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