Marketing Assignment: Amazon's Strategies and Analysis

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This report provides a comprehensive analysis of Amazon's marketing strategies, focusing on the roles and responsibilities of the marketing function within the organization. It explores the interrelationships between marketing and other departments such as finance, operational management, and human resources, highlighting their collaborative efforts. The report then delves into a comparative analysis of Amazon's marketing mix (7Ps) with that of Flipkart, another major e-commerce player, examining their approaches to product, price, place, promotion, people, process, and physical evidence. The comparison aims to identify the strengths and weaknesses of each company's marketing strategies. Finally, the report concludes with a proposed marketing plan for Amazon, outlining key objectives, strategies, and tactics to achieve its business goals.
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Marketing Essential
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Key roles and responsibilities of Marketing function.......................................................3
P2 Role and responsibilities of marketing relate to wider organisational context.................5
TASK 2............................................................................................................................................7
P3 Compare ways in which different organisations apply marketing mix to marketing
planning to achieve business objectives.................................................................................7
TASK 3..........................................................................................................................................10
P4 Marketing plan for an organisation.................................................................................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16
.......................................................................................................................................................17
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INTRODUCTION
Marketing is referred as activities which are taken by organisation in order to promote
purchase and selling of goods and services. This is done through help of various selling,
advertising, delivering goods to business or consumers (Baker, 2016). It is also regarded as
management and study of exchange relationship. Marketing helps in creating relationship and
satisfying consumers. It is considered as collection of institutions, activity, procedure for
communication, creation, exchange and deliver offerings which has value for clients,
community, society, clients, partners and others. It is very important for organisation to have
proper marketing channels so that business can achieve goals and objectives in effective manner.
The given assignment is based on Amazon which was founded in 1994. It is multinational
organisation dealing in various products and services. It focuses on digital streaming, e-
commerce, artificial intelligence and cloud computing and regarded as one of four big
technologies. Amazon has initiated business by selling books online and later on expanded to
furniture, clothing, jewellery, video games, apparel, jewellery and others. This report covers
various role of marketing and their interrelationship with other functional units of organisation. It
also covers comparison of organisation of marketing mix to achieve overall business objectives.
Lastly, marketing plan has been prepared to achieve goal of firm.
TASK 1
P1 Key roles and responsibilities of Marketing function
According to Philip Kotler, marketing is defined as science and art of creating,
delivering, exploring value in order to satisfy needs and demand of their target market for
earning profit. Marketing helps in identifying unfulfilled desires and needs of their consumers. It
measures, defines and quantifies various size of market and their potential consumers (Barrales‐
Molina, Martínez‐López and Gázquez‐Abad, 2014).
There are different roles of marketing which helps in promotion of firm and mission of
company. The marketing department helps in reaching their prospectus, investors and customers
that represent corporation image in market (Functions of Marketing, 2019). The roles and
responsibilities of marketing function are as follows:
Product Design and Development- The designing of product plays an essential role in
selling of product. Here, organisation whose goods are designed in better and attractive manner
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leads to sell more than those whose designing is weak. The product design and development can
help Amazon in better manner to achieve competitive advantage. This should be developed on
continuous basis so that consumer gets attracted to organisation and their products. The role of
this function helps in attracting large number of customer towards products and their services.
Responsibilities of product design and development functions is to hire skilled and talented
employees for designing of products and services. They should consider requirements of
consumers so that proper execution can be done. Also they need to analyse any issues related
with product and solve it timely.
Financing- It is the most important marketing function for each and every organisation.
The finance manager of Amazon should make proper planning and budgeting for their business
and accordingly allocate funds for various department. The equal division should be made for
every department such as marketing, operation, production and others. This function of
marketing requires highly skilled and capable person so that better outcome can be achieved
(Beck and Reichert, 2012). The main role of financing marketing is to acquire and utilise funds
for carrying operations in effective and efficient manner so that goal and objectives can be
achieved. The responsibilities of financing functions are to make proper planning, controlling,
reporting, short and long terms business strategy.
Customer Support- Customer are considered as king of market. It is crucial functions of
marketing which helps consumers to offer help and support whenever required. Amazon should
provide various services to consumers in terms of after sale services, technical, solving
complaints of consumers, maintenance and credit facilities. This can provide satisfaction to
consumer, helps them for competitive edge and encourage them for specified goods and services.
The role of customer support function is to assist consumers and solving their queries and
complaints. Their responsibilities are to provide them proper information about goods and
services, answering their questions in effective and efficient manner. This can help them in
achievement of goals and objectives in better and effective manner.
Marketing Information- It is an essential functions of marketing which helps in
gathering information about market and their workplace. This helps in knowing about consumer
need, price they can pay, types of advertisement required for creating awareness and others
(Bigat, 2012). Amazon is large e-commerce business which requires lots of market information
for knowing about their consumers and requirement. The role of marketing information is to
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analyse past record of sales and interpret cost which helps in evaluation of performance and
providing various useful fact and data for future planning. Similarly, responsibility of respective
marketing function is to make decision for business on basis of information taken from market.
Therefore, it can be summarised that marketing is essential function of respective
organisation in order to carry operations and achieve goal and objectives. The functions of
marketing should be implemented in effective manner so that firm can achieve their goals and
objectives.
P2 Role and responsibilities of marketing relate to wider organisational context
Marketing is defined as management and study of exchange relationship. It is considered
as business procedures for creation of relationship with their consumers and satisfying them
(Biggemann, 2012). This is premier components of organisation management where all activities
depend on it for better outcomes. There are various roles and responsibilities of marketing
functions which are liable for growth of company. This includes functions such as market
research, product development, distribution, communication, planning, finance, selling and
promotion. In wider organisational context, it has various roles and responsibilities with other
department. The interrelation of marketing functions with other department are described below:
Marketing With Finance- Both marketing and finance are considered as two most
essential pillars of company in order to achieve profits and growth of corporation. The finance
department has to perform various functions related with financial aspects such as costs and
profit calculation, feasibility of project, preparation of balance sheet, profit and loss account.
Similarly, marketing focus on sales target, volume of sales of Amazon organisation. Both
department work together for effective outcome. Here, marketing provides information to
finance regarding requirement of funds for various activities such as promotion, advertisement
and others (Chang, Yu and Lu, 2015). The finance department need to allocate money for all
other departments running inbusiness so that effective outcome can be achieved. In this way,
both should work effectively so that business can sustain, growth and survive in competitive
market. Therefore, these departments are very important for organisation to get success through
competitive edge.
Marketing With Operational Management-The marketing department has to perform
work closely with production department. They need to ensure proper research and development
for planning to satisfy need and requirement of consumers. They marketing department should
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provide information regarding designing and specifications of products to operation department
as they focus on manufacturing of goods and services. It is marketing department who provide
information regarding requirement of orders and deliver within given time period to operations.
It is marketing functions who will set target or deadlines to stretch capabilities of production
department. Here, Amazon marketing department want to get products as soon as possible for
achieving competitive advantage whereas operation focus on testing and developing products
before providing to consumers for meeting their health and safety requirements.
Marketing With Human Resource- The marketing and human resource department
should work together for effective outcome. The HR overview recruitment, training, selection
and professional development of staff and employees. Apart from these, they also look after well
being of people, motivation of employees, performance management and others. In order to
select marketing manager, they should take help from HR manager so that they can recruit and
select best candidates for organisation (Constantinides, 2014). For example, Amazon is required
of marketing manager for helping in organisation, so they take help from human resource
manager to recruit and select best candidates out of many who can easily perform all
responsibilities and duties for achievement of goals and objectives. They both should work in
better and effective manner so that organisation can get right employees for performing work and
achieving goal and objectives.
Therefore, from above it can be concluded that marketing function work with other
various department so that performance can be done in effective and efficient manner. Here, it
collaborate work with finance, human resource and operational management. Apart from these
above, it has also an effective interrelationship with Information Technology, research and
development, customer service provision, production, logistics and others. Marketing provide
guidance to all other departments in order to carry work in systematic manner (Du Plessis, 2015).
It is very important for marketing department to maintain relationship with all other department
to help each other and select best candidate for work performance, making of proper budgets and
others.
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TASK 2
P3 Compare ways in which different organisations apply marketing mix to marketing planning to
achieve business objectives
Marketing mix is defined as foundation framework for business or 7P's of goods. It is the
collection of marketing tools which is used by firms for pursuing marketing objectives in target
market. In other words, it is set of tactics, actions, which is used by company for promotion of
their brands in respective market (Erevelles, Fukawa and Swayne, 2016). It is group of
marketing elements which firms controls and combines to manufacture desired response at target
market. This is regarded as essential tools and techniques of marketing which comprises of
various components that can influence demand of goods which is offered by corporation. The
marketing mix consists of 7P's such as product, price, place, promotion, people, process and
physical evidence. In order to do comparison of 7P's of Amazon, chosen organisation is Flipkart
which also deals in e-commerce business. They are as follows:
Marketing Mix Amazon Flipkart
Product It is international e-commerce
company in world. The products of
Amazon are sold online, through
website, application. There are variety
of products which are sold to
consumers as it started business with
book later on diversified portfolio. It
sells books, clothes for men/women,
jewellery, gardening equipments,
mobile phones, DVDs, accessories.
It is selling more than 80+ products
such as clothing, electronics,
appliances, mobiles, books. The
product divided into two categories
such as product to seller and product
to buyer. In product to seller, they
sell goods on website such as units
sold, profit making, opportunity for
promoting products, logistic
channels and others. In product to
buyer, it provide different options
such as free payment system, debit,
credit card, net banking and others.
Price Amazon has used competitive based
pricing strategy. Due to vary in
various services offered by respective
The pricing strategies set by Flipkart
is to compete with e-commerce
organisation. It offer one day
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organisation pricing strategies can be
varied. It also follow differential
pricing because of having different
websites in various places. Therefore,
mostly it follow competitive pricing
strategies for products.
delivery for regular consumers, if
order is above 500, free delivery is
provided and in case of less than
500 they charge nominal price. The
pricing strategies of Flipkart keeps
on changes because of offers and
discounts provided by organisation.
Therefore, in all cases it has set
competitive pricing strategies for
their people.
Place Amazon is global brand which is
present all over world. Consumers can
buy goods and services from
application and website. Once
consumer places order they can get it
on expected date and time. There are
many warehouse in order to reach to
remote areas. They also uses courier
service and local portal for
transporting packages.
It follow spoke and hub model
where there are 21 warehouse for
their consumers. The products
moved from warehouse to mother
hub or fulfilment centres. They also
deliver goods and services to
consumer pan India with help of
distribution network.
Promotion Amazon uses various marketing
campaign for promoting their brand. It
uses printing advertisement in
newspaper, television, commercial,
social media and others for promotion
of their goods and services. They also
focus on improving brand image
through maintaining effective
relationship with their consumers.
It has used various creative and
interesting advertisements for
creating awareness among
consumers. The first campaign used
was given on TVC having concept
of books where delivered can be
done in just single click. Here, they
have planned systematically and
undertaken efforts for reaching high
level or heights.
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People Amazon focus on their employees and
their benefits in terms of financial,
health and assistance programs. More
than 230,800 employees are working
in respective organisation to provide
goods and services to final consumers.
Flipkart deals with their buyer
through consumer care centre that
focus on supplier issues, product
damage issues, cancellation and
others faced by customers. Other
mode can be through help of
website and application. Apart from
the people of Flipkart are their
investors, employee, customer
services. There are many employees
and staffs working in organisation in
order to provide goods and services
in order to achieve goals and
objectives.
Process It is global leader in web services and
e-commerce which has strong process
for oriented business. This uses
business technology for supporting
daily activities and advertisements for
location of package.
There are different processes which
are executed through deliveries and
services. When consumer open page
of Flipkart they can easily view
offers and discounts for products.
There are many options available for
users while buying goods and
services. It can includes cash on
delivery, credit card, debit card,
delivery time, safety payments.
Physical
Evidence
The physical presence at website is
biggest physical evidence of Amazon.
As it is online business which is user
friendly in nature at website and
application. The warehouse and
fulfilment centres are presented in all
The offices, packaging materials,
delivery boxes are considered as
physical evidence of Flipkart. The
goods are packaged in proper
manner in order to avoid it from
harm. Products are undergone
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countries for carrying operations. This
organisation carry logo that is arrow
from a to z that means individuals can
buy anything in Amazon.
through 6 quality checking in order
to provide or deliver high quality
goods and services. It provide
prompt delivery and 30 days return
policy. The logo of respective
organisation also represent physical
evidence.
TASK 3
P4 Marketing plan for an organisation
Marketing plan is defined as report which outline marketing strategy for upcoming
month, quarter, year. It is overall business plan that is blueprint or comprehensive document
which outlines marketing and advertising efforts (Fan, Lau and Zhao, 2015). This describes
various activities of business that is involved in accomplishment of particular objectives within
given time period. It also includes overview of current marketing position of firm, description of
marketing mix and discussion of target market which helps in achievement of marketing goals.
The plan includes overview of firm advertising and marketing goals, timeline or completion of
strategy, description of consumer and business need and market, key performance for tracking
and current marketing position. This follows proper step in order to achieve goal and objectives
of firm. The marketing plan made by Amazon is as follows:
Step 1: Situation
It is the first step of marketing plan where Amazon need to analyse situation of firm. The
planner should be highly skilled and capable for making such plan for business (Finch, Nadeau
and O’Reilly, 2013). This includes SWOT analysis, situation of firm, market, industry,
competition and environment which are described below:
Strength- Amazon has strong brand name and focus on customisation of products and
services. It bring innovation and differentiation to product lines in order to fulfils need and
demand of consumers (SWOT analysis of Amazon, 2019). This carry large number of
merchandise selection and third party sellers. Amazon has developed partnership with other local
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suppliers in order to compete against national competitors. It is involved in three different
business for supporting and working each other such as Amazon Marketplace, Amazon Prime
and Amazon Web Service. This carry superior distribution and logistics system for their
products.
Weaknesses- There are some weaknesses of Amazon as other online retailer can easily
imitate business and their model. There are many rival of firms such as eBay, Oyster and others.
It has also lost profit margins in some areas, products has flops and failed in market.
Opportunities- There are many opportunities available for Amazon in order to expand
their business in competitive market. They can improve and expand physical online stores and
penetrating and expand operations in developing markets. They have opportunity to improve
their technological measures and organisational policies for reducing counterfeit sales.
Threats- In order to carry business in competitive market, there are some threats which
are faced by Amazon such as high regulations of government in some countries for business
proceedings. There is high chances for cyber crime in case of online business and delivery. Also
there is aggression competition and imitation of style and methods for carrying out operations.
Amazon need to analyse their firm, market, environment and competition in an effective
and efficient manner so that goals and objectives can be achieved. This can help them to know
about other market and their aspects.
Step 2: Objectives
It is defined as particular results which person or system aims in achieving within given
time period. It is very important for firm to set objectives while developing marketing plan. This
includes various aspects such as sales, market share, market expansion, leadership and
satisfaction (French and Russell-Bennett, 2015). The objectives should be set for sales by
Amazon such as increase sales by 20% in three years. They should aim to increase their market
share by 15% in three years. In objective stage, Amazon should plan for market expansion where
they should choose proper market and expand their business by opening stores in better manner.
There are many activities which requires leadership
To introduce new off-line auction stores in metro cities in order to maximise sale of their
products 30% more within 10 months.
Step 3: Strategy
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In this step company have to develop strategies which help in targeting right segment and
positioning of objective in selected audience. Company is using cost effective strategy which
help in selling products by auction in its off-line stores (Henriksen, 2012). For this Amazon has
to differentiate its products and services in marketplace. These strategies will have Amazon in
diversify its services and capture more market share. To identify and select right audience
Amazon has to conduct segmentation targeting and positioning strategies for its new off-line
auction stores.
Segmentation: It refer as dividing large market into different segments. For
segmentation Amazon will classify market area in small parts based on different needs
and wants of customers. Segmentation of market is based on demographic, geographic,
behaviour and psycho graphics needs and requirement of new services to customers
(Järvinen and Taiminen, 2016).
Targeting: Amazon is targeting customers of metro cities. Company is opening new
offline stores in metro cities where consumer can visit stores to check and purchase
products. Products are of hight quality and customers can bid for products in stores to buy
it.
Positioning: Company can create positive image of physical stores as many people do
not consider on-line purchases of high value products. Amazon can use online as well as
offline media for promotion for customers as they can get heavy discounted products in
new stores
By these strategies Amazon will have competitive advantage from its competitor companies. It
will help in attracting more customers towards Amazon stores and increase purchase. This
ultimately leads to high profits for company.
Step 4: Action Plan
In action plan, Amazon have to decide its budget to setup off-line stores in metro cities.
Company have to put its strategies or plans into actual actions. For action plan Amazon have to
allocate budgets to different activities of marketing mix (Laczniak and Murphy, 2012). This
include product, price, promotion, place or distribution of products. These 4 P's of marketing
used in introducing of new off-line stores of Amazon.
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