Use of Technology in marketing

Question 1

What are the uses of technology in marketing?

Answer 1

• The internet can be used to obtain market information from survey’s or competitor websites.
• The Internet can also be used to advertise products, targeted through browsing histories.
• E-commerce can be used to sell products online.
• Social media can be used to interact with customers.
• Databases can be used to keep customer records and can be easily searched and merged into direct mail shots.
• Apps can be used to engage with customers, promote or sell products.
• SMS texts can be sent alerting customers of promotions.
• EPOS can be used to gain market research information.
• Self-checkout systems can be used to speed up the process of purchasing products.
• Digital screens can be used to display eye-catching advertisements.
• £D can be used in cinemas and on TV on capture customers’ attention during advertisement.

Question 2

What is Social Media used for in marketing?

Answer 2

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.

Question 3

What are the advantages of using social media?

Answer 3

• The target market can be contacted directly, as they have ‘liked’ or ‘followed’ the business’s social media page. This saves marketing to uninterested customers.
• 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 other effectively.
• Consumers can leave comments which can e used to improve the product.
• Social media is free to use.

Question 4

What are the disadvantages of using social media?

Answer 4

• 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 5

What is Apps used for in marketing?

Answer 5

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

Example: Apple bought Beats in a $3 billion takeover primarily to acquire their music app.

Question 6

What are the advantages of using apps?

Answer 6

• Can target ‘in-app’ promotion and information on products that users will 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.

Question 7

What are the disadvantages of using apps?

Answer 7

• Apps require a mobile signal to be used, limiting the reach to customers in rural locations.
• There is a limit to the amount of information that can e 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, e.g. Nike’s World Cup game app, have very short shelf-life.
• Some customers are very uncertain about making purchases using m-commerce due to less secure virus protection than computers.