Chapter 16 Tech and E commerce

Question 1

What is social media marketing

Answer 1

A form of internet marketing to create and share content on social media networks in order to achieve marketing and branding goals

Question 2

Activities of social media marketing and what do they achieve.

Answer 2

posting content on social networks that achieves audience engagement, as well as paid social media advertising.

Question 3

What is viral marketing

Answer 3

consumers are encouraged to share information online about the products of a business.

Question 4

What is ecommerce

Answer 4

‘online buying and selling of goods and services using computer systems linked to the internet and apps on mobile (cell) phones.

Question 5

Benefits of social media marketing

Answer 5

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 6

Disadvantages of social media marketing

Answer 6

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 7

Adv of own website

Answer 7

» 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 8

Disadv of own website

Answer 8

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 9

Opportunities of Ecommerce to business

Answer 9

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 10

What is dynamic pricing

Answer 10

Businesses change product prices, usually when selling online, depending on the level of demand.

Question 11

Opportunities of Ecommerce to consumers

Answer 11

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 12

Threats of ecommerce to businesses

Answer 12

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 13

Threats of ecommerce to consumers

Answer 13

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.