Topic Summaries

Technology transforms how businesses operate, sell, and communicate. It brings both opportunities and challenges.

• Sales: technology allows businesses to grow their customer base and improve how they sell products and services. It opens up new sales channels, enhances customer experience, and increases availability.
  • Online platforms (e.g. websites, apps, marketplaces like Amazon or Etsy) allow businesses to reach customers globally, 24 hours a day, 7 days a week.This removes the limitations of physical opening hours and location. For example, a small skincare start-up in Manchester can sell to customers in Singapore or Canada using an e-commerce website, using tools like Shopify to easily create user-friendly sites.
  • Social media (e.g. Instagram, TikTok, Facebook) enables businesses to:
    • Promote products directly to users through targeted ads.
    • Engage with followers through comments, streams, or influencers.
    • Turn platforms into mini sales platforms. For example, Instagram allows product tagging with direct links to purchase pages.
  • Customer data collection (e.g. cookies, CRM systems) helps businesses by tracking browsing and buying habits, recommending products, and personalising email marketing and promotions.
• Costs: technology can both increase and decrease business costs.It often involves large upfront investment, but brings long-term efficiency.
  • Automation and robotics can significantly reduce labour costs, particularly in manufacturing or repetitive service roles. Over time, automation can reduce wage bills and human error. However, it may also require technical maintenance and lead to job losses.
  • IT systems and software (e.g. inventory management, accounting software, analytics) help reduce administrative costs and human error. For example, Xero or QuickBooks can automatically track business income and expenses, reducing the need for an in-house accountant. While this saves money in the long term, the software itself can be expensive upfront.
  • Cloud computing (e.g. Google Drive, Microsoft OneDrive) lowers hardware costs by letting businesses store data online instead of on physical servers. This reduces office space and energy use, but may require monthly subscription fees and cybersecurity investments
• Marketing mix: technology reshapes all elements of the marketing mix:
  • Product: dfaster product development through prototyping tools like 3D printing or virtual design, or customisation (e.g. Nike By You trainers).
  • Price: price comparison websites (e.g. CompareTheMarket, Skyscanner) make it easy for consumers to find cheaper alternatives. Businesses may have to lower prices or use dynamic pricing (e.g. airlines, ride-sharing apps).
  • Promotion: Google Ads and social media campaigns allow small businesses to compete with larger ones. However, this is an area of ongoing legislative concern and subject to government regulation. E-newsletters and email campaigns offer personalised promotions and reminders, helping businesses build customer loyalty. Viral marketing and influencer campaigns can also increase reach at a low cost.
  • Place: e-commerce reduces or removes the need for physical retail space. Businesses save on rent, utilities, and staffing, and customers shop from home, improving convenience. Furthermore, click-and-collect and home delivery combine digital convenience with local service. Supermarkets like Tesco offer apps that let customers order online and collect at the store.