Digital Economy Flashcards
(14 cards)
Examples of digital economies
SMS messages
Online advertising
Viral marketing
Social Media
E-commerce
When buyers and sellers meet and trade in a virtual market place
Micro marketing
Focusing on advertising on a small group consumers within a niche market
Intermediary
Acting as the middle man
Price comparison website
Easier for customers to compare prices there by forcing businesses to be more competitive due to the ease with which customers can access comparative information
Viral marketing
Using social media to encourage the spread of promotional activities and increase brand awareness
Social media
Using virtual communication to communicate with actual and potential customers
Micro marketing
Focus advertising on a small group of consumers within a niche market
More cost effective
More personalised marketing
Online distribution
The distribution of media content digitally
advantage of online retailing
Offers greater convenience to the consumer
Can shop 24/7 Breaks down geographical barriers
disadvantages of online retailing
increased competition
legal complications on an international level
demand side
Products with low demand can still create an effective market given a large enough distribution channel
Due to digital technology firms can supply a range of products that they would not have been able to do in traditional bricks and mortar businesses Physical retail stores only stock goods with high demand
Digital stores can stock thousands of niche products making them cost effective and satisfying the wide ranging demand of different consumers
online distribution
The distribution of media content digitally as opposed to physically
News, music, films etc. can all be accessed via the internet without a need to have a physical copy
