Marketing in a Digital Age and Corporate Social Responsibility

3000 words plus ppt

Marketing in a Digital Age
and Corporate Social
Responsibilities

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
What was the business opportunity for Amazon? How did the company capture it?.................1
Identify Risks and Opportunities for Amazon in entering in this new market...........................3
Prepare a short marketing project for launching the Whole Food and Amazon cooperation,
from market research to operational marketing..........................................................................5
Analyse the impact of this new business model on the social and economic environment........7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing is a strategy formulation that is used by the business as in order to promote
and create more awareness about the offered product and services within the business
environment. It is a set of action that has been selected by which business so as to promote and
advance product selling along with this it is based on the conduction of market research and
advertisement. It is a profitable aspect that is basically used to achieve both short and long term
goals and objectives within the stipulated period of time (Bala, 2018). In addition digital
marketing is referred to advertisement that is performed as from the different channels as like
website, social media, search engines, mobile application, emails etc. The following report is
based on the case study of Amazon that is the world's largest and valuable online retailer and it
was established in 5th July 1994 in Seattle, Washington and it was founded by Jeff Bezos. The
report includes different business opportunities for the business and the way to capture it,
identification of risk and opportunities to enter in new market, short marketing project to launch
whole food and Amazon cooperation from market research to operational marketing and impact
of new business model on social and economic environment.
MAIN BODY
What was the business opportunity for Amazon? How did the company capture it?
In support of marketing the company has make adequate communication within the
marketplace and also tries to deliver and exchange more values as by offering productive
services. It actually imparts better market value and image of the product that is directly related
to customers, clients, society and its partners as well. The business opportunities that is gained by
Amazon is necessary to get noticed as it helps to attain sustained growth and development in
timely basis. These opportunities must get analysed by Amazon and with this they have also
captured that on continuous basis so that perfect balanced is maintained within the sustainability.
Ansoff Matrix: It is a matrix that has been used by the business in order to define and
examine different working state so that productive outcome is conceived with more perfection. It
is basically a strategic management tool that provide certain framework to the business or its
higher authority by which better growth is attained in future time period (Chaffey, 2019).
Amazon has uses this model in order to analyse the marketing opportunities that is achieved
while merging with Whole food market and it is as explained below as:
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(Source: The Ansoff matrix, 2020)
Market development: It is a strategy through which business has worked over in the new
market but with the existing product and services. In this the company has tries to cover the
better advantage from the competitive marketplace so that target the adequate market on the
basis of geographical (Diez-Martin, 2019). If this has been selected by the Amazon than they
have select different channel as in order to manage the sales and profit as it is used to enhance
the current selling of different intermediaries. In addition the larger market is targeted rather get
differentiate on the basis of gender, age, demographic aspect of the customers.
Diversification: It is quite riskier strategy that is used by the business to more often
identifies the larger scope of the business. In this the company has worked over with the existing
product and with this the better economies of sale is measured. In this the business has tries to
sell completely new product within the newer marketplace. If it is used by Amazon than it is only
due to expand the business and its opportunities in beneficial manner. In this it is requires that
company has put all its efforts as it is hard to gain success over new market thus for this market
and customer analysis is essential as it provide detailing about the demand and requirement of
market.
Market penetration: It is a kind of strategy that is selected by the business in order to
worked over existing products with existing services and goods. It is used to enhance the loyal
and potential customer base and for this Amazon promotes its services by performing certain
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promotion and advertisement. It is an activity through which business has worked over to
developed and advance the sales as in relate with its competitors. It is most useful aspect for any
business as in this better awareness and market share is developed that helps Amazon to gain
more success on repetitive mode (Hanlon, 2019).
Product development: In this strategy the business has launch new product and services
within the existing marketplace. In this the company has worked over to extant the business
portfolio by which different variants are provided within the market so that larger value is
increases in sustained manner. In this Amazon required to make innovation and creation within
the offered products and services so that customer services and quality of products is increases as
within the lesser time period.
In relation to the above analysis it is analysed that Amazon must have select market
penetration strategy in which they have worked over to its food services. In addition the
company has make merger with the Whole food market by which larger market is acquired by
them and it resulted into more sale and better profit generation. In this Whole food market will
get acquired with the market share of $42 that has valued of about $13.7billion in debt. As it is
the largest and leading organic and natural food supermarket (Hofacker, 2018). Thus while
collaborating with this Amazon is able to develop trust and believe in the market place and in
this more sales and revenue is created with effectiveness.
Identify Risks and Opportunities for Amazon in entering in this new market.
The identification of risk and opportunities are the most basic concept for the business as
it assist to imply certain set of actions so that largest amount of sale is developed in constantly.
The analysis of risk is more vital and in this business has take certain actions by which they
could easily cope over from the complex situation and gain more success with perfection. On the
other hand Amazon has entered into the newer market of online food selling thus it is essential
that they have measure both risk and opportunities in appropriate basis.
PESTLE analysis: It is an analysis that is used to measure macro-environment factors
that has direct impact over the internal and external working of the business. It is used while
starting new business or while entering into newer marketplace and it is as explained below as:
Political: It is related to the government activities such as its rules and regulations that is
developed to maintain equilibrium conditions in between the workings. In this balanced focus is
concerned about the development. Amazon has worked over the digital or e-commerce platform
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thus the stable condition of US and Europe develop more opportunity for the business and its
growth. The government also provide more support as well to the e-business that bring
opportunity for Amazon (Hollensen, 2019). In addition to the governance also enhance its efforts
towards to cyber security through which it is easy for Amazon to expand its portfolio and
diversification in successful manner. In addition to this there is few risk as well like the market
competition has been raised and small ventures also operate similar functions that cuts down the
profit cost of business. On the other hand the pandemic attack of COVID also be riskier for the
growth of Amazon as people stop spending much amount to purchase other items that has slows
down the sales generation of business.
Economical: It is a factor that is related to the economic stability of the country and
defines the situation for both online and offline businesses. The US has better stability in terms
of economic basis so that developed market is promoted. The disposal income of the country is
increases and it is the biggest opportunity for Amazon as the likelihood of public is enhances. In
this the risk for e-commerce business is reduces and also assist to boost the financial
performance of the company. On the other hand Amazon has some risk as well that is generated
from increasing penetration of China reduces the profit share of business.
Social: It is related to the market trends as according to this the business performance has
been changes respectively. The increased level of consumerism within the developed countries is
an opportunity for Amazon (Kingsnorth, 2019). The buying habit of the market also increases
and customer are getting more dependent on the online services that is favourable aspect for
Amazon. On other hand, wealth disparity is increases and it is riskier for companies growth. As
it increase the market gap in between poor and rich people as it stagnant income level as well.
Technological: It is related to advancement in terms of technologies and Amazon
business is completely centralised on it. The customer efficiency towards information technology
resources is getting advance thus it is an opportunity for Amazon. On the other hand there is few
risk as well that is developed from the increases consequence and rates of cybercrime threats. In
this people has a threat of fraud so that profit generation is reduces. The rapid increment of
technological obsolescence is also be threaten for the business and for this it is required that
Amazon make significant investment to measure long term survival.
Legal: It is adhere by legal requirement of business and have direct influence on its
operational regulations. The rising awareness of e-commerce is an opportunity for Amazon and
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along with this import and export regulations has positive impact over the working condition of
business. It actually intensify the sales and profit of business by which sustained growth is
measured by which accessibility of company increases. It strengthen market position and value
of Amazon on the other hand to manage the risk it is required that company has follow all rules
appropriately.
Environmental: Amazon has worked on online platform but its operation has direct
influence over the business environment (López García, 2019). The public has take interest
towards different program about environment development by which business sustainability is
also increases. The Amazon has worked to increase more popularity so that carbon emission is
reduced. It helps to connect with more of the customers so that higher response is attained as by
managing waste management and control energy consumption.
Amazon gets more profit as from the country stability and economic advancement so
that working standard of business is getting increases on repetitive basis. In this Amazon make
strong relationship within the marketplace in which customer are more attracted so that it is easy
for business to attain more profit and sales for longer period of time. The customers are more
attracted towards the e-commerce as it provide easiness and flexibility in shopping. In addition to
this to manage and control the risk Amazon has worked over to operate various functions in
effective and systematic manner. It assist to make strong relation with the customers so that
better stability is attained by which Amazon strengthen its brand image and value along with
corporate social responsibility.
Prepare a short marketing project for launching the Whole Food and Amazon cooperation, from
market research to operational marketing.
The marketing plan describes the different components that outline sustained marketing
strategy so that productive ending is resulted in sustained time period. This plan actually
involves respective information about both short and long term goals and objectives that they
want to achieve in certain period of instance (Nunan, 2019). Digital marketing plan is being used
by the business in order to make effective utilisation of different digital technologies so that
larger customer base is developed by which sustained profit is accomplished. Amazon has
analysed different components that is used while launching the business with Whole food
cooperation. In this clear objectives and target is addressed that impart better clarity for Amazon
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in order to collect market attraction. Following is the marketing plan that is followed by Amazon
as from market research to operational marketing:
Vision- Amazon has worked with the vision to attain more sales while working on online
food supply. The company has always looking forwards to grab attention and attraction of
potential customers.
Mission- Amazon has a mission to provide the most hygiene and healthy food items to
the customers so that they could satisfies more and it directly related to the advancement of profit
share.
Marketing objective- The marketing objectives of Amazon is to increases the sales and
its portfolio while introducing food delivery to the customers which is more clean and hygiene.
In this the company tries to enhance to sale of about 25% within the upcoming 7 month time
period (Olson, 2018).
Situational analysis- It is being used to manage the market position of the company and
for that balanced level of strategies and initiatives are taken.
Strengths- Amazon is the most recognised brand and have worked with 351000 number
of employees all across the world and it makes them biggest company in worldwide. The online
portfolio of Amazon is also be larger and arrow of its logo represent A to Z. Amazon is customer
oriented and for this they have always induce innovation and differentiation.
Weaknesses- The business model of Amazon is imitable and having limited presence of
brick- and mortar thus they have faces some failures as well. Amazon also has lesser profit ratio
and margin in some products that reduces the market stability.
Opportunities- The online selling is being increases constantly and it helps to expand the
working operations in effective manner (Perreault, 2018). Amazon make merger with Whole
food and in this they have cover largest market and its trust by offering healthy food packages.
Threats- The rate of cybercrime has been increases and it is the biggest threat of Amazon
along with this they have also face aggressive competition through which profit share is reduces.
Marketing strategy- Amazon advances the technological advancement by making more
innovation and creation as in this productive ending is conceived.
Social media marketing- It is the most suitable tool that is used by Amazon as in this
more attraction is developed in the competitive marketplace.
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Target market- The youth is being more concerned about food and for this they have
ordered food online as well thus Amazon has target youth of age group in between 18-35.
Analyse the impact of this new business model on the social and economic environment.
The impact of new business model is based on the different aspect that is utilised by
Amazon in order to make merger with Whole food market.
Porter's five force model: It is a model that is used to analyse the competitive business
environment that helps to increase economies of sale. It is as explained below as:
Rivalry among existing firms: Amazon has worked over large portfolio as from Chinese
beauty products to expensive caviar and also faces a strong competition. The website of Amazon
has covered A to Z products and services and despite of online application its competitor as
Walmart also provide similar kind of services to its customers and in order to differentiate the
services Amazon make changes in its convenience stores (Saura, 2019). As by walking through
store the online account of Amazon is charged according to the items that is demanded by buyer.
Bargaining power of suppliers: Amazon has worked on wider products and services thus
they need a lot of raw material and equipments that aid to make selective goods. Thus the power
of suppliers is quite less and in this Amazon is in profit as they get raw material at minimum cost
thus they could attain higher profit margin that assist to gain long term sustainability in easiest
manner.
Bargaining power of buyers: Amazon is largely dependent on single modality so as to
constrained potential customer and limited growth. The company works with the customer
centric approach that has direct influence over the buying behaviour of customers (Song, 2018).
The information quality system of Amazon is stronger and there is higher availability of
substitute within the market a well and it make easy for customer to switch the services as like
towards Walmart.
Threat of substitute: There is an aggressive competition and along with this availability
of substitute is also high. There is lot of competitor of Amazon such as Walmart and they always
add different constraint in its products as in order to attract more customers. Thus Amazon must
have considerate individual modality so as to gain more profit. In addition Amazon make merger
with Whole food as in order to emphasis the level of connection with the customer as by
providing hygiene food and services.
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Threat of new entrant: It has quite low intensity as there is tough competition within the
marketplace but along with this Amazon has international presence. Thus range of potential
customer of Amazon is much larger thus they have less threat of new entrant. In addition it is
also hard for the new business to sell product at higher quality and lower prices (Teixeira, 2018).
Amazon is in profit as in terms of sale as due to larger market- base the ability of company to
influence customer is more.
Amazon make merger with Whole foods market and with this they have acquired the
other business in cash transaction and it is valued of about $13.7billion. The whole food market
provide organic and healthy products in its supermarket and having 260 stores in US, Canada
and having revenue of $16 billion. It is the sixth large grocery store in UK thus while
collaborating Amazon gain more profit along with this its market share and position both
increases.
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CONCLUSION
It has been summarised from the above report that marketing is the most basic
phenomenon that is followed by the business in order to promote goods and services in
marketplace. It helps to gain more profit and in support of digital marketing business has
increases the standardised outcomes in timely constraint. The business must have analyse the risk
and opportunities that is developed continuously as it helps to enter into the new market with
better easiness. Furthermore the marketing plan is produced through which operational functions
is processed in flexible mode. At the end, new business model that is attained by business is
measured in order to acknowledge its impact in terms of both social and economic environment.
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REFERENCES
Books and Journals
Bala, M. and Verma, D., 2018. A critical review of digital marketing. M. Bala, D. Verma (2018).
A Critical Review of Digital Marketing. International Journal of Management, IT &
Engineering. 8(10). pp.321-339.
Chaffey, D., 2019. Digital marketing. Pearson UK.
Diez-Martin, F. and et. al., 2019. Research challenges in digital marketing: sustainability.
Sustainability. 11(10). p.2839.
Hanlon, A., 2019. Digital marketing: strategic planning & integration. SAGE Publications
Limited.
Hofacker, C.F., 2018. Digital marketing: communicating, selling and connecting. Edward Elgar
Publishing.
Hollensen, S., 2019. Marketing management: A relationship approach. Pearson Education.
Kingsnorth, S., 2019. Digital marketing strategy: an integrated approach to online marketing.
Kogan Page Publishers.
López García, J.J. And et. al., 2019. Digital marketing actions that achieve a better attraction and
loyalty of users: An analytical study. Future Internet. 11(6). p.130.
Nunan, D. and Di Domenico, M., 2019. Older consumers, digital marketing, and public policy: A
review and research agenda. Journal of Public Policy & Marketing. 38(4). pp.469-483.
Olson, E.M. And et. al., 2018. The application of human resource management policies within
the marketing organization: The impact on business and marketing strategy
implementation. Industrial Marketing Management. 69. pp.62-73.
Perreault, W.D., 2018. Essentials of marketing. New York: Mc Graw Hill.
Saura, J.R. And et. al., 2019. Digital marketing strategies based on the e-business model:
Literature review and future directions. In Organizational Transformation and
Managing Innovation in the Fourth Industrial Revolution (pp. 86-103). IGI Global.
Song, R. and et. al., 2018. When marketing strategy meets culture: the role of culture in product
evaluations. Journal of the Academy of Marketing Science. 46(3). pp.384-402.
Teixeira, S. and et. al., 2018, June. Main factors in the adoption of digital marketing in startups
an online focus group analysis. In 2018 13th Iberian Conference on Information
Systems and Technologies (CISTI) (pp. 1-5). IEEE.
ONLINE
The Ansoff matrix, 2020. [Online] Available through:
<https://www.mindtools.com/pages/article/newTMC_90.htm>.
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