Marketing Essentials: Amazon and Walmart's Marketing Mix Strategies

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Marketing Essentials with Marketing Mix
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Table of Contents
Part B...............................................................................................................................................3
Task 1:.............................................................................................................................................3
Comparing two different organizations within the same market using 7Ps marketing mix............3
Marketing mix used for market planning........................................................................................5
How Situational Analysis will be effective for Amazon.................................................................6
Task 2:.........................................................................................................................................7
Mission and Vision..................................................................................................................7
SWOT analysis........................................................................................................................7
7Ps insight of Amazon.............................................................................................................8
Marketing objectives...............................................................................................................8
Monitoring and control............................................................................................................8
Tactics used by Amazon..........................................................................................................9
Segmentation, targeting and positioning.................................................................................9
Action plan for 1 year with objectives...................................................................................10
Evaluation procedure.............................................................................................................10
References......................................................................................................................................11

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Part B
Task 1:
Comparing two different organizations within the same market using 7Ps marketing mix
7Ps Amazon Wal-Mart
Product
Amazon is most promising brand in online
retailing industry. They sell their products
through online market strategies. There are
varieties of branded products that are selling
by Amazon. It will be noticeable that various
household, electronic gadgets, health care
and various other categories of products can
be obtained through this e-commencing
company. About 250 million of various
products can be obtained from Amazon with
wide range of manufacturing brands
(Amazon, 2019).
Like Amazon, Wal-Mart is also an online
retailing store. It also has various
products in various categories. It
possesses variety of brands for a
particular product. Many retailers are
attached with this online retailer to sell
their products. Unlike Amazon, Walmart
have approximately 4 millions of
products across various categories.
Price
As a global leading online retailing company,
Amazon sells their products of various price
ranges. For any online marketing, Amazon is
the prime choice of the customers that is only
because they range theirs products to all
economic classes. Single products from
Amazon have various scale of price range,
which support economical backward as well
as fluent people to become a customer of
Amazon (Amazon, 2019). However, the
quality of the products may differ due to this
wide price range, but still it has become an
important strategy for their business.
Walmart has also become a leader for its
price strategies. Walmart also sells their
products, which have wide range of price
categories. This strategy of price ranging
has become a threat for its competitors.
Its products with various prices possess
effective market advantages and can be
able to capture the entire customers of
various economic classes.

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Place
Amazon is a global online retailing brand. It
has sold their products through online
application based and website based services.
To accrue any product, the customer needs to
download the application of Amazon services
and then they can accrue their desired
products from any part of the world.
Unlike Amazon, Walmart have their more
than thousand outdoor retailing counters.
With the help of numerous vendors and
from those outlet counters, customers can
get their products (Voith, 2010). Walmart
also have numerous product distributors
that sell the product from Walmart.
Promotion
Amazon’s promotion strategies are quite
different from any other online retailing
company. Amazon gives their full efforts for
promoting their products. Amazon gives
advertisements on every digital network sites
and makes various posters, theme cards for
their promotions (Mas and Nanik, 2017). To
attract customers, Amazon introduced
various types of offers at different time of the
years. Though Amazon is a global brand, still
their marketing strategies include regional
market demands.
The promotion strategies of Walmart are
very simple in contrast of Amazon.
Walmart particularly focused on product
diversity and price cut-off for their
product promotions. Walmart also enrich
their products variety and price ranging
from low to high, which favours customer
to accrue their products (Bocanegra
Gastelum, 2019). For online retailing,
Walmart also have introduced various
offers and gift vouchers for the
customers, which forces customer for
buying various products from Walmart.
Process
Amazon employs an umbrella branding
strategy by placing various products with
corporate brand name. After getting order for
a particular product, various Amazon staffs
were engaged for completion of that job
(Vronski and Maia Olimpio, 2017). Amazon
recruits various vendors in various locations
to deliver their products to the customers and
various distribution centers engaged for
ensuring effective Amazon services
(Amazon, 2019).
Walmart also provides effective products
delivering process. Walmart have
numerous number of outlet counters from
where customers can take their desired
products with their suitable mode of
payments (McGee, 2018). The company
also provides several vendor services that
help customers to accrue Walmart’s
products in remote areas.
As an online retailing service provider,
Amazon provides their physical presence
Physical evidence for Wal-Mart is in the
form of traditional way. The outlet

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Physical
Evidence
through their application and websites. The
application that has designed by Amazon is
very much user friendly. Peoples from
different social background will be able to
use this application and can get their desired
products easily (Amazon, 2019).
counters of Wal-Mart provide effective
physical evidence with their various types
of products. Each managing supervisor of
each retailing outlets and also their
central head office staffs ensure effective
global services from the Wal-Mart.
People
Online retailing services Amazon also try to
focus on peoples’ effectiveness to provide
effective services. Amazon has recruited
various people in several of products
domains, which ensure employment of large
number of peoples (Sadhasivam and
Kalivaradhan, 2019). Amazon also includes
various small retailers under their umbrella,
which also help them for their business
development.
Like Amazon, Wal-Mart is also focus on
the goodness of the people. The
behaviour of the staffs of Walmart exerts
a positive impact in customers’ mind,
which help Wal-Mart to expand their
business market. Thus, hard work of all
the Walmart staffs make them global
market retailer (Strategic Management Of
Walmart, 2018).
Table 1: Comparison chart between 7Ps of Amazon and Wal-Mart
(Source: Learner)
Marketing mix used for market planning
Amazon is one of the biggest online retailers in the world. They sell a vast of goods such as
household products, books, entertainments, healthcare products and electronic gadgets. Since the
establishment of Amazon, they have changed their marketing strategies and became a leader in
the retailing market. Their current market mix is base on 7Ps of the marketing plan. Amazon also
provides an umbrella for various small-scale businesses, and they can able to sell their products
to the customers (Kovac et al 2015). With the help of various vendor and transportation mode,
Amazon can be able to reach several remote areas in the world and successfully deliver their
products. Amazon gives their full effort for promoting their business to the entire world for
successful establishment of their price scale products. According to Carayannis et al. (2019),
Amazon has become a prime competitor for its effective process of product delivery. Further,

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customers can get their desired product on their desired time with customer-friendly services by
Amazon.
How Situational Analysis will be effective for Amazon
To identify the actual market position of Amazon, situational analysis may serve as an important
tool. With the help of his analysis, Amazon can detect their positive and negative impact on
peoples’ mind. This analysis suggests that analysing ability of Amazon to recall customer’s mind
is the biggest strength of Amazon. Amazon is also focussed on differentiation and cost
leadership approach, which helps its shareholders to develop value from the company. As opined
by Allen et al. (2018), Amazon is the only online retailer that has single-minded expansion mode
generating more costs in emerging markets. Besides this disadvantage, situation analysis shows
that online-secured payment system help Amazon to capitalised their products in the market.
According to Xu et al. (2017), another key strength of Amazon is that it can increase their
number of products under its own brand instead of selling products of their partners. By
estimating all of these above-mentioned situations, Amazon would be able to rethink its business
mode of operation.

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Task 2:
Mission and Vision
As mentioned by Allen and Pavelsky (2018), the mission of Amazon is to provide best services
to the customers to ensure maximum satisfaction from the customers. The vision of the
organisation is to establish a corporate culture to secure the business condition in the near future.
SWOT analysis
The SWOT analysis represents the strengths, weakness, opportunities and threats associated with
the business of Amazon, which are described in the table below:
Strengths Weakness
 Lower price of the products
 Largest collection
 Rapid technological invention
 Efficient delivery
 Proper customer services
 Lower margin due to wide delivery
network
 Affected profitability in the developing
nations
 Imitable business structure
 Less approach in the developing
countries
Opportunities Threats
 Penetrating in the developing countries
 New partnership with different firms
 Backward integration
 Different physical stores except US
 Acquisition
 Limited entry barriers in the industry
 Government regulating policies
 High competition in the local markets
 Competitions with online and non-
online organizations
 Increased cyber crimes
 High risk of coping the business model
by others
Table 2: SWOT Analysis of Amazon
(Source: Learner)

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7Ps insight of Amazon
From the 7Ps analysis of Amazon, it has been found that the products of Amazon are very much
attracting and the quality of the products attracts the customers more in addition, the wide range
of varieties are also an additional feature of the organisation (Carayannis et al. 2019). In
addition, the products available in Amazon are cheaper than any other organization, which make
it a prime choice for all customers. The brand is providing their services in different places,
which means the customer can avail the service at any place and any time. Besides, the
promotional strategies of Amazon are quite attracting, which makes the customers inclined
towards them.
Marketing objectives
 To attain market share of 15% by Amazon in financial year 2020 so that it can increase
its sale share market
 To make about 45000 job opportunities in the market, within the financial year 2020, by
opening different distribution facilities in the organization
 To increase the profit from the market up to 63.75 within the economic year 2020, by
opening different grocery and retail chain in the market
Monitoring and control
The monitoring processes, which are effectively followed in Amazon, are based on the analysis
of different domains of the organisations, such as:
 Sales analysis: By monitoring the sales of the organization, the manager will be able to
identify the areas in marketing need to be improved (Dennis et al. 2015). Besides,
requirement of implementing plan for future is identified done by this way.
 Market share analysis: This can be done by analysing the financial data of recent and
past few years. The launch of new products and the checking of its vulnerability are also
judged by this way.
 Analysing the profitability: The analysis of the profitability will help to identify the
balance between the expenses and earring of the organisation (He and Gao, 2015). This
could be evaluated by tallying the net profit and the gross profit of a product, so that the
risks can be reduced.

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 Efficiency ratio evaluation: By this way, the organisation will be able to manage their
assets and resources (Kovac and Bajkovec, 2015). The revenue collected and the use of
working capital is judged in this case. The total turnover from the assets and the present
position of the company is also evaluated in this case.
Tactics used by Amazon
 Free shipping of the products, except the bulky and distant location, makes the service
more accepted among the customers (Roberts and David, 2019). However, the charges
imposed by Amazon are comparatively less than any other organizations.
 Using of complete and foolproof technologies, so that the exact preferences of the
customers are analysed.
 The loyalty programs of Amazon such as introducing the Amazon Prime
 Quick and convenient delivery
 Selling staffs of others
 Using of artificial intelligence
 High geographic expansion in the target market
 Increased acquisition
Segmentation, targeting and positioning
 Segmentation: Amazon mainly focuses to identify the different characteristics of the
customers, based on their preferences and similarities. Villaroel Ordenes et al. (2016)
mentioned that the main population of the company is the youth, especially from the
middle and upper class f the socioeconomic group. In addition, the company is dealing
their business over 200 countries, but mainly focusing in the developing countries.
 Targeting: As opined by Xu et al. (2017), the main targeted population for Amazon is
the tech and internet savvy population, as the attracting of this population can be done
easily. The ambitious, easy going and determined customers are mainly entertained by
this organization, as their characteristics are suited to them.
 Positioning: Amazon mainly uses the multi-segment positioning for their services and
products to their customers. It will diversify the variety of their products, so that the
customers can explore these products properly.

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Action plan for 1 year with objectives
Objectives Activities Success rate Evaluation Time
Attain market
share of 15%
Increase the sales
and of the market
and penetrate in
multiple
developing
countries
High High brand image 1 year
Increase the
profit from the
market up to
63.75
Making strong
marketing
strategies,
improved
promotional
activities
High Increase the
revenue collected
from the business
and the turnover
rate
6 months
Make about
45000 job
opportunities in
the market
Implementing an
effective
recruitment
procedure and HR
in management
High Help the company
to reach the
customers more
effectively
1 year
Table 3: Action plan
(Source: Learner)
Evaluation procedure
The evaluation of the marketing strategy by Amazon can be evaluated by assessing its success
rate and the progression it shows after using the plan. The saes and financial reports of the
organisation should be checked so that the comparison can be done and based on it the
effectiveness of the implemented plan is obtained. The different disciplines of the organisation
should also be monitored by performing regular audits and checking the financial details.

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References
Allen, G.H. and Pavelsky, T.M., 2018. Global extent of rivers and streams. Science, 361(6402),
pp.585-588.
Amazon, (2019). [online] Available at:
https://www.amazon.jobs/en/jobs/801662/targetText=Responsibilities:&targetText=Develop
%20comprehensive%20integrated%20marketing%20plans,Sales%20priorities%20and
%20revenue%20goals. [Accessed 15 Aug. 2019].
Bocanegra Gastelum, C. (2019). Walmart: competitive crossroads in the chinese retail
market. México y la Cuenca del Pacífico, 8(22), pp.89-120.
Carayannis, E.G., Grigoroudis, E., Rehman, S.S. and Samarakoon, N., 2019. Ambidextrous
Cybersecurity: The Seven Pillars (7Ps) of Cyber Resilience. IEEE Transactions on Engineering
Management.
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retail mix. International Journal of Retail & Distribution Management, 33(3), pp.179-193.
He, C. and Gao, Z., 2015. The Impact of Customer Review on Consumer Preference for Fresh
Produce: A Choice Experiment Approach (No. 330-2016-13922).
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GDP. SSRN Electronic Journal.

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religiosity and charitable giving. International Journal of Nonprofit and Voluntary Sector
Marketing, 24(1), p.e1619.
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