4.4.9
Evaluating Digital Marketing
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Benefits of E-Commerce and M-Commerce
There are many benefits of e-commerce and m-commerce:
Reach more customers
- Businesses can now easily sell their products to customers all over the world without setting up a physical store there.
- A business’ products can reach international markets without setting up stores or overseas subsidiaries.
- Small businesses in particular rarely have the finance (money) needed to set up shops internationally. Before e-commerce, expanding was harder for small businesses.
Cheaper to set up a business
- It is cheaper to set up a business that uses e-commerce.
- Businesses don’t have to invest lots of money in opening stores and hiring people to work in-store.
- Amazon was started by Jeff Bezos. He initially sold books from his garage and the only investment that he had to make was on a website and some books, rather than leasing (renting) a store. Amazon is now worth over $700bn.
Sell direct to consumer (B2C)
- Because businesses are selling directly to the consumer, no middlemen take a cut, and so the business can offer a lower price to the customer.
- The business has lower average costs and usually lower prices.
- This should help a business to remain competitive.
Drawbacks of E-Commerce and M-Commerce
There are also drawbacks of e-commerce and m-commerce for businesses:
Increased competition
- Because e-commerce allows a business to easily reach wider markets, UK businesses face more competition. Foreign businesses can compete in the UK more easily.
- For example, AussieBum sells men’s underwear and sportswear directly to customers in the UK from its production plant in Sydney, Australia. Prices are cheaper for UK customers than buying from approved retailers like House of Fraser and this allows AussieBum to compete against brands like Ted Baker in the UK.
- Increased competition can have a negative effect on profits.
Investment needed
- Businesses must invest in specialists who can build websites.
- Large businesses who sell a large volume of products may have to invest in warehouses and fulfilment centres.
Selling online can create problems
- Some goods are hard to judge from a computer or mobile phone. Consumers may want to see a product in person before buying it.
- For example, people may want to sit on a sofa or mattress before buying it. However, companies like Casper are now successfully selling mattresses online. They offer a money back guarantee if people do not like their mattresses.
1Business Organisation & Environment
1.1Introduction to Business Management
1.2Types of Organisation
1.3Organisational Objectives
1.4Stakeholders
1.5External Environment
1.6Growth & Evolution
1.7HL Only: Organisational Planning Tools
2Human Resource Management
2.1Functions & Evolution of Human Resource Management
2.2Organisational Structure
2.3Leadership & Management
2.4Motivation
2.5Organisational (Corporate) Culture
2.6HL Only: Industrial/Employee Relations
3Finance & Accounts
3.1Sources of Finance
3.2Costs & Revenues
3.3Break-Even Analysis
3.4Profitability & Liquidity Ratio Analysis
3.6HL Only: Investment Appraisal
3.7HL Only: Budgets
4Marketing
4.1The Role of Marketing
4.2Marketing Planning
4.3Market Research
4.4The 4 Ps
4.4.1Product Decisions4.4.2Pricing Decisions & Price Skimming4.4.3Pricing Decisions & Price Penetration4.4.4End of Topic Test - Pricing & Competition4.4.5Promotional Decisions4.4.6Promotional Decisions 24.4.7Promotional Decisions 34.4.8Digital Marketing4.4.9Evaluating Digital Marketing4.4.10Case Study - The Marketing Mix & Promotion4.4.11Place & Distribution
4.5HL Only: The Extended Marketing Mix
4.6HL Only: International Marketing
4.7E-Commerce
5Operations Management
5.1The Role of Operations Management
5.2Production Methods
5.3HL Only: Lean Prodution & Quality Management
5.4HL Only: Production Planning
5.5HL Only: Research & Development
Jump to other topics
1Business Organisation & Environment
1.1Introduction to Business Management
1.2Types of Organisation
1.3Organisational Objectives
1.4Stakeholders
1.5External Environment
1.6Growth & Evolution
1.7HL Only: Organisational Planning Tools
2Human Resource Management
2.1Functions & Evolution of Human Resource Management
2.2Organisational Structure
2.3Leadership & Management
2.4Motivation
2.5Organisational (Corporate) Culture
2.6HL Only: Industrial/Employee Relations
3Finance & Accounts
3.1Sources of Finance
3.2Costs & Revenues
3.3Break-Even Analysis
3.4Profitability & Liquidity Ratio Analysis
3.6HL Only: Investment Appraisal
3.7HL Only: Budgets
4Marketing
4.1The Role of Marketing
4.2Marketing Planning
4.3Market Research
4.4The 4 Ps
4.4.1Product Decisions4.4.2Pricing Decisions & Price Skimming4.4.3Pricing Decisions & Price Penetration4.4.4End of Topic Test - Pricing & Competition4.4.5Promotional Decisions4.4.6Promotional Decisions 24.4.7Promotional Decisions 34.4.8Digital Marketing4.4.9Evaluating Digital Marketing4.4.10Case Study - The Marketing Mix & Promotion4.4.11Place & Distribution
4.5HL Only: The Extended Marketing Mix
4.6HL Only: International Marketing
4.7E-Commerce
5Operations Management
5.1The Role of Operations Management
5.2Production Methods
5.3HL Only: Lean Prodution & Quality Management
5.4HL Only: Production Planning
5.5HL Only: Research & Development
Practice questions on Evaluating Digital Marketing
Can you answer these? Test yourself with free interactive practice on Seneca — used by over 10 million students.
- 1What are some benefits of e-commerce and m-commerce?Fill in the list
- 2
- 3
- 4What are the drawbacks of e-commerce and m-commerce?Fill in the list
- 5
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