business unit 2 carried on Flashcards
what are three ways a business may use social media
sales and marketing
interactinng with customers
communicating with stakeholders
list digital communication tools
emails
mobile phones
mobile applications (apps)
websites
social media
web conferencing
cloud services - run from remote location
instant messaging
3 types of cashless payments
chip and pin - debit and credit cards with personal identification pins for added security
contactless payments - smartphones (£30 or less)
positive impacts of e-commerce on sales
business can attract customers worldwide
businesses can sell 24/7
a well designed webisote can attract customers because you seem professional
prices can be easily updated
customers can see which items are in stock
negative impacts of ecommerce
more potential competition (worldwideweb)
returns
providing good customer service to a large customer base can be challenging for a small business
customers can compare prices with other websites (competitors)
if the website crashes it can be tedious and expensive to repair
benefits of e commerce
requires fewer staff
does not require a premisis / smaller premisis needed = reduce in overhead :rent costs - cheaper
can automate tasks reduce time - more efficient business
drawbacks of ecommerce
costs involved in having a website
fees a business or customer must pay when handling online payments
warehouse and distribution costs for products
what is the marketing mix (4 p’s)
product
price
place
promotion
impacts of digital communication systems on the marketing mix
Product Products can be adapted and accessed easily in a format that is convenient to the customer.
Price Money saved by using digital communication can help a business to keep its prices low.
Place Customers can access services regardless of where they are, eg through mobile banking apps.
Promotion Businesses can email newsletters, track customer behaviours on social media and their website, and advertise online.
impacts of e commerce on the marketing mix
Product Customers can download digital products (eg music tracks or e-books) immediately after payment.
Price Customers can compare prices across online sellers easily, so prices need to be competitive.
Place Selling online provides another way for customers to make a purchase at any time, wherever they are.
Promotion Promotional offers or ‘flash sales’ are easy to implement through an e-commerce website.
impacts of social media on the marketing mix
Product Product information can be shared using video demonstrations where appropriate.
Price Cost savings may enable a business to lower its prices.
Place Businesses can interact with customers around the world, regardless of location.
Promotion Social media is a cost-effective way of targeting promotions at specific groups of customers.
impacts of payment methods on the marketing mix
Product Online payment methods allow digital products to be purchased easily.
Price Any fees incurred through the use of specific payment methods need to be accounted for when setting the price of a product.
Place New payment methods have facilitated the ability to sell products online.
Promotion
Businesses can promote the fact that they offer a variety of ways for a customer to pay, eg cash, card, PayPal.
