Marketing Management: Amazon Analysis and Strategies Report

This report provides a comprehensive analysis of marketing management principles, using Amazon as a case study. It begins with an introduction to marketing management and then delves into specific concepts, including Lecinski's ZMOT, assisting customers with informed decisions, and the changing nature of social marketing and corporate social responsibility. The report further explores internal branding factors, the importance of monitoring the external business environment, and strategic visionary policies. It examines segmentation, the concept of the 'green consumer,' and the evaluation of brand equity and value. The report also discusses marketing strategy components, the relevance of the marketing mix, and Amazon's social media marketing success. Corporate social responsibility, marketing metrics, and strategies for measuring marketing effectiveness are also analyzed, concluding with recommendations and a discussion of risk reduction in marketing campaigns. The report uses Amazon as a practical example throughout to illustrate key concepts.

MARKETING
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
QUESTION 1 ..................................................................................................................................1
a) Lecinski's notion that online consumer engage in three motivation when engage in ZMOT
behaviour ....................................................................................................................................1
b) Assist customers to make informed decisions when confronted by overabundance of choice
.....................................................................................................................................................2
QUESTION 2...................................................................................................................................2
a) Changing nature of social marketing environment and importance of implementing
sustainable corporate social responsibility strategy....................................................................2
QUESTION 3...................................................................................................................................3
a) Factors that create effective Internal branding .......................................................................3
QUESTION 4 ..................................................................................................................................4
A) Importance of monitoring the external business environment ..............................................4
b) Strategic Visionary policies to ensure future success of business..........................................5
QUESTION 5...................................................................................................................................5
a) Concept of segmentation and the movement of “green Consumer'........................................5
b) Quality criteria for satisfying the needs of green consumers ................................................6
QUESTION 6 ..................................................................................................................................7
a) Evaluating the difference between the concept of brand equity and brand value...................7
QUESTION 7 ..................................................................................................................................8
a) Discussing component of marketing strategy.........................................................................8
b) Recommendations...................................................................................................................9
QUESTION 8.................................................................................................................................10
a) Critically evaluating relevance of marketing mix in today's business dynamics..................10
b) Success of Amazon in terms of social media marketing......................................................10
QUESTION 9 ................................................................................................................................11
a) Corporate social responsibility and its benefits and challenges............................................11
b) Recommendations for aligning CSR strategy with organisation's brand strategy................11

QUESTION 10...............................................................................................................................12
a) Different marketing metrics for evaluating and measuring the effectiveness of marketing of
Amazon.....................................................................................................................................12
b) What metrics does the Amazon uses for measuring success and determines its return on
marketing investment................................................................................................................14
c) Ideas for reducing the risk factors when measuring the effectiveness of marketing campaign
...................................................................................................................................................15
CONCLUSION.............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Marketing management is the process of developing strategies and planning for products
and services for promoting the products and services of firm. In this assignment, Amazon will be
consider for understanding the various concepts of this study. Amazon is a multinational
technology company involved in e- commerce, cloud computing and artificial intelligence. It will
include the consumer behaviour on the basis of ZMOT with contrast to classic stimulus –
response model. Moreover, It will provide understanding of the sustainable corporate social
responsibility strategy. Also, it will contain information about those factors which create
effective internal branding. In addition, The task will focus on monitoring the external
environment. It will provide understanding of concept of segmentation. In this study the
relevance of marketing mix will be provided. The assignment will include information about
different marketing metrics.
QUESTION 1
a) Lecinski's notion that online consumer engage in three motivation when engage in ZMOT
behaviour
ZMOT is an acronym for Zero moment of truth which means the consumers collect
information through online resource in order to gather information about the products before
purchasing it.
As per the Lecinski 's notion there are three motivation which assist in engaging the
consumer in ZMOT behaviour which includes The following :
 To save money : The consumer in order to save money look for the best price of products
through gathering information from online resources (Google’s Jim Lecinski on What the
‘Zero Moment of Truth’ Means for Marketers, 2018).
 To have budget :It means identifying the alternative products to purchase the products in
the budget set.
 To save time : Through use of searching it assists in saving time for purchasing the
product.
Classic stimulus-response model assist in understanding the behaviour of buyer. The
decision of buyer leads to make purchase decision. As per this model the variables of psychology
includes the motivation, perception and belief and attitudes (Noci, 2019). This factors have their
response towards the product, brand, price etc. The information can be search from the family,
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friends etc. As per lecinski's notion the motivation for ZMOT which include social factors that
consist of gathering information through family and friends regarding the products and their
alternative. Moreover, the social media play an important role in buying decision. It provides
information through the sites and by gathering information through conversation with different
people. On the contrast, this motivation are affected as with the change in the needs and
perception of customers their motivation also changes. For example, if the price of the product
increases the customer will be less motivated towards that product. Moreover, changes in the
lifestyle and income of the buyer this motivation also changes.
b) Assist customers to make informed decisions when confronted by overabundance of choice
The customer while searching for the product come across number of choices which
affect their decision making and thus the customer is not able to make the decision. ZMOT can
helps the consumer in making informed decisions by searching the product online and get the
details of the product to have better understanding about the price and its quality (Gaul and
Baier, 2019). Amazon can provide the customers with information of their products and their
prices can helps customers to make informed decision. The customers in order to make informed
decisions require informed regarding the alternatives of products.
The organisation can engage the customers with the business in order to retain them in
business and provide each and every details of products so that they have understanding of the
products and can compare the product with other alternatives available. This will help customers
in making the best decision of the purchase option can get the product at best price. Informed
decision is related to providing information which is required by customers so that they can
search the alternatives and choose the best products at the best price to increase their satisfaction
level.
QUESTION 2
a) Changing nature of social marketing environment and importance of implementing sustainable
corporate social responsibility strategy.
Social marketing is used to influence the behaviour and attract the customers towards the
products and services of business. There have been various changes in the current trends which
have their influence on the decision making by the buyers. It aims at developing marketing
strategies for the social change. These are related to the social factors which assist in improving
the society (Marion, 2019). The nature of social marketing environment is changing due to
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increasing competitor for earning profitability rather than improving the society for good. The
changes in the taste and preference of customers and adopting the western culture is increasing in
the society.
Moreover, the social media helps in resolving various issues which are being faced by
companies. Corporate social responsibility of the company assist in contributing towards the
society for developing the society for good. Implementing the sustainable CSR strategy assist in
improving the reputation of business and attract more customers towards the brand. Moreover,
through implementing this strategy the company is able to create value for its customers,
employees and shareholders. For example, Amazon can donate the part of its profit to non profit
for welfare of society will help in implementing environmental friendly policies. Amazon by
fulfilling its corporate social responsibility is able to increase its brand image which will in turn
increase their customer base. After delivering the corporate social responsibility Amazon will be
able to attract more customers towards the firm which will create value for the firm.
QUESTION 3
a) Factors that create effective Internal branding
Internal branding focus on bringing companies core culture and values to motivate the
employees to become the face of the company and represent the company to improve their brand.
In this process company involve it employees for brand development to influence their behaviour
to support the brand.
The factors for creating effective internal branding
 Internal communication : It means conveying the brand values to employees assist in
engaging the employees in brand development process. Effective communication strategy
helps in creating effective communication between employees and management (Pantano
and Priporas, 2019). It includes use of emails, social media, internal messaging etc.
 Innovation : It refers to offering the unique products and services to the customers which
are not present with the competitors assist in developing effective brand.
 Training programs : With the helps of providing training to the employee's amazon can
improve their employees performance which will assist in creating effective internal
brand for the firm.
Internal branding assist in creating the values for the employees and well as customers
through implementing the strategies of internal branding which assist in improving the employee
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performance for better outcome which will assist in improving the brand image of firm.
Effective branding building programme is through use of internal communication which assist in
communicating the mission and vision of the firm to employees which help in creating internal
branding for Amazon. The Amazon in order to implement the internal branding programmes can
enhance the internal communication in which it can provide understanding to the employees
regarding the firm's mission and visions which will enhance the employee's performance towards
improving the brand image of company. Amazon through use training programmes can also
make the internal branding strong because through training programs the company will be able to
imporve the performance of employees.
QUESTION 4
A) Importance of monitoring the external business environment
External business environment consist of those factors which are present outside the
business environment but have their influence on the firm operations. Organisations by analysing
the external environment is able to gain competitive advantage towards the other firms. The
company analysis the external environment to be ahead in competition by changing the strategies
as per changes in the external environment to reduce the negative impact of those factors on
performance of company. For example, By external business environment analysis Amazon is
able to understand the changes in trend in market which will in turn assist Amazon to adopt those
changes in advance to gain competitive advantage.
Amazon is having various market gaps due ton changes in the external environment
factors such as changes in trend due to which the demand for the existing products reduces. The
organisation have to manage the gap between the demands as there are various g gaps in demand
due to heterogeneity of resource. The organisation face difficulty because the firm does not have
various resources which are required (Kumar, Sharma and Salo, 2019). Amazon in order to
reduce those gaps have required the capabilities such as market knowledge, marketing
experiments, open marketing. The gap exists because consumers are taking greater control,
technology advancement etc. the company in order to gain competitive advantage must close this
keep before the rivals (Closing the Marketing Capabilities Gap, 2018). The companies require
clever investment in technologies. Moreover, the companies through experimenting and
extracting new insights can respond to change in the marketing environment.
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b) Strategic Visionary policies to ensure future success of business
Strategic visionary polices of business assist in developing plans for the operation and
gaining competitive advantage for the firm which helps in the success of business. The company
with the helps of planning of the long term can make effective decisions for the growth of
business. The visionary strategic policy includes defining the vision of firm clearly to perform
the operations accordingly. Company by focusing on the products and services quality can
ensure the future success of business. The visionary policy of Amazon is to increase their
customer base and increase their brand image through providing high quality products and
services. Amazon by working on providing high quality in their products and services will be
able to achieve future success of business.
Moreover, the business consider its employees demands in their polices and must
produce the products and services as per the taste and preferences of customers to which will
assist in retaining customer for the long term in business for increasing the market share and
profitability of firm. Engage the employees and provide them training improving their skills and
knowledge which provide better customer service. Also, the firm should consider the satisfaction
of employees to reduce the employee turnover of firm and improving the performance of
organisation. Organisation should consider on investing in technology and adopting the various
technological changes. The company in order to achieve this objective should provide training
to its employees to improve their performance and use high quality raw material in their products
and services to enhance the company's brand image.
QUESTION 5
a) Concept of segmentation and the movement of “green Consumer'
Segmentation is the process of dividing a market of the potential customers on the basis
of different characteristics. It assists in grouping the customers on the basis of same interest,
needs and requirements (Palmer and Truong, 2019). The segmentation is based on the behaviour,
demographic, psycho-graphic and geographic differences. It assists in reaching the group of
people having the same demands of products. On the contrary, there are various disadvantage of
segmentation which includes difficulty in distribution, lack of information about customers etc.
The Amazon is addressing segmentation on the basis of geographic, demographic, behavioural
and psycho-graphic.
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 Geographic segmentation : The Amazon is covering over 100 counties and all the rural
and urban areas.
 Demographic segmentation : The company has segmented the customers on the basis of
age, gender, life cycle stage and occupation. Age includes from 18 years or above, gender
consideration of Amazon are both males and females.
 Behavioural segmentation : It includes loyalty, benefit, personality and user status.
Amazon loyalty consideration includes hardcore, soft core and switchers. Benefit
includes product assortment , competitive prices.
 Psycho-graphic segmentation : In this amazon has segmented the customer on the basis
of social class and lifestyle. Social class for Amazon includes working, middle and
upper. Lifestyle includes reformer, resigned, explorer etc.
Green consumers are those consumers which have concern of the environment and are
required using eco – friendly products. These customers are increasing in order to reduce various
environmental issues by using the eco- friendly products to satisfy their wants without harming
the environment. Amazon in order to satisfy the needs of green consumers are providing various
products and services and are maintaining the sustainability policy to protect the environment.
b) Quality criteria for satisfying the needs of green consumers
The green consumer require the eco – friendly products, the quality criteria for which
should be consider by Amazon for satisfying the needs of green consumer includes the
following:
 The company should not provide the products which are hazardous for consumer or
animals (Jang And et.al., 2019).
 Does not involve material incorporated through use of endangered species and threatened
environment.
 Products provided must be of high quality and must not have materials which have
resulted from threat to environment.
 Management of waste and producing the products which does not result into pollution.
Amazon in order to satisfy the need of its green consumer must change those products
which are made through threatening to environment and are hazardous for people and animals.
Amazon should use materials which are eco- friendly. Amazon in order to maintain the quality
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criteria must focus on recycling the products, proper waste management and providing the
products which are eco – friendly.
QUESTION 6
a) Evaluating the difference between the concept of brand equity and brand value
Brand equity is a marketing term that describes the value which company posses because
of its brand name. This value is ascertained by the perceptions and opinions of customers and
their experiences of using the brand and its products. This value helps the Amazon in charging a
premium that is higher price than the market price from its customers. It develops overtime as an
outcome of consumer's experience with Amazon like what level of customer satisfaction
company provides decides the success of brand that eventually becomes brand equity. Amazon
leverages on its brand recognition (Kotler and et.al., 2015).
There are some negative aspects that is associated with brand equity. Building a brand
equity is very complex process, very expensive top design, hard to maintain with the passage of
time.
Brand Value is an intangible asset of organisation that helps it in differentiating firm's
book value from its market value. It is basically the financial value a customer would pay more
for Amazon's products.
The difference between the two concept is that brand equity is the importance of Amazon
brand in the eyes of people whereas brand value is the financial significance that the brand
Amazon carries. It is basically a worth of a brand in financial terms.
Amazon measures brand equity by the way of :
 Brand visibility : Its awareness, utility and creditability in relation to customers
requirements. Rankings on the Search Engine Optimization, TV ads, etc would spread the
awareness for brand. The products that are offered y Amazon that are capable of meeting
customers requirements would determine brand's utility.
 Brand association : It is something about the brand such as organisation's core values,
functional benefits etc. which are deeply seated in the minds of customers. It could be
negative or positive. For example, Amazon has created a brand of being world's most
trusted online shopping site.
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 Customer loyalty : Amazon measures its brand equity through its loyal customer base,
more loyal customer meaning higher brand equity. The level of brand equity is measured
against the standards set by it in its plans.
There are various ways of measuring brand value such as cost based valuation, income
approach brand valuation. Amazon applies cost based valuation in which values of brand assets
and liabilities are determined at cost. Amazon has a brand value of 70.9 billion (Learn How to
Calculate Your Brand's Value, 2018).
QUESTION 7
a) Discussing component of marketing strategy
 Target market identification : This means ascertaining the group of customers to which
a company wants to offer its products and services. The market is segmented on the basis
of ; Demographics, geographic, behavioral and psycho-graphic factors.
Amazon identifies market by scanning the market, analyzing competition,
analyzing own products, selecting a particular segment and evaluating the decision.
Segmentation is based on geographic regions such as Amazon India, Australia etc, in
more than 100 countries, gender based like male & female, life cycle based like married couples,
bachelors etc, occupation like professionals, students. Behavioural segmentation like hard core
loyal customers, switchers etc.
 Market positioning : It is the capability of influencing the perception of customers. The
term means the place, brand acquires in the minds of people and what competitive
advantage allows brand to be recognize as different from its competitors. Marketing mix
is used for this purpose (Lovelock and Patterson, 2015).
Amazon applies multi segment positioning in which it offers wide variety of products
and services which helps it in exploiting various segments simultaneously. For example, it offers
562 million products which caters to the requirements of different market segments (Amazon
Segmentation, Targeting and Positioning: Widest Range of Target Customer Segment, 2018).
 Marketing mix : It is a set of activities that Amazon applies for promoting and placing
its brand in market. It consists of :
 product : Wide variety of products from grocery to clothing
 Place : Biggest online retailer which sells its products worldwide.
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 Price : Price of the Amazon products are based on competitive pricing strategy. It
analyses competitor's move for fixing its own prices.
 Promotion : It communicates with the customers through advertising campaigns on TV,
magazines, newspaper, social media and hoardings.
 People : It has a tremendous strength of human capital with more than 600000
employees.
 Process : The process of the delivery of services, production process, payment system etc.
are very well defined in the organisation.
 Physical evidence : They have an official website, also put their website in other web
pages, physical headquarters in the US.
Amazon through thorough market research formulates it marketing strategy which
focuses on increasing sales by utilizing limited resources very optimally. The strategy is
implemented by communicating it within organization, setting accountability, developing focus ,
action oriented and monitoring the progress.
b) Recommendations
Amazon needs to implement strategy more effectively by dividing its long term focus
into short term goals, checking on actions that contributes to the success of strategy regularly. It
has to continuously keep an eye on customers preferences and competitor's move for formulating
useful and effective marketing strategy that could lead organisation to higher growth (Guo,
Barnes and Jia, 2017). Analsying of data more thoroughly, focussing on top customers, making
the marketing straguies more flexible which can adapt market trends more conveniently are some
ways through which Amazon could improve its marketing strategy effectiveness.
QUESTION 8
a) Critically evaluating relevance of marketing mix in today's business dynamics
As per Shaw, (2016) marketing mix holds great importance even in today's time because
it guides the Amazon in deciding where to place its product, what shall be the distribution
channels, location that would help in creating additional sales, what processes the company shall
use in producing and selling its products and services. It also holds importance as it tells the
company that how much a consumer is willing to/and pays for the product, how the brand and
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