Technology

• 1. commerce, or electronic commerce, refers to the buying and selling of products and services using devices connected to an electronic network, such as the internet
• Three things required for e-commerce to take place:

  • A seller with products and services displayed electronically
  • A buyer with equipment to view the seller’s products and services
  • A means of payment exchange between buyer and seller
• Advantages of e-commerce:

  • Attract customers globally
  • Sell 24/7
  • Receive immediate payments
  • Reduced overhead costs compared to physical shops
• Disadvantages of e-commerce:

  • More global competitors
  • Employees may need new skills like website maintenance
  • Procedures for product delivery and returns
  • Need to maintain and update technologies, including security software, which can be expensive
• Social media is an interactive computer-based technology that allows users to create and share information and ideas through virtual communities and networks
• Social media has become an important part of business, particularly in relation to marketing activities
• Businesses use social media for sales, marketing, interacting with customers, and communicating with stakeholders
• Marketing on social media involves advertising, promoting, and selling products and services online
• Businesses can use social media to interact with customers, see feedback on products and services, and handle customer inquiries carefully to avoid negative publicity
• Social media platforms like LinkedIn can be used by businesses to make contact with other businesses, network with relevant people and organizations, and even as part of the recruitment process to gain insights into applicants
• Closed (private) social media tools are sometimes used by businesses for informal internal communication with staff
• The speed at which technology advances is getting faster, and businesses need to be aware of available technology and how it might influence their sales, costs, and marketing
• Communication is the process of sending information to others and receiving information back from them, while digital communication involves sending and receiving such information electronically
• Common digital communication tools used in business include:

  • Email: enables instant written messages and file sharing
  • Mobile phones: allow verbal conversations and short written messages
  • Mobile applications: used for creating documents, capturing images, and enabling banking transactions
  • Websites: contain written and visual information using various media
  • Social media: platforms for sharing ideas, content, information, and messages
  • Web conferencing: meetings using communications software to stream images and/or voices over the internet
  • Cloud services: software for online document editing and data storage accessed from anywhere with an internet connection
  • Instant messaging: software for sending instant messages, usually in text form
• Debit cards became the most frequently used method of payment in 2017, overtaking cash for the first time
• In the UK, the use of cash to make payments has significantly decreased in recent years:

  • In 2008, 60% of all payments were in cash
  • By 2018, this had fallen to 28%
  • Estimated that by 2028, only 9% of all payments in the UK will be made in cash
• Successful businesses need to be flexible and adapt to technological changes to respond quickly to customers
• Technology advances at a fast pace, influencing businesses in terms of sales, costs, and marketing strategies
• Advances in payment technology have led to the introduction of new payment methods like:

  • Chip and pin: a method using a debit or credit card with an electronic chip, requiring a personal identification number (PIN) for payment authorization
  • Contactless payments: a secure way to purchase products or services using a debit, credit, or smart card, introduced in the UK in 2007
• Digital communication impacts the marketing mix by:

  • Allowing products to be easily adapted and accessed in a convenient format
  • Helping businesses keep prices low by saving money
  • Providing access to services regardless of location
  • Enabling businesses to email newsletters, track customer behaviors on social media, and advertise online
• The marketing mix consists of 5 basic elements: price, placement, product, promotion, and people
• 1. commerce affects the marketing mix by:

  • Allowing customers to download digital products immediately after payment
  • Facilitating easy price comparison across online sellers
  • Providing another way for customers to make purchases at any time and place
  • Making it easy to implement promotional offers or 'flash sales' through an e-commerce website
• Businesses need to be aware of the technology available to them and how it might influence their sales, costs, and marketing
• Social media influences the marketing mix by:

  • Sharing product information through video demonstrations
  • Enabling cost savings that may lead to lower prices
  • Allowing businesses to interact with customers globally
  • Providing a cost-effective way to target promotions at specific customer groups
• Investing in new technology costs money, but businesses often undertake such investment because of the reduced costs that implementing new technology can bring in the long term
• Payment methods impact the marketing mix by:

  • Allowing easy purchase of digital products through online payment methods
  • Requiring businesses to account for any fees incurred when setting product prices
  • Facilitating the ability to sell products online through new payment methods
  • Allowing businesses to promote offering a variety of payment options to customers
• Examples of how businesses can save money using digital communication systems:

  • Employees working remotely can reduce costs for businesses as they can operate from smaller offices
  • Communications sent electronically via email or instant messaging can save costs on printing and postage
  • Video conferencing can remove costs associated with traveling to face-to-face meetings
• 1. commerce is cheaper than traditional branches, requires fewer sales staff, smaller premises, and can automate tasks like administration and record-keeping
• Social media provides a cost-effective way for businesses to communicate and interact with customers, enabling even small businesses to reach a wide audience for a minimal cost
• New payment technologies enable businesses to take payments in a more secure and cost-effective way without needing to hold large amounts of cash on their premises
• Technology advances at a fast pace, influencing businesses' sales, costs, and marketing strategies
• Technology provides opportunities for businesses to attract new customers and increase sales, but also poses threats like increased competition
• Examples of technology impacting sales activity include digital communication systems, e-commerce, social media, and payment methods
• The impact of digital communication systems on sales activity:

  • Easier contact with a business increases customer trust and likelihood of purchase
  • Effective digital communication can help a business increase its sales
• The impact of e-commerce on sales activity:

  • Positive impacts: attracting global customers, selling 24/7, professional image, easy price updates
  • Negative impacts: increased competition, logistical challenges, customer service demands, price comparisons
• The impact of social media on sales activity:

  • Can be used for sales and marketing campaigns, building customer relationships
  • Poor responses on social media can damage a business's reputation and lead to decreased sales
• The impact of payment methods on sales activity:

  • Easy and convenient payment methods increase the likelihood of customer purchases
  • Businesses that only accept cash may struggle to attract customers