New technology Flashcards
(7 cards)
Explain clicks and bricks
a marketing term, which means that businesses need to have a web presence (clicks), plus a physical presence on the high street or in shopping centres (bricks). Examples of businesses using this form of widening of distribution channels include PC World, Argos and Tesco. Each of these businesses has been very successful in using a web presence to increase sales and customer loyalty.
Explain social media
Posts topped and tailed with adverts aimed at the demographic of followers. This is a typical example of how social media is used to market products.
Viral advertising is another form of social media advertising, with funny or stylish ads being sent from person to person. This form of marketing is of growing importance as fewer young people consume traditional media (TV and newspapers) and instead consume
entertainment and information online.
Explain m-commerce
M-commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld devices such as mobile phones. This means ‘having your retail outlet in your consumers’ pocket’. Through mobile technology it is now possible to reach your customer 24 hours a day. M-commerce does not just mean buying; it is about providing your customers with product information, promotions and all
other aspects of the marketing mix. Consumers use m-commerce to compare prices online, take photos for future reference and research their potential purchases online.
Explain pricing and the internet
A comparison of prices has become a great deal easier for customers. Using the web, individuals can carry out their own research or use comparison sites, such as Money Supermarket, to find the best deal across a huge range of products. This access to pricing information has had an impact on prices charged by businesses. It has been argued by economists that the increase in internet shopping has had a direct
impact on lowering inflation rates.
Explain e-tailing
Online shopping (sometimes known as e-tailing, from ‘electronic retail’ or e-shopping) is a form of electronic commerce that allows consumers to directly buy goods or services from a seller over the internet. The internet has changed buying habits and e-tailing is now a very important part of the retail industry and is continuing to grow. The internet, and the use of search engines, has made accessing customers a great deal easier than in the past. All a business needs to sell its products is a decent website, some form of payment processing and ‘shop’ software. All of this can be created for less than £500. In fact, there are 1000s of entrepreneurs running their businesses through auction sites such as eBay, with hardly any fixed costs at all. All of these businesses mean extra competition for existing traditional businesses – as well as lowering prices for customers
Challenges of new technology on existing businesses such
as high street retailers
-increased competition
-changing consumer behaviour
-higher costs
-job displacement
-data security risks
-dependency on tech
Benefits of new technology on existing businesses such
as high street retailers
-enhanced customer experience
-improved efficiency
-new revenue streams
-increased brand awareness
-adaptation and innovation
-data-driven insights
