The Significance of Marketing on Amazon: A Comprehensive Analysis

This report provides a comprehensive analysis of the importance of marketing on Amazon. It begins with an introduction to marketing and its significance, followed by an examination of the key roles and responsibilities of the marketing function within Amazon. The report then explores how these roles relate to the wider organizational context, highlighting the interplay between the marketing department and other departments such as HR, production, and finance. A significant portion of the report compares how Amazon applies the marketing mix (7 Ps) to its marketing planning process, contrasting it with the approach of its competitor, eBay. Finally, the report produces and evaluates a basic marketing plan for Amazon, outlining its mission, vision, strategic objectives, target market, and marketing mix elements, including product, price, place, promotion, process, people, and physical evidence. The conclusion summarizes the key findings and the overall impact of effective marketing strategies on Amazon's success.

IMPORTANCE OF
MARKETING ON
AMAZON

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1. Key roles and responsibilities of marketing function...........................................................1
P2. Explain how roles and responsibilities of marketing relate to the wider organisational
context.........................................................................................................................................2
P3. Compare the ways in which different organisations apply the marketing mix to the
marketing planning process to achieve business objectives.......................................................3
P4. Produce and evaluate a basic marketing plan for an organisation........................................6
CONCLUSION................................................................................................................................8
References:.......................................................................................................................................9

INTRODUCTION
Marketing are the activities refers to promoting a product. It includes advertising,
distributing products and many others. Maintaining good relationship with customers is the main
aspect of any business in marketing (Abedi and et. al., 2019). Marketing includes careful
analysis of targeted customers, targeted area and other external factors to attract more customers
toward company's product and services. Amazon is an American multinational company
headquartered in Seattle, Washington, US. This company was founded in 1994 by Jeff Bezos.
Initially Amazon sell books at online platform then later on it deals in selling other products too
like furniture, groceries, home appliances and etc.
MAIN BODY
P1. Key roles and responsibilities of marketing function
Marketing consist of each step of process from purchasing raw material to selling the
product to customers. Marketing is considered as link between original producer and their actual
customers. Few functions of marketing are explained below-
Research- Research consist of finding targeted customers, to know demand and
perception of customers, to analysis internal and external environment of business and many
others (Al-Da’abseh, Aljawarneh and Shwiyat, 2018). This is the main function which consist of
planning whether the product survive in market or not. In context of Amazon, they analysis their
competitors strategy and find data of customers search list on internet related to home products.
They also have contacts with many sellers who deals in Amazon. They target their customers
where most of the customers use online mode for shopping. By having survey on online mode
they also consider their customers demand and preferences for their services.
Product design and development- After a proper research product is designed and
developed for launching in market. This is also a main function of marketing. In context of
Amazon, they matched their sellers product with demand and preferences of customers of
Amazon. Then they deal with those sellers only whose demand are high in customers. This is
beneficial for both Amazon as well as for those small retailers who don't have wide range of
customers. So this is how they design their service.
Roles and responsibilities of Marketing within Amazon are defined below-
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Promotion- It consist of aware to customers about product and services (Azhar, Prayogi
and Sari, 2018). This is the main responsibility of marketing to promote their product. In context
of Amazon, they promote their business on social website like Instagram, Facebook and on many
other platforms. They have their own Application on which their customers have to log in to
make their id then they start sharing their information about any product which customer needs.
They also share information on required product on Emails of customers.
Providing after services- After services are those services which is provided by company
to their customers after selling of products or services. In context of Amazon, they mainly focus
on this function as this is the company of providing services only. Hence their main focus is on
providing better services to their customers. Amazon provide many after services regarding
wrong delivery of product or their customers are not satisfied with particular product then their
delivery boy reach to destination of customer and take the product back and provide money back
to their customers from main offices of Amazon.
P2. Explain how roles and responsibilities of marketing relate to the wider organisational context
Marketing department has many roles and responsibilities which is interlinked with many
other departments of an organisation (Dost and et. al., 2019). Each and every department help
each other in their functions to achieve a single goal which is main objective of business. Few
relationship between marketing department and other departments of Amazon are determined
below-
Marketing department and HR department- HR department consist of activities like
hiring new skilled employees, provide training, handling inner issues and many others.
Marketing department is consist of research and and analysis activities which is done by
specialist only. Hence specialist of Marketing work is hired by HR department in Amazon and
providing training to marketing department employees on regular basis is also done by HR. On
the other hand marketing department help HR department in presenting reports on internal and
external environment of business so HR make strategies according to that information.
Marketing department and production department- A good communication and
relationship between these two departments is compulsory for any organisation (Gunawan and
Wahyuni, 2018). In Amazon, marketing department collects all information related to customer
demand, customer preferences, customers needs to modify product or services and many other
information. All this collected information is then given to production department so they
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produce those services only which is required by customers. On the other hand, production
department helps the marketing department by providing good quality of products and services
so that marketing department promote this services in marketing.
Finance department and marketing department- Finance department consist of
monetary work like setting of budgets for company, setting of prices for particular product and
services and etc. (Pantano, Priporas and Migliano, 2019). In context of Amazon, Marketing
department collect basic data related to purchasing power of customers in a particular area, their
habit of spending money to purchase a product to increase their life style. This useful
information is given to finance department so they set prices of products according to purchasing
power of customer. Finance department helps marketing department by setting a budget under
which marketing employees must work to gain appropriate profit for company.
P3. Compare the ways in which different organisations apply the marketing mix to the marketing
planning process to achieve business objectives
Marketing mix is a set of marketing tools which is used by a company's marketing
department to achieve its goal and to target customers in marketplace (Saidani and Sudiarditha,
2019). Marketing mix is consist of 7 Ps which is explained below in context of Amazon and its
competitor eBay.
7 Ps Amazon eBay
PRODUCT Amazon initially deals in
selling books then they deals
with many other products like
clothes, electronic gadgets,
beauty products, home
appliances and many others. It
also started dealing in e-book
reader, fire tablets, Kindle and
many others.
Initially eBay deals in selling
vintage(antique) items. But
now, they deals in providing
new products and services like
clothing, foot wears,
electronics items, sporting
goods, toys and many others.
PLACE They have their own sites and
mobile Apps on which
They also have their own
websites and Apps on which
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customer ordered their
products. Then their ordered
products has been picked up
from seller and stored at
Amazon fulfilment
centres(Amazon Warehouses),
from here the goods are
transferred to distribution
centres and then to customers
by their delivery people.
customers ordered their
desired products. The
company also distribute its
products through its
application programming
interface (API) which allow
third party to access the
companies service like selling
their product to customer on
their door steps.
PRICE Monetary value of product is
called its price (Thabit and
Raewf, 2018). Amazon set
lowest prices among their
competitors because they
directly pick products from
manufacturers and they allow
offers and discounts on
occasional days. They also
provide value added services
like Prime on which users
have to pay subscription
charges which is not too high
for one day delivery and early
access of their deals.
The prices of products are
determined by sellers who
deals in eBay. Their are many
additional cost like shipping
costs which is considered as
high then their competitors
which makes high prices of
overall services from eBay.
This results in loss of
customers in last few years.
PROMOTION They advertise through print
aids in newspapers. They also
advertise on TVs and social
media for attracting more
customers. They also have
They basically provide
discount coupons for their
customers and offers for
sellers to attract more
customers and sellers to deal in
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affiliate programs where blog
owners and websites advertise
amazon product links on their
platform. They provide
discounts and gifts during
holidays and on occasional
days.
eBay. They advertise through
social media and TVs.
PROCESS Step to step procedure of how
a company works is comes
under process (Al-Da’abseh,
Aljawarneh and Shwiyat,
2018). They pick up the
products from manufactures
directly then store it in
warehouses and they also use
advances technology for
packaging their products and
giving facilities to their
customers like live track the
product. Once the product is
reached at customers door step
and they pay the bill the
process ends for a single
delivery.
eBay process are from two
sides, sellers and buyers. They
have auction format from
buyers side. Buyer can bid for
a product, highest bid gets the
product. On the other side,
seller has to upload a picture
of its product on e Bay's
website and provide all
required information related to
product. The product is
delivered when bidding is
done and seller agrees to sell
its product. After this product
is shipped and payment is
received.
PEOPLE Amazon takes care of their
workforce benefits. There are
total more than 2,30,000
people working under this
company globally. They
provide few benefits like
Manpower engage in an
company falls under people
(Gunawan and Wahyuni,
2018). eBay has more than
12,500 employees and they
provide facilities like health
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healthcare, financial, holiday
providing and many other
benefits which motivate their
workforce.
care and extra earning through
extra working hours and many
others. They offer jobs for new
employees in 12 different
category.
PHYSICAL EVIDENCE Its website and Apps is the
biggest physical evidence.
Another evidence is its
warehouses and fulfilment
centres. Amazon also upload
its financial reports on
internet. Hence, all this are
good evidence that this
company really exist in this
world.
They have physical stores
called eBay fulfilment centres.
eBay has its own website and
packaging boxes which is an
proof that this company is real.
P4. Produce and evaluate a basic marketing plan for an organisation
Company Overview: Amazon is an American multinational company which works like a link
between between seller and buyer. Its founded in 1994 in Washington. Current CEO of Amazon
is Jeff Bezos. It basically deals in all products like clothing, home products, electrical items and
many others.
Mission: To serve best services to customers through online mode as well as through physical
stores in affordable prices.
Vision: To become number one company in the world in context of satisfying customers needs
by providing them any product whatever they need on online platform.
Strategic objectives: To focus on long term growth by providing good services and products to
their customers.
To lead the market by using lowest prices among their competitors.
Target market:
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 Segmentation: It is dividing whole market into smaller segments in which each segment
has common type and behavioural of customers (Wu and Li, 2018). Amazon segmented
its market in different ways like;
gender wise – women wear, men wear, kids wear.
Payment wise – product under a particular amount of money.
 Targeting: Specific customers which uses particular offered product are targeted audience
for company. For Amazon their targeted customers are those who trust online shopping
and familiar to new technologies and techniques. Positioning: The mind set of people for offered product is called positioning (Thabit and
Raewf, 2018). In context of Amazon, they mostly offered those products which is more
popular in today's scenario. Like- groceries and etc.
Marketing Mix:
 Product: Amazon physical groceries stores is an good idea to develop more growth
strategies to capture those customers who prefer traditional shopping.
 Price: Price of all items in amazon groceries stores should be set lower than other
groceries stores near by that particular area. Use of discounted products and gift vouchers
help the company to attract more customers.
 Place: This stores must be located near by local citizens and near crowded areas. Hence,
customers will not face any problem in reaching this stores.
 Promotion: Advertising through news paper adds and pamphlets help to aware more
customers near by areas. Collecting contact number of their nearby customers and
sending then messages of discount offers and other useful data about new product is an
good idea for promotion.
 People: It include those humans who are involved in buying and selling of product. In
context of amazon their 2,30,000 employees are working efficiently for making every
deal successful.
 Process: Buying products directly from manufacturers on less prices then store it in
warehouses. Required quantity will be shifted to main stores then customers purchase and
after clearing all payments they may offer free home delivery to those customers who
came for shopping on two vehicle bikes and purchased many items which is impossible
to carry on bikes.
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 Physical evidence: Their physical stores, receipts of payments, advertisements and their
own packaging boxes are the proof that they are not fraud stores.
Controlling and Monitoring: This stores must be controlled by main offices of Amazon to work
under proper discipline. Each store must be handled by a skilled and experienced supervisor
which is appointed by HR manager of company. All decisions must be taken by main offices and
not by staff of these stores.
CONCLUSION
It has been concluded from the above information that there are different roles and
responsibilities of marketing functions which is very useful to survive and grow. Marketing
department is interlinked with other departments to work smoothly and with full coordination to
achieve organisational goal on time. It is also concluded that 7 Ps of marketing mix is useful for
attracting more customers and to grow faster. Marketing plan is originated for future growth and
define each aspect which impacts on business.
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References:
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