chapter 16

Question 1

define social media marketing

Answer 1

social media marketing is a form of interest marketing that involves creating and sharing content on social media networks in order to achieve marketing and branding goals.

Question 2

define viral marketing

Answer 2

viral marketing is when consumers are encouraged to share information online about the products of a business

Question 3

define e-commerce

Answer 3

e-commerce is the ‘online’ buying and selling of goods and services using computer systems linked to the internet apps on mobile phones

Question 4

what are the benefits of a a business advertising on social media

Answer 4

• targets specific demographic groups who will share product information through viral marketing
• target customers will see the advert when they go on facebook
• speed in response to market changes

Question 5

what are the disadvantages of a business advertising on social media

Answer 5

• business have to pay for advertising if using pop ups
• there is a lack of control of advertising if used by workers
• potential customers may not have access to social media

Question 6

what are the benefits of a business advertising in its own website

Answer 6

• no extra costs if own website is already set up
• control of advertising as it is on your site
• can change adverts quickly and update pictures

Question 7

what are the disadvantages of a business advertising in its own website

Answer 7

• potential customers may not see the website as a page may come up in a long list
• relies on customers finding the website
• design costs of the website maybe high

Question 8

what are some of the opportunities of e commerce to businesses

Answer 8

• websites can be used to promote the company and its products worldwide much more cheaply than other forms of marketing
• orders can be taken over the internet and sent directly to the company warehouse for dispatch
• selling online makes dynamic pricing much easier to the business. this is when they vary the price of a product being sold online

Question 9

what are some of the opportunities of e commerce to consumers

Answer 9

• no need to leave the house to go shopping and this convenience is a major factor explaining the growth of e commerce
• comparisons between prices and products or services offered can be easily made by surfing from one website to another
• payment by credit or debit card is very easy

Question 10

define dynamic pricing

Answer 10

dynamic pricing is when businesses change product prices, usually when selling online, depending on the level of demand

Question 11

what are the threats of e commerce to the business

Answer 11

• there are no face to face contact with consumers so business does not gain this useful market research feedback
• with so many businesses now offering e commerce website, competition between businesses is very high
• website design must be very clear, attractive and east to operate. website designs can be expensive

Question 12

what are the threats of e commerce to the consumers

Answer 12

• consumers need access to the internet
• computer system failures or weak internet connections can result in frustrated consumers who cannot access the website
• product cannot be seen, touched or tried on and sending products back because they are not suitable is inconvenient