Information and communications technology AIMS To be able to explain the advantages and disadvantages of using email for communication To understand how the internet is used for marketing and sales of products To be able to Describe the electronic point of sale system and how it is used for marketing and sales of products

Information and communications technology (ICT) has had a dramatic effect on our lives. We can now communicate quickly over vast distances using email, and shop online without leaving home. Modern businesses have had to embrace ICT, from professional websites to market products to EPOS systems to monitor sales and stock levels

Email Email is the simplest form of electronic communication. Email has relatively low reach and range when used for messaging and transferring documents, but is invaluable in rapid communications between designers, manufacturers, retailers and consumers because it is easy to use and access. However, with email there are issues of security and privacy, and limitations on the size of attachments. To most people, email is now the preferred way of communicating, especially with the increased use of multimedia phones such as the iPhone and social networking sites such as Facebook and Twitter.

Advantages Disadvantages quick, easy and convenient communication around the world • widespread usage by anyone connected to the internet • email exchange can be saved as a dated record of correspondence • documents can be attached, saved and edited easily • social networking from mobile devices helps people keep in touch regularly impersonal, and some messages can be misinterpreted • dealing with flow of messages into inbox takes time • ‘spamming’ of unsolicited commercial emails, often with inappropriate content • privacy and security issues, as messages can be intercepted • limitations on size of attachments

Internet marketing and sales The development of the internet as a means of competing in a global marketplace has revolutionised the marketing and sales of products and services. Through the global networking of computers, the internet gives anyone with a computer access to a wealth of information and entertainment. Marketing can be tailor made to suit specific markets. For example, a pop-up advert can be placed on a persons social network site to fit with the sort of information that they have put into their user profile

(To manufacturers and retailers) Disadvantages (consumer) Global reach and access to markets in other countries, and increased customer base Higher global company profile Faster processing of orders, resulting in cost savings and reduced overheads Detailed knowledge of user preferences and market trends by tracking sales Reduced sales force and less need for retail outlets Less expensive than traditional media such as TV New marketing tactics can target specific groups Security concerns regarding input of personal bank details when purchasing goods Personal information can be shared with other companies without customer permission Risk of ‘pop-up’ adverts spreading viruses on computer systems Difficult to find websites without exact details, resulting in a need for other expensive marketing methods such as magazine adverts or searches sponsored by the internet service provider Slow internet connection can cause difficulties in accessing information Difficulty in navigating complicated web pages Does not allow ‘ hands on’ experience of a product such as touch, taste and fit Access to inappropriate materials Spread of ‘junk’ mail and threat of computer viruses

Electronic point of sale Information is at the centre of any business and, if used properly, ensures that the business stays one step ahead of the competition. By using electronic point of sale (EPOS) systems, a business can supply and deliver its products and services faster, by reducing the time between the placing of an order and the delivery of the product. The use of barcodes Each product can be electronically identified using its unique barcode. When passed over a barcode reader or scanner, the barcode is ‘read’ by a laser or light beam. Think of the checkout assistants at your local supermarket, and the familiar ‘beep’ sound as your shopping is scanned. The beam passes over the barcode and reflects back onto a photoelectric cell. The bars can be detected because they reflect less light than the background on which they are printed.

Each product has its own unique number Each product has its own unique number. On the 1 3-digit barcode the first two numbers tell you where the product was made; the next five digits are the brand owner’s number; and the next five numbers are specific to the type of product (given by the manufacturer). The final digit is the check digit, which confirms that the whole number has been scanned correctly

It is important to note that information regarding the actual price of the product is not contained on the barcode. Instead, the scanner, at a supermarket checkout, for example, transmits the product code number to an in-store computer; this computer relays the product’s description and price check back to the checkout. This price is then displayed electronically on the till and printed on the receipt. The computer then deducts the item purchased from the store’s stock list, so that they can be re-ordered when stock is low.

Data matrix codes, also known as 2D barcodes, are visual codes that can be read by machines with vision systems. Data matrix codes are being used more and more, as manufacturers want to keep closer track of their products. Data matrix codes mean that batch or serial numbers can be permanently marked onto components, which is useful for tracking faulty batches and identifying counterfeit parts. 2D or Data matrix codes, contain more information, because they use both the width and height of the lines

ADVANTAGES OF EPOS A full and immediate account of the sales of a company’s products Data that can be input into spreadsheets for sales analysis The means to monitor the performance of all product lines, which is particularly important with mass production as it allows a company to react quickly to demand. Accurate information for identifying consumer buying trends when making marketing decisions A full and responsive stock control system by providing real-time stock updates. A system that ensures sufficient stock is available to meet customer needs without overstocking

Prep 1. When EPOS IS USED WITH A STORE LOYALTY CARD, SUCH AS A Nectar card, a supermarket can build up a profile of your buying habits. This information can then be used to sell you products via email. Discuss the advantages of this system for The supermarket and also you the customer/consumer 2. Describe how the barcode on a product allows the retailer to easily monitor sales of stock Copy the diagram on page 77 of your text books, but insert your own example to illustrate the process; for example a new pair of Nike trainers. Where is the product manufactured ( it may not be in this country) where did you buy the product, how much did it cost