Professional Documents
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DM, Dec 2019, 40059287
DM, Dec 2019, 40059287
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Digital Marketing (2103) CIM Membership No. 40059287 December 2019
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Digital Marketing (2103) CIM Membership No. 40059287 December 2019
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Digital Marketing (2103) CIM Membership No. 40059287 December 2019
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Digital Marketing (2103) CIM Membership No. 40059287 December 2019
Contents Page
Task 1 (A) – Company background………………………………………………………………………………………… 8
1.1.1 – Organization name……………….......................................................……………….................. 8
1.1.2 – Type of organisation………………....................................................................................... 8
1.1.3 – Size of organisation………………........................................................................................ 8
1.1.4 – Products and services……………….......................................................……………….............. 8
1.1.5 – Customer base………………................................................................................................ 8
1.1.6 – Main competitors………………........................................................................................... 8
Task 2 (A) - Digital marketing activities and integration to offline marketing mix...................20
2.1.1 — Omni-channel marketing & integration to online offline activities..............................20
2.1.2 — Apple’s digital marketing activities...............................................................................20
2.1.3 — Privacy on iPhone & @applesupport............................................................................21
2.1.4 — #shotoniphone..............................................................................................................21
2.2.1 — Product.........................................................................................................................22
2.2.2 — Price..............................................................................................................................22
2.2.3 — Promotion.....................................................................................................................23
2.2.4 — Place..............................................................................................................................23
2.2.5 — Physical evidence..........................................................................................................23
2.2.6 — Process..........................................................................................................................23
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Digital Marketing (2103) CIM Membership No. 40059287 December 2019
2.2.7 — People...........................................................................................................................23
Tables Page
Table 1..................................................................................................................................................8
Table 2................................................................................................................................................20
Table 3................................................................................................................................................22
Table 4................................................................................................................................................29
Table 5................................................................................................................................................30
Figures Page
Figure 1.................................................................................................................................................8
Figure 2.................................................................................................................................................8
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Digital Marketing (2103) CIM Membership No. 40059287 December 2019
Task 1
Word count - 995
(Speaker notes)
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Digital Marketing (2103) CIM Membership No. 40059287 December 2019
1.1.5- Customer base: Apple started off as B2C however they now serve the B2B space as they’ve
partnered with British Airways, and many others companies, to provide custom apps and devices for their
needs (Apple, 2019)
Figure 1 Figure 2
2Q18 smartphone Marketshare 2Q18 laptop Marketshare
7%
18% 7%
13% 12%
9%
19% 8%
24%
22%
Source: Gartner 39%
(August 2018) Source: Bloomberg
Figure 1
22%
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1.2.1 - Slide 1
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1.2.2 - Slide 2
“Microsoft found that a delay of two seconds results in a 4 per cent loss in
revenue (Dixon et al., 2010, cited in Chaffey, 2017)
• Customers expect information immediately therefore delays in websites
would result in the customer switching to another website. “Reducing page
loading time from 4 seconds to 2 seconds increases conversion rates by
approximately 70%” (Chaffey, 2017)
• “A whopping 75% of customers feel frustrated when a website is not
personalized, according to Loyalty 360.” (SmartInsights, 2018). Amazon is
the prime example of personalization, they claim 35% of their sales come
from suggested products (Chaffey, 2017)
• This change has been brought about since “The Internet and everything
associated with it suggests speed” (Chaffey, 2017) and the internet is
known as a method to improve convenience. Personalization helps with
convenience to customer (Lauterborn’s 4Cs model)
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1.2.3 - Slide 3
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1.2.4 - Slide 4
In 2018, the total number of credit card fraud amounted to approximately 2.62
million (Statista, 2019)
• Customers are nervous about their personal information on the internet.
According to a survey conducted, 54% of U.S. adults who use Facebook has
adjusted their privacy settings (pewresearch, 2018). This change is brought
about due to companies selling consumer information. Companies such as
Facebook have been sued for infomediation.
• As security and privacy issues have risen 44% of Americans are less likely to
give personal information to websites, 42% only visit website they know
and trust, and 32% have changed their security settings (Statista, 2019) this
makes it harder for marketers to create personalized content. These
security risks of the internet has brought about this change in consumer.
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1.2.5 - Slide 5
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1.3.1 - Slide 6
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1.3.2 - Slide 7
“People have been trying to influence other people since the dawn of human
existence, utilizing whatever means and media they had at their disposal at the
time.” (Jones, 2009)
Generations after, online advertisements took the internet by storm. Online
advertisements are proven to be cheap and effective. YouTube has an ad revenue
of $4.95 billion (onmicoreagency, 2019) as of 2019.
• Advertisers and marketers use platforms such as Facebook and Twitter for
their advertisements since these platforms have high levels of digital traffic.
An American spends 38 minutes per day on Facebook being the highest in
consumer app usage (Hootsuite, 2019)
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1.3.3 - Slide 8
The subscription market has grown 100% yearly over the past 5 years, large retailers generating
up to $2.6B in sale as of 2016. Amazon Subscribe & Save, Dollar Shave Club and Ipsy being the
top 3 most popular subscription sites in 2018 (McKinsey, 2018)
• “In the second quarter of 2019, Netflix had over 151 million paying streaming
subscribers worldwide…” and “As of June 2019, Apple Music had over 60 million
subscribers worldwide” (Statista, 2019). Content subscriptions have become extremely
popular over the years however physical content subscriptions are gaining traction with
companies such as Dollar Shave Club and Blue apron.
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1.3.4 - Slide 9
Cloud computing has grown exponentially over the past decade, estimated at $24.65B in 2010,
expected to grow to $150B by the end of 2020. The cloud industry is divided into 3 markets;
Public, Private and Hybrid. “The public cloud market alone generated $146 billion in 2017”
(Statista, 2019)
AWS dominates the market with a 33% market share. Microsoft Azure trailing in second with a
mere 16% as of Q2, 2019 (statista, 2019)
• Companies such as Microsoft and Amazon are heavily relying on the cloud storage
business. Microsofts $33.1 billion revenue recorded, $10.8 billion was from the
‘intelligent cloud’ segment (statista, 2019)
• “Global Cloud Storage market accounted for $34.60 billion in 2017 and is expected to
reach $207.05 billion by 2026 growing at a CAGR of 21.9% during the forecast period.”
(researchandmarkets, 2018).
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1.3.5 - Slide 10
• Failing to comply with regulatory bodies as the GDPR can leave the
company facing fines up to 4% of global turnover (superoffice, 2019)
• Example, Marriott is expected to be fined around €99 million for a data
breach between 2014 and 2018 (superoffice, 2019)
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Task 2
Word count: 1521
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2.1.4 - #shotoniphone
The Instagram campaign, while being a method of digital promotion using user
generated content, integrates with the offline product as it showcases the abilities of an
iPhone camera. Apple heavily promotes their camera capabilities using offline
promotion methods such as billboards therefore the #shotoniphone digital marketing
activity integrates fairly well with offline promotion done by Apple.
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The 7Ps model was originally devised by E. Jerome McCarthy, 1960. Dave Chaffey refreshed this
model and applied it to online channels (Smartinsights, 2019). All the elements of the marketing
mix are affected by digital. (D. Chaffey, 2017)
Bank of America is a good example that took a physical product and turned it digital, using the
Bank of America app customers are allowed to schedule appointments and deposit cheque’s.
Apple has a fairly quantified digital presence (smartinsights, 2019)
2.2.1 - Product
Apple’s digital products for the iPhone include iCloud, Apple TV+, News+ and Apple Music.
These digital product add digital value to their offline products such as the iPhone (Ghosh,
1998, cited in Chaffey, 2017) These digital products are integrated into Apple’s proprietary
operating system, iOS, therefore these digital products are a strength to Apple in terms of
exclusivity however since these products cannot we accessed across other devices, such as a
Samsung phone, could be a weakness to Apple. These digital products add value to the iPhone
and integrate well with the iOS ecosystem.
2.2.2 - Price
Subscription (Chaffey, 2017) payment models are provided by Apple for their digital products
such as Apple TV+ and Apple music, this is a strength for Apple as customers may not prefer to
pay a lump sum payment for the service.
Apple also offers a pay-per-view (Chaffey, 2017) payment option for their Apple TV. This may be
a strength for Apple as customers may not like to add another subscription to their monthly
expenditure.
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2.2.3 - Promotion
Online promotion is growing in importance (Chaffey, 2017). Apple carries out online promotion
through their website, Instagram and YouTube. Each platform is used to promote the products
in a different way, for example; YouTube is used to convey details about iPhone and its
capabilities whereas the website mostly creates awareness, this is PR for Apple (Chaffey, 2017).
However Apple barely utilizes Facebook and Twitter as communication/promotion platforms,
this could stand to be a weakness to Apple.
2.2.4 - Place
The Apple website and the “Apple store” app, being the digital placing elements practiced by
Apple could be a strength as “apps extend distribution into millions of customers via mobile”
(Chaffey, 2017)
2.2.6 - Process
“Unintegrated websites create problems” (Chaffey, 2017) Apple’s internal process undergone
to maintain their website and keep prices up to date has been accurate. This stands as a
strength for Apple since customers would find the information on the website to be reliable.
2.2.7 - People
Apple gives customers the option to speak to an online representative/engineer, schedule a call
or look through their FAQs on their website (Apple, 2019). This is a strength in terms of Apple’s
digital people element as customers have many options of help to choose from. Apple, even,
has a question and answer platform called @applesupport so customers can ask questions
about their products. This is a platform designed to service customers. This is a strength for
Apple since such services equate to happy customers (Chaffey, 2017)
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2.3.3 - Personalization
Personalization is growing in importance (refer; 1.2.2), with the use of specialized SaaS
personalization (Chaffey, 2017) Apple could send personalized emails. With the help of
automation, personalization could go further than simply adding the customers name on the
email, for example; Drip marketing automation automatically sends the customer an email
when there is an issue with the payment process, prompting customers to update their credit
card information (drip.com, n.d.). This is already done by Apple however with automation
Apple could achieve this at a large scope, for cheaper and personalized content retains and
engages customers because ”personalization enhances relationships” (Chaffey, 2017)
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Task 3
Word count: 1548
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Planning is vital in-order to prevent an organization from drifting into the abyss, having a good
marketing plan gives the organization direction and a sense of order. A digital marketing plan is
essentially a traditional marketing plan adapted for the digital environment (Chaffey, 2017).
In-order to create an integrated digital marketing plan, P.R. Smith’s (1996), SOSTAC framework
will be used. This model was deemed most appropriate since the model was listed as the 3rd
most popular model in the CIM poll and because the model makes it easy to structure plans for
different planning activities (SmartInsights, 2019)
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Digital Marketing (2103) CIM Membership No. 40059287 December 2019
YO! My name
is Adam Apple “We are the ‘always on’ generation”
and I’m Gen Z
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“Objectives are the goals the firm desires to achieve”. Marketing objectives are derived from
the corporate objectives to ensure corporate objectives are met (Diasz, 2017). Good objectives
follow the SMART criteria to assess the quality of the set objectives (SmartInsights, 2019).
Using the SMART criteria, the following objectives are set in Alternative approaches to setting
response to the online behaviour of Gen Z. objectives;
3.2.2 - Objective 2
Improve sales generated from the “Apple TV+” app by 10%
within 6 months.
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Digital Marketing (2103) CIM Membership No. 40059287 December 2019
3.3.1 - Objective 1
Create awareness and improve the number of user generated
content for #shotoniphone by 20% within a span of a year.
The tag #shotoniphone communicates the camera capabilities of Apple iPhones on their
Instagram which is right on par with the target demographic, to improve awareness about the
#shotoniphone campaign the following digital marketing mix is recommended.
Table 4
Digital marketing mix Justification
Product & digital communications The images posted for the #shotoniphone campaign
are all taken on an iPhone, Apple needs to make
(Advertising) almost no change to their physical product, the
iPhone, as the iPhone 11 Pro has a dxomark of 117,
making it the top 5th camera on a smartphone
according to DXOMARK (2019).
Apple could improve awareness for the
#shotoniphone campaign by communicating this
message on their digital products, stated in table 3.
Apple could subtly advertise, for example; on their
Apple TV+ app, and nudge customers to take part in
the campaign.
Apple’s digital placing such as their website, refer;
Place, promotion & digital table 3, could be automated to identify new arrivals
communications from scenic locations, according to a preset criteria.
(Direct marketing and public relations The website could then show the concept of
(PR)) #shotoniphone to create awareness about the
campaign and prompt customers to take part on
Instagram (ACCA model, Colley, 1961). For example,
if California is preset as a scenic location on Apple’s
website automation software, a customer visiting
the website from California will get the message
about the campaign happening on their Instagram.
This integrates well into their social media
automation (refer; 2.3.2) as that customer could be
tagged so when the #shotoniphone tag is used on a
post, that post is automatically put through an
automated filtration process and posted on the
Apple Instagram page. This creates awareness and
improves the number of user generated for
#shotoniphone. This increase in user generated
content is PR for Apple.
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3.3.2 - Objective 2
Improve sales generated from the “Apple TV+” app by 10%
within 6 months.
Apple TV+, released 1st November 2019, is an e-commerce video subscription service similar to
Netflix. The following digital marketing mix is recommended to improve sales for the digital
product.
Table 5
Digital marketing mix Justification
Product, Price, promotion & digital Apple offers subscription payment models for most
of its digital services (refer; 2.2.2) however in
communications comparison to Netflix, Apple TV+ has only one
(Advertising) payment package. It’s recommended that Apple
increases the number of payment packages such as
giving customers a choice between a 6 month
subscription or 1 year. Apple could also tweak the
product to offer separate benefits for each payment
option such as offering 4K content for the highest
plan. Similarly done by Netflix.
With the increase in payment options, Apple could
advertise and communicate these different options
using their digital promotion elements (refer; 2.2.3),
especially social media as to customer persona
webographics (refer; 3.1.4). This would create
awareness about Apple TV+ and may result in an
increase in subscriptions for the service (AIDA,
Strong, 1925). This has a higher probability of
improving sales for Apple TV+ since the division of
the package caters to a wider customer segment.
This is highly recommended as the target customer
is Gen Z. This essentially means that since the target
segment is new to the workforce (refer; 3.1.4) their
purchasing power may vary.
Internal processes minimises the level of human
Process, physical evidence & digital involvement through automation (D. Chaffey, 2017).
communications Apple could use marketing automation to
(Public relations(PR)) personalise (refer; 2.3.3) curated content for
individual viewers, similarly to Netflix. This may
result in positive PR for Apple in terms of word of
mouth or, in the extreme case, a 3rd party review.
Which is digital physical evidence that Apple TV+ is a
good product. This could result to improved sales of
the service thus achieving objective 2.
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