Technology

• e-commerce requirements:

  -a seller who has products and services that are displayed electronically

  -a buyer who has the equipment required to view the seller's products and services, and a means of paying for them

  -a network that enables information and payment to be exchanged by the buyer and seller
• e-commerce advantages:

  -attract customers across the globe

  -sell at any time of the day or night

  -receive payments immediately

  -reduce overhead costs compared to running a physical shop
• e-commerce disadvantages:

  -more competitors

  -employees may need more skills (website maintenance)

  -delivery procedures and returns processing

  -maintenance and updating technologies could be expensive
• social media def:

  an interactive computer based technology that allows the user to create and to share information and ideas through virtual communities and networks
• business activity on social media includes:

  -sales and marketing

  -interacting with customers

  -communicating with stakeholders
• using social media for sales + marketing =

  -attracting target audiences

  -people follow business' activities and promotions

  -gain loyalty
• using social media to interact with customers:

  -customer reviews

  -customers can ask questions + express their opinion

  -can create bad publicity if responses are inappropriate/inaccurate
• using social media to communicate with stake holders:

  -make contact with other business

  -network with relevant people/organisations

  -gain insight into future employees

  -advertise vacancies

  -internal communication between staff
• digital communication:

  sending information to others and receiving information back electronically
• digital communication tools:

  -emails

  -mobile phones

  -mobile applications

  -websites

  -social media

  -web conferencing

  -cloud services

  -instant messaging
• modern payment methods:

  chip and pin - debit/credit cards

  contactless (2007) - apple/google pay
• what type of payment has significantly dropped since 2008?

  -cash

  2008 - 60%

  2018 - 28%
• positive impacts of e-commerce on sales activity:

  -attract global customers

  -sell 24/7

  -well designed websites give a professional image (attract customers)

  -prices can be updated easily

  -customers can see which items are in stock
• negative impacts of e-commerce on sales activity:

  -more potential competition

  -logistical issues (deliveries)

  -customer service to large customer bases

  -price comparison to competitors

  -stock records need to be kept up to date
• impact of social media on sales activity:

  -run sales and marketing campaigns

  -regular direct customer communication

  -build customer relationships

  -poor responses to social media = bad reputation
• impact of payment methods on sales activity:

  -ease and convenience for customers
• impact of digital communication systems on costs:

  -long term savings, initial investment

  -employees working remote = lower rent

  -electronic communication = less printing/postage costs

  -video conferencing = less travelling costs
• impact of e-commerce on cost: positives

  -fewer sales staff

  -fewer/smaller premises

  -avoids expensive high street rents/rates

  -automate tasks (administration and record keeping)
• impact of e-commerce on cost: negatives

  -hosting a website

  -handling online payments has fees

  -warehouse + distribution costs for products
• impact of social media on costs:

  quick + cost effective while reaching wider audiences
• impact of payment methods on costs:

  -more security (p)

  -quick payments (p)

  -card transactions have a percentage added for every payment (n)
• impact of digital communications on marketing mix:

  product - adapted and accessed to suit the customer

  price - saves money = keeps prices low

  place - access services regardless of location

  promotion - newsletters, track customer behaviours, advertise online
• impact of e-commerce on marketing mix:

  product - customers can download digital products (books) immediately after payment

  price - customers can compare prices across online sellers easily

  place - selling online provides another way for customers to make a purchase at any time/where

  promotion - promotional offers or 'flash sales' are easy to implement
• impacts of social media on marketing mix:

  product - video demonstrations

  price - cost savings = lower prices

  place - interact with global customers

  promotion - target at specific customer groups
• impact of payment methods on marketing mix:

  product - easily purchased

  price - fees from certain payment methods must be accounted for when setting a price

  place - facilitated the ability to pay online

  promotion - variety (cash,card,contactless)