Use Of Technology In Marketing

Question 1

Technology in marketing

Answer 1

-electronic point of sale (EPOS)for market research 
— onlinesurvey
— internet advertising
— e-commerce
— e-mail
— databases
— socialmedia
— desktop publishing(DTP) 
— textalerts
— apps
— quick response(QR)codes

Question 2

Electronic point of sale (EPOS)

Answer 2

-information on customer preferences and habits is gathered as their loyalty cards are swiped through electronic tills. Used in conjunction with loyalty schemes to match purchasing information with customer details

Advantages

• gathers vital information about consumer behaviour, such as when they buy, what they buy, how they react to promotions or price changes, which can allow an effective marketing mix to be formed and inventory order accordingly
• allows retailers to offer promotions, for example, money off coupons, tailored to the individual customers actual needs and preferences

Disadvantages

• it can be very expensive to set up the systems
• it can be time consuming to set up

Question 3

Online survey

Answer 3

A website or email is used to ask customers questions

Advantages

• customers can be surveyed across a very large geographical area
• online software can often be used to collate and analyse the results easily

Disadvantages

• access to the internet must be available
• the responses may be too brief to be meaningful, as classification cannot be gained

Question 4

Internet advertising

Answer 4

Advertising on the internet is a cost effective way to allow a company to access a wide audience. Internet advertising can target specific market segments by using customer browser histories.

Question 5

E-commerce

Answer 5

This is the buying and selling of goods online. The marketing department can use e-commerce to reach the global market who will be able to shop 24-hours-a-day 7-days-a-week.

Question 6

Email or direct mail

Answer 6

This can be used to send surveys or marketing materials to customers. This method of marketing is:

• quick
• cost effective

Question 7

Databases

Answer 7

Information on customers can be stored in databases. These can be searched to find customers with specific characteristics. This can then be used for target marketing or promotional campaigns.

The information in databases can also be merged with advertising materials to be sent out to customers.

Question 8

Desk top publishing

Answer 8

DTP software can be used to create professional looking advertisements to encourage customers to purchase products.

Question 9

Text alerts

Answer 9

Texts can be used to inform customers of new products, special offers or promotions.

Advantages

• these can be sent to existing customers
• one text can be sent to multiple customers at once

Disadvantages
-customers might change their contact details and forget to update all the organisations who sent them mobile notifications

Question 10

Quick response QR codes

Answer 10

When a customer scans a QR code it will take them directly to a company website. They are often shown on promotional advertising billboards and magazines. It enables the customer to access the goods quickly and easily. This could increase sales.

Question 11

Social media,

advantages and disadvantage?

Answer 11

Social media sites such as Facebook and Twitter are being used increasingly by businesses to communicate with customers. Businesses also use social media accounts as a PR tool by responding to comments from customers

Advantages

• the target market can be contracted directly, as they have ‘liked’ or ‘followed’ the businesses social media page. This saves marketing to uninterested consumers
• information on new products or promotional offers, price changes or new products can be uploaded immediately
• the business can analyse those that like or follow them to find out their location/age/gender, which can allow them to target others effectively
• consumers can leave comments which can be use to improve the product
• social media is free to use

Disadvantages

• it can be difficult to engage with new customers as they have to voluntarily agree to see the business’s updates
• it requires a lot of time to use social media effectively;larger businesses will have to employ someone to engage with social media full time
• negative feedback can be given, which can put other customers off using the business
• negative feedback can be given instantly, not allowing the business time to release a statement in its defence

Question 12

Apps,

Disadvantages and advantages?

Answer 12

Many businesses are now using apps designed for tablet and computers and smartphones to promote their business,.

Advantages

• can target ‘in app’ promotions and information on products that users were like, based on their browsing history
• users of apps can share their experiences on social media sites, allowing the business free promotion and wider recognition
• Apps can have integrated services such as airlines online check-in services or online banking apps which increase usability
• e-commerce (known as m-commerce on mobile devices) can be integrated, increasing sales potential to worldwide 24/7
• information about products and offers can be updated quickly, keeping customers informed thus giving the organisation a good channel of communication
• The app can integrate games videos and photographs to grab users attention and promote the business in a fun and engaging way

Disadvantages
-Apps require a mobile signal to be used, to limiting the reach to customers in rural locations
-there is a limit to the amount of information that can be put on apps due to the screen size of mobile devices
-Apps cost money to develop and are often given away for free
-most apps especially ‘fun’ apps that aim to promote businesses in a subliminal way, for example, Nike’s World Cup game app, have a very short shelf-life
-some customers are very uncertain about making purchases using M-commerce due to less secure virus protection then computers