Amazon Marketing Strategies: A Comprehensive Analysis

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MARKETING ESSENTIALS
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Table of Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................4
Key roles and responsibilities of the marketing function.........................................................................4
SIGNIFICANCE OF THE INTERRELATIONSHIP OF VARIOUS.......................................................................7
TASK 2..........................................................................................................................................................8
Evaluation of different marketing strategies.........................................................................................10
TASK 3........................................................................................................................................................11
Executive summary................................................................................................................................11
Overview of company........................................................................................................................11
SWOT ANALYSIS.................................................................................................................................12
STRENGTH.........................................................................................................................................12
WEAKNESS.........................................................................................................................................12
THREAT..............................................................................................................................................12
OPPORTUNITY...................................................................................................................................12
OBJECTIVES........................................................................................................................................13
STRATEGY..........................................................................................................................................13
FORCASTS..........................................................................................................................................15
CONTROL...........................................................................................................................................15
CONCLUSION.............................................................................................................................................16
REFERENCES..............................................................................................................................................17
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INTRODUCTION
This assignment focuses on the preparation of the marketing tactics and strategies for Amazon.
And this assignment in the task one provides the details about the interrelationship between the
functional units of the Amazon with the help of relevant data and statistics. And in the next task
the marketing mix model and different marketing elements are discussed in order to attain the
overall objectives. And in the end, after gathering and analyzing data and evaluating that data
basic marking plan is proposed for the organization in order to offer growth, development and
attaining the short-term and long-term business objectives.
Amazon is the US based e-commerce company, digital marketing and cloud based organization.
And it also created disruption in the market by bringing online buying and selling of the
products. It reduces time and the cost incurred in transportation, front store and maintenance of
the products. So it offers products at relatively lower prices form the traditional marketing. And
it is considered as the critical factor in its success, huge turn over and market share.
Marketing can be defined as the total activities performed by any organization in promoting,
selling it products and services in the market profitable. And it is also to gain competitive
advantage in the market.
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TASK 1
Key roles and responsibilities of the marketing function
Marketing function can be defined as the role of the business unit to identify the potential as well
as prospective market needs of the organization’s products and services. And it also to deliver
the products and service in the market in order to increase the revenue and market share. It
includes buying, selling and promoting the products in the market. It includes conducting
extensive market research, innovative development plan and process for promotion, pricing and
positioning of the products (Baker, 2016). And this can be done with the help of various
marketing strategies as the analysis of the different elements of the market, segmentation of the
market as per the needs of the consumer, targeting the market for that chunk of the consumers
and then delivering that strategy. And it starts with identifying the needs of the market by
communication, plan and process development and planning the budget for it (Butler et al.,
2016).
The marketing managers need to understand various nuances of the marketing and development
of the organization and also deliver consumer friendly and quality services and the products. And
that can be done with the formulation of the effective marketing plan that includes:
Place the product in the market: the initial stage after conducting the extensive market research is
to place the product in the market and also devise different strategies to make it competitive and
attractive. Amazon being the e-commerce company places the product in the market by using
web services and clouds. And the products can be delivered to the remote location by its
excellent distribution network (Baker, 2016).
Brand creation: creating the brand value and brand worth requires market research and
identifying the market gaps. And it involves offering innovative and unique solution for meeting
the gaps in the market. Amazon has entered in to the market successfully by being customer
centric company. It has studied the market needs and offered the products for different
consumers form books, cloths, home appliance to the VOD etc. and consumer prefer it for its
quality management.
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Communication: communicating the details. Functions, qualities and features of the product is
essential to promote the product successfully and profitably. And it is done with both online and
offline modes. Amazon uses the online mode of communication and commercialization of its
products in order to deliver the products at remote locations.
Market campaigning and promotion: effective and critical campaigning and marketing plan is
prepared in form of advertising , social media promotions, digital marketing in order to aware the
consumers about the product and modifying to promote the sales further. Amazon is prepared
country specific, consumer specific and global campaigns form “A to Z” (Butler et al., 2016).
Standardization and grading: the product prepared follows the standard guidelines and grading
tools to maintain the quality as per the international and local norms. And it eases the process of
market penetration.
Budget preparation: budget estimation is a critical part of the marketing and it involves the
details of the market and tools to gather and manage the fund. And smart investment in
marketing yields profitable results. Amazon devises its budget as per the needs of the consumers,
location, and need of the market. And also for the demands of the consumers, for instance,
Risk taking and managing: marketing manager needs to identify the potential risk, and
innovation involves hung risk but once it done with the right strategy it promotes the growth of
business. the business model in itself had huge risk, because at that time consumer were not
willing to leave the connivance that tradition marketing offers and also lack of penetration in the
global market but the marketing team took the risk and penetrated profitably in the market.
Market exploration: before placing the product in the market is important to explore the
essentials and the needs of the market. And marketing manager devise strategy based on that.
Amazon explores the market with Brand registry and Enhanced Brand Content. And it enable in
many ways. And the market exploration by the amazon is also possible because of huge market
research of remote locations, different markets and different needs of the consumers.
Innovation: innovation in the marketing can be defined as offering completely different idea and
products in the market in order to improve the user experience. And in case of Amazon, its
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business model is based on innovation and disruption in the times of traditional marketing and
connivance (Butler et al., 2016).
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INTERRELATIONSHIP OF THE MARKETING UNIT
Interrelationship of the marketing unit of the organization with the other units of the business
entity impacts the business model and the success of the business. And the success of the
Amazon’s business is reflected in its large market share and turnover, and leading position in the
market. The interrelationship of HR department, finance department, and R and D department
and is helpful in understanding the needs of the consumers. And it is the coordination between
the different segments of the business unit help in devising profit making business strategy (Fahy
and Jobber, 2015).
Finance department: the finance department of the business unit is managed by the finance and
accounting manager of the organization. And it is directly linked with the marketing unit of the
organization as it decides the amount to be allocated for different marketing strategies. And the
manager in the Amazon divides the some in different segments: for the market research, for
promotion of the product, for campaigning. And it also keep track of earning form marketing
organ and funding’s etc.
HR department: the Human resource department is also linked with the Marketing and
campaigning department of the organization. And the personnel for that are recruited, managed
and appointed by the HR unit. And it also implement employee specific polices for the relevant
departments. It is the responsibility of the HR department to hire best talent for the organization.
And in the Amazon creative, analytical HR is appointed in order to boost the growth and
development.
Research and development department: the R and D department is managed by the managers and
executives from different fields and regions and they are provide with the required inputs from
the marketing department and this department successfully studies the marketing trends,
consumer’s needs, and the pros and cons in the marketing strategy for competition analysis
(Festa et al., 2016).
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SIGNIFICANCE OF THE INTERRELATIONSHIP OF VARIOUS
The growth and the success of the business model depend on the successful team work,
coordination, flow of the information between the different units of organization. Open
communication between different units of the organization led to formulation of successful
marketing method. It also helps in effective employee management and implementation of the
policies. The free flow of information and coordination creates a good working environment and
increases the employee retention rate, reduces the conflicts among the employees. For instance,
the coordination with the HR department help in understanding the need of the market and
appropriated and qualified employees are appointed by the organization and also coordination
with the finance department help in prudent budget management and effective implementation of
monetary policies. And research and development department help in understanding the needs of
the market and demands the latest data and statistics for the effective formulation of the policies
(Lovelock and Patterson, 2015).
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TASK 2
Amazon uses different marketing strategies to place its product in the market successfully. And,
for that it uses STP, marketing mix etc. strategies to devise profitable plan for execution in the
market. And marketing mix consists of the product, price, place, promotion, process, people and
physical evidence (Rundh, 2016).
Product: the products of any organization are range of good it offers and Amazon offers diverse
range of products:
Amazon website: the websites of the amazon consist of range of products and services for the
different market needs and the time response and delivery of services are very fast. It offers
different services for different users. And they can be general users with limited service
experience or premium service user with additional services.
Amazon electronic devises: there are several electronic devices are available on the web platform
of the Amazon. And they are ranged from mobile phones, laptops, electronic gadgets, camera
and assistive devices and artificially intelligent devices like Amazon echo.
Media content: Amazon offers range of contents for entertainments and users of different groups.
And they are ranging from VOD, music, news and information etc. to engage consumers to use
the services (Stead and Hastings, 2018).
Place: amazon runs its business from the electronic website and it has no physical presence in
form of stores and shops. It manages its operations by using electronic medium. But it has
presence in form of storage and transportations. And it also outsources the distribution services
in form third party suppliers. And it manages its distribution and communication without the
need to have single store and this strategy created disruption in the market. And Amazon’s Prime
free same day services are available in 8000 cities.
Promotion: Amazon uses different marketing strategies to promote its product in the market.
And the innovation in the tactics is that they are area-specific and as per the needs of the place.
And it has broadcasting on television for the limited segment of consumers and also used online
networking and advertising as a part of their strategy (Rundh, 2016).
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Price: Amazon’s business changes with time and it is seasonal in nature. And the organization
has generated the growth of 33%, 32% and 34 % in the last three years respectively. And the
pricing method of amazon can be described as cost leadership. And it constantly reduces the
price of its products to remain in business and capture the large market share. And the brand
images also help in leading as a price leader globally.
Physical evidence: the physical evidence can be explained as the products and the services being
offered by the amazon are also evident is some physical location. And they use the Webpages on
some other websites and also implemented effectively the SEO and Keywords to ease the user
search. And enable the user to link with the products of the organization (Stead and Hastings,
2018).
People: the people in the marketing mix are the entities that are related somehow to the business
operations of the organization. And they can be consumer, they can be outsources and can be
third party organizations. They participate directly in the operations and management of the
business. For instance, the person delivers the product or the services to the desired destination
are people of the Amazon.
Process: process is the method used to manage the business operations of the organization. And
process followed to buy any product or service form the amazon involves various steps: and
following this process is crucial part of getting that product from the market. The purchase
process of the amazon is:
Identification of the consumer, selection of the address and other options, then come the method
for paying for the products and services chosen can have a snapshot of the overall delivery
including the place and then the confirmation for the products and services ordered. And then the
final product and services are delivered to the consumers as per their demand. And effective
implementation of marketing mix for any organization gives overview of the performance of the
organization. And help in devising the strategy for the future need of the organization (Camilleri,
2018).
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Evaluation of different marketing strategies
Any organization uses different marketing strategies to promote their business and to promote
the growth of the organization. And for that marketing mix, STP and various marketing methods
are used to increase the profit margin and promote the business of the organization. And the
marketing method used by Amazon is Marketing mix to promote the growth of the business and
increase the consumer base. And the consumer base can be improved with the promotion of
different market tactics and extensive market research (Davcik and Sharma, 2016).
Marketing mix consists of the product, price, place, promotion, process, people and physical
evidence. The products of any organization are range of good it offers and Amazon offers
diverse range of products: And it manages its distribution and communication without the need
to have single store and this strategy created disruption in the market. And Amazon’s Prime free
same day services are available in 8000 cities. Websites and also implemented effectively the
SEO and Keywords to ease the user search. And enable the user to link with the products of the
organization (Stead and Hastings, 2018).
Amazon provides attractive and region specific marketing strategy in order to improve the
consumer satisfaction, loyalty of the consumers in order to improve the brand quality and brand
worth. And also to the workforce in the organization and reduce the attrition rate. Amazon has
mainly focused lost cost leadership in the market and it constantly keeps reducing the prices of
its products and services to have competitive position in the market. And it also aims to promote
is brand image via promotional strategies and for it, uses mainly the web-based platforms, and
also get advantage of its spread in online and social media platforms.
Advantage of buying the products from Amazon is that it offers the fast and efficient delivery
and also offers compensations in case of defects in the product and earns the loyalty of
consumers and gets advantage of mouth to mouth publicity by consumers (Rundh, 2016).
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TASK 3
Effective marketing strategy is required to attain the success and growth of the business and also
capture more market share and revenue in the market. And Amazon being the global e-
commerce giant, one of the leading retail product and service provider and to further its business
there is need to draft and effective marketing plan that contains the data and analytics based on
the real-time research conducted, and form taking suggestions from various market experts.
Marketing manager is the entity who manages the marketing tactics and business operations of
the organization. And the marketing plan must include clear and precise strategy to attain
strategic position in the market, to remain as leader in the business and industry. and it also
include smart objectives and budget estimations.
Executive summary
This marketing plan is prepared to evaluate and analyze the effectiveness of the marketing
strategies and also to evaluate the strategic position of Amazon in the global market. And it is
done with the application of different theories and models. As to analyze the market situation and
industry SWOT analysis is used. And it explained the opportunities exist in the market for
amazon and listed potential threats. It also covered the strategy for the future plan and that is
developed with the application of STP, diversification and differentiation. And in the end, the
budget is prepared for the marketing and forecast and control measures are also included in order
to get the desired result and attain competitive edge (Dileep and Mathew, 2017).
Overview of company
Amazon is the US based e-commerce company, digital marketing and cloud based organization.
And it also created disruption in the market by bringing online buying and selling of the
products. It reduces time and the cost incurred in transportation, front store and maintenance of
the products. So it offers products at relatively lower prices form the traditional marketing. And
it is considered as the critical factor in its success, huge turn over and market share. The
organization is one of the leading organizations and it has started its business in the year 1994 as
a retail outlet in the US and in the coming years it expanded its business in other regions also.
And it aims to offer the customer centric services and ensure the loyalty of the consumers and
attain the success in the globally.
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