Technology, E-Commerce and Digital Marketing
Technology has transformed marketing through e-commerce, the buying and selling of goods or services online, which lets even small businesses reach customers nationally or globally without needing physical stores in every location.
Before you start
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Method
- Learn how e-commerce has changed Place: businesses of any size can reach national or global customers through a website or online marketplace without needing physical stores in every location.
- Learn how technology has changed Promotion: digital marketing tools such as social media advertising, search engine marketing and email marketing let businesses target and measure promotion far more precisely than traditional mass-media advertising.
- Learn how technology affects Product and Price: online reviews and social media can quickly build or damage a product's reputation, and online price comparison tools make it easier for customers to compare prices, increasing price competition.
- Learn the benefits of digital marketing and e-commerce: lower costs than some traditional channels, precise targeting of a chosen audience, measurable results such as click-through and conversion rates, and the ability of small businesses to compete with larger rivals online.
- Learn the challenges: the cost and skill needed to run an effective website or digital campaign, intense online price competition, the risk of negative reviews spreading quickly, and the need to protect customer data.
- For 'explain' questions, name the technological change plus the linked effect on a specific element of the marketing mix or on the business's sales, costs or reputation.
- For 'evaluate' or 'recommend' questions, weigh the benefits and risks of a specific digital marketing option against the case's business, including its size and resources, then reach a supported judgement.
Worked example
Willow and Wren is a small independent gift shop that currently only sells in its physical store. It is considering two options: (1) setting up an online shop to sell nationally, or (2) starting a paid social media advertising campaign to bring more local customers into its physical store. It has a limited budget of 2,000 pounds and only one member of staff able to manage any new digital activity. Recommend which option Willow and Wren should choose first, with a reason.
- Consider the online shop option: it could open up a national customer base far beyond the shop's local area, but building and maintaining a functioning e-commerce website, plus arranging postage and delivery, requires ongoing time and technical skill that one staff member may struggle to sustain alongside running the physical shop.
- Consider the social media advertising option: it can be targeted precisely at local customers, requires a smaller upfront cost and less ongoing technical complexity than a full e-commerce operation, and results such as clicks and store visits can be measured.
- Weigh the options against Willow and Wren's resources: a limited budget and only one staff member available for digital work makes the more complex, higher-maintenance option, a full online shop, riskier to run well.
- Recommend the social media advertising campaign first, because it fits Willow and Wren's limited budget and staffing more realistically, and it directly supports its existing physical store rather than requiring a whole new sales channel to be built and maintained.
- Note that once Willow and Wren has more resources or has tested demand through social media, expanding into a full online shop could be a logical next step to reach customers beyond its local area.
Practice questions
Try each question, then tap to reveal the answer.
Q1What is e-commerce?Show answer
Answer: Buying and selling goods or services online, rather than through a traditional physical store.
Q2Give one benefit to a small business of selling through e-commerce rather than only a physical store.Show answer
Answer: It can reach customers nationally or globally, without needing the cost of opening physical stores in each location.
Q3What is search engine optimisation, and what is its purpose in marketing?Show answer
Answer: Improving a website so it appears higher in unpaid, organic search engine results, increasing visibility to customers searching for related products.
Q4Give one way technology allows a business to target its promotion more precisely than traditional mass-media advertising.Show answer
Answer: Digital adverts, such as those on social media, can be targeted at specific audiences based on data such as age, location or online interests, rather than being seen by everyone who watches or reads the mass medium.
Q5State one risk to a business's reputation created by social media and online reviews.Show answer
Answer: Negative comments or reviews can spread quickly to a large audience, potentially damaging the business's reputation before it can respond.
Q6Why can online price comparison tools increase competition between businesses?Show answer
Answer: They make it very easy for customers to compare prices across different sellers instantly, increasing pressure on businesses to keep prices competitive.
Q7Give one cost or resource a business needs in order to run digital marketing effectively.Show answer
Answer: Staff time and skill to manage the website or social media accounts, or a budget for paid digital advertising (any valid cost or resource).
Exam-style questions
Written in the style of a GCSE Business exam paper, with a full mark scheme.
Explain ONE way that the growth of e-commerce has changed how small businesses can compete with larger, established businesses.
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Analyse how targeted social media advertising could help a small, newly launched business compete against a much larger, established competitor with a bigger marketing budget.
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Hearth and Home is a small furniture retailer with one physical showroom. It is deciding whether to invest 25,000 pounds, a significant sum for the business, in building a full e-commerce website with national delivery, or to keep trading only through its showroom and rely on local reputation and word of mouth. Evaluate whether Hearth and Home should make this investment.
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Tick each line you got. Your score builds from the marks on the scheme.
Nothing ticked yet - 9 available
See real GCSE Business past-paper questions, with official mark schemes →
Free printable worksheet
Want more practice on paper? Download the technology, e-commerce and digital marketing worksheet pack - 6 pages of exam-style questions with a full mark scheme. One email opens every download in this browser for 14 days - no account, no card. Print it for personal and classroom use.
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