1.5

• Stakeholders

  The people or groups that are impacted by a businesses
• Stakeholder groups


  • Shareholders and owners
  • Managers
  • Employees
  • Customers
  • Suppliers
  • Local community
  • Pressure groups
  • Government
• Shareholders (owners)


  • In family-run, private limited companies usually focus on long-term organic growth
  • In public limited companies (PLCs) are more likely to care mainly about short-term share price
• Employees


  • Want job security, opportunities for career development, fair pay and good fringe benefits
• Customers


  • Want consistently high quality products and service, honest and fair dealing from the company, innovative new products
• Managers


  • Want security of employment, opportunities for career development/promotion, fair pay and good fringe benefits
• Suppliers


  • Want honest dealing from the company, especially on prices and credit terms, good communication about future plans, strong organic growth meaning rising demand for supplies
• Local community


  • Want honest and fair dealing on plans that affect local employment and the environment
• Pressure groups


  • Want honest and fair dealing regarding local employment/environment, often seem to be against growth, perhaps focusing on the downsides of business activity
• Government


  • Want honest and fair dealing from the company, especially on tax arrangements, employment plans and location plans
• Owners have the most impact

  They make decisions about the activities of the business and provide funding to enable it to start up and grow
• Shareholders influence


  The objectives of the business
• Managers make some recommendations and decisions


  That influence the business' activity
• Employees may have a limited amount of influence


  On business decisions, but can affect the business directly by refusing to work or not working as well as they should
• Customers


  Buy products and services and give feedback to businesses on how to improve them, can also influence others by recommending or warning against the business
• Suppliers can have a significant impact


  If there are any changes in the quality of the goods they supply or the reliability of their deliveries
• Local residents


  May protest or object through the local council if a business affects them negatively, can also support businesses by buying products and services
• Pressure groups


  Can improve working conditions for employees and help them to get fair pay, can also try to influence customers' opinions of a business
• Governments


  Can pass new laws, change tax levels or amend levels of government spending in ways that affect the business
• 1. e-commerce

  Selling goods and services over the internet
• Advantages of e-commerce


  • Attract global customers
  • Sell at any time
  • Receive payments immediately
  • Reduced overhead costs
  • Sales can just expand through the existing online sales channel
  • Allows small businesses to start up small, testing the market before they spend a lot on marketing, offices, staff and distribution
  • Using social media allows businesses to build a relationship with customers
  • Even small businesses can sell to a worldwide market without needing overseas retailers using couriers
• Disadvantages of e-commerce

  • More global competitors
  • Employees may need new skills, e.g. website maintenance
  • Procedures required for how products and services will be delivered and processing returns
  • A need to maintain and update technologies, including security software, which may be expensive
  • Could create more environmental damage
  • Once a firm like ASOS has captured a large share of the market it can then be very difficult for firms to break into it
  • It may be easier for a large firm to dominate the market and this rarely benefits customers as it is easy for the firm to raise prices
• Social media


  Online platforms that allow users to create and share content, and interact with each other
• How businesses use social media

  1. Sales & marketing: A relatively cheap way to advertise, can be used by large and small businesses to attract a target audience, can encourage people to follow their activities and promotions to gain loyalty

  2. Interacting with customers: Businesses can see what customers are saying about their products and services, customers can ask questions which allows the business to develop a relationship, but responses need to be handled carefully

  3. Communicating with stakeholders: Can be used to make contact with other businesses and network, can be used as part of the recruitment process
• Some businesses believe that consumers are relatively unaware that many bloggers are in effect paid to advertise and promote certain products
• Digital communication


  Communication using digital technologies like the internet and social media
• Benefits of digital communication for businesses

  • A cheap way of reaching potential customers with promotional messages
  • A way of letting customers contact the business 24 hours a day in live online chats without having to employ 100s of people to answer phones, improving customer service whilst cutting costs
• Drawbacks of digital communication for businesses

  • Some customers can abuse this by threatening to post bad reviews
  • A way of finding out what customers like or dislike about the business
• Online payment systems


  Systems that allow customers to pay for goods and services online
• Benefits of online payment systems

  • Makes paying for goods and services online much quicker, easier & more secure
  • Unique customer logins are linked to a customer's bank account so customers can stay logged in for faster checkout
  • Many offer credit too
• Drawbacks of online payment systems

  • Not all platforms are supported
  • There is still a security risk if transactions are hacked
  • They are all dependent on internet connection and computer speed
  • Each payment system has limits, e.g. Apple/Android pay and contactless is £45, PayPal is £1500
  • Payments are not anonymous - providers can see transactions
  • Businesses often have to pay a fee to providers of payment systems to handle their transactions
• Contactless payment


  Payment method that allows customers to make payments by tapping their card or device on a payment terminal, reducing the risk of entering PIN numbers
• The impact of e-commerce on the marketing mix

  • Product: Customers can download digital products immediately after payment
  • Price: Customers can compare prices across online sellers easily, so prices need to be competitive
  • Place: Selling online provides another way for customers to make a purchase at any time, wherever they are
  • Promotion: Promotional offers or 'flash sales' are easy to implement through an e-commerce website
• The impact of social media on the marketing mix

  • Product: Product information can be shared using video demonstrations where appropriate
  • Price: Cost savings may enable a business to lower its prices
  • Place: Businesses can interact with customers around the world, regardless of location
  • Promotion: Social media is a cost-effective way of targeting promotions at specific groups of customers
• The impact of digital communication on the marketing mix

  • Product: Products can be adapted and accessed easily in a format that is convenient to the customer
  • Price: Money saved by using digital communication can help a business to keep its prices low
  • Place: Customers can access services regardless of their location
  • Promotion: Promotional offers or 'flash sales' are easy to implement through an e-commerce website
• Product


  Product information can be shared using video demonstrations where appropriate
• Price


  Cost savings may enable a business to lower its prices
• Place


  Businesses can interact with customers around the world, regardless of location
• Promotion


  Social media is a cost-effective way of targeting promotions at specific groups of customers
• Place


  Customers can download digital products (eg music tracks or e-books) immediately after payment