How has technology changed the way organisations market their products?
The use of technology in marketing, including e-commerce, websites, social media, e-marketing and the use of customer databases, with the advantages and disadvantages for the organisation.
An SQA Higher Business Management answer on the use of technology in marketing, covering e-commerce, websites, social media, e-marketing and customer databases, and the advantages and disadvantages of technology for the marketing function.
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What this key area is asking
Technology has transformed marketing, and the SQA wants you to describe how a firm uses e-commerce, websites, social media, e-marketing and customer databases, and to weigh the advantages and disadvantages for the organisation. Higher rewards balanced discussion, recognising that technology brings reach and data but also costs and reputational risk.
How technology is used in marketing
E-commerce and websites
A website and online shop let a firm reach customers nationally and globally, 24 hours a day, with no physical premises and lower staff costs. The firm can sell direct, keeping more profit, and present its brand exactly as it wishes. The drawbacks are the cost of building and maintaining the site, arranging delivery and returns, and competing with many other online sellers.
Social media
Social media lets the firm advertise, engage directly with customers, run campaigns, gather feedback and build a brand, all cheaply and quickly, with content able to spread (go viral). The risk is that negative comments are public and spread fast, so the firm must monitor and respond constantly, and it has less control over how its message is shared.
E-marketing and customer databases
E-marketing uses targeted email, online display adverts and search-engine marketing to reach customers directly with relevant offers. Customer databases store data on what customers buy and when, so the firm can analyse habits and personalise marketing, sending the right offer to the right person. This makes marketing far more targeted and less wasteful, but the firm must handle data protection and security responsibly.
The advantages and disadvantages
Advantages: a much wider market (national/global, 24/7); lower costs (no premises, cheaper advertising); speed of communication and campaigns; rich customer data for analysis; and precise targeting that reduces wasted advertising.
Disadvantages: the cost and skill of setting up and maintaining systems; intense online competition; the danger that complaints and bad publicity spread fast and publicly; data-protection and security duties; and customers being unable to see or try products before buying, increasing returns.
Examples in context
Example 1. A fashion retailer using data to personalise. An online fashion retailer uses a customer database and website analytics to see what each shopper views and buys, then sends personalised email offers and shows targeted adverts, increasing sales and loyalty. This is far more efficient than untargeted advertising, but the retailer must store the data securely and comply with data-protection law, the standard balance the SQA expects.
Example 2. A small food brand going viral on social media. A small food producer posts engaging content on social media, which is shared widely and reaches a national audience at almost no cost, boosting sales far beyond what its budget could buy in traditional advertising. The risk is that a single negative review or complaint can also spread fast and publicly, so the brand must respond quickly and manage its image, showing both the power and the danger of social media.
Try this
Q1. Describe two ways a business could use technology to market its products. [2 marks]
- Cue. E-commerce/website to sell online to a wide market 24/7; social media to advertise and engage with customers; e-marketing (targeted email and online adverts); customer databases to personalise offers; online market research (any two).
Q2. Explain two disadvantages of using technology in marketing. [4 marks]
- Cue. Negative comments and complaints spread fast and publicly on social media, damaging reputation; setting up and maintaining systems costs money and requires skills; the firm must meet data-protection and security duties; and online competition is intense, with customers unable to see products in person (any two, developed).
Exam-style practice questions
Practice questions written in the style of SQA exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
SQA Higher style6 marksDescribe ways technology can be used in the marketing of a business.Show worked answer →
Worth 6 marks. Describe several uses of technology in marketing, one mark each.
E-commerce/website (1 mark). An online shop lets the firm sell to a national or global market 24 hours a day without physical premises.
Social media (1 mark). Platforms let the firm advertise, engage with customers, run campaigns and respond to feedback quickly and cheaply.
E-marketing/email (1 mark). Targeted emails and online adverts promote products and offers directly to customers based on their interests.
Customer databases (1 mark). Storing customer data allows the firm to analyse buying habits and personalise marketing and offers.
Online market research (1 mark). Online surveys and analysis of website data gather customer information quickly and cheaply.
Targeted/personalised advertising (1 mark). Data and algorithms let adverts be aimed at the customers most likely to buy, reducing waste.
SQA Higher style4 marksDiscuss the use of social media as a marketing tool.Show worked answer →
Worth 4 marks. "Discuss" means give advantages and disadvantages.
Advantages (about 2 marks). Social media reaches a huge audience cheaply, lets the firm engage directly with customers, respond to feedback, build a brand and run targeted campaigns, and content can spread quickly (go viral) at little cost.
Disadvantages (about 2 marks). Negative comments and complaints are public and spread fast, damaging reputation; campaigns must be managed constantly, which takes time and staff; and the firm has less control over how its message is shared and received.
Related dot points
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Sources & how we know this
- Higher Business Management Course Specification — SQA (2026)
- Higher Business Management Course Code C810 76 — SQA (2026)