new tech Flashcards
evaluate the impact on business success using new tech for marketing activities
New technology used in marketing activities includes digital media, social media, e
tailing and m-commerce.
* More traditional methods of marketing include brochures, mailshots, junk-mail, personal
selling, TV and radio.
* Digital media (content that is transmitted over the internet on webpages e.g. online
newspapers, videos, graphics, blogs, payment to search engines, email campaigns, etc)
could increase awareness amongst customers / potential customers. Without this
exposure, businesses may not succeed. However, a lot of businesses have websites
and businesses may need to commit significant resources to ensure that they stand out
from their competition or to be found using popular search terms.
* Social media (Facebook, Twitter, YouTube channel) can help businesses communicate
with customers and vice versa. Relatively younger people access social media and
businesses may have more exposure amongst their target market by using these
platforms. However, social media may not play the pivotal role in business success,
especially if the target market tends not to use social media platforms or use them to
inform their purchasing decisions. Social media can be used to target markets more
effectively and perhaps personalise communications or offers to the audience targeted.
* E-tailing (browsing and making purchases through websites) can allow customers to buy
at their convenience from potentially anywhere in the world. Purchases made online
continue to grow and could act as an additional route to targeting the market. Recent
changes to the high street with relatively large retail businesses failing could mean that
having the facility to allow purchases online could prevent or reduce the risk of failure.
However, those high street businesses that have failed have included those with online
presence, so success is still not guaranteed. Costs may be saved due to physical
presence not being needed if purchases can be made online.
* M-commerce (browsing and making purchases through wireless handheld devices such
as tablets and mobile phones, perhaps through apps) provides more opportunity for
customers to buy at their convenience at a time and place to suit them. Development
costs could be high, especially for an app. Increased sales might be possible through
using m-commerce, but developing an awareness amongst customers could be time
consuming and costly, especially in competitive markets. Younger people are more
literate in using technology and could be a captive audience for businesses targeting
customers using mobile technologies.
* Common advantages of using new technologies include: increased convenience for
customers, potential to cut costs if high street presence is not needed, purchases can be
made 24/7, social media can target markets more effectively, and businesses could use
new technologies in such a way to create a USP.
* However, businesses need to consider how they use new technologies effectively in
targeting and communicating with customers in a way that achieves sales. The time and
money invested in new technologies is a factor that could affect success, as if not
enough resources are dedicated then success may be hindered. Businesses should also
be mindful that their processes might become more complicated and consider how they
will organise their operations efficiently when introducing new technologies. There could
also be problems with hacking, online security and reliability of platforms.
Possible themes of evaluation:
* Introducing new technologies as part of marketing activities could facilitate more
success, but it depends on what other (perhaps more traditional) marketing activities
businesses are already using.
* It depends on how businesses are measuring success and what they consider to be
successful outcomes and whether the nexus of cause and effect can be attributed to the
new technologies.
It is unlikely that introducing new technologies alone is the only factor to make
businesses successful – the ability of the product to satisfy customer needs and the price
are factors that could affect success.
* Variables including; how much money businesses commit to new technologies,
competitor actions, the demographics and preferences of the market, the number and
scale of new technologies and how well they are used, are all likely to affect success.
* Overall, success may not be guaranteed, as such, but business performance could be
enhanced by using new technologies in marketing activities.
