A LevelBusinessAQARevision NotesManaging MarketingDigital Technology & MarketingDigital Technology in Marketing & Competitiveness

Digital Technology in Marketing & Competitiveness (AQA A Level Business): Revision Note

Syllabus Edition

First teaching 2026

First exams 2028

Exam code: 7132

Written by: Lisa Eades

Reviewed by: Bridgette Barrett

Updated on 22 June 2026

How digital technology in marketing impacts competitiveness

A business is competitive when it can attract and retain customers more effectively than its rivals
Digital technology has transformed how businesses compete
- It has given them new tools to reach customers, respond to market changes and build stronger relationships, often at lower cost than traditional marketing methods

Ways digital technology improves competitiveness

Benefit	Explanation
More precise targeting	Digital marketing tools allow businesses to direct their spending towards the customers most likely to buy, rather than broadcasting to a mass audience AI-powered targeting on platforms such as Google and Meta means every pound of budget works harder than it would in a television or print campaign Businesses that use these tools well can attract customers more cheaply than rivals still relying on traditional advertising
Speed and flexibility	Digital campaigns can be launched, tested, and changed in hours rather than weeks. A business that spots a trend on social media can respond immediately One that runs a poorly performing pay-per-click (PPC) advert can pause it and try something different the same day This ability to change is a strong competitive advantage over slower-moving rivals
Levelling the playing field	Digital marketing has made it possible for small businesses to compete with much larger ones A well-executed SEO strategy, a strong social media presence or a targeted email campaign can generate significant reach without the large budgets required for television or national press advertising Smaller businesses that use the new digital tools can compete for customers in ways that simply were not possible before
Data-driven decision making	Businesses that use data analytics to understand their customers, track campaign performance and predict future behaviour make better decisions than those relying on instinct Real-time insight means problems are spotted quickly and opportunities are identified before competitors notice them
Stronger customer relationships	Customer relationship management (CRM) systems, personalised email marketing and targeted content help businesses build closer, more relevant relationships with their customers Customers who feel genuinely understood and well-served are less likely to switch to a competitor - even if that competitor is offering a slightly lower price This kind of loyalty is one of the most durable forms of competitive advantage
Reaching new markets	Digital marketing removes many of the geographical barriers that once limited competition A business with a strong e-commerce presence and good SEO can attract customers nationally or internationally without the cost of physical retail expansion, opening up markets that would previously have been out of reach

Case Study

Thornwick Outdoors

Thornwick Outdoors is a small retailer selling specialist hiking and camping equipment from a single store in the Lake District. For years it struggled to compete with large national outdoor retailers that could afford expensive catalogues and television advertising.

By investing in SEO and content marketing, Thornwick has transformed its competitive position. The business now publishes detailed hiking guides, gear reviews, and route recommendations on its website. This content ranks well on Google when walkers search for equipment advice - and this organic traffic costs nothing per visitor once the content is created.

Social media has also played a key role. Thornwick's Instagram account, built around authentic outdoor photography and staff recommendations, has attracted a following of 34,000 people who trust the brand's expertise. This community has proved more loyal than customers attracted through price promotions.

The result is that Thornwick now competes effectively for online customers across the UK - not just those who happen to walk past its Lake District shop - without needing the marketing budget of a national chain.

Examiner Tips and Tricks

Digital technology does not guarantee competitiveness - it depends on how well a business uses it. A poorly targeted social media campaign or a slow, badly designed website can actually damage competitiveness rather than improve it. In evaluation questions, always consider the quality of execution, not just the tool itself.

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