3.3.5 - marketing mix - technology and the marketing mix Flashcards
1
Q
what is e-commerce?
A
buying products and services online
2
Q
what are the benefits of e-commerce?
A
- more convenient for customers as they can shop 24/7 from their own home. increased sales for businesses
- their websites can be used to promote their product. much cheaper than other forms of advertising, leading to a decrease in costs
- larger geographical target market as customers can buy from different countries
- dynamic pricing can be used. (when business change product prices, depending on level of demand.) E.g. flights at Christmas. This leads to higher revenue for the business
- business can easily buy their raw materials from their suppliers online- this is called business to business e-commerce
3
Q
what are the drawbacks of e-commerce?
A
- many more competitors now for businesses due to e-commerce
- some customers like to try the product out/taste and feel it first first e.g., clothing and makeup. Therefore, may not want to purchase online
- no face to face contact with consumers. Leads to a lack of customer service
- website design and updates are expensive to maintain.
- some customers may not use the internet and may be worried about online fraud
- shipping costs are expensive- increased variable costs
4
Q
benefits of using the internet and social media networks for promotion
A
- targets specific demographic groups if they regularly use social media. E.g. teenagers and young adults
- ads and information on social media can be updated regularly e.g. posts advertising a new product service
- cheap to use as can advertise on their own business page
5
Q
drawabacks of using the internet and social media networks for promotion
A
- customers may find adverts annoying, impacting the brand image.
- potential customers may not use social media networks
- people may comment on their social media posts complaining about the business, giving the business a negative brand image
