The Use of Technology in Promotion (Edexcel IGCSE Business)

How Technology has Impacted Promotion

• The increased use of mobile technology, social media and online commerce have increased promotional opportunities for businesses

  • Businesses which respond quickly to changing technological trends are able to better meet the needs of their customers

• Current technological trends to which business are adapting include targeted online advertising, viral marketing, the use of social media, and e-newsletters
    

Targeted Online Advertising

• Advertisements are directed at specific customers whose online activity indicates that they may be interested in purchasing a product

  • E.g. Online stores such as Amazon include recommendations for products based on previous purchases

Viral Advertising

• Organisations use online platforms, including social media, to promote their products by creating eye-catching, shareable content, which often includes humour or interactive media

  • E.g. The ALS Ice Bucket Challenge was a viral campaign which encouraged the sharing of videos via platforms such as Facebook and YouTube to raise awareness of motor neurone disease

Social Media

• With many millions of users, social media platforms such as Facebook, Instagram and TikTok allow business to target promotions at specific market segments whose social media interaction allows very detailed analysis of their behaviour, preferences and interests 

  • E.g. Instagram has been a popular platform for fashion businesses to promote their products through influencer partnerships

Diagram: Users of Social Media Platforms 2023

Facebook and YouTube are the most popular social media platforms, whilst newer platforms such as Tiktok and Snapchat are enjoying rapid growth

• Businesses use social media platforms to maintain an online presence, share content such as short promotional videos and swiftly distribute press releases 
  
  

• The advantages of using social media for promotional purposes include

  • Billions of regular users provide a wide reach for advertisements

  • Inexpensive compared to other advertising media such as television

  • Advertisements can be targeted very accurately at customers with specific characteristics

  • Hyperlinks quickly direct customers to company websites
     

E-newsletters

• Businesses build an email mailing list, which is used to direct promotional materials towards those who have expressed an interest in their products

• The business may need to offer an incentive for potential customers to give up their email address

  • E.g. Fashion brand Uniqlo offers customer 10% off their first order if they sign up for email newsletters

• Once the business has a list, they can use it repeatedly to promote products and build a deep, ongoing connection with potential customers

  • However, the business must avoid sending too many emails, as this may annoy potential customers or be ignored