Business applications and information technology support a firm’s business proce
ID: 3662146 • Letter: B
Question
Business applications and information technology support a firm’s business process, decision making, and strategies for competitive advantage. Manufacturing companies have changed from building products to building smart products. E-commerce and the Internet have made some companies obsolete and have changed business models. E-Commerce has given rise to many new business models: (virtual storefront, information broker, online marketplace, content provider, virtual community). Read the article Free! Why $0.00 is the Future of Business (in the reading folder) which discusses "free" as a business model.
What does that mean to growth on the Internet? How can e-businesses stay in business if they are based on a free model? What does this mean for traditional business? What companies or obsolete because of the Internet? Who will be successful using this model and why? Does this model change the mindset of the consumer? Has this model of "free" changed how you buy or consume goods?
Explanation / Answer
What does the mean for traditional business?
>A traditional business operates to provide its customers and consumers with a product in exchange for compensation
(or)
>Traditional marketing is a rather broad category that incorporates many forms of advertising and marketing.
>The typical goals of these types of businesses all lead to turning a profit for the owners or operators, meaning that the business makes more money in revenue than it spends.
>Businesses spend a large amount of money on operational bills and salaries. Non-profit organizations provide services to people with no benefit to the organization.
>"Traditional business" can also be used as a phrase to describe protocol in certain situations that is widely followed by business.
Who employs Traditional Marketing?
>Nearly every company selling a product or service uses one or more types of traditional marketing as part of an overall advertising strategy. For the most part, this form of advertising depends on the company's available marketing budget.
>Mid-sized companies and large corporations are most likely to use TV commercials. Advertising on television is usually the most expensive form of marketing, with prices depending on the time slots and programming content.
For Example:
A 30-second commercial during Super Bowl 2012 was around $3.5 million, more than $100,000 per second—and that figure doesn't include production costs.
>While network television commercials are usually out of the budget range for smaller companies, local cable programming has made television advertising more accessible for these types of businesses, with costs running as low as $15 for a 30-second spot, plus production expenses.
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