Customer Relationship Management and Marketing Theory: A Case Study of Amazon

This report analyzes the key marketing and customer relationship management theories used by Amazon, including marketing mix, SWOT analysis, Porter's five forces, and more. It critically analyzes the factors that influence Amazon's quality systems and controls for customers in times of crisis like COVID-19.

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Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Briefly introduce the organisation..........................................................................................1
Briefly introduce the key marketing theory............................................................................2
The key marketing and customer relationship management theory to organisation, i.e.
critically analyse the factors that influence your organisations quality systems and controls for
customers in times of crisis like COVID-19..........................................................................7
Identify the systems that support organisations quality processes and provide a critical
understanding of the extent to systems are effective in meeting customer requirements and
maintaining good customer relationships in times of crisis like COVID-19.........................9
Supplementary task........................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Customer experience is a combination of sensory, behavioural, sensory, cognitive and
affective form of consumer response as per after the consumption of adequate product and
services that is offered by any of an organisation (West, 2019). The global pandemic situations
induced direct impact over the change within customer relationship management along with
strategic functions so that experience as well as engagement of the customers is improvised in
clear basis. In order to attain the attention of customer all the businesses have worked more
relentlessly so that they are able to induced magnificent growth and success over regular period
of instance. The time of pandemic have taken a wider aspect from the customers and with this it
is hard for address personal value and priorities but still in this time as well many of the company
have worked about to maintain clear target towards fulfil choice of customer just by providing
online services.
The report below is based on Amazon and is an American multinational technology
corporation that maintain clear focus towards e-commerce, cloud computing, digital streaming,
and artificial intelligence. The report below comprises of key marketing theory such as
marketing mix, SWOT analysis, Porters five forces and customer relationship management
theories such as collaborative, analytical and operational.
MAIN BODY
Briefly introduce the organisation
Amazon is a technological company that worked over an international level or all across
the world and also be one of the biggest companies in respect of US information technology such
as Google, Apple, Microsoft, and Facebook (Rather, 2020). It is the most influential company
that is also be referred as cultural force and economic aspect in the world and it makes it the
most valuable and well recognised brand among all the respective organisations. It was founded
in 5 July 1994 by Jeff Bezos with having headquartered in Seattle, Washington, U.S. There are a
different service that is served by the company such as Echo, Fire Tablet, Fire TV, Fire OS and
Kindle. In addition there are many others services as well such as Amazon Prime Video,
Amazon.com, Amazon Alexa, Amazon Music, Amazon Prime, Amazon Appstore and Amazon
Web Services. The international operation of the company is processed as per acquisition with
the online sellers in UK and Germany and it is as in start of the business in 1998 and with this
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company begin to sell different item such as video game, home improvement items, toys,
software gaming and electronic is to advance the consumer spending and its attentiveness over a
regular period of instance (Morello, 2021). The company have worked with the 1,298,000
number of employee till 2020 and have generate the overall revenue US$386.064 billion,
operating income is US$22.9 billion and the net income of the company is US$21.331 billion.
The business has started with the online marketplace of books but after that get expands
with selling of video games, apparel, sell electronics, software, furniture, food, toys and
jewellery. Moreover in 2015 Amazon surpassed the Walmart and become the most valuable and
effective retailer in US and it is in terms of market capitalisation. Furthermore in 2017 Amazon
get acquired the whole food market and substantially increases the sale by US$13.4 billion and it
is a footprint of physical retailer (Esquivel‐Muelbert and et. al., 2019). Moreover in 2018 the
company also starts the two day delivery service and Amazon prime that also get surpassed the
100 million subscribers all across the world. Amazon is the most disrupted and well established
organisation as in terms of technological innovation as well as mass scaling in this also becomes
the largest online marketplace, live streaming providers, cloud computing platform and artificial
intelligence assistance provider.
It is the second largest private employer in US and also be the most valuable company
and in 20201 become the organisation with having the highest global brand valuation. The
distribution channel of Amazon comprises of download and streamlines video and music, audio
books as Amazon Prime Video, Amazon Music, Twitch, and Audible subsidiaries. The hyper
active demand and culture of the company is in resultant of favoured strategies with this
possibility to achieve standardised profit and long term sale both comprised in balanced manner
and offer sustained benefit to organisation over a regular period of instance (Manthiou, 2020).
The company also worked to publish the arm, Amazon publishing, cloud computing subsidiary
and film as well as television studio Amazon studios. The production and offering of consumer
electronics including Kindle e-readers, Fire tablets, Fire TV, and Echo devices is dependent over
its acquisitions over the years include Whole Foods Market, Ring, Twitch, and IMDb.
Briefly introduce the key marketing theory
The marketing is the basic aspect of the company with this working capability and its
competency get in controlled in timely constrained. It is being used by the company so as to
exploit and involve the respective difference in between the potential consumers and different
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products so that adequate range of benefit is attained with regularity (Li, Huang and Song, 2019).
It is essential for Amazon as with this effectual decision making is processed under which
integrated form of outcome is developed through which future decision making and working
capability get advances in clear manner. There are different markets theories get used by an
organisation and that is as briefly explained below as:
Marketing mix: It is a marketing theory that is used by Amazon with respect of powerful
approach in this ability to attract more of consumer towards its e-commerce platform. It is a
theory that is resultant of effectual combination of strategies and tactics that is used to implement
a balanced marketing place in ordinate manner. The company get reach towards the target with
online marketplace as by maintaining clear focus towards selling points. It is the largest e-
commerce platform with this continuous increment towards competition and market share so that
working potential get enhanced with continuity. It is an aspect that provides clear evidence about
the advancement of inability through which resilience and long term competitiveness is
processed in online retail business.
Products: It is a component that is in considered of the online retail industry with this Amazon
has offer a wider selection of products to its customers. The management of Amazon have
worked with the clear vision and mission through which continuous expansion and
diversification is processed as by addressing need and demand of the customers in relative
manner (Gilboa, Seger-Guttmann and Mimran, 2019). There are different products get offered by
the Amazon so as to address the need of marketplace such as through retail service and goods,
Amazon prime, Amazon video, consumer electronic, digital content distribution service,
AmazonFresh, Amazon publishing, video direct, Amazon prime pantry and AmazonDash. It is a
primarily form with this company provide service with this always worked to expand its
expansion as per improvement and enhancement of effectiveness in regular mode.
Place: The Company uses different venue so as to target its productive customers so that
identification of different components and its availability get in control in timely constrained.
Amazon has processed its online business that is used to reach towards its customer as from e-
commerce platform. There are different platform through which Amazon offered its product as
from official e-commerce website and Amazon books and it is processed as by maintaining
primary focus towards transaction of customers from Amazon.com, Audible.com and many other
sites as well so that specified range of benefit is attained with specific target market (Sota,
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Chaudhry and Srivastava, 2020). The company operate its physical bookstore such as Amazon
books in this customer reach and its attentiveness get in control in favoured manner.
Promotion: It is a basis that involved with the numerous strategies and initiatives with
this ability to communicate with the wider customers is processed within its targeted customer
place. The Amazon.com.inc worked as by maintain clear focus towards persuade of customers so
as to visit its website and to process online payment. There are different promotional technique
used by Amazon such as Advertising, Sales promotions, Public relations and Direct marketing. It
is primarily used to advance the communication prospect for this management worked to affiliate
the program by displaying advertisement and corresponding links of different products those are
offered by website. In support of direct marketing Amazon offer online service as per publishing
of digital content distribution with effectiveness.
Price: There are different pricing strategies are used by the company in order to maintain clear
focus about to manage and control price level as well as pricing strategies through which selling
of products and services is processed over regular manner. Amazon uses low prices so that way
of attracting customer through e-platform and its offering get in control with support of market
oriented pricing strategy, price discrimination strategy and value based strategy (Dewnarain,
Ramkissoon and Mavondo, 2019). Amazon believes to process market oriented pricing with this
management evaluate the pricing strategies and assure to provide most affordable and attractive
target customers as per involvement of adductive changes with comfort.
SWOT analysis:
It is an internal analysis that provide clear framework about to manage and control
competitive advancement with this ability to maintain dominance among retail industry is
processed in regular mode (Diebner and et. al., 2020). Amazon is a largest and leading
organisation of online retailers thus get spurred success and development as in form of online
equivalence in this market footprint and global success both perceived in aggressive manner. The
SWOT analysis of Amazon is as briefly explained below as:
Strength: It is a basis that strengthens the working possibility and ability of organisation
to attain long term growth and advancement with this capability to drive long term success and
development is processed systematically. The management of Amazon assure to use three
pronged strategies that thrust the cost leadership, focus and differentiation in primarily basis
(Bueno and et. al., 2019). In this company reaped to gain adequate actions with this effectual
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value and benefit is attaining in effective manner. The competitive advantage and market
presence is strength of Amazon as it leverage towards information technology so that usage of
scalable and assure platform takes by business ahead of its competitors.
Weaknesses: The usage of diversification strategy by Amazon is a weaken aspect as it
mean to “spread itself too thin” which allows the business to maintain clear focus about to waver
core competency in online selling of books. The free shipping also be danger for Amazon as it
reduces the profit margin of business that more often reduces the ability to attain optimised range
of benefit in terms of costing. The management works with the zero based margin model of
business that dented the rate of profitability in this profitable translation is reduced.
Opportunity: It is an aspect that rolled out due to online payment system with this
Amazon is able to grab adequate market opportunity that scale up the economy of business
(Foltean, Trif and Tuleu, 2019). The profit generation of business is dependent over the concern
of privacy and security as it is the major issue in customer minds but it induce direct profit to the
profit margin for company so that company starts its own gateway of payment. In addition the
diverse range of increment in the portfolio of business induces positive impact over the business
in this comfort translation of payment is processed in successful manner.
Threat: Amazon and its success is processed as per concern of online shopping but the
identification of online hacking and theft reduces the data exposure of customers. In this quick
movement is processed by Amazon towards ally of customers for this online privacy and security
is guaranteed. The aggressive pricing strategies of the business enhance the lawsuit over
publishes and the obsessive focus towards cost leadership tends the Amazon in trouble.
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Porter’s five forces
It is a strategically framework that is used by an organisation in order to take competitive
advantage from its competitors with this ability to learn and conceptualise sales and productivity
is processed in clear basis (Porter’s Five Forces Analysis of Amazon, 2021). Amazon is a
company that maintain clear and sustained target towards the e-commerce platform along with
artificial intelligence, cloud computing and live streaming. Moreover, Amazon maintain clear
focus about to induce consistent improvement within customer experience with this user friendly
face is processed as by offering of many other services as well such as Amazon Prime, Alexa,
Kindle, Fire TV, Amazon Fresh and many others as well.
Threat of New Entrant: It is a force having low basis as Amazon is an e-commerce website and
it is difficult for the new entrant to compete with such a giant competitor (Lopatovska and et. al.,
2019). There is a massive investment induced by marketing, user friendly website, distribution,
warehousing, logistics and customer service and many other factors as well. The switching cots
also are low and the brand development make difficult for competitors to compete in competitive
marketplace.
Bargaining power of buyers: It induced higher impact and Amazon usually emphasis
towards customer satisfaction as with the aim to provide higher value to its customers. The
company have perform all its function in concern of customer centric approach with this provide
guarantee to offer higher quality on timely constrained. The online service streamlines the
availability of substitute through which competition thus company assure to favour satisfactory
maintain to attain long term sustainability.
Threat of substitute: It induces higher impact as Amazon compete with many of
substitute in online retailing as the biggest hurdle is low switching cost thus it is easy for
customer to make adequate change. In this Amazon worked to fulfil necessity of its customers
thus provide goods and services at affordable prices (Lubis and et. al., 2020). The direct focus is
maintained by Amazon is to attain success over enhancement of customer experience.
Bargaining Power of Suppliers: It is lower to moderate impact over Amazon as e-
commerce business influences the suppliers on higher level with this retailer not able to serve
services to its customers. Amazon acts as prominent business within this all the different retailers
have to follow all the strict rules and regulations that is laid by management. In addition Amazon
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also maintain target toward strict emphasis on ethical working aspect so that integrated form of
supply chain is processed.
Competitive Rivalry: It is basically processed from moderate to high as Amazon having
strong competitive face with this rivalry within online retail is enhanced (Hoyer and et. al., 2020)
(Migdadi, 2020). There are number of players or businesses get entered to enhance the retailers
such as small scale brands and many other start-ups as well. For instance, Walmart, Flipkart,
Alibaba, eBay and many others too and with this Amazon are facing tough competition on
regular basis. The availability of substitute and low switching cost induced higher pressure over
management thus Amazon assure to provide higher quality product and services over regular
basis.
The key marketing and customer relationship management theory to organisation, i.e. critically
analyse the factors that influence your organisations quality systems and controls for
customers in times of crisis like COVID-19.
The customer relationship management is a basis that is used by an organisation in order
to manage and control the sustained and relative interrelation with the customers or potential
customers within specific target marketplace. It assists the company and management to stay
connect with the marketplace in ordinate manner that not only streamline the process but also
improvise the profitability. Amazon is the most riches as well as customer oriented company as
many of potential customers believe and trust towards the online retailing services offered by
business. The company performs customer relationship management with this various advantage
is attained over a regular period of instance.
The CRM activities advance the essence of e-commerce platform in this Amazon and its
management worked to contact the customer services with relatedness (Amazon CRM – How to
Master the E-Commerce CRM Strategy?, 2021). There are many of the customers those believe
of having adequate support over smooth shopping as with this comprehensive working is
processed that seamless towards advanced compromise and safer transaction with perfection
(Moutinho and et. al., 2020). There are various loyal customers those get followed the
requirement and be the follower of Amazon as they have believe that management must offer
quality products and services with affordable and reliable prices.
Create an Interactive User-Interface: It is basically a beauty of Amazon with this highly
intuitive and easy practice is involved as per usage of balanced interface and in this online
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website act as a bliss with this online shoppers get worked with adequateness. It also get reduces
or minimal, navigate and easy to understand for the management in this Amazon offer higher
quality images to its customers so that they could have see actual product, precise description as
all the required information that is essential or to be known by the customers, clear the visibility
of price and offer, include both bold as well as visible rating, easy and flexible checkout process
along with structured categories. These all are the fundamental elements with this Amazon
advances the shopping experience so as same with traditional grocery store as it include the size,
amount and quality as per likeliness of customers.
Make Self-Help Easy: It is comprehensive user interface and in-regardless of all Amazon
and its management maintained clear focus and concern about to robust and enhance the service
provision such as review of order, check out the FAQs or contact, manage accounts and
customer support representatives (Signori and et. al., 2019). It this all the required and possible
information is access in single page moreover if customer have any problem or issue about to
find the adequate product thus they are requisite about the search bar through which search get
processed in down. It induce favourable benefits for advancement of volume of Amazon with
this accurate sources are supported under which time controlling also processed within this
management answer all the queries of customers and it is processed by the services
representatives. Moreover with this impressive changes and adequate support is processed that
encourage the customers resolution of answers with this significant changes is induced in
flexible manner.
For employees
Amazon takes favourable actions so that its employee, community and customers get
affect through the pandemic of COVID 19. The company provides the employment opportunity
to 10,000 numbers of workers in March and after that added 75,000 more so that demand and
need of customers must get fulfilled and delivery of all the essential products will processed with
perfection (Amazon’s actions to help employees, communities, and customers affected by
COVID-19, 2021). In this Amazon also get invest towards safety measure of COVID 19 and it is
about $800 million. Moreover also increases the amount of sick day and pay for the employee
those diagnosed or place in quarantine due to COVID 19. The management of Amazon also
assure to provide comprehensive health benefits as per with day of employment, the Amazon
relief fund of $25 million also contribute towards adequate support in which independent service
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and delivery is partnered and its contractors i.e. drivers. The company provides the annual letter
to its shareholder in which CEO Jeff Bezos itself thank to the entire employee as by addressing
the entire employee those are working at floor on continuous manner.
For customers
The company make different platform for the entertainment of public as through Amazon
video and music along with many others services as well to its customers (Liberty and et. al.,
2020). The management work vigorously as per combat price that gouging work at fair prices so
that it is easy for the customers to exploit from current crisis. In addition the management also
process continuation to enhance the cleaning of physical stores with this they have encouraged
about contactless and safer delivery for its customers.
For community
Amazon as in Europe, have committed to share about €21 million so that many of the
people affected due to pandemic of COVID 19 get saved as their lives are more important to
their family and society. The company also get hired 100,000 both part and full time employees
all across and now also looking forward to add more employees as about 75000 all across globe.
The management also provide and donate mask to the EU public health service and online
STEM services to the students so they could process their studies on regular basis (Keiningham
and et. al., 2020). For this adequate support is provided to the virtual classes with this no such
cost is required in terms of resource and it is processed by Amazon Future engineer. Moreover,
company also provide free content to its customers as like music, video and books that is
available at Amazon devices so that they could stay home and get connect themselves to
different activities.
Identify the systems that support organisations quality processes and provide a critical
understanding of the extent to systems are effective in meeting customer requirements and
maintaining good customer relationships in times of crisis like COVID-19.
The quality process of Amazon is always been an essential part of supply chain in this
clear step is ensure about to attain better goods so that pre-inspected is taken before shipment
under which all the quality related issues get resolved as before arrival (McColl-Kennedy and et.
al., 2019). In this management assure about to meet all the technical specialisation with this
quality control and its requirement is processed before paying any certain balance. It is an
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advantage for the quality control so that online seller makes favoured participation to control the
quality prospect under ordering and delivery.
There is favoured stages that is monitored in process of quality processing as the
adequate picture of product and services is taken, the dimension and measure are recorded,
functional testing, visual inspection to search about any of defect and damage, drop testing,
verification of label, packaging and water pressure tests. The quality control is always being
important as with this long lasting impact is induced within drive of quality products and
services with this brand reputation and its recognition both get controlled in timely constrained
(Fernandes and Pinto, 2019). There is a transparency program that used to ensure about genuine
products as via transparency code system that is used to enrol the product under system, the
registered brands used for about each product and service, during shipping Amazon assure
similar code get scanned so that authenticity remains the same and customer make adequate
support to check received products as per green checkmark for all its product.
Moreover there is much other technique and tools are used by Amazon with this quality
control and its measure is processed with perfection and in systematic manner (How Amazon
Uses Six Sigma and You Can Too, 2021). It is a data driven approach with this all the standards
and deviation get in control through which continuous success and growth is placed to embrace a
balanced surround. The six sigma and lean manufacturing principle get used to make productive
and prominent changes within the operational aspects under which deliberate efforts are induced
as by selecting prior talent. In support of this technique central focus is maintained towards
streamline operations with this effectiveness get induced in terms of daily practice. In this
management assure to make optimised utilisation of all the resource so that wastage also gets
reduced along with this profit and its margin is advanced perpetually. Furthermore the designing
and production is completed on the basis to achieve maximum efficiency as per consideration of
resources and its costing that induced a sustained growth of business in balanced manner.
The customer relationship management is basically get in control as by paying favoured
attention towards the developed of suitable relations with the customers so that working
proficiency and its productiveness is advanced in clear basis (Chylinski and et. al., 2020).
Moreover due to the crisis generate due to COVID 19 and its pandemic Amazon launches the kit
of COVID 19 test collection for its customers and it is processed as per concern of customer and
employee. In this billion of amount is investment to process and build sustained relations with
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the front line employee and the customers those require regular based testing. The global
emergence is usually dependent over the daily shift and routine that induced direct and sustained
force towards quick change in this employee and customer both get favoured about of changes in
suitable manner. The Amazon also be helpful for the organisational transition and it is dependent
over cloud based computing in the wider accessibility is transformed in effective and efficient
manner. The COVID situation and in return of it all the customers make easy and better
availability of the taking calls and response in respective manner. The traditional legacy of the
contact centres assist to make more often run towards agility as well as flexibility in this global
cloud infrastructure is designed to leapfrog (Goodman, 2019). It is unprecedented and sudden
pressure for this Amazon and its management measure sustained control towards of demand and
pricing. To manage the working consequences with prospect of crisis the company emerge to the
strongest position as by maintaining regular flow of services as “through-cycle” with this
communal flow in terms of customer and community is developed with support of an integrated
approach towards sales and marketing. The company not provide take favoured steps for the
customer but also to the employee so that they could have better and a safer platform during flow
of different product and services as with continuous mode.
Supplementary task
The experience of customer is related to the business offerings and its impact over customer
feeling and perception as by belonging to overall customer journey path. It usually maintains
lead towards sustainable competitive advantage that is resulted towards the quick evolvement
after the impact of COVID 19. The customer having lot of options in the market and they would
have select the one which is more suitable and relevant for them and it is also be in relation to the
probability of business to fulfil the priorities and demand of customer over a regular period of
instance. The pandemic make the working condition even more badly and with this working
culture and its attribute both get affected on direct basis. As all the organisation get followed
several of rules and regulation as per in provision of safety and security due to pandemic attack.
In this different strategies get developed and processed by the company so as to emphasis direct
target about to fulfil the need and demand of the customers along with that also assure that
processed services are with quality and hygiene maintenance. Amazon is processed in this and it
is a multinational organisation that processed its business in an e-commerce platform and
artificial intelligence. In addition there are different strategies and key marketing theories that is
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used by the Amazon so that ability to gain favoured amount of change within the strategic
development and advancement is processed on regular basis. There are different theories that
make adequate support to business with this possibility to achieve long term success as with
support of sustainability is processed with continuity. Moreover there are various theories that
are used by business and that is as SWOT analysis, porters five forces with this strategic
framework is applied to measure internal capability and competency of business. Furthermore,
customer relationship management is processed under which ability to make suitable relation
with customers is designed so that capability to take advanced profit and wider market share is
developed in appropriate manner.
CONCLUSION
It has been concluded from the above that customer experience is related to the customer
consumption process and it comprises of pre-purchase, consumption and post purchases stages.
The company have worked to attain favoured attraction of customers so that working
attentiveness and its possibility both get developed in clear basis. It induced beneficial aspect for
the organisation as the potential customers increases the customer base and its attentiveness so
that probability to work progressively and to enhance market reach is enhances in timely
constrained. The marketing is also being an essential aspect with this market attentiveness and its
possibility to connect with more of customers is developed in clear manner. For this organisation
uses marketing and its respective theories with this working attentiveness and credibility to attain
higher competitive advancement is processed with perfection. Moreover the customer
relationship management is programmed by the company so that sustained interaction and
connection is developed with the customers with this long term sustainability and potential
growth as well as success is perceived with adequateness. The COVID 19 also induces negative
impact over the working possibility of business for this it is required that business maintain clear
target to pertain hygiene and respective flow of services that is required by the customers.
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