ch16

• social media marketing= creating and sharing content on social media to achieve marketing and branding goals
• viral marketing: consumers encourages to share information only about products of business
• e-commerce= buying and selling of goods and services online
• internet allows business to gather information on customer purchasing habits which allows dynamic pricing (changing product pricing depending on demand) which increases revenue
• Benefits of e-commerce on business:

  • website can be used to promote which is cheaper than other forms of marketing
  • orders can be taken online and sent directly to warehouse
  • attractive website may encourage customers to buy more
  • business can buy materials online from other businesses easily
  • makes dynamic pricing easier
• Threats of E-commerce for business:

  • many business have websites which increases competition
  • a good website design has high cost. updates add further costs
  • transport cost is higher than traditional shop
  • no face-to-face contact
• benefits of e-commerce for customer:

  • no need to leave house (convenience)
  • can easily compare prices/products/services
  • easy payment with cards
  • easy access to products abroad
• threats of e-commerce for customer

  • needs access to internet
  • system failure or weak internet may be frustrating
  • cant interact with product
  • no face-to-face interactions
  • identity theft or fraud
• benefits of advertising on social media

  • target specific demographic group
  • target customers will see it
  • fast response to market change
  • cheap to use
• limitations of advertising on social media:

  • using pop-ups has cost
  • alienate customers if they find adverts annoying
  • may not be seen by potential customer if they don't use social media
  • lack of control if used by others (can ruin reputation/image)
• advantages of using own website

  • no addition cost if website already set up
  • control of advertising
  • changes can be made quickly to update information
  • interactive adverts are more attractive
• disadvantages of using own website:

  • website may not be seen
  • relies on customer finding website
  • design cost may be high