Chapter 16-Tech And The Marketing Mix

Question 1

Viral marketing

Answer 1

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

Question 2

E-commerce

Answer 2

Online buying and selling of goods/services using computer systems linked to the internet and apps on mobile phones

Question 3

Social media marketing

Answer 3

Form of internet marketing that involves creating and sharing content on social media in order to achieve marketing and branding goals. Includes posting image/text/video updates as well as paid social media advertising

Question 4

Benefits to the business advertising of advertising on social media networking sites(5)

Answer 4

Targets specific demographic groups who will share product information through viral marketing
Target customers will see the ads when they log on
Speed in response to market changes (info can be regularly updated)
Cheap to use
Reaches difficult to reach groups (aka me who never leaves the house)

Question 5

Disadvantages of the use of social media networks for businesses (5)

Answer 5

It can alienate customers (ads are annoying)
Business have to pay if using pop ups
Messages may be altered/used badly creating bad publicity
Potential customers may not use social media
Lack of control of advertising if used by others

Question 6

Benefits to the business of advertising on its own website (6)

Answer 6

No extra cost if website is already set up
Control of advertising
Interactive advertising (way cooler than magazine ads)
Can provide more information through links to other pages
Attracts funds from companies that want to be associated with your website

Question 7

Disadvantages of a business advertising on its own website (3)

Answer 7

Site may get lost under all the other Google search results
Relies on customer finding the website
Web design costs may be high

Question 8

Dynamic pricing

Answer 8

When businesses change product prices (usually online) depending on the level of demand

Question 9

Opportunities of e-commerce to business (5)

Answer 9

Websites can be used to cheaply promote the company and its products worldwide
Orders can be taken over the internet and sent directly to the warehouse for dispatch
Customers can be convinced into buying more than they intended by linking products together
B2B e commerce (online purchase of supplies and materials)
Dynamic pricing is easier, they can use the web stats and make use of price flexibility to increase revenue

Question 10

Opportunities of e-commerce to consumers (6)

Answer 10

Convenience
Easy price comparison through surfing or price comparison websites
Easy payment
Can easily access services + products abroad
Pay lower prices (music online vs. a physical CD)
Can buy goods without the retailers profit margin
Cheaper to buy from abroad since packaging+transport costs have fallen due to competition

Question 11

Threats of e-commerce to business (7)

Answer 11

Increased competition
Expensive web design which needs to be regularly updated
Transport costs are higher as each package must be individually packed and shipped
No face-to-face so less market research feedback
Returns add costs
Warehouse costs
Not suitable for businesses that sell personal services or customers that want face-face