Analyzing Amazon's Marketing Strategies: A Case Study

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Marketing Essentials
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Table of Contents
Introduction...................................................................................................................... 3
LO.1: (Task 1).................................................................................................................. 4
LO.2: (Task 2).................................................................................................................. 7
LO.3: (Task 3)................................................................................................................ 10
Conclusion..................................................................................................................... 14
Reference list................................................................................................................. 15
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Introduction
In present scenario, majority of business companies are focusing upon adopting the
most effective marketing tactics and approaches for greater market sustainability and
higher business profits simultaneously. Modern market researchers have defined the
marketing concept is an important philosophy, which business ventures must analyse
customer needs and then make decisions for satisfying those requirements better than
the market competition. Customers are the most valuable business factors and
marketing assists business ventures to meet the expectations of valuable business
factor.
“Amazon” is one of the most successful multinational American technology companies
that concentrate upon the e-commerce, cloud computing, artificial intelligence and
digital streaming. The company was founded in 1994 by Jeff Bezos. It served global
customers and deals with almost every types of products, especially retail products. The
company has 647,500-trained employees for executing different business operations
(aboutamazon, 2019). Last year the company generated US$232.845billion revenue in
business.
This study will shed light on different aspects of marketing and its significance in
accomplishing business objectives. The interrelationship between marketing and other
organizational departments will be explained in this paper. A new marketing plan will be
prepared for better consideration of the paper.
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LO.1: (Task 1)
Explain the role of marketing and how it interrelates with other functional units of
an organisation.
Marketing is the process through which companies like “Amazon” inform their new
and existing customers regarding their products and their significance. Marketing
reaches out numerous customers and inform them about the value of the product.
Marketing function is directly associated with multiple vital roles and responsibilities. It
promotes new product to gather attention of customers so that companies can meet
their sales target in an effective manner. In modern business scenario, marketing has
become the core of business success and companies from start-up to multinational
companies all are using advertisements and promotions for reaching out more numbers
of potential customers. Marketing is related to the exchange of products and services as
well as increasing the sales revenue and business profits simultaneously. Important
marketing functions are as follows:
Analysing and gathering market information
Market analysis and gathering market information is one of the most important functions
of marketing (Burns et al., 2014). In this process, customers, their demands, needs,
expectations and purchasing psychology is understood thoroughly by business ventures
like “Amazon”.
Marketing planning
Every business organizations must have their business objectives and companies use
different but effective marketing plans in order to meet those business objectives in an
effective manner. Making an effective marketing plan for greater sales revenue is also
an important marketing function (Kozlenkova et al., 2015).
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Figure 1: Functions of marketing
(Source: Majaro, 2014)
Design, development and modification of products
In order to sell high range of products, perfect design and modification of the product is
highly recommended. Company with better product always have the opportunity to
achieve competitive advantage in market place. Additionally, development and
modification of products in continuous manner is another important consideration.
Standardization and grading
Standardization is referred to determination of standard about size, weight, design,
quality and others to be used in terms of manufacturing products. Standardisation and
grading of product in a company for meeting customer expectations is also considered
as an important marketing function.
Promotion
Another important marketing function is promotion of products and reaching out more
numbers of customers to inform them regarding effectiveness and value of the newly
product to new and existing customers. Effective promotion of products is always helpful
for organization in terms of speeding up revenue and growth rate (Andrews and Shimp,
2017).
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Branding
Every business venture want that his product must have specific identification in the
market. Hence, customers can select the brand from a pool of similar product selling
rival companies. It is called branding of products and successful companies use this
marketing function to improve their market position and market shares simultaneously.
Increasing sales revenue and market shares
Marketing is actually aimed at accelerating the revenue generation and shares of the
company. In modern market place, business ventures are required to adopt and
implement different types of marketing tactics in terms of speeding up the sales revenue
and market shares of respective business organizations (Huang and Sarigöllü, 2014).
Apart from this, the role of marketing functions in improving business excellence and
accomplishing business objectives is undeniable. It has great interrelation and
understanding with all other organizational functions in the firm. It interacts and consults
with multiple organizational functional units such as IT department, operational
department, logistic department, HR department and others to execute all business
operations in a precise manner (Ramanathan et al., 2017). However, business
organizations like “Amazon” must maintain customer oriented system and execute all
business activities according to that for providing maximum satisfaction and sustaining
in the market more frequently. They always focus on maintaining a healthy relationship
and excellent understanding between different functional units so that they can compete
in better manner in the company.
HR department
HR department oversees verity of important functions and operations in an organization.
HR recruits, selects and provide training to new and existing employees for reaching the
set organizational targets in an effective manner. HR recruits best quality candidates for
making effective sales unit so that marketing department can meet sales target more
effectively. Marketing department consults with HR personnel and then conduct
marketing campaigns and other activities.
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Figure 2: Interrelationship between marketing and other functional units
(Source: Carlon and Downs, 2014)
Finance department
Finance department of ventures like “Amazon” is responsible for leading and
undertaking all business activities under the financial capabilities of the organization. It
allocates adequate amount of capital to marketing department for execution of different
range of marketing operations (Kamboj et al., 2015). On the other hand, marketing
department works to speed up organizational revenue, which funds the finance
department.
R&D team
R&D team is responsible for evaluating the actual market demands, needs and
expectations of customers so that they can better execute their product development
and modification activities effectively (Vera et al., 2016). Marketing and R&D
department works together for understanding customer choices and meeting those
choices for selling more numbers of units.
In short, the marketing and other functional units are interrelated with each other and
marketing activities always impact over other business functioning and operations.
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LO.2: (Task 2)
Compare ways in which organisations use elements of the marketing mix (7Ps) to
achieve overall business objectives
Elements “Amazon” “Walmart”
Product “Amazon” has different
range of products like
almost all types of retail
goods, electronics goods,
books, dresses, jewelleries,
accessories and all other
things. This extended
product portfolio attracts
majority of the global
customers. The company
deals with best quality
products to their customers.
Walmart is also a popular
American multinational
retail organization. The
company deals with movies
music, electronics, toys,
party supplies, craft
supplies, grocery, clothing,
footwear and others to
gather attention of huge
numbers of customers. The
company always maintain
their product’s quality high
to provide customers a rich
experience of retail product
shopping.
Promotion The company use mainly
online promotional
techniques and more than
single social media channel
for reaching more numbers
of potential customers.
Additionally, the company
uses word of mouth
promotions and provides
different attractive offers,
flash sales and buy more
offers on magazines for
grabbing attention of
customers.
Walmart use both
traditional and modern
promotional methods. The
company uses TV, radio,
magazines, newspapers,
social media sites, online
websites and others to
attract global customers. In
promotion, company
invests huge amount of
capital for arranging
multiple marketing
campaigns and increasing
sales revenue successfully.
Price Amazon uses competitive
pricing strategy for
attracting more numbers of
customers and meeting the
sales target more
effectively. They always set
the price of the products
lower than rivals, which
influence customers to
purchase products from the
company (Kienzler and
Walmart is considered as
the largest company in the
word by revenue. They
offer low price rates to their
valuable customer
everyday instead of offering
low prices on sales events
only. The company uses
EDLP or Everyday Low
Price strategy for better
sales revenue (Özer and
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Kowalkowski, 2017). Zheng, 2015).
Place The company mainly
conducts their business
operations at online
platform and mostly uses
their online website for
generating sales revenue.
Walmart is famous for its
well maintained stores.
Company has more than
11,875 stores worldwide to
serve high quality products
and services to customers.
They consider US market
place as their main market
place for diverse business
activities.
Physical evidence The company Amazon has
its distribution strategy, with
two fulfilment centres back
in Seattle and Delaware. It
has its operation based in a
global infrastructure and is
subjected to the use of
sortation houses, that
influences, its marketing
strategy. The company is
known for provision of
satisfaction to a variety of
the global customers that
make the use of their
services. This unleashes,
that the company has a
good and better marketing
base and is able to reach
out to the customers
(Sethna and Blythe, 2016).
As compared to the
business operations of
Amazon, the company is
subjected to have its chain
of supermarkets and retail
stores in 27 countries with
55 different names. The
number of stores as
compared to Amazon is
around 11,368. It has its
physical operations as Best
Price in India, Seiyu Group
in Japan and so on. The
company is able to achieve
its marketing objectives,
making the use of the
customers in a global scale.
Process The company comprises of
a number of processes in
order to deal with it
marketing processes.
Amazon comprises of both
the online and the offline
processes of making the
sale of their product. The
company makes the use of
high- technology in order to
cater the services to the
individuals. Their principle
of marketing is more
focused on the online
nature of their business,
The process of marketing
as compared to Amazon is
by focusing on strategies,
which are beneficial for the
business. The customer
needs are identified for the
attainment of the process of
marketing, which is linked
to the business. The
company makes the use of
the cost leadership strategy
and operates as a retailer
satisfying the needs of
customers on a global
scale. It also gives into the
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which benefits the
company.
use of customer friendly
prices, which is important in
the market.
People Amazon is subjected to
make the use of efficient
and trained employees, for
providing the services to
the customers on a global
scale. The company makes
the use of product
marketing and are efficient
in giving out exclusive
services to the customers.
There are around 647, 500
employees that cater to the
well being of the company.
The focus of the company
is to keep the employees
motivated and bring in best
online product to the
customers Krasnov and
Anisimov (2019).
Walmart takes into
consideration the use of 2.2
million employees, which
provides better efficient
services to the individuals.
Therefore, the customers
are integrated to the growth
and productivity the
business in a better
manner. The company has
its pricing strategy, which
affects the business and
brings in products and
services to the customers.
Hence, the employees are
known for the provision of
efficient and better services
for individuals (Jolkkonen,
2018).
Table 1: Differences between 7P’s marketing strategies
(Source: Created by learner)
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LO.3: (Task 3)
Develop and evaluate a basic marketing plan.
A marketing plan will be centred for the cloud computing and retail organisation. This
marketing plan, would lead to the sale of more products by the company. The marketing
plan will be initiated by the six step-marketing plan and process. This will be
beneficial for the growth and understanding of the operations of the company in a better
manner. Therefore, as per the above scenario a marketing plan will be formulated for
the company Amazon. It will take into account the use of the company operations,
which are fruitful for the growth, and productivity of the company in a better manner.
Marketing Plan for Amazon
1. Situational Analysis: In order to comprehend the situation of the market and its
competitive advantage, it is imperative to make the use of the SWOT analysis. This
would be useful, as it would provide an understanding of the environment and the
operations of the firm in the UK market. This would also be useful in attaining the
market industry and competition, which would bring out the best results, which are
useful for the market.
SWOT analysis of Amazon
Strengths
Amazon is known as the online retailer,
with its strategic trust on the use of the
cost leadership and focus on the use of
differentiation. The company attains its
competitive advantage using the IT sector.
The company is able to provide the best to
its investors and have an influence over
the growth and the operations of the
company. The company has been useful
to the consumers on the strategic
directions, which are useful to the
customers. With its use of the logistics
systems and distribution systems, the
company has its advantages over its
competitor rivals that are prevailing in the
company (Pandya, 2012).
Weakness The diversification strategy, which is
owned by Amazon, makes the company
lose its own core competence. Free
shipping to the customers has an influence
over the retailers as they have the ability to
lose its customers that make the utilisation
of such strategies. The company does not
have zero business models, which can
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affect the company and its operation in the
business (Pandit, 2014).
Opportunities Amazon is exposed to innumerable
opportunities, which can provide growth to
the services of the company. It online
payment system, is a widely used by the
company in a better manner. The
company is also known for the provision of
making a global destination, which is
widely accepted by the customers in the
business. Hence, that would affect the
popularity of the customers and bring in
better services useful for the individuals.
Threats The threats that are faced by the company
are hacking and theft due to the increase
in online shopping services. Its aggressive
pricing strategies, and cost leadership can
become a source of conflict for the
company (Diehl, 2017).
Table 2: SWOT analysis of Amazon
(Source: Created by Learner)
2. Marketing Objectives
The objectives of Amazon in order to provide with use of hi -technology products to the
customers will exhibit certain objectives. These will be enumerated below:
 To boost the marketing sales of the company by 15%
 To increase the market share in the global markets
 To evaluate the marketing expansion opportunities, present in the market.
 To emphasize on the leadership strategies, which are available in the market
 To enhance the customer satisfaction level
3. Marketing strategy
In order to devise the strategy for Amazon and its production of high-technology
products, the company should be able to make the use of the strategies that would aid
in its consumption.
Segmented Targeting and Positioning
The marketing plan for the production of a high-based technology should be based on
the planning of customers from different demographic areas, which are imperative for
the functioning of a company.
Segmentation: The Company will aim the products by making the use of the customer
advances and the geographical location. It could make the utilization of the multi
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