Business Management and Enterprise (Year 12)
Marketing in Business Management and Enterprise refers to the use of technology in global markets, which includes:
Distribution of products
This refers to the way businesses distribute their products to their consumers in the marketplace.
There are many ways that technology can be used to distribute products:
Costs and/or efficiencies: There may be less intermediaries as technology allows businesses to find quicker and more direct routes; geographical barriers are also broken, which may be more efficient.
Distribution channels: These become shorter, as businesses have the option to sell directly to the consumers; this is due to innovations like the internet, allowing e-commerce to take place.
Inventory management: Digital inventory management systems reduce costs and delays; this is because there has been an increase in the accuracy of procurement - this makes the overall inventory process far more efficient.
Tracking: This can now be done in real time, which consumers prefer; it gives them increased safety, peace-of-mind, and satisfaction from the overall process. The improved reliability has also reduced the cost for businesses, which also helps consumers in the long run.
This is the process of selling goods and services over the internet.
It can be one of two main ways:
Consumer-to-consumer (C2C): This occurs when electronic facilities allow transactions between consumers to happen via a third party (e.g. eBay)
Business-to-business (B2B): This occurs when one business makes a commercial transaction with another. Common examples of these transactions are:
A firm is sourcing materials for their production process
A firm needs the services of another, for operational reasons
A business re-sells goods and services produced by others
There are four main impacts of e-commerce.
E-commerce’s impact on product: Each consumer can get personal products and services, that can be tailored to their specific needs. Firms selling over the internet can afford to stock a much wider range of goods compared to nearly all shops.
E-commerce’s impact on price: E-markets are much more competitive, as prices can be compared so rapidly in both B2C and B2B markets. Competitive pricing is much more likely to be used than cost plus, which means customers are now more in control.
E-commerce’s impact on promotion: Promotional opportunities have been greatly expanded by the internet and other ICT developments, such as pop-ups, banners, social marketing, QR codes and YouTube ads. Costs have also significantly reduced.
E-commerce’s impact on placement: The internet has transformed the buying/shopping experience. Consumers increasingly turn to online sales first and expect fast delivery.
There are many advantages to e-commerce:
It is a fairly inexpensive way of selling, when comparing the added costs to the number of potential customers reached.
Companies can reach a worldwide audience for a low price.
Consumers interact with the websites and make purchases, while leaving their data.
It is very convenient for consumers to use.
Business and consumers can quickly compare prices from many suppliers worldwide.
The success rate of different web promotions can be easily measured.
Social media campaigns
Social media includes websites and applications that enable users to create and share content.
Social media has many purposes for businesses:
Enhance brand awareness: More customers can become aware of the product as social media is globally accessible
Creation of viral marketing: A particular advertisement can become globally famous, with consumers associating the brand with the popular advertisement (example: A viral Snickers ad)
Positive public relations: Social media allows for two-way communication to occur. This allows consumers to voice concerns and feedback, which is beneficial for overall public relations
Cheaper than above-the-line promotion: As social media appeals to a mass market, the costs associated are usually much lower making it a viable option for business of all sizes
Ability to market cheaply in different regions: It leads to the elimination of geographical barriers.
Businesses can use the following strategies, to increase online sales:
Effective user interface for website design
Google ‘optimisation’ for top search results
Email marketing by gathering information about customers, through the site
Affiliate, reseller and associate programs
Employ an internet marketing consultant
Online press releases
You have pages remaining today.
Consider signing up, it's free!