Pearson Edexcel · GCSE · Business
Course version: 1BS0 · Version from Sept 2017
How technology influences business activity in terms of: ● sales ● costs ●…
Full specification wording
Technology and business: How technology influences business activity in terms of: ● sales ● costs ● marketing mix.
Technology transforms business activity across sales, costs, and the marketing mix.
Checked against the Pearson Edexcel 1BS0 specification (opens in a new tab) on .
- Point 2 of 2
- 3 key terms
Study notes
From the checked teaching notes for this specification point.
The idea
Technology transforms business activity across sales, costs, and the marketing mix. E-commerce and social media expand potential sales by reaching global markets 24/7, though they increase competition. Costs are influenced dynamically; initial capital costs for automation or IT infrastructure are high, but long-term unit costs often fall due to improved efficiency and reduced labour requirements. The marketing mix (Product, Price, Place, Promotion) is heavily impacted: products become digital or feature smart technology, prices can be adjusted dynamically or compared easily by consumers, place shifts from physical stores to online platforms, and promotion utilises targeted digital advertising and social media influencers.
What earns the marks
- Explain how e-commerce allows businesses to increase sales by operating 24/7 and reaching a wider geographical market.
- Analyse the impact of technology on costs, noting the trade-off between high initial investment in automation and lower long-term average costs.
- Evaluate how technology alters 'Place' in the marketing mix by shifting distribution from physical retail to digital downloads or direct delivery.
- Describe how digital promotion allows for highly targeted advertising based on consumer data, improving marketing efficiency.
Common mistakes and how to put them right
Assuming technology always reduces costs immediately.
Put it right: Acknowledge that initial implementation and training costs are often high before long-term savings are realised.
Stating that technology only affects promotion.
Put it right: Ensure you discuss impacts across all four elements of the marketing mix, such as digital products or dynamic pricing.
Claiming e-commerce guarantees higher sales.
Put it right: Explain that while potential market size increases, so does global competition, which can threaten sales.
Exam tips
- When evaluating technology, always consider both the short-term financial costs and the long-term efficiency benefits.
- Link technological changes directly to specific elements of the marketing mix (Product, Price, Place, Promotion) to structure your answers clearly.
- Use a specific business example, such as a high street retailer moving online, to illustrate the impact on sales and costs.
Try the lesson
The start of the Technology and business: How technology influences business activity in terms of: ● sales ● costs ● marketing mix. lesson, made from checked teaching notes for this specification point.
Have a go first
A small clothing retailer decides to start selling its products through a new e-commerce website. What is the most likely impact of this technological change on the business's sales?
Listen
Technology transforms business activity across sales, costs, and the marketing mix. E-commerce and social media expand potential sales by reaching global markets 24/7, though they increase competition. Costs are influenced dynamically; initial capital costs for automation or IT infrastructure are high, but long-term unit costs often fall due to improved efficiency and reduced labour requirements. The marketing mix (Product, Price, Place, Promotion) is heavily impacted: products become digital or feature smart technology, prices can be adjusted dynamically or compared easily by consumers, place shifts from physical stores to online platforms, and promotion utilises targeted digital advertising and social media influencers. A strong answer earns marks for these points. Explain how e-commerce allows businesses to increase sales by operating 24/7 and reaching a wider geographical market. Analyse the impact of technology on costs, noting the trade-off between high initial investment in automation and lower long-term average costs. Evaluate how technology alters 'Place' in the marketing mix by shifting distribution from physical retail to digital downloads or direct delivery. Describe how digital promotion allows for highly targeted advertising based on consumer data, improving marketing efficiency. A common slip: Assuming technology always reduces costs immediately. Instead, acknowledge that initial implementation and training costs are often high before long-term savings are realised. Exam tip: When evaluating technology, always consider both the short-term financial costs and the long-term efficiency benefits.
See it
Key words
Say what each word means before you turn the card.
E-commerce
Try answering aloud or in your head before turning the card.
Automation
Try answering aloud or in your head before turning the card.
Marketing mix
Try answering aloud or in your head before turning the card.
See every definition
- E-commerce
- Buying and selling that lets businesses operate 24/7 and reach a wider geographical market, though it also increases global competition.
- Automation
- Using technology in place of labour, requiring high initial investment but often lowering long-term unit costs through improved efficiency.
- Marketing mix
- The four elements Product, Price, Place and Promotion, each of which technology heavily impacts.
Label the diagram
Some boxes have lost their names. Pick the right name for each number.
1Box 1
2Box 2
3Box 3
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