2. Technology & Business

What does a business having access to a range of technologies help?

• Improve communication flows

• Lower operating costs

• Improve their brand image

What type of technology may a business use?

• E-Commerce - trade of goods/services on the internet e.g. amzon, ebay, shopify or their own website

• Social Media - websites and applications that allow users to create and share content or to participate in social networking e.g. instagram, tiktok, twitter

• Digital Comms - the use of digital technologies to exchange information, ideas, and messages e.g. email, instant messaging, video conferencing

• Payment Systems - the technologies useed to process and manage financial transactions, including credit card payments, bank transfers, and mobile payments e.g. paypal, apple pay

How does the rise of e-commerce impact payment methods?

• Increased Online Payments: More customers use credit/debit cards for online transactions.

• Growth of Contactless Payments: Payment systems like Apple Pay and Android Pay are becoming more popular

• Competitive Advantage: Businesses offering convenient payment methods may attract more customers

• Cost Considerations: Installing contactless payment systems requires investment, which may be a challenge for some businesses

What does technology have an influence on?

• Sales

• Costs

• The Marketing Mix

How can E-commerce have an influence on sales, costs and the marketing mix?

• Influence on Sales - A powerful tool for expanding the customer base and increasing sales e.g. amazon has enabled many businesses to sell their products online and reach a global market

• Influence on Costs - It’s helped businesses reduce costs by eliminating the need for physical storefronts which reduces overhead costs e.g. zappos saved $10 million in operating expenses by closing its call centre and focusing on online customer service

• Influence on The Marketing Mix - Offers businesses new channels for advertising and promotion e.g. platforms like shopify have customisable storefronts, email marketing tools, and search engine optimisation (SEO) capabilities

How can Social Media have an influence on sales, costs and the marketing mix?

• Influence on Sales - A powerful tool for businesses to increase sales by building relationships with customers and generating leads e.g. Glossier has leveraged (used) social media to build a loyal customer base on Instagram with 1.5 million monthly visitors

• Influence on Costs - A cost-effective alternative to traditional advertising channels e.g. The fast-food chain Wendy's has increased advertising on their Twitter account, while reducing the advertising expenditure in the national press

• Influence on The Marketing Mix - Offers businesses new channels for building brand awareness and engaging with customers, the marketing mix has been transformed for many businesses e.g. Instagram and Snapchat provide businesses with opportunities for creating visual content and live streaming

How can Digital Communications have an influence on sales, costs and the marketing mix?

• Influence on Sales - Offers businesses new channels for reaching customers and closing deals e.g the use of email marketing

• Influence on Costs - Offers a cost-effective alternative to traditional communication channels e.g. The use of WhatsApp in customer service means customer service employees can work from anywhere and the business does not necessarily need to hire expensive premises

• Influence on The Marketing Mix - Has transformed the marketing mix by providing businesses with new channels for communicating e.g. Email marketing tools like Mailchimp provides businesses with customisable email templates and sales tools

What can be downsides of introducing new technology?

• Training costs for staff to learn new skills and improve or adapt existing skills

• Capital expenditure (funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings) for the initial installation of technology and ongoing maintenance costs

• Disruption to production during the installation and welcoming of new technology

• Security issues raised by operating digitally

• The potential loss of the 'personal touch' with customers