Marketing and Management

This article discusses the brand equity, extension, innovation and association of Amazon. It also talks about the long-term effects of Amazon's marketing actions on brand equity.

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Marketing and Management
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Table of Contents
Answer 1:.........................................................................................................................................2
Answer 2:.........................................................................................................................................2
Answer 3:.........................................................................................................................................3
Answer 4:.........................................................................................................................................3
Answer 5:.........................................................................................................................................4
Answer 6:.........................................................................................................................................5
References:......................................................................................................................................6

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Answer 1:
Description of Amazon’s Brand Equity
Amazon’s brand is able to deliver superior experience and addresses five-customer brand
insistence for measuring brand equity (Veloutsou, Christodoulides & de Chernatony, 2013).
These are as follows:
Awareness: Amazon tried to create an unprecedented buzz along with an affiliate
program that leads to the creation of link through World Wide Web.
Relevant Differentiation: Amazon presents half a billion different products along with
superior browse and search technology that makes it one of the convenient one stop shopping
destinations.
Value: Amazon offers lower prices along with free shipping options thereby helping the
shoppers in finding the right product based on the recommendations of the past user reviews,
ratings and purchases.
Accessibility: In terms of accessibility, Amazon offers a 24/7 access that allows single
ordering and quicker shipping options.
Emotional Connection: Amazon allows its customers to connect personally with the
website through reviews, profiles, ratings and wish lists.
Answer 2:
Reasons behind the Strength of Amazon’s Brand
These include:

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 Amazon follows a generic strategy of cost leadership that helps in minimizing the
price levels thereby attracting significant number of customers (Rothaermel
2015). It also enables Amazon in fulfilling the vision and the mission statement
concerning global leadership and growth.
 Amazon also improves and maintains the operational efficiencies for gaining
sustainable competitive advantage.
 Amazon has a direct model for shortening the shipping times.
 Amazon also works harder in achieving value added differentiation through
information service that has been customer focused.
Answer 3:
Brand Extension of Amazon
Brand extension refers to the using of established brand name (Albrecht et al., 2013).
Brand extension of Amazon would not be disadvantageous, as unlike other retailers they possess
the ability of extracting the product reviews. This helps in benefiting the brand from the direct
feedback of the shoppers and possesses an idea about their liking and disliking. This helps the
company in making decisions about important aspects such as flavors and design. Amazon keeps
an eye on the second by second data of the product shoppers and the prices that propels them in
making a purchase. In other words, Amazon possesses the ability to visualize the unmet needs of
the market that the other retailers struggle to observe.
Answer 4:
Long-Term Effects of Amazons Marketing Actions on Brand Equity

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The long-term marketing actions of Amazon are determined by marketing mix of the
company or 4Ps that are product, place, promotion and price (Reimer, Rutz & Pauwels, 2014).
Amazon reaches out to the targeted online market through this marketing mix thereby focusing
on the price and the place components as the key points of selling. As one of the biggest e-
commerce organization of the world, Amazon can address the issue of increasing competition by
ensuring up to date marketing mix in relation to the market trends. In other words, the marketing
mix of Amazon is designed for deriving benefits from the online nature of e-commerce services
of the firm. Besides, the components of the marketing mix enabled international growth along
with competitiveness of the brand equity.
Answer 5:
Relevance of Amazon’s Product Innovation to Maintenance of Brand Continuity
Amazon innovate its services. As one of the leading players in online retail, the company
put forward a wider range of product. This product mix helped in supporting the mission and the
vision statement of Amazon. Amazon ensured continued diversification and expansion of its
products and brought about a relevance to the maintenance of brand continuity by introducing
products that addresses various market needs. These included retail goods and service, Amazon
prime, digital distribution service, Amazon Prime, Amazon video, Amazon publishing and
Amazon web services. Amazon is gradually becoming one of the world’s leaders in delivering its
brand promise providing customer centric service with the introduction of Echo, Prime and Web
Service business (Westerman, Bonnet & McAfee, 2014).

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Answer 6:
Dimension of Brand Association of Amazon
The dimensions of the brand associations depends on brand awareness, brand trust and
brand loyalty (Romaniuk & Nenycz-Thiel, 2013). Amazon reflects the brand dimensions while
carrying out its business. It creates brand aware through creation of links across World Wide
Web. This leads to higher search engine rankings for the site and makes it easier for sharing
one’s purchases through Facebook, Twitter, Pinterest and email. Amazon holds a tenth ranking
compared to the ranking held by the global brands. The brand builds trust through a sharpened
focus by persuading the shoppers in buying their own products. In order to build brand loyalty,
the company ensures selling own brands through the site. For example, Mama Bear that is one of
the baby products of Amazon is only available to the prime members. This helps the company in
drawing over 100 million prime subscribers across the world.

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References:
Albrecht, C. M., Backhaus, C., Gurzki, H., & Woisetschläger, D. M. (2013). Drivers of brand
extension success: What really matters for luxury brands. Psychology &
marketing, 30(8), 647-659.
Reimer, K., Rutz, O. J., & Pauwels, K. (2014). How online consumer segments differ in long-
term marketing effectiveness. Journal of Interactive Marketing, 28(4), 271-284.
Romaniuk, J., & Nenycz-Thiel, M. (2013). Behavioral brand loyalty and consumer brand
associations. Journal of Business Research, 66(1), 67-72.
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education,.
Veloutsou, C., Christodoulides, G., & de Chernatony, L. (2013). A taxonomy of measures for
consumer-based brand equity: drawing on the views of managers in Europe. Journal of
Product & Brand Management, 22(3), 238-248.
Westerman, G., Bonnet, D., & McAfee, A. (2014). Leading digital: Turning technology into
business transformation. Harvard Business Press.