The Role of Technology in Managing Marketing (SQA National 5 Business Management): Revision Note

How technology is used in marketing

• Technology has transformed how businesses identify, communicate with, and retain customers

• It can lead to faster communication, better decisions and targeted marketing, often at a lower cost than traditional methods

Ways technology is used in marketing

Social media marketing

• Businesses use platforms such as Instagram, TikTok, Facebook and X to promote products and talk directly with customers
  Social media allows two-way communication

  • Companies can reply to comments, share updates and measure engagement through likes, shares and views.

  • E.g. Greggs uses Instagram and TikTok to launch new food items and get quick feedback from customers.

Email marketing

• Automated emails are used to update customers, offer discounts or remind them of abandoned shopping baskets

• Email lists can be segmented so messages are targeted at specific customer groups

  • E.g. Airlines like easyJet send personalised email offers based on customers’ previous travel destinations

Data analytics

• Technology helps collect and analyse large amounts of customer data to understand preferences and buying habits

• CRM systems store customer details, enabling tailored offers and loyalty programmes

  • E.g. Tesco’s Clubcard system analyses purchasing data to send personalised vouchers and recommendations

E-commerce and mobile apps

• Online shopping platforms and mobile apps allow customers to browse and purchase products 24/7

• Businesses can use app notifications and in-app advertising to promote new items or special offers

  • E.g. ASOS uses its app to suggest outfits, promote sales and provide instant purchase options

Digital advertising and video content

• Businesses use online videos, sponsored content, and digital banners to reach large audiences

• Short video advertisements are used to attract younger audiences on platforms like YouTube or TikTok

  • E.g. Irn-Bru’s humorous online videos promote its Scottish identity while appealing to a global market

Artificial intelligence and chatbots

• AI technology is used to automate customer service, recommend products and personalise user experiences

• Chatbots on websites can answer questions, reducing response times and customer satisfaction

  • E.g. Amazon uses AI to recommend products based on browsing and purchase history

Virtual reality

• Some businesses use VR to let customers experience products before buying

• This technology helps improve engagement and reduce uncertainty in purchases

  • E.g., IKEA’s app allows customers to see how furniture would look in their home before ordering