Unit 5: Marketing

• What does e-commerce refer to?

  The buying and selling of products or services over the internet
• What technologies does e-commerce rely on?

  Mobile commerce, electronic funds transfer, supply chain management, and automated data collection
• How has e-commerce transformed business operations?

  It has given rise to new forms of marketing and transactions
• What factors have driven the growth of e-commerce?

  Technological advancements, consumer demand for convenience, and the expansion of digital infrastructures
• What are the main types of e-commerce models?

  • Business-to-Consumer (B2C)
  • Business-to-Business (B2B)
  • Consumer-to-Consumer (C2C)
• What is the Business-to-Consumer (B2C) model?

  Businesses sell products directly to consumers, usually through an online storefront
• What does the Business-to-Business (B2B) model involve?

  Transactions between businesses, such as manufacturers selling to retailers
• What is the Consumer-to-Consumer (C2C) model?

  It allows consumers to trade with one another, facilitated by platforms like eBay
• What are the advantages of e-commerce for businesses?

  • Real-time data analysis
  • Broad market reach
  • Lower operational costs
  • Round-the-clock availability
• What are the advantages of e-commerce for consumers?

  • Convenience
  • Wider product range
  • Potential for lower prices due to increased competition
• What are the challenges and risks associated with e-commerce?

  • Customer trust issues
  • Data security concerns
  • Technical difficulties with websites or payment systems
  • Managing stock levels
  • Logistics issues
  • Customer service concerns in a digital environment
• How has e-commerce impacted marketing strategies?

  It has increased emphasis on online visibility, digital advertising, and social media engagement
• What potential does increased data collection in e-commerce offer?

  It offers the potential for highly personalised marketing efforts based on customer purchase histories and preferences
• What role does e-commerce play in a digital economy?

  It shapes consumer behaviour, market competition, and business models
• How can businesses' navigation of e-commerce opportunities and challenges affect their performance?

  It can hugely affect their overall performance and market position
• What does 'Place' refer to in marketing?

  'Place' refers to how a business decides where to sell its products and how to deliver them to the market.
• What are the four key components of the marketing mix?

  The four key components of the marketing mix are Product, Price, Place, and Promotion.
• What aspects should be considered when making decisions about 'Place' in marketing?

  Aspects include the choice of selling points, modes of transport, warehousing facilities, and inventory management.
• What are the different channels of distribution in marketing?

  • Direct Channel: Businesses sell directly to customers.
  • Retailer Channel: Products pass from manufacturer to retailer to consumer.
  • Wholesaler Channel: Goods move from manufacturer to wholesaler to retailer to consumer.
  • Agent/Broker Channel: Manufacturer uses an agent or broker to reach consumers.
• What is a Direct Channel in distribution?

  A Direct Channel is where businesses sell their products directly to the customers.
• How does the Retailer Channel function?

  In the Retailer Channel, products pass from manufacturer to retailer and then to the consumer.
• What is the purpose of the Wholesaler Channel?

  The Wholesaler Channel is used for goods that move from the manufacturer to a wholesaler, then to a retailer, and finally to the consumer.
• When is the Agent/Broker Channel typically used?

  The Agent/Broker Channel is often used when selling to customers abroad where the manufacturer may lack local knowledge.
• What factors affect the choice of distribution channel?

  • Market Factors: Size and buying habits of the target market.
  • Product Factors: Nature of the product, such as price, shelf-life, and complexity.
  • Competitive Factors: Need to match or differentiate from competitors.
  • Company Factors: Company’s abilities and resources.
• How do market factors influence distribution channel choice?

  The size and buying habits of the target market can strongly influence channel choice.
• What product factors can impact the choice of distribution channel?

  The nature of the product, such as its price, shelf-life, and complexity, can significantly impact the choice of distribution channel.
• How do competitive factors affect distribution channel decisions?

  Businesses might need to match or differentiate their distribution from competitors.
• What company factors influence distribution channel choices?

  A company’s own abilities and resources will affect the channels they can use, with larger companies often more able to distribute directly.
• Why is 'Place' important in marketing?

  • Reaches targeted consumers and achieves high customer satisfaction.
  • Reduces total time from production to customer, improving cash flow.
  • Increases chances of getting products in front of potential buyers, boosting sales and revenue.
  • Impacts brand image, as poor placement can dilute brand prestige.
• What is the ultimate goal of promotion in marketing?

  The ultimate goal of promotion is to boost sales and enhance a company’s competitive position.
• What are the different approaches to promotion?

  • Advertising: Paid, non-personal communication through various media.
  • Sales Promotion: Short-term tactics to stimulate immediate purchase.
  • Public Relations (PR): Cultivating a positive image through media coverage.
  • Personal Selling: Direct, face-to-face promotion.
  • Direct Marketing: Contacting potential customers directly.
• What is advertising in the context of promotion?

  Advertising is a paid, non-personal form of communication that uses various media channels to reach a broad audience.
• What is the purpose of sales promotion?

  The purpose of sales promotion is to create a sense of urgency and encourage consumers to take action.
• What does Public Relations (PR) aim to achieve?

  Public Relations aims to build goodwill, create a favorable corporate image, and manage public opinion.
• What is the goal of personal selling?

  The goal of personal selling is to create a personal connection, answer queries, and persuade the customer to make a purchase.
• What is direct marketing?

  Direct Marketing involves contacting potential customers directly through methods like direct mail, telemarketing, email marketing, and text messages.
• Why is choosing the right method of promotion important?

  • Influences the success of a product or brand.
  • Companies must consider target audience, budget, marketing objectives, and product type.
  • Harmonizing various promotion methods can maximize reach and establish stronger customer relationships.
• What are pricing strategies?

  Pricing strategies are approaches used by businesses to set the price of their product or service.
• Why are pricing strategies important?

  Pricing strategies can significantly influence the sales volume and profitability of a product.
• What are common pricing strategies?

  • Cost-plus pricing: Adding a mark-up percentage to the cost.
  • Competitive pricing: Setting prices based on competitors' charges.
  • Penetration pricing: Setting a low initial price to attract customers.
  • Price skimming: Setting a high initial price and lowering it over time.
  • Psychological pricing: Setting prices to appear cheaper, e.g., £9.99 instead of £10.