Technology & The Marketing Mix (Cambridge (CIE) O Level Business Studies)

• Websites offer a direct and cheap promotional method for businesses

• Competition comes from many businesses around the world, allowing customers to easily switch brands

• Businesses can easily make online purchases of supplies and materials from other businesses

• Large warehouses and efficient stock control systems are essential to fulfilling online orders 

• An easy-to-use and well thought out website can encourage customers to buy more

  • E.g. Automation suggests complimentary products often purchased at the same time

• E-commerce is not suitable for businesses selling personal services such as beauty services or home improvements

• Dynamic pricing techniques can easily be implemented so profit can be maximised during periods of high demand

• The lack of face-to-face contact with consumers means businesses miss out on instant and useful market research feedback

• Competition drives prices down and allows customers to easily 'shop around' and compare prices

• Poor connections or technical difficulties can sometimes deter or stop customers from using the website to make purchases

• Electronic payment using credit and debit cards is relatively easy

  • E.g. Using 'one-click' platforms such as Apple Pay 

• Customers in low income countries may not be able to access the products due to poor infrastructure limiting potential market size

• E-commerce is convenient as it allows customers to shop from anywhere in the world 

  • E.g. when travelling, 24 hours, on many different devices

• Many consumers are concerned about identity theft or fraudulent use of credit cards if they buy goods online

• Customers can buy from worldwide retailers so have increased choice

  • Chinese e-tailers Shein and Temu are increasingly popular in the UK

• Products cannot be handled or tried out before purchase which means customers frequently return them because they are unsuitable

• Billions of active users on platforms allows businesses to reach a vast audience 

• Deliver promotional content to specific groups based on demographics, interests and behaviours which increases the chances of reaching the target audience

• Regularly and easily create and share content which increases brand visibility and exposure 

• Social media marketing does not generally require a large budget

• Effort and time is needed to create quality content, manage multiple platforms and engage with the audience 

• Public feedback and reviews, which can include negative comments or complaints, can be viewed by all social media users

• Social media platforms frequently update their algorithms which may affect the visibility and reach of content

• Capturing users' attention amidst the large volume of competing content is challenging

E-commerce

• A powerful tool for expanding the customer base and increasing sales

• Amazon has enabled many businesses to sell their products online and reach a global market

• Has helped businesses reduce overhead costs by eliminating the need for physical storefronts 

• Zappos saved $10 million in operating expenses by closing its call centre and focusing on online customer service

• Offers businesses new channels for advertising and promotion

• Shopify has customisable storefronts, email marketing tools, and search engine optimisation (SEO) capabilities

Social Media

• Powerful tool to increase sales by building relationships with customers and generating leads

• Glossier has leveraged social media to build a loyal customer base on Instagram with 1.5 million monthly visitors

• Cost-effective alternative to traditional advertising channels

• Fast-food chain Wendy's has increased advertising on their Twitter account, while reducing advertising expenditure in the national press

• New channels for building brand awareness and engaging with customers has transformed promotion for many businesses

• Instagram allows businesses to share  and live stream content 

Digital communications

• New channels for reaching customers and closing deals  include the use of email marketing

• A cost-effective alternative to traditional communication channels

• Increasingly WhatsApp is used to support customer service allowing employees to work from anywhere, reducing the need for call centres

• The product element of the marketing mix has been enhanced as product information and customer service can be communicated online

• Mailchimp provides businesses with customisable email templates and sales tools