Technology and the marketing mix

Question 1

What is social media marketing?

Answer 1

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

Question 2

What is viral marketing?

Answer 2

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

Question 3

What is an e-commerce?

Answer 3

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

Question 4

How does technology impact product in the marketing mix?

Answer 4

The product may be changed due to new technology in the market.

Question 5

How does technology impact promotion in the marketing mix?

Answer 5

Promotion may mainly involve using social media sites, etc.

Question 6

How does technology impact price in the marketing mix?

Answer 6

The internet can be used to find out consumer habits, which can be useful for dynamic pricing.

Question 7

How does technology impact place in the marketing mix?

Answer 7

Consumers can purchase online (E-commerce)

Question 8

What are the advantages of using social networking sites for marketing?

Answer 8

• Target specific demographic group
• Guarantees target market sees advert
• Speed in response to market changes - updated regularly
• Cheap to use
• May reach group difficult to reach any other way

Question 9

What are the disadvantages of using social networking sites for marketing?

Answer 9

• Adverts annoying to consumers
• Have to pay for pop-ups
• Lack of control of advertising if used by others
• May be altered or used in a bad way

Question 10

What are the advantages of using your own website for marketing?

Answer 10

• No extra cost if the website is already setup
• Control of the advertising
• Can change advert quickly and up to date
• Interactive adverts can attract more potential customers
• Can provide more information

Question 11

What are the disadvantages of using your own website for marketing?

Answer 11

• Potential customers may not see the website
• Relies on customers finding the website
• Design costs of a website can be expensive

Question 12

What are the opportunities of e-commerce for businesses?

Answer 12

• Websites can be used to promote the company and its products worldwide much cheaper
• Selling online makes dynamic pricing easier for businesses
• Orders can be taken over then internet and sent directly to the company warehouse
• Consumers might be encouraged to purchase more products than they intended by attractive and easy-to-follow websites
• Businesses can also make online purchases of supplies and materials from other businesses (B2B)

Question 13

What are the opportunities of e-commerce for consumers?

Answer 13

• No need to leave to go shopping
• 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
• Consumers can now easily access products and services from businesses located abroad
• Consumers can buy some for prices much lower than they would be without the competition of e-commerce
• Customers can buy parts or components from manufacturers without the addition of retailers profit margin
• Packaging and transport costs have fallen due to competition on the internet

Question 14

What are the threats of e-commerce for businesses?

Answer 14

• Competition between businesses is very high due to many businesses offering e-commerce
• Website design must be very clear, attractive and easy to operate
• Transport costs per product sold are likely to be higher than selling through traditional shops
• No face-to-face contact with customers
• Consumers in most countries have the legal right to reject goods bought through e-commerce because they haven’t seen, touched or worn the good
• A large warehouse and efficient inventory control system are essential to fulfil consumers’ orders accurately and efficiently
• E-commerce is not suitable for businesses that sell personal services

Question 15

What are the threats of e-commerce for consumers?

Answer 15

• Consumers need access to the internet so low-income countries most likely can’t access the internet
• Computer systems failures or weak internet connections can result in frustrated consumers who can’t access websites or make purchases
• Products cannot be seen touched or tried on plus sending products is often inconvenient
• No face-to-face contact with sales staff so its difficult to find more information
• Many consumers are concerned about identity theft or fadulent use of credit cards if they buy goods online