BTEC HND Unit 2 Marketing Essentials Assignment: Amazon Analysis

This report examines the marketing strategies of Amazon, focusing on its key roles, responsibilities, and interrelationships with other functional units. The analysis begins with a company background, including its mission, vision, and objectives. The methodology involves utilizing definitions from 'Marketing Essentials' and referencing various sources. The report delves into the importance of marketing, various marketing management orientations (production, product, selling, marketing, and societal concepts), and the marketing process. It explores Amazon's approach to understanding the marketplace, customer needs, and the development of a customer-driven marketing strategy, including market segmentation. The report highlights Amazon's customer-centric approach, emphasizing its use of the 4Ps marketing mix (product, place, promotion, and price), customer relationship management, and its adaptation to industry developments to maintain a competitive edge in the e-commerce market. The findings are supported by data from journal articles, reports, books, and online resources, illustrating Amazon's commitment to innovation, customer satisfaction, and societal marketing concepts.

ASSIGNMENT 1 FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 2 Marketing Essentials
Submission date 10 August,2021 Date Received 1st submission
Re-submission Date Date Received 2nd submission
Student Name Truong Hoang Ngoc Student ID GBD201771
Class GBD0904 Assessor name Tran Xuan Quynh
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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I
understand that making a false declaration is a form of malpractice.
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A. INTRODUCTION
Among the substantial online sellers, amazon.com offers the most diverse marketing
strategy. Amazon is headquartered in Seattle and has customers in all 50 states of the
United States, as well as 160 other countries around the world. Books, CDs, DVDs,
computer hardware software, electronics, home based items, and many more are
available to customers via online websites and other foreign websites. The organization
strives to follow the aim of becoming a client company and to provide a location where
individuals can search and discover anything they might want to buy online.
Amazon.com aspires to provide compelling value by offering a broad selection, high-
quality content, a high level of customer service, competitive pricing, personalized
services, and innovative use of technology. Apart from products and services, the
company's range of services has enabled it generate healthy revenues. Amazon is
targeting a market edge and delivering value by engrossing customers and boost their
brand image as well as their financial well-being using customer relationship
management strategies. The researcher will emphasize key roles and responsibilities of
the marketing function, as well as the significance of interrelationships between
marketing and other functional units that affect business results.

B. METHODOGOLY
The researchers utilized definitions in marketing strategy based on the article Marketing
Essentials and its theories. In order to clarify the essential functions of marketing, the
researcher utilized finding data, statistics, and information from journal articles, pdf
reliable written reports, books, as well as some online links, magazines.
C. FINDINGS & DISCUSSIONS
I. COMPANY BACKGROUND
1. Profile
NO. CATEGORY COMPANY DETAILS
1
Company name
Amazon Company
2 Establish year 1994
3 Legal representative Jeffrey Bezos

4
Headquarter
410 Terry Ava, North Seattle, United States
5 Industry
engaging in the provision of online retail shopping
services, selling merchandise and content purchased
for resale from third-party sellers through physical
and online stores and manufactures and sells
electronic devices,
2. Mission, Vision & Objectives (Annual report, 2019)
2.1. Mission
“To be Earth’s most customer-centric company, where customers can find and discover
anything they might want to buy online, and endeavors to offer its customers the lowest
possible prices”.
2.2. Vision
“To leverage technology and the expertise of our invaluable employees to provide our
customers with the best shopping experience on the internet”.
2.3. Objectives
Amazon has implemented both general and interactive strategies in order to satisfy
customers with the most convenience, the widest range of items and services, and the
lowest price while ensuring product quality and safety. These initiatives are reinforced
by Amazon's commitment to investing heavily in marketing, innovation, and R&D in
order to enhance its inventive foundation.

II. KEY ROLES AND RESPONSIBILITIES OF THE MARKETING FUNCTIONS
1. Marketing definition
Marketing management is the art and science of selecting target markets and gaining,
retaining, and expanding consumers via the development, communications, and
provision of superior customer value (Kotler, 2013).
A more detailed definition: “Marketing is the business function that identifies unfulfilled
needs and wants, defines and measures their magnitude and potential profitability,
determines which target markets the organization can best serve, decides on
appropriate products, services, and programs to serve these chosen markets, and calls
upon everyone in the organization to think and serve the customer.” (Kotler, 2013)
2. Importance of Marketing
With modern technologies and automated production systems, a lack of goods is no
longer an issue for enterprises; instead, they are dealing with a lack of clients.
Marketing is essential for interpreting the needs of customers. According to (Kotler,
2013), he claimed that “The aim of marketing is to make selling superfluous.”
3. Marketing management orientations
3.1. Production concept
The idea that consumers would prefer items that are perfectly adequate; as a result, the
organization should emphasize on boosting production and distribution efficiency
(Armstrong & Kotler, 2014).
Amazon's principal means of transacting with consumers is through its official e-
commerce websites. Amazon.com, Audible.com (a subsidiary), and several more
websites with specialized target markets are among these websites. Amazon Books, a
physical bookshop in Seattle, is also maintained by the business. Customers who wish

to personally inspect items before purchasing them can do so at this location. In
addition, the company transacts with consumers on various platforms. For instance, The
annual Amazon Web Services (AWS) Summit allows the firm to reach out to potential
consumers and convince them to pay for its e-commerce services. To reach its target
customers, Amazon's marketing mix relies significantly on the organization's strong
presence online in this regard. (Ferguson, 2017)
3.2. Product concept
The idea that consumers will prefer goods with the greatest quality, performance, and
features; therefore, the organization should focus its efforts on making continuous
product improvements (Armstrong & Kotler, 2014).
Amazon's products or product mix are evaluated in this component of the marketing
mix. The company, as the leading participant in the online retail market, offers a diverse
range of items. The mission and vision statements of Amazon.com Inc. are supported
by such a product mix. Through its e-commerce website, the firm offers such a service.
Some of the retail items offered on the internet, such as those sold under the Amazon
Basics brand, are also owned by the firm. In addition, the company provides Amazon
Prime, which is a subscription service that includes free delivery on Amazon's online
shopping website. Consumer gadgets such as the Amazon Kindle e-book reader and
the Kindle Fire tablet have also been added to the company's product mix. As a result of
this expansion, the company's marketing mix became more successful in gaining a
larger proportion of the e-commerce industry. The distribution of d was added to the
firm's product mix to widen it even further. (Ferguson, 2017)
3.3. Selling concept
The idea that unless a large-scale selling and promotion effort is conducted, clients will
not buy enough of the firm's products (Armstrong & Kotler, 2014).

Amazon markets itself by being a business that sells pretty much anything that can
legally be sold. With an Amazon Prime account, customers may receive Prime eligible
products delivered for free within two days of purchase. It also includes an Amazon
certified marking to distinguish reputable Amazon merchants, which is really beneficial
to customers.
3.4. Marketing concept
A philosophy based on recognizing the needs and wants of target markets and offering
the essential satisfactions better than competitors to attain business goals (Armstrong &
Kotler, 2014).
Customers are attracted to Amazon.com Inc.'s e-commerce website using the
marketing mix. 4Ps marketing mix is a collection of techniques and methods used to
implement a marketing strategy for a company's product, place, promotion, and price. A
key selling point of the Amazon marketing mix is that it emphasizes geography and
price as important selling aspects in reaching its target online market. Amazon, the
world's largest e-commerce firm, is always up against increasing competition, which
threatens to diminish its market share and worldwide development potential. When it
comes to marketing, the firm must keep up with industry developments and ensure that
its marketing mix is current. To ensure long-term competitiveness of its online retail
operation, the company employs an appropriate marketing mix. (Ferguson, 2017)
3.5. Societal marketing concept
The idea that marketing decisions should take into account customers' needs, company
requirements, and consumer long-term values, and society’s long-run interests
(Armstrong & Kotler, 2014).
Amazon has been almost closely connected to online customer reviews. Gaining
customer reviews has long been a key component of Amazon's strategy. Reviews are
pushed across the site, both before and after purchase, as anyone who has ever used it

realizes. Every product on Amazon has a star rating, which is determined by Amazon
customers, and is usually accompanied by multiple reviews made by prior buyers of the
same item. In addition to leaving feedback for merchants, buyers may do so as well.
The Amazon business has always relied on customer reviews. Since customers can't
touch or test a goods before buying it, previous customer feedback serves as a basis of
accountability and can serve as a quality marker for customers who would otherwise
have to take the seller's word for it. (Innovation Blog Posts, 2020)
However, equally essential, evaluations result in genuine consumer engagement with
the platform. Furthermore, the incredibly active customer reviews columns seen
throughout Amazon.com may be regarded as a consumer-driven social network in and
of itself. Customers get to know and engage with their favorite merchants. They also get
to know and value their favorite reviewers' perspectives, star ratings, and
recommendations. Amazon also allows community moderation, which encourages
consumers to vote on the value of product reviews, to make them even more valuable
to shoppers. The Amazon algorithm is constantly upselling - 'Customers, who
viewed/bought this item also viewed/bought, that item,' customers are told at virtually
every turn. All of this leads to actual engagement with the Amazon.com platform.
Moreover, it is more than simply an online retail site; it is a community that Amazon has
been cultivating for the last 24 years. This leads to the societal marketing concept.
4. Marketing process - roles and responsibilities of marketing
4.1. Understand the marketplace and customer needs and wants
The marketer must attempt to comprehend the target market's wants, requirements,
and demands. Needs are the most fundamental human necessities. People require
food, air, water, clothing, and shelter to survive. People also have high demands for
education, entertainment, and other services. Society or marketers do not produce
these demands. They dwell in the fundamental fabric of human biology and the human
condition. (Islam, 2018)

Amazon has achieved economies of scale with a diverse product offering that includes
electronics, toys and games, clothing, DIY, and many other items. These offerings
enable Amazon to keep its pricing low, allowing it to pass on the profits to customers.
Amazon's strong consumer strategy to analyzing consumer-purchasing behavior based
on preferences has given them a competitive advantage over its competitors. At
Amazon.com, more than half of customers are repeat purchasers. Furthermore,
Amazon is one of the most established businesses in the internet industry, with a strong
presence in both Europe and the United States. This bottom line is assisting the
company's expansion into new areas.
4.2. Design a customer-driven marketing strategy
Amazon used customer-driven marketing to build a $1 Trillion empire (Market Watch,
2020). As a result, Amazon has never shied away from taking chances in order to
improve the consumer experience. This resulted in a slew of interesting inventions and,
eventually, a commanding market share. Amazon went out of its way to make its
consumers feel important and valued. And it made its consumers the most essential
aspect of its operation. Furthermore, it was the first to give each consumer with a
customized experience based on his or her browsing histories, as well as a list of
comparable items based on their previous purchases. Furthermore, Amazon's corporate
aim of providing a better customer experience drove it to listen to its consumers and
develop. This resulted in increased consumer satisfaction and loyalty. Amazon
concentrated only on its consumers, and market share and profitability followed suit.
(Bizadmark, 2021)
4.2.1. Market segmentation
Dividing the market into smaller categories of customers with distinct needs,
characteristics, or behaviors that may necessitate various marketing strategies or
mixes. (Armstrong and Kotler, 2014, p. 214) không cần số trang

Amazon and other e-commerce behemoths utilize demographic and psychographic
segmentation to segment their audiences. Amazon's segmentation is based on actual
purchase behavior: not what individuals showed interest in, but what they really
purchased. Amazon's micro-level segmentation targets each client on an individual
basis, allowing the firm to convert visitors into long-term, high-value customers. E-
commerce segmentation applied widely developing personas who will buy in a specific
way and with specific products. Similarly, Amazon targets to those in the middle and
upper classes who have hands-on expertise with basic technology but lack time or
prefer convenience over purchasing in retail outlets.
4.2.2. Market targeting
Evaluating the attractiveness of each market segment and determining one or more
segments to enter (Armstrong and Kotler, 2014, p. 214)
Amazon (AMZN) is targeting for a demographic that does not have to worry about a
mortgage or household bills and is among the most digitally perceptive consumers:
America's teenagers. The online retailer is launching a new service for teenagers that
will allow them to shop on Amazon using their own login. Teens can stream or shop
independently, but after teens click the "place order" button, parents can approve the
orders. When a teen places an order, Amazon sends an email or text to the teen's
parents, who make the final decision. According to Amazon, parents can also set pre-
approved spending limits.
4.3. Construct an integrated marketing program that delivers superior
value (Marketing mix)
Marketing mix is derived from the single P (price) of microeconomic theory (Chong,
2003). McCarthy (1964) proposed the "marketing mix," often known as the "4Ps," as a
way of putting marketing strategy into action (Bennett, 1997). Marketing mix is not a
scientific theory, but rather a conceptual framework that outlines the key decisions that

managers make when structuring their offers to meet the demands of customers?
(Ambedkar, 2014)
Amazon.com Inc. utilizes a sophisticated marketing mix to attract customers to its e-
commerce website. The marketing mix of a company, often known as the 4Ps (Product,
Place, Promotion, and Price), is the mixture of strategies and techniques utilized to
accomplish a marketing plan. In this sense, Amazon reaches out to its target online
market via its marketing mix, which emphasizes location and price as important selling
elements. Amazon's marketing mix (4Ps) is intended to capitalize on the company's e-
commerce activities' online nature. While Amazon.com Inc. innovates its offerings, the
components of this marketing mix enable competitiveness and international growth.
4.4. Build profitable relationship and create customer delight
In general, customer relationship management is the process of establishing and
maintaining customer relationships through providing superior value and satisfaction.
Consumers who are satisfied are more likely to become loyal customers and provide
the firm with long-term profits. (Armstrong and Kotler, 2014, p. 34)
Amazon created their own CRM software in-house, therefore, it is suited to its own
requirements and demands. Their platform enables Amazon to encapsulate consumer
data, such as prior purchases and location, and utilize it to quickly change and tailor a
user's overall on-site experience. Amazon's CRM also handles the majority of customer
inquiries before they require human intervention. For example, customers can readily
access their purchase history, which allows them to see which items they have ordered,
their current state in the delivery process, and how much they have spent on it. Their
return policy is similarly automated, eliminating their requirement for customer service
employees and the costs associated with them.

4.5. Capture value from customers to create profits and customer equity
The first four phases are about creating and delivering a product. The final phase will
analyze capturing customer value in the form of sales, market share, and profits.
Customer loyalty and retention, market and customer share, and customer equity are all
significant considerations in capturing customer value. (Armstrong & Kotler, 2014)
Amazon operates a marketplace platform that uses big data and a customer-centric
approach to improve the consumer experience and internal operations. In this
approach, it produces and captures value in a virtuous cycle that involves growing
consumers and transactions in order to collect more data, which feeds into further
improvements and more customers. Amazon derives profit from this data through
attracting additional consumers and merchants to the site, as well as earning a
membership fee through Prime (from customers), a transaction portion, and advertising
revenue (from sellers). Amazon aspires to provide a unique experience to each client.
Amazon creates value to its consumers by providing satisfying services and managing
retail operations with effective use of technology. Amazon.com's operational efficiency
is its strength, assisting management in maintaining its competitive edge and improving
company performance. Amazon.com provides value for its consumers by offering a
wide range of items to choose from on their website and assuring prompt delivery of
products to demonstrate a high degree of dedication to their business and customers.

5. Organizational Structure of the Marketing Department
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5.1. Product Marketing
Product Marketing is responsible for making sure that products and sales are in
synchronization.
Product Marketing is in charge of positioning, messaging, and competitive
differentiation, as well as ensuring that the Sales and Marketing teams are aligned and
working efficiently.

5.2. Brand & Buzz
Development and application of the company's fundamental visual language, including
products.
Create video overviews and commercials. (Anon., 2014)
5.3. Content
This department fosters company-wide coordination and emphasis on content creation
and strategic use of content to support the business. (Anon., 2014)
Although Amazon.com's service and experience were and continue to be at the core of
the company's success, the company's organizational structure also has a significant
impact. The problem with Amazon's organizational structure is that it allows for a lot of
top-down control over the company's worldwide e-commerce activities. This is great
because the organization operates in a variety of industries. Most Amazon.com regulars
have a remarkably strong relationship with the firm, especially given the nearly complete
lack of genuine human interaction-As for delivery; no other seller—online or offline—has
been more effective than Amazon in getting the items to its customers quickly. Amazon
sells "speed" in addition to items and convenience. -Today's successful businesses
have one element in common: They, like Amazon, place a high value on customer
service and marketing. These firms are united by a desire to meet the demands of their
customers in well-defined target areas.
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6. Interrelationship between marketing and other departments
6.1. Marketing and Finance
Most marketing campaigns are expensive, which is why a close relationship between
these two departments is critical. Marketing choices should be made with a financial
perspective in mind, as they are influenced by cost and profit. (Micu, et al., 2012)
On the other hand, finance activities have an impact on marketing activities in terms of
budgeting, defining financial profits, and developing financial policies.
The finance department at Amazon used to provide a great deal of money for marketing
their products and services. If the finance department refuses to pay for any
advertisement, Amazon's marketing department will be unable to proceed (Hosebeg,
2016).
6.2. Marketing and Production
It is critical to establish a connection between manufacturing and marketing. On the one
hand, manufacturing capabilities dictate the quantity and kind of items that may be
offered; on the other hand, more precise sales forecasting for each product and product
line is critical for effective production operations. (Micu, et al., 2012) The production
department, according on marketing information, can manage production capacity.
Knowing what kind of items, the company should offer and when to market them is
essential for efficient selling.
Both of these departments are intertwined at Amazon, as the company cannot sell any
service or product unless the manufacturing team has approved it.
6.3. Marketing and Research & Development
The R&D effort must be tightly connected to marketing.

By researching the market, the marketing department identifies unsatisfied consumer
requirements and wants, as well as customer expectations, which influence the
company's product development.
According to (Micu, et al., 2012) the main relationship between R&D and marketing is
around the organization's new product development activities [22]. From concept
generation through final product development, each stage of new product development
necessitates tight collaboration between marketing and R&D.
6.4. Marketing and Human Resource
The relationship between the marketing and human resources departments are required
for recruiting, training, and nurturing an ambitious and effective sales team. Not only
that, but marketing is not only the job of the marketing department; the entire firm
should reflect its brand. The company's vision, goal, and objectives should be reflected
by its employees, not only via advertising. Each member of the firm's personnel will
promote the company in an effective manner. Furthermore, proper marketing will assist
the community understand not just the product but also the firm, which will aid in the
recruitment of talent. As a result, marketing should collaborate with human resources in
establishing job descriptions, evaluating individuals, and designing training programs
and incentive systems. (Micu, et al., 2012)
The marketing department of amazon uses to collaborate with HR in order to ensure
that they are meeting their target of providing effective and best quality services to
customers.

7. Marketing Environment
7.1. Micro Environment
7.1.1. Suppliers
Companies provide inputs (money, raw materials, fuel, power, and other production
factors) and assist with the smooth operation of the firm. Firms should be mindful of
their suppliers' strategies since rising input prices will influence their sales and profits.
Production schedules are often affected by supply shortages. Firms should have many
suppliers so that changes in one supplier's policies do not interrupt their production
schedules. (Academia, 2019)
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7.1.2. Employees
Amazon's work culture is not recognized for being employee-centric. Despite the fact
that the culture is harsh and competitive, it has proven to be highly effective in assisting
Amazon grow.
7.1.3. Competitors
Competitors are an essential component of the microenvironment. Companies battle for
a large portion of the market. They keep a close eye on competitors' policies and modify
their own to gain customer loyalty.
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7.1.4. Public
“Any group that has an actual or potential interest in or effect on an organization's ability
to achieve its goals is referred to as the public.” The public can either praise or criticize

a company's efforts to serve the market. Financial public (banks, financial institutions,
etc.), media public (newspapers, radio, television, etc.), government public, customer
organizations, internal public (workers and managers), local public (neighborhood or
community residents), and general public are all included under the term "public"
(buyers at large). Companies use their observations of these groups' behavior to
develop functional policies. (Academia, 2019)
7.1.5. Market Intermediates
They are the connections that allow items to be promoted, marketed, and distributed to
target consumers. Physical distribution firms (transport firms), service agencies (media
firms), financial intermediaries (banks, insurance companies), and others assist in the
production, marketing, and insurance of products against theft, fire, and other disasters.
Firms establish positive relationships with them in order to do business efficiently. All of
these elements are essentially under the businesses' control, but they function in a
wider macro environment outside of their control.
7.1.6. SWOT Analysis
Amazon can capitalize on several opportunities in emerging markets simultaneously
ensuring that its global supply chain of networked warehouses provides considerable
value for itself and its stakeholders. Furthermore, Amazon must reassess its business
model of operating at near-zero margins, and the fact that the company has not made a
large profit in the last five years suggests that there is still tremendous room for
improvement. (MSG, 2015)
Strengths Weaknesses
- Amazon's strengths stem largely from a
three-pronged strategy drive on cost
- Amazon has been "spreading itself too thin" in
recent years as part of its diversification

leadership, distinctiveness, and focus, as the
world's top online retailer. The firm has reaped
the benefits of this course of action, and its
stockholders have derived wealth from the
company because of this approach.
- Amazon's competitive advantage stems
largely from its use of IT (Information
Technology) and e-Commerce as a scalable
and simple platform that pushes the firm ahead
of its competitors.
- One of Amazon's key strengths is that it has
top-of-mind recall from customers worldwide,
and this awareness has allowed it penetrate
new areas that were previously out of bounds
for many e-Commerce businesses.
- Using stronger logistics and distribution
capabilities, the firm has been able to achieve
greater customer fulfillment, giving Amazon a
competitive advantage over its competitors.
strategy, which means that it has allowed its
emphasis to deviate from its core competency
of online book sales and has allowed itself to
go into other priority areas. While this may be a
smart risk diversification approach, Amazon
must be wary of losing its strategic edge as it
moves away from its primary competency.
- Because Amazon provides free delivery to its
consumers, it risks losing margins and, as a
result, may be unable to optimize costs
because of this approach.
- Given that Amazon is an online-only retailer,
the company's singular focus on online retailing
may "come in the way" its plans to expand into
new markets, particularly in emerging markets.
- One of Amazon's most significant flaws, as
mentioned by analysts and industry experts, is
that it operates in near-zero margin business
models, which have severely harmed its
profitability. Despite the company's high
volumes and enormous revenues, this has not
translated into meaningful profits for the
company.
Opportunities Threats
- Amazon has the chance to significantly scale - One of the most serious threats to Amazon's

up by spreading out its online payment system,
given that customer worries about online
purchasing in terms of security and privacy are
among the uppermost problems on their minds.
Furthermore, this would increase the
company's profits by allowing it to realize the
benefits of having its own payment gateway.
- Another potential for Amazon is to launch
more items under its own brand rather than just
a forwarding site for third-party products. In
other words, instead of simply selling and
stocking items manufactured by its partners, it
may grow the quantity of products under its
own brand.
- Amazon may expand its range of offers by
stocking more products than is presently the
standard, putting it in a position of strength and
comfort since this can convert into larger
income.
- The fourth option that Amazon has is to
extend its worldwide footprint and build
additional locations in emerging regions, which
would undoubtedly offer it an advantage in the
uber-competitive online retailing industry.
success is the growing worry about online
purchasing due to identity theft and hacking,
which exposes its customers' personal
information. As a result, Amazon must act fast
to assuage customer worries about its website
and safeguard online privacy and security.
- Because of its aggressive pricing methods,
the firm has been sued by publishers and retail
competitors. Amazon's obsessive focus on cost
leadership has become a point of contention
for the firm, as competitors are displeased with
Amazon taking away their business.
- Finally, Amazon confronts substantial
competition from local online merchants that
are more flexible and adaptable than its
mammoth model. This means that the firm
cannot lose sight of its local market
circumstances while pursuing its worldwide
strategy.

7.2. Macro Environment
7.2.1. Demographics
Since the world's population is increasingly aging, baby boomers are approaching
retirement and will have less purchasing power. As a result, firms' target audiences for
product sales have shifted to generation X and Y. These generations are more digitally
well informed and are more likely to shop online. According to a survey, 62 percent of
Generation Y prefers to shop online, compared to 32 percent of those over 50.
Organizations can also take advantage of emerging market opportunities, such as those
in China and India, which have big populations and rising disposable income. According
to a global survey of online consumers, Chinese individuals buy online 8.4 times more
than those in other countries do. Amazon is capable of taking use of its core
competencies in order to conquer the worldwide market thanks to its distribution
network and the power of E-Commerce. (Islam, 2018)
7.2.2. Economic Factors
Amazon sells its products in more than 200 countries and operates through 15 different
websites. In this sense, the customer's purchasing power has a significant impact on the
company's revenue and profitability. Furthermore, overall economic stability and
economic conditions play an important influence in the smooth running of a company's
business. Amazon is a part of an industry that is still in its early stages of development.
As a result, the firm adapts its operations and policies to account for the entire
economic environment, both locally and globally. (Islam, 2018)
7.2.3 Natural
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The natural environment includes both renewable and non-renewable materials utilized
in manufacturing. Air, water, and solar energy are renewable resources that can be

renewed, whereas oil, coal, and wood are non-renewable resources that cannot be
replenished.
Despite the fact that air, water, and solar energy can all be regenerated, businesses are
endangering these resources by dumping industrial waste into bodies of water, polluting
the air, and disrupting the ozone layer. Chemical wastes are being disposed of in land,
air, and water because of growing industrialization. It also has an impact on the food
supply, which might be hazardous when consumed. “The environment damage to
water, earth and air caused by industrial activity of mankind is harmful for future
generations.
Businesses should make efficient use of these resources and implement pollution-
reduction strategies. The government (Pollution Control Board) also implements
legislative measures to safeguard the environment. Even renewable resources should
be handled with caution so that consumption does not outpace replenishment.
(Academia, 2019)
7.2.4. Technology
The Internet is a great source of data since it gives the most up-to-date information
about customer preferences and trends. Businesses have been impacted by technical
advancements as technology has advanced at a rapid pace. For example, online
payment options like online banking and PayPal make buy transactions more
convenient, which improve customers' online purchasing experience. Furthermore, the
advent of electronic devices such as cellphones facilitates online purchasing by allowing
for simple and convenient transaction processes. For example, Amazon recently
released a smartphone app for its Kindle services, allowing customers to quickly access
the online sales platform and read product reviews before making a purchase. The
usage of 3D virtual technologies to advertise items in the future will elevate online
shopping to new heights as well. (Academia, 2019)

7.2.5. Political / Legal
In today's world, businesses must take precautions when dealing with foreign policies
on online distribution. The Federal Trade Commission, which governs internet
advertising and the protection of customers' personal information in the United States,
supervises electronic commerce businesses. The International Consumer Protection
and Enforcement Network (ICPEN), on the other hand, look for solutions to address
consumer issues involving cross-border transactions in both products and services. This
ensures that all parties gain equally and that mutual understanding is reached. While
advertising items to foreign nations through the internet, online retailers like Amazon
should be cautious to disclose online sales taxes. (Islam, 2018)
7.2.6. Socio-cultural
Over the last few years, online shopping has exploded in popularity. Consumers may
access a variety of items anywhere and whenever they want with e-commerce since
there are no geographic limitations. Customers may also evaluate and compare an
infinite number of products. Customers' buying habits are shifting away from brick-and-
mortar businesses and toward internet shopping because of these benefits. According
to an online shopper survey, 48 percent of respondents had shopped online in the
previous 12 months, 66 percent favored web merchants, and 73 percent had completed

nearly half of their shopping online. The rising popularity of online shopping is laying the
groundwork for Amazon's growth. (Academia, 2019)
7.2.7. Global
Customers are becoming increasingly eager to make purchases online as contemporary
tech assistance and web security improve. People in emerging regions that have more
purchasing power are spending more on internet shopping as their economies grow
rapidly. Amazon, for example, is able to take advantage of this potential by providing
consumers with items that are not easily available in local marketplaces. When a
company expands internationally, it is critical to consider consumer preferences.
(Academia, 2019)
8. B2B & B2C
8.1. B2C concept
The process of selling products and services directly between a business and
customers who are the end-users of its products or services is referred to as business-

to-consumer (B2C). The majority of businesses that sell directly to customers are
classified as B2C. (Kenton, 2020)
8.2. B2B concept
Business-to-business (B2B), often known as B-to-B, refers to transactions between
businesses, such as those between a manufacturer and a wholesaler or a wholesaler
and a retailer. Business-to-business transactions take occur between companies rather
than between a company and a single client. Business-to-consumer (B2C) and
Business-to-government (B2G) transactions are distinct from business-to-business
(B2B) transactions. (Chen, 2020)
B2B B2C
- Amazon Business offers innovative B2B online
marketing as well as conventional solutions that
deliver high degree of automation to corporate
clients. (Hajut, 2017)
- Amazon's business-to-business business is
diversified. For instance, Amazon allows
companies to sell directly on Amazon by creating
their own sites where they may offer products for
a small charge per transaction or subscription.
Additionally, the Amazon Payments service
allows companies to accept payments from
customers who have Amazon accounts on their
websites. Aside from that, the Amazon Supply
service allows companies to buy industrial
supplies directly from Amazon, such as office and
- Amazon's business-to-consumer and business-
to-business divisions intersect to some extent.
When Amazon assists a seller in creating her own
page on which to advertise her items, for
example, it is indirectly benefiting consumers.
Amazon, on the other hand, sells its own items,
both new and old, that customers may buy
straight from Amazon. Amazon serves consumers
in this fashion now that it has entered the digital
media world with its unique Kindle e-reader and
collection of e-books. For a monthly subscription,
Amazon Prime members receive reduced instant
video and e-books, as well as free shipping
discounts. (Charles, 2019)

shipping supplies. Amazon also offers order
fulfillment, which allows businesses to delegate
order packaging and delivery to one of Amazon's
warehouses. (Charles, 2019)
D. CONCLUSION
This report discusses marketing, its definition, roles, and responsibilities (using SWOT,
PESTEL, and other techniques) in order to demonstrate the importance of the
Marketing Department. In addition, this study describes the Marketing Department's
structure and interrelationships with other business departments.
The corporation has to broaden its perspective on consumer wants and lifestyles,
analyze how the product affects customer happiness, and gather data for future market
surveillance in order to guide corporate development. Marketing is required for these
purposes. Amazon's marketing department is crucial.
E. RECOMMENDATION
Because of the Covid-19 epidemic, the market has altered dramatically, and marketing
and advertising have evolved along the 4.0 Digital Age route. Amazon needs a
Marketing Department in the real estate sector as a prominent group. The firm should
enter markets in emerging nations that have not yet adopted internet purchasing in a
strategic manner. Furthermore, the company should invest more money to acquiring
physical stores in developing markets in order to strengthen its brand. Amazon should
pursue backward integration in order to differentiate its products from competitors.
Because the firm will be in charge of the manufacturing processes rather than
depending on external suppliers, the approach will allow it to satisfy consumer demands

by delivering customized goods. Amazon should offer marketing team opportunities for
professional development so that they can interact with customers efficiently and
quickly. To improve their marketing function, Amazon should use the STP model
(segmentation, targeting, and positioning) to target the most appropriate demographic.
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