Ch 16 - tech + ecommerce

Question 1

Benefits of social media marketing

Answer 1

speed in response to market changes – information can be updated regularly

» cheap to use

» reaches groups that are difficult to reach any other way.

targets specific demographic groups who will share product information through viral marketing

Question 2

Disadvantages of social media marketing

Answer 2

It can alienate customers if they find the adverts annoying.

» Businesses have to pay for advertising if using pop-ups.

» Potential customers may not use social media networks.

Question 3

Adv of own website

Answer 3

» No extra cost if own website is already set up.
» Control of advertising as it is on your own site.
» Can change adverts quickly and update pictures/prices, and so on.
» New revenue stream by placing advertisements of other companies that want to be linked with your website.

Question 4

Disadv of own website

Answer 4

Costs of website may be high - design, maintaining, creating.

Relies on customers finding the website, and potential customers may not even find the website as it may get lost in the long list of results google results.

Question 5

Opportunities of Ecommerce to business

Answer 5

Low-cost promotion
Global coverage
Shops might not be needed
Able to access many consumers
Dynamic pricing - maximize profits. Change based on the day of the week, time of the day, etc.
B2B easier - make easy purchase for raw materials etc

Question 6

Opportunities of Ecommerce to consumers

Answer 6

Convenience - dont have to leave the house
Easy to compare - Can js go from website to website
Easy to pay
Wider choice of products
Competitive prices - cheaper for consumer

Question 7

Threats of ecommerce to businesses

Answer 7

Costs may be high - own website esp
No direct consumer contact - cant gain market research feedback
Competition from other websites - Will have to reduce prices and therefore sales and profit will reduce
Transport + Delivery costs - packaging of every product, and if they chose to return the product then picking up the product etc.

Question 8

Threats of ecommerce to consumers

Answer 8

Internet access required
Technical problems
No personal contact - hard to find out additional information about the product
Cannot see/feel products - clothes, shoes
Identity theft - credit card details could get stolen etc.