Amazon Marketing Essentials: A Comprehensive Report

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Marketing Essentials for Amazon
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Table of Contents
Introduction......................................................................................................................................4
LO1: (Task 1):.................................................................................................................................4
Marketing utility and its relationship with the other well-designed element of an association. .4
Key function and tasks.................................................................................................................4
Developing marketing tactics......................................................................................................4
Market investigation....................................................................................................................5
Interior product improvement......................................................................................................5
Helping the members associated with sales.................................................................................5
Relation of different responsibilities and roles of marketing in the wider context of organisation:
.........................................................................................................................................................6
Task 2: (LO2)..................................................................................................................................7
Marketing Mix applies to Market planning.................................................................................7
Contrast of 7Ps of Amazon with Walmart...................................................................................8
LO3 :( Task 3):..............................................................................................................................11
Designing and analysing a necessary plan for marketing..........................................................11
Mission and vision of the company...........................................................................................11
SWOT Analysis.........................................................................................................................11
Objectives of the company........................................................................................................12
Marketing Strategy....................................................................................................................13
Action Plan................................................................................................................................14
Control.......................................................................................................................................15
Conclusion.....................................................................................................................................16
References......................................................................................................................................17

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Introduction
Amazon is regarded as a MNC based in Seattle, Washington that deals with cloud computing,
digital streaming, e-commerce and AI platform. It is considered as Big 4 with Apple, Facebook
and Google. The company is known to disrupt its business with the technological innovation, so
that market capitalisation and revenue can be measured well. The current revenue, as of 2018 is
$232.887 billion and employee base in 647,000. In this report, the market world is focused on
connecting the customers that is making the marker experience personal. Further, marketers will
be good in developing value for customers, so that managing customer relations can be done well
(Amazon.com, 2019). The report will be supported by marketing functions and the roles that
relate with wider organisational context. Further, the contrast of 7Ps will be analysed with
Walmart with Amazon to attain the business objectives. With that, a basic marketing plan will be
evaluated analysing key elements with Market objectives, SWOT, and Action Plan.
LO1: (Task 1):
Marketing utility and its relationship with the other well-designed element of an
association
Key function and tasks
The functions of marketing are important in case of managing business efficiency as it aids to
analyse the prospective of a product before launching it in the market. It is therefore essential for
Amazon to conduct thorough research of the market, develop and plan for a new product and
improvise the sales activities to manage the market without any hindrance. These functions of
marketing support the company with many opportunities for growth and competition in the
market (Feng et al., 2015). In case of Amazon, the functions of marketing comprises of
conducting market research, aiding in sales and developing products. It plays a major role in
helping the company to grow. The key functions and tasks of the functions of marketing of
Amazon are as follows:

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Developing marketing tactics
The managers of the marketing team perform a significant position in framing the strategies of
the business (Armstrong et al., 2015). They offer special features to the products offered by
Amazon in different markets. They create new avenues by which many novel channels to
distribute their products can be identified. The chief tactics of Amazon is to comprehend the
consumer’s mind and meet their demands accordingly in the end.
Market investigation
A thorough research of the market is very crucial for the setting up of a new strategy by
focussing on the aims of the company. Amazon uses this strategy to enter into the market. The
company can enter into many developing countries of the world by undertaking a strict policy of
market investigation (Kamugisha, 2017). The research if points out huge demands for their
products, they can surely fulfil the consumer demand in no time.
Interior product improvement
The marketing manager is entrusted with the responsibility of improving products, which are
new in the market to enhance the sales from beginning. Amazon’s sales executives and team
members develop fund planning and improvise contents for promoting their products to catch the
consumer’s attraction (Kyriakopoulos et al., 2016). In the company, such fund structure is
designed by the members of the finance team, which help the department of marketing to decide
how much and what to produce. The chief duty is given to the members of the finance team to
provide exact amount needed to improvise goods and services.
Helping the members associated with sales
The squad members of the marketing department of Amazon should come together and unite
with the managers and team members of the sales department to create a better environment and
comfort for the people of the sales group. This will help in enhancing the revenue earned and
profits incurred very easily (Kozlenkova et al., 2015). The sales individuals and customer care

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executives are provided with trainings and induction facilities by the company so that they can
be aware of the demands, likes and preferences of the consumers and provide them with such
products as per their wants. It is also seen whether they can sort out the complaints and
grievances of the consumers.
Relation of different responsibilities and roles of marketing in the wider context of
organisation:
Marketing functions in the organisation are closely related to the other functional units of the
organisation. These functional areas are consisted of the functions like the planning, strategy,
research, marketing communication, ensuring quality of the products and services and
advertising and promotion. These functions are also significant in the context of the
organisational development and their business. In fact, in case of Amazon, these functions have
played crucial roles.
Strategy: The strategic development in the in the marketing function are needed to be evaluated
so that the business operations can be developed easily. Hence, the strength and weaknesses of
the organisations can be examined at the same time.
Research: According to the strategy that has been developed in the organisation, it is required
that the research should be developed. The market research is to be developed in order to analyse
the strength and weaknesses of the competitors as well as the demands and needs of the potential
customers can be understood (Kyriakopoulos et al., 2016). At the same time, the market research
would also help to analyse the business processes such as finance, logistics and resources can be
generated through market research.
Planning: Proper planning process needs to be developed in the organisation so that the
marketing functions can be developed and implemented properly. The process of planning
includes facts like the financial planning, forecast of the sales, distribution and communication.
In addition to it, a specific schedule can be developed for the entire process.
Marketing communications: The feedbacks of the employees are considered as the factor of
marketing communication (Feng et al., 2015). In case of Amazon, positive feedbacks have been
gained from the employees and it helped to understand the weaknesses and the strengths.

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Ensuring the qualities and the services:
Despite of being one of the giant companies in the e-commerce sections, the mentioned
organisation needs to maintain the quality of the services and products. The organisation must
evaluate the engagement of the products and the standard of the products according to their
ration. As a result, the demand and the qualities can be understood.
Promotion and advertisement: It is one of the major functions, which is associated with that of
the marketing in the context of the organisation that has been mentioned in the study. It is seen
that the promotional events are necessary to make the targeted customers regarding the products
or services. At the same time, it is also necessary for the organisations to use advertisements
along with the promotional events so that the market penetration can be easier and the people can
be attracted to the products or the services (Armstrong et al., 2015). The marketing functions are
revolving around the advertisement and the other promotional events. Thus, they have been
intense part of the marketing functions.
Task 2: (LO2)
Marketing Mix applies to Market planning
Marketing mix i.e. 7Ps here is referred as set of tactics an action that Amazon may use in order
to promote the product or brand. Towards market planning, Amazon’s products are carried to the
client using the delivery service corporation while the company is known for its streaming
service through Amazon Fire TV (Marketingmixx.com, 2019). Amazon has enabled its network
to have presence with R&D efforts to secure its website. One of the best aspects of Amazon that
works on their effective area of market planning is the convenient customer service, where it has
made large online presence. Eventually, Amazon uses the advertising networks whenever one
sees an ad on other’s website (Amazon.com, 2019). For instance, Amazon is competitive with its
relative prices, as it stays ahead with the market contemporaries. The company has also kept
competitive because of the staffs, as it ensures the benefits from customers with the result of
online prices. However, Walmart is known to be a key competitor of Amazon, as the products
across the world are in large quantities where it can find benefits to have better economies of
scale (Cleverism, 2017). Walmart has its own promotional activities that define sales promotion

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with pricing strategy and product bundling. For example, the online stores use effective network
of strategies to pull the customers with slogans like “Grab it before it is done” that pushes
customers to take decisions, before deals are expired.
Contrast of 7Ps of Amazon with Walmart
7Ps Amazon Walmart
Product Amazon is a leading e-com platform that
sells product online where the users login to
Amazon App or website to place orders. As
Amazon has started its online bookseller with
its diversified product portfolio by bounds
and leaps. It offers better marketing, so that
the marker place of its business can bring
large profits. Even, it has started selling
gadgets such as Fire Tablets, phones, Kindle
and e-book reader. The Amazon’s digital
services include demand, video, e-books and
music (Amazon.com, 2019). It also offers
web services such as database services, cloud
storage to budding start-ups. Some of the
grocery items delivered to the customers
include its Amazon Fresh and Amazon Prime
Pantry.
Walmart like Amazon is known as multi-
retail stores and it includes varied
departments. It includes departments like
Home, Clothing, Shoes, Electronics,
Movies, Personalised Shop, Auto tires,
Pharmacy, and Jewellery. It also has the
other department that is based on the
Halloween Party Costumes. Each of its
department is based on Cell phones,
Songs, Music and Books, Home Decor,
Vacuum and Floor, Storage and Kitchen
(Walmart.com, 2019). Under the home
improvement, products such as
Wallpapers, Paints, Garage equipment,
and Cooling and heating requirements are
in catalogue.
Price Amazon being the market leader, it works on
competition pricing strategy. With its
network of services, Amazon uses technical
benefit to set its prices. At times, prices of
the products are set with a competitive price
strategy. The company offers low prices that
work on operations efficiency on web-based
business model. It tends to adjust the price on
product category, and other value added
Walmart being the market leader, prices
of the product are competitive in nature.
It procures products in big quantities and
it can simply price products lesser than
the competitors to benefit from
economies of scale can. Walmart charges
its product 15% lower than most
competitors do (Walmart.com, 2018).
They use a pricing strategy, which is

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services (Marketingmixx.com, 2019). As it
works on differential pricing, the same
product would be charged with the diverse
pricing option that is depending in the
customer’s place, as it find diverse websites
in each nation it operates.
dependent on purchasing behaviour of
customers, with terms like “Everyday low
prices” and “Always low prices”.
Place Due to global brand nature, all customers
purchase the services and products from
Apps and website of Amazon. Once
customer places orders, distribution network
of Amazon works on the phase to shift it to
the fulfilment centres from stores. Even,
there are large warehouses in strategic
locations to reach remote places. Amazon
also uses courier and postal services for their
package transportation (Amazon.com, 2018).
Walmart has about 11500+ retail stores at
present with 63 banners in 28 nations.
Their distribution strategy works with the
direct delivery to the stores by the
vendors that are mainly suppliers of retail
stores. It is found that Spoke and hub
method by Walmart could be effective, as
the goods are ordered centrally and sent
to the individual stores. Transportation
here is also attained with a fleet of 61000
trailers, 7800 drivers and 6100 tractors
(Walmart.com, 2019).
Promotion Amazon however uses the aggressive market
campaign on promoting the brands. When it
comes to effective promotions, it leaves no
space in its marketing mix. The key focus is
in its advertising with print ads in
newspapers that have improved hugely. The
company also uses the creative TV
commercials and the social media using SEO
and targets consumers with browsing
patterns. Amazon also has mastered its state
of art to provide sales promotions, so that
discounts can be given highly (Amazon.com,
2018). For instance, Gift a Smile is an
initiative where the people can post gifts
In case of Walmart, they promotes with
sales promotion like competitive pricing
strategy and product bundling. For being
the part of effective promotions, Walmart
also adopts aggressive brand, where its e-
com website tends to attracts consumers
by gifting its viable customers. Walmart
also uses “Grab it before it is done” for
attracting the key clients, so that they can
purchase product without judging much,
as such the offers is expired
(Walmart.com, 2018).

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through Amazon to the NGOs.
Process Amazon being a world leader in web services
and ecommerce, it has found well-built
business orientation. Amazon has increased
its fulfilment centres, so that the operational
efficiency could be developed by serving the
customers in offering better location of the
package. The information management and
customer relation is considered core to the
business (Smart Insights, 2017).
Towards process, Walmart has been
effective, as it helps customers to shop
with ease. Besides, the process includes
multiple payment counters, varied
payments and effective product
placement options. The backend process
includes warehouse and distribution that
sets up a benchmark for the current retail
industry.
Physical
Evidence
Amazon’s large presence is the website. For
being the online retailers, it places services
with the apps that are of great design and
user friendly. Amazon also releases its major
economic reports for investors and other
users that offer information where company
stands.
The physical evidence for Walmart is
witnessed by 11000+ stores
(Walmart.com, 2019). Each of their stores
has multiple product categories and effect
phase of product placement. It also has
offices that are spread across the world
adding value to the brand.
People Amazon gives huge importance to the
workforce. Irrespective to the organisation
domain, they are trying to work with benefits
from Amazon that make them a desirable
employer. With 230800 employees working
around the world, it ensures better customer
experience to develop the retail area with
development and training activities
(Amazon.com, 2019).
As Walmart is considered a global
company, it finds large focus on people.
Their staffs and people are considered
assets, which handles customer queries at
stores. Presently, the trained staffs are
being hugely motivated in serving the key
customers. Walmart now has also reached
to 200 million customers, and its strength
lies in the US (Walmart.com, 2019).
Table 1: 7Ps illustrating Amazon with Walmart
(Source: Learner)

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LO3 :( Task 3):
Designing and analysing a necessary plan for marketing
A standard promotion arrangement of the company should consist of all the elemental data
regarding the background of the business, the product the company is presently offering to its
consumers and whether the consumers are satisfied with such services or not. In case of Amazon,
which is a famous company dealing in e marketing and cloud computing has designed a new
marketing plan in array of comprehending the endeavor, objectives and the plans the business
will make to attain its desired goals (Amazon.com, 2017)
Mission and vision of the company
The mission declaration of the business declares that they are always trying their best and putting
their expert efforts in delivering products and services to their customers, which are
comparatively cheaper than the other competitors, are. By keeping its prices less, the company is
not compromising with the quality of the goods and services they are providing to their
consumers but they are assuring consumers that the products are of superior and unique quality.
They are providing facilities that are convenient and easy enough for the consumer to choose
them over others (The Balance Small Business, 2017). The vision of the company is to expand
their business globally so that the consumers can get reach of their products whenever they
prefer to buy online. They are following customer centric approach by providing a diverse range
of products and services.
SWOT Analysis
Strengths Weaknesses
 Famous brand image
 Widespread product mix
 Maximum revenue earner in the market
 Company’s business model can be
copied easily
 Less diffusion into the markets of
developing countries

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 Least presence of brick and mortar
Opportunities Threats
 Piercing into the markets of developing
countries
 Open new retail outlets and expand
business physically
 Can take measures to lessen counterfeit
sales
 Cybercrime
 Threat from other large competitors
like Flip kart, Walmart, E Bay
 Replication by others
(Managementstudyguide.com, 2018)
Table 1: SWOT Analysis
(Source: Learner)
Objectives of the company
Sales: Amazon is an international e-commerce company dealing in online e commerce marketing
and cloud computing services (Chen et al., 2016). It also deals with electronics and grocery
items. Based on the current standards of the industry, the company is the principal e retailer in
US having sales of 250 billion US dollars in 2018-19. Maximum amount of proceeds is created
by e retail of products and services.
Market share: With its e marketing and retailing concepts, the company has dominated the
market well. It is presently holding 70% of the spending done on e marketing and digital media
in the world. With its new products like Amazon Fire Stick and Echo Dot, it is holding about
65.73% share in the market (Singh and Dutta, 2015)
Market Expansion: The Company previously dealt in technology and electronic products, but
they have also expanded their business to target the consumers by opening new grocery and
retail chains in the country (Souza et al., 2015). It is also investing in the policies of brick and
mortar to gain more popularity in the market. It has expanded in business not only in the base
country but also in the host countries as well.
Leadership: The Company follows 14 important leadership principles so that the company can
prosper in the developed as well in the developing market (Rossman, 2016). The company