Lincoln University
ASSESSMENT SEMESTER B CYBERMARKETING

Summative Assessment

by Benjamin Bach
2007

Table of Contents

Table of Figures ... 2

1. Introduction ... 3

2. The Role of the Internet for E-businesses & Marketers ... 3
2.1 Opportunities & Advantages of Enabling Technologies ... 4
2.1.1 Interactivity ... 4
2.1.2 Intelligence ... 4
2.1.3 Individualisation ... 5
2.1.4 Integration ... 6
2.1.5 Industry Restructuring ... 8
2.1.6 Independence of Location ... 8
2.2 Threats & Challenges of Enabling Technologies ... 10

3. Internet Marketing Strategy ... 13
3.1 Online Competitive Advantage ... 16
3.2. The E-marketing Mix ... 20
3.2.1 Product ... 20
3.2.2 Place ... 21
3.2.3 Promotion ... 22
3.3. The Internet & Pricing ... 24

4. Critical Evaluation of Apple Inc.’s Web Site ... 28
4.1 Strengths ... 28
4.2 Weaknesses & Proposed Improvements ... 32

5. Conclusion ... 32

6. References ... 34

7. Bibliographies ... 37

Table of Figures

Figure 1. Apple Inc.’s Feedback Service Feature
Figure 2: Apple Inc.’s Customised “My Account” Feature
Figure 3: Apple Inc.’s iPod Print Advertisement
Figure 4: Apple Inc.’s Customer Service Helpline
Figure 5: Apple Inc.’s Customer Support Section
Figure 6: Apple Inc.’s iTunes Music Download
Figure 7: Apple Inc.’s iTunes Music Player Download
Figure 8: Apple Inc.’s Software Updates
Figure 9: Apple Inc.’s Online Discount Incentives
Figure 10: The Vicious Circle of Technology & Competitive Advantage
Figure 11: Apple Inc.’s Computer Product Segmentation 2007
Figure 12: Apple Inc.’s Computer Product Segmentation 1997
Figure 13: Comparison Between Apple Inc.’s Web Site in the UK & Iceland (Customer Support Section)
Figure 14: Competitive Advantage & Customer Orientation
Figure 15: Apple Inc.’s & Adobe Company’s Online Relationship
Figure 16: Apple Inc.’s & Nike’s Product Relationship
Figure 17: Apple Inc.’s Podcast Download Technology
Figure 18: Apple Inc.’s iTunes Affiliation Programme
Figure 19: Apple Inc.’s Developer Connection Programme
Figure 20: Apple Inc.’s “Track Your Order” Feature
Figure 21: Apple Inc.’s Banner Advertisement on Product Related Web Sites
Figure 22: Apple Inc.’s Special Deals for Schools
Figure 23: Apple Inc.’s Special Deals For Universities
Figure 24: Apple Inc.’s Special Volume Discount Offers (iPod)
Figure 25: Apple Inc.’s MacBook & Printer Bundle
Figure 26: Apple Inc.’s Web Site Navigation
Figure 27: Apple Inc.’s Interactivity Feature (TV Ads)
Figure 28: Apple Inc.’s Web Site Layout
Figure 29: Apple Inc.’s Specific Target Audience Layout (Students)
Figure 30: Apple Inc.’s Specific Target Audience Layout (Businesses)
Figure 31: Apple Inc.’s Call-of-Action Feature (iPod)
Figure 32: Apple Inc.’s Complex Web Site Content 

1. Introduction

This report critically examines the implications of enabling technologies that will have an impact on the marketing strategies of businesses. As technology, such as the Internet, provides new opportunities and challenges for marketers while aligning a customer-focused strategy, this medium is becoming crucial in today’s dynamic business environment in order to maintain competitive. This report analyses the role of the Internet for marketers followed by an examination of opportunities and threats to global businesses from enabling technologies. Furthermore, a detailed examination of strategic approaches will be given, focusing on the e-marketing mix and pricing strategies in order to highlight the increased pressures for organisations when applying new media formats. Apple Inc. will be indicative as an example for important aspects throughout the report, in order to clarify and visualise the execution of new media formats by Apple Inc., followed by a critical evaluation of their web site with a focus on strengths, weaknesses and proposed improvements.

2. The Role of the Internet for E-businesses & Marketers

According to Doole and Lowe (2004), the IT and communications technologies are growing at a tremendous velocity and have a major impact on the way global business is done. In particular the Internet facilitates the integration of different technologies. Nowadays, technology is a vital influence and underlines the choice of implementation strategies of the international marketing mix and furthermore, “enables the more effective control of a firm’s diverse international activities” (Doole and Lowe, 2004, p.403). The Internet has had, and still has, a vast effect on international trade, as physical geographic boundaries are abrogated due to the increasing number of broadband penetrations and access to technologies. According to Internet World Stats (2007), 37.6m users are currently utilising the Internet in the UK, which is 62.3 per cent of the total UK population. Globally 1.1bn Internet users, equivalent to 16.9 per cent of the world’s population, exploit the Internet that identifies a global growth rate of 208.7 per cent since the year 2000. This highlights that this medium is crucial to marketing in order to stay competitive in today’s business dynamism. The role of the Internet for e-businesses and e-marketers includes critical opportunities and challenges when applying technologies to their businesses operations.

2.1 Opportunities & Advantages of Enabling Technologies

E-marketing provides a chance for business operations to be executed in a global marketplace, as it offers “an alternative route to market to traditional distribution channels” (Doole and Lowe, 2004, p.409). According to McDonald and Wilson (1999), cited in Chaffey et al. (2003), the paradigm shift between traditional and new media marketing approaches is inherently identified by six determinants.

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