Marketing Report: Amazon's Strategy, Mix and Organizational Context

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This report provides a comprehensive analysis of Amazon's marketing strategies, encompassing various aspects of its operations. The introduction defines marketing and its significance, particularly in the context of e-commerce and the services offered by Amazon. Task 1 delves into the roles and responsibilities of marketing functions within an organizational context, emphasizing market information gathering, distribution channel selection, marketing planning, product design, standardization, and packaging. Task 2 explores the interrelationships between the marketing department and other key departments within an organization, such as human resources, sales, and production. Task 3 compares Amazon's marketing mix (product, price, place, and promotion) with that of eBay. The report highlights the differences in product offerings, pricing strategies, and market presence. Finally, the report concludes with a basic marketing plan for Amazon, summarizing key strategies and recommendations for future success.
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Marketing essentials
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Elaborate roles and responsibilities of marketing functions in organizational context.........1
P2 Roles and responsibilities of marketing relating to wider organizational context.................3
TASK 2............................................................................................................................................5
P3 Elaborate marketing mix of organization by comparing with other organization.................5
TASK 3............................................................................................................................................8
P4 Prepare a basic marketing plan in organisational context......................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Marketing is study of manage relationship by building and exchanging relationship to
satisfy consumer base in positive way. The primary goal of selling and marketing is to create
interest in people about goods and services to build as the needs of them. It majorly focuses on
consumers to reach by satisfy needs of consumers with the help of promoting products in proper
way. This report is based on Amazon which is an American multinational technology
organization that deals in e commerce, cloud computing and digital streaming and many more
products and services. This assignment is based on various duty and functions of marketing and
their interrelationship with various departments. It also includes marketing mix by comparing
with other organization. Further it explains marketing plan for attaining potential outcomes.
TASK 1
P1 Elaborate duty and obligation of marketing functions in organizational context.
Marketing is a set of activities that enables to strengthen consumers base by evaluating
willingness in proper manner (Baines, Fill and Page, 2013). By using marketing tools and
techniques organization can be able to enhance sales and profit to enlarge business opportunities.
Amazon is one of the most starring organizations in the whole world by their excellent products
and services with their promotional mix that enables to attain competitive advantage Marketing
is an important tool and have kinds of roles that are:
Marketing functions:
Marketing plays kinds of functions that avail by Amazon to reach at large no. of
consumers by deliver right kind of knowledge and information of their products.
Market information:
The most important function of marketing is to gather important knowledge and
information about needs and wants of consumers and analyse information to arrive decisions. In
context of Amazon they have separate department that evaluate trends of market and after that
report to higher authorities (Clow and James, 2013.). By evaluating internal with external
strength and weaknesses organization can be able to take important decision regarding expansion
of products and services.
In that series marketing department evaluate quantity of products that they have to
produce and at which price their potential consumers can buy and what kind of promotional tool
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proved helpful for organization to reach at ultimate consumer. All that relevant information
should be collected by marketing department of Amazon to analyse and grab best opportunities
that available in market place.
Finding out the distribution channel:
Distribution channel is most necessary segment for an organization to deliver products
and services to the ultimate or end user. Marketing department is responsible for evaluating best
channel of distribution by identifying nature of products, financial capabilities of an organization
and suppliers of products are major factors (Blythe, 2012.). In context of Amazon they by
selecting some suppliers to reach at end user to reap out major benefits out of it.
Marketing planning:
It is the function to plan each and every activity of an organization to accomplish goals
and objectives effectively. For example an organization want to grab 25% market share by a
particular product and service. To achieve all these goals and objectives it is the duty of marketer
to prepare a best and suitable marketing plan in respect of production and promotional efforts. In
which major information consisted such as product, consumers and suppliers and budget for each
and every activity. In context of Amazon their marketing departments are responsible to build an
effective marketing plan that deliver right kind of knowledge and information not only to
organization but also to their consumers.
Product designing and development:
It is an important function of organization as well as of marketing department to deliver
right kind of products to ultimate consumer with safety(Carr,2014). Designing is very much
important because products are in greater demand which possess attractive and safe packaging.
So it can be said that possession of designer products and services are remain always in
competition and in context of Amazon their marketing department prepares one of best design
for packaging to attract large no. of consumer base.
Standardization and grading:
Standardization refers to determining standards in context of quantity, size and design of
products and services to deliver right kind of values to ultimate consumers. In context of
Amazon their products and services are very well known for their quality because they spend
huge amount on research and development and that helps to become one of leading brand name
in whole world. On other hand products have same features and characteristics throughout the
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whole world that helps to bring harmony in their products and services with consumers feel free
to purchase their product from anywhere (Malhotra, 2015). So standardization and grading are
very much important concept for Amazon to remain always competitive in market place. Hence
marketing department evaluate each and every activity of whole organization to coordinate with
organizational goals and objectives in proper way.
Packaging and labelling:
Packaging and Labelling is one of most important part when an organization deliver
products and services to their ultimate consumers. The main objective of packaging is to avoid
breakage, damage and destruction during delivery and transportation of products and services to
ultimate consumer base. It also facilitates handling of products as well as services in respect of
lifting, conveying and when consumers demand goods and services in different quantities. This
helps consumers and suppliers to carry out their material easily. The marketing department of
Amazon gather important knowledge and information about what kind of products are
demanding at present time and best packaging for that particular products so that they don’t bear
any kind of damage regarding products. On other hand labelling is one of important function of
marketing to release all important knowledge and information about products, their expiry,
manufacturing and general ways to consume the particular products and services. So in context
of Amazon they describe all necessary knowledge and information of packaging regarding goods
and services that helps in expansion of business
Hence, it can be said that marketing is one of most important tool to manage and organize
each and every activity of an organization by identifying demands of customers
P2 Roles and responsibilities of marketing relating to wider organizational context.
Organization consists of various departments that possess own objectives and goals but
they collectively work to achieve organizational enhancement (Silver, and et.al., 2012). All
departments closely related with each other and share roles and responsibilities to achieve goals
and objectives of organisation by effective communication. In context of Amazon all
departments are closely related with other and follow a structured communication format so that
they can manage each and every activity in proper way.
Relationship in various department of an organization:
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All departments are closely related with each other and share roles and responsibilities in
proper way that are as follows:
Relationship in Human resource with marketing department:
In an organization marketing department closely related with human resource
department and share roles and responsibilities by communicating in effective manner.
Marketing department provides knowledge and information regarding skills and capabilities in
market and accordingly select people in their organization in proper way. On other hand human
resource department are also share knowledge and information with marketing department major
research areas in which they have to collect important knowledge information so that major
decisions should be collect by them in context of organization. In Amazon all departments are
closely related with each other and share all knowledge as well as information for achieving
goals and target of organisation effectively
Marketing with sales department:
In an organization all departments are closely related with each other and share all
necessary knowledge as well as information so that effective decisions should be taken by
organization. Marketing department are closely related with sales department adopts various
ways and methods to enhance volume of products by adopting various tools that ultimately helps
to organization to enhance their profitability (Wilson, 2014). On other hand marketing
department gain knowledge from sales departments about responses of people that they directly
deals with people and gain important insights from them. In context of Amazon they give roles
and responsibilities to each department for achieving goals and objectives and enlarge business
opportunities. Role of marketing department is important as it share relevant knowledge and
information about taste and preferences of consumers in proper way.
Marketing with production department:
In an organization marketing department gather knowledge and provide information to
production department to reach out at desirable goals and objectives effectively(Desai, 2013). In
context of Amazon their marketing department give all necessary information such as quantity,
price and production units all are necessary information for the production department to
produce goods and services in standard quantity so that any kind of misshapes not appear in an
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organization (Malhotra, Birks and Wills, 2013). On other hand production department also
takes accent from other departments such as finance and marketing department before producing
products and services accordingly so that they can give delighted experience to consumer base.
Therefore, it has been summarized that departments plays major part to attain goals and
objectives of organisation as well as share roles and responsibilities to deliver right kind of
efforts for organization (Simkin and Dibb, 2013)..
TASK 2
P3 Elaborate marketing mix of organization by comparing with other organization.
Marketing mix is a model of business as well as set of marketing tool or technique that is
used by organisations to attain marketing objectives for specific market. Marketing mix includes
four broad levels that are product, price, place and promotion that helps to evaluate performance
of an organisation in better way.
Basis of difference Amazon E-bay
Product Amazon is leading
organization in sector of e
commerce and sells its
product through online mode.
The main ‘Product of
Amazon is their website and
apps that offers them different
kinds of product and services
to ultimate consumers. Their
retail division includes from
apparels to auto parts, toys
and electronic items and
gadgets so it possess large
product portfolio (Simkin
and Dibb, 2013)..
E bay is concerned about the
sale of the product which
creates problems for customers
because if the customers wants
to find something specific they
have to scroll a lot to find their
goods which becomes complex
and time consuming and is
known for providing techie
products.
Price Amazons is a market leader Buying products in E bay is
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and there is huge competition
in that sector as they offered
various kinds of services to
their consumers and use
technology to set their prices
and also most of time set
according to competition in
market. Their prices vary as
basis of category such as
product, time of the day and
season. Pricing strategy of
Amazon rely on competition
level and majorly possess low
prices.
quite expensive as the products
which are sold are second-
hand. E-bay does not provide
any offers, discounts or
membership by which the price
becomes cheaper and can be
easily affordable to the
customers.
Place It is a global brand and have
presence across the globe and
consumers buy their products
and services from their online
stores and from apps. Once a
consumer place the order
picture of product come in
front and also necessary
information so that individual
can take frequent decisions
about buying or not.
Firstly, e bay is not able to
provide quality products to
their customers and not make
the goods available as per their
demands. It does not provide
right place to sell the product
which becomes difficult for
consumers to attain them.
Secondly they don't have the
service centre through which
the customer can approach if
they find any issue in their
goods.
Promotion Amazon use aggressive
promotional strategy to reach
at large no. of consumer base.
They majorly focus on
As e bay is a auction site and
do not carry its own product so
while promotion they keep
main focus on the seller to sell
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advertising by using print ads
in newspapers and social
media and creative television
commercials and commence
marketing with the help of
SEO for targeting consumers.
their products which creates
doubt in the mind of customers
about the quality of the goods
as are already used. There are
chances of scammed which can
be risky for the customers.
People Amazon pay major emphasis
on their workforce
irrespective at any domain
they are working for achieve
benefit that give motivation to
give their best for
organization (Simkin and
Dibb, 2013). In main benefits
includes health insurance and
financial assistance and many
more. They have at present
2,30,800 employees at
present.
E-bay is a multichannel website
which deals with only goods.
The company has
comparatively less employees
as amazon and the they are
indulge in the feedback
procedure to analyse the
transaction and find their
position in the market.
Physical evidence The best physical evidence
with Amazon that is its
website as it is an online
retailer and their place of
services is website and apps
that are user friendly in nature
and their logo is very much
well known in all over the
world.
The process of e-bay is based
on the two fronts-buyers and
sellers. According to the buyers
front it is based on bidding
process. The buyer who has the
bid the highest gets the product.
According to the seller front,
the seller has to upload the
photos of the product to be
sold, the buyer who bid on the
product highest, get its product
shipped and payment is sent to
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the seller. E-bay provides
platform to sell goods and
services at best price.
Process They are world leader in web
and e commerce sector. They
strategically divided their
warehouse and fulfilment
centres to gain operational
efficiency in better way.
E-bay has designed its website
according to buyers and seller
where one can upload the
product for selling and other
can get the product by bidding
the highest price. E-bay has
only few stores and centres to
maintain its day to day
operation.
From the above discussion it has been summarized that there are many factors that work
behind in success of an organization (Pike, 2015). To maintain level of services firm have to pay
attention on each and every aspect so that they can be able to provide delighted experience to
consumer base in effective manner. For an organization it is very much obligatory to provide
products and services in effectively to their consumer base so that they remain always in leading
position in comparison to their fierce competitors.
TASK 3
P4 Prepare a basic marketing plan in organisational context.
Marketing plan for organisation
It is define as a framework that provide outlines for marketing strategy that can be used
for achieve objective of marketing plan(Bačík, Štefko and Gburová, 2014). Amazon marketing
plan is an overview of marketing and advertising goals, timelines of task and strategies and
description of targeted market and customers needs. Step that are include in developing effective
marketing plan are as follow.
Situation
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Marketing situation analyses refers to research and evaluate about target market, business
challenges, competitors. For effective analyses of situation Amazon needs to conduct SWOT
analyses to determine best internal and external area to focus in marketing efforts.
Strength – Amazon new brand stores will be operated by highly experienced owners as
they have ability to sell products online also. Amazon highly visible and known website
can be consider as strength.
Weakness – For setting up own clothing brand and physical stores it will contain huge
cost to company. It include high transportation cost for distribution of products.
Opportunities – Company will be able to acquire additional capital and increase more
market share. This will leads to development and expansion of Amazon by offering
proprietary products.
Threats – Competitors can imitate with better offerings to customers. Changes in
government regulations can impact on business are threats to Amazon
Objective
Marketing plan of Amazon needs to have an aim and objective that is required to be fulfil
by effective implementation. Objective of marketing plan must be detailed and clearly specify
needs, requirement and result expected(Wirtz, Tuzovic and Kuppelwieser, 2014). Amazon new
market plan objective needs to fit with overall objective of company and its should be specific,
measurable, achievable, realistic and time bounded. Objective of new marketing plan of Amazon
is:-
To introduce new clothing store of Amazon brand in different countries in order to
maximise sales of their products 35% more within 1 year.
Strategy
The success of business majorly depends upon its marketing plan(Pappas, 2017). For
developing effective marketing plan Amazon needs to develop strategies which helps in
achieving objective of plan. In this step Amazon marketing team needs to develop strategy to
identity new targeted segments and positioning clothing stores of Amazon brand. This is created
to identify tool and techniques company can use to engage customers and deliver values to attain
marketing plan objective.
Segmentation – It is refers as dividing large market into small segments based on
different needs are requirement of each segment. Amazon can create sub group of
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customer on bases of geographic, demographic, psycho-graphic, behavioural factors. This
will help in identifying which group to target.
Targeting – It consist of selecting set of buyers which share common needs that Amazon
is serving. For new Amazon clothing stores company is targeting customers of age 5 and
above. Customers who are attracted to fashionable causal and party ware cloths.
Positioning – Positioning is creating and developing brand and product image minds of
consumers(Rancati Gordini and Capatina, 2016). Amazon can improve customers
perception and build positive image about its products as customer can try cloths in
Amazon stores before buy will help in attracting customers who have little trust on online
purchasing
Action plan
In this step Amazon have to develop propose strategies into action plan. This include well
listed documents of what steps needs to be taken by order to achieve objective of Amazon
clothing stores in different areas. The purpose of action plan is to identify requirement of all
resources needed to reach goal. Amazon needs to decide its budget to setup its clothing store in
different countries. To put strategies into actual actions, Amazon have to identify products, price,
promotion and place for its clothing stores.
Product – Amazon is offering fast fashionable cloths for men, women and children in
new Amazon shores. This store will have high quality clothing products for 5 and above
age group customers for causal and party wear cloths.
Price – Price of Amazon clothing depends upon various additional factors. Price of any
product will be based upon cost of materiel and labour required in manufacturing of
item(Piñeiro-Otero and Martínez-Rolán, 2016). Price of Amazon cloth justify value
served to customers.
Promotion – This includes how company is communicating its customers about product
to attract more consumers to stores. Amazon is using traditional and modern methods to
attract customer by creating positive image about Amazon cloths.
Place – Place refers to how and where products of Amazon cloths will be distributed to
reach end customers. Amazon is distributing its own brand cloth by new Amazon stores.
Forecast
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