apple (with iOS 11) and Android have enabled QR code scanning directly from their camera apps. These factors have helped QR codes truly live up to their name—“quick response”—and become an indispensable part of daily life.
QR CODES & MOBILE MARKETING
Thanks to their remarkable advantages, QR codes are now widely used across nearly every aspect of life, especially in communications and marketing.
Mobile marketing refers to the promotion of products and services through mobile devices. Much like traditional marketing, its main objectives include increasing brand recall, maintaining customer satisfaction, attracting new customers, building brand identity, and conducting market research.
Depending on who initiates the marketing activity (the marketer or the customer), mobile marketing is divided into two basic strategies: push and pull. Push strategies involve sending content directly to customers, such as via SMS or email. In contrast, pull strategies are initiated by users themselves, who seek out product information and then interact with marketers through their mobile devices.
Depending on who initiates the activity, mobile marketing is divided into push and pull strategies
Within this framework, QR codes are a technology applied in pull strategies. By proactively scanning a code, users can access marketing information from a brand. In mobile marketing, QR codes are categorized into two types based on their placement and the information they contain.
THE IMPACT OF QR CODES ON THE MARKETING MIX IN MOBILE MARKETING
Müge Klein from the Faculty of Business Administration at the Turkish-German University conducted a study titled “The Contribution of QR Codes to the Marketing Mix.” The research demonstrates that QR codes can be applied at every stage and make a positive contribution to the elements of both the 4Ps (Product, Price, Promotion, Place) and 4Cs (Consumer, Cost, Communication, Convenience) models.
The author uses the example of Walmart’s virtual toy store in the United States as a case study for QR code application in mobile marketing. The brand designed a “virtual” product display area with a QR code attached to each item. By simply scanning the code, customers could access product information on the online store without having to visit a physical location.
Walmart’s virtual toy display area with QR codes
1. Product – Consumer
When it comes to Product – Consumer, QR codes help marketers gather consumer feedback to develop better products. This can also be implemented as a “reward,” such as offering promotions or vouchers to customers who participate in surveys.
2. Price – Cost
QR codes are used in much the same way as other mobile marketing technologies when it comes to price and cost. By scanning a code, consumers can receive exclusive or personalized discount coupons, similar to those sent via SMS or email.
In 2020, Burger King launched a special promotion while everyone was “stuck at home” due to COVID-19. A QR code containing the promotional offer would move across the TV screen during a 15-second commercial. The first 10,000 users to scan the code received a free Whopper when ordering through the Burger King app.
Burger King uses QR codes in TV advertising
Not only do QR codes provide instant benefits to customers through the simple act of scanning, but QR-based mobile marketing also brings significant economic advantages to brands. For example, Walmart does not need to pay for the maintenance or repair of a physical store. Their only expenses are for billboard rentals and maintaining the online store—costs that are far lower than those of a brick-and-mortar location.
3. Promotion – Communication
In the book “Definition and Redefinition” by Louis J Haugh, sales promotion is defined as “A direct action that provides added value to a product or encourages the sales team, distributors, or end consumers to make a decision. The goal of sales promotion is to generate an immediate order.”
Applying QR code technology in promotion and communication can spark consumer curiosity. This psychological factor encourages users to scan the code even if they are not initially interested in the product. The landing page can then provide access to a variety of product content, such as pricing, advertisements, and marketing campaigns.
QR code applications in promotion and communication stimulate consumer curiosity
In Walmart’s virtual store case study, there were two main reasons that motivated customers to scan the codes:
- Curiosity about the code
- Interest in the product
By scanning the code, customers received promotional content and product information. The interaction between marketers and consumers is both online and highly interactive, allowing customers to start or end the engagement at any time.
Because QR code technology can direct users to various types of information—text, images, video, audio, or a combination—these contents can attract users who had no initial intention to purchase, turning them into potential customers. Moreover, marketing activities initiated by consumers themselves increase the likelihood of engagement with branded content.
Users can interact with a Porsche model simply by scanning a QR code
At the 2018 Digital Expo, Porsche used QR codes to deliver an immersive experience for users. The brand designed a landing page that allowed users to customize the color and interact with the Porsche Cayenne Turbo 2019 model.
4. Place – Convenience
QR codes are often described as a “universal key” that unlocks a world of online information. Compared to physical stores, virtual stores using QR codes can easily provide a wide range of information to users on their landing pages, making the shopping process much faster.
Retail giant Amazon Go has also embraced this technology. Their stores use QR codes to enable automatic checkout, eliminating the need for cashiers and saving on labor costs while offering greater convenience to customers.
Amazon Go enhances customer convenience with QR code technology
QR codes represent a major technological breakthrough worldwide. Experts predict that QR codes will help businesses achieve remarkable growth in the post-pandemic era. With their impact on the Marketing Mix, companies can flexibly leverage this technology to reduce costs and deliver a better customer experience.