Marketing Essentials: Roles, Strategies, and Analysis of Amazon Report

This report provides a comprehensive analysis of Amazon's marketing strategies, examining the key roles and responsibilities within the marketing function and how they relate to the wider organizational context. It delves into the marketing mix of Amazon, exploring how various elements contribute to achieving business objectives. The report also includes an evaluation of a basic marketing plan for Amazon, highlighting its strengths and weaknesses. Furthermore, the report discusses the interrelationship between the marketing department and other departments, such as human resources, production, and finance, to ensure smooth business operations. The report emphasizes customer focus and the creation of valuable exchange relationships, and overall providing insights into the core principles of marketing through the lens of a successful e-commerce platform.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
P1 Explain the key roles and responsibilities of the marketing function....................................2
P2 Explain how roles and responsibilities of marketing relate to the wider organisational
context.........................................................................................................................................5
TASK 2............................................................................................................................................7
P3 Marketing mix of two organisation that are required to achieve business objectives...........7
TASK 3..........................................................................................................................................11
P4 Produce and evaluate a basic marketing plan for an organisation.......................................11
CONCLUSION:
........................................................................................................................................................16
REFERENCES..............................................................................................................................16

INTRODUCTION
“What is marketing? Simply put, marketing is managing profitable customer
relationships. The aim of marketing is to create value for customers and capture value from
customers in return.” (Philip Kotler, Gary Armstrong Principles of Marketing, page 2) Marketing
is the department that is customer focused and the goals of marketing are attracting new
customers, deliver good service, win the customers loyalty and by this win organisations
profitability. The marketing is more than it was in the past, just the telling and selling of a
products. Nowadays, the marketing department needs to understand and satisfy the needs and
wants of the customers. According to management guru Peter Drucker, “The aim of marketing is
to make selling unnecessary.” Once the marketer has received the message form the customer
about the desired product, the marketer needs to create de product, add value and a convenient
price to it. Once promoted and on the market the products will be sold fast and easy. Marketing
is more oriented in a win -win relationship between customers and companies. That is why
marketing is not about selling anymore; it is about satisfying the customers, creating valuable
exchange relationships and gaining loyalty that in time is the most valuable component that can
guarantee an organisation success. Amazon is one of the main companies that understood the
need of customers to relay on an organisation that can deliver a large range of products and a fast
and easy delivery. On Amazon there are sold a large spectrum of goods from all the sectors of
retails, starting with books, of course, where it all began, clothes and a lot of technical products
as well. The studies show that starting with 2013 the number of people employed by Amazon has
reached 117,300 and the world net income is 74.45 billion US dollars. Since it was founded
Amazon has been succeeded to overcome competitors and to become and stay the leader in the
market. The strategies have been diverse, Amazon has invested and bought smaller companies,
even bigger ones in the present, it has diversified the products that are offered and it has created
a good platform for customers, with advantageous services, like Amazon Prime.
As a Marketing assistant, this report addresses the detailed marketing analysis of Amazon, an e-
commerce marketplace and cloud computing platform.
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TASK 1
P1 Explain the key roles and responsibilities of the marketing function
The most important task of marketing department is to identify the needs and wants of
the customers and to deliver the goods or service according to those two standards.
The marketing team has a few roles that conduct to the objectives and goals of an organisation.
The objective of any marketing team has to be to present a product that reach the needs and
wants of the customers and at the end will be bought by them. Amazon has the same goal. On
Amazon site there are billions of products to choose from, once you enter a products listing there
are so many products to choose from, with different prices and other characteristics. The
objective of having such a diversity of offers is that the customers search result in a purchase at
the end.
Amazon Marketing Functions can be separated in categories; functions that make the customers
visit the listing and functions that make the customer buy the good or service.
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On the product description or product listing customers can find the marketing function that sell
the value of a product. There, there are listing’s bullet points, title, product details, reviews and
similar products. In the option of buying or not, the price and the delivery are also important.
Product listing must offer the entire product’s value fast and clear as the customers will not stay
long to evaluate a product, as the options are many.
Marketing function is a role which helps an organisation to effectively identify the
potential products which are successful in market and aim at implementing several promotional
strategies in order to enhance sales of respective organisation. Major functions included under
marketing are: market research, preparing a proper marketing plan, product development and
several others. Moreover, major function performed are discussed below in detail:
 Market Information: In order to effectively identify needs, desire as well as wants of
consumers gathering market information is must. Proper analysis might be conducted in
order identify the exact market situation, through this several aspects are made clear. This
analysis significantly involves judging of internal strengths and weaknesses of a firm and
then make future business decisions. With reference to Amazon gathering of marketing
information effectively helps the organisation in market segmentations.
 Market Planning: Market planning is primarily concerned with achieving the desired
business objective of an organisation. However, under this marketing function a proper
plan is made in order profitability of respective firm. Main motive of formulating market
plan is to increase market presence which eventually helps in increasing market share.
Furthermore, market planning also covers aspects relating to production, promotion and
etc. However, in context to Amazon, the company regularly makes an attempt to create
new marketing plan which essentially helps them in capturing a wide market share,
 Exchange Functions: Buying as well as selling are the prime functions of marketing.
Under this function the main objective is to make sure that firm's offerings are
sufficiently made available in order to effectively meet customer demands. Moreover,
exchange function of marketing is supported by advertising, sales promotion and personal
selling. Amazon regularly performs research in order to effectively meet supply and
demand appropriately.
 Product Designing and Development: Product designing and development effectively
helps an organisation to capture new market share. In today's competitive market
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environment not only cost of the product matters but it is the product design, style,
quality that enormously impact overall sales. Amazon has significantly adopted several
strategies in order to always capture good market share potentially. This is actually made
possible because of Amazon enormously focuses on creating special design products due
to which competitive advantage is gained.
 Physical Distribution: This function of marketing is primarily concerned with
transporting and storing of goods and services. It basically involves moving of products
from their exact point of production to the area were ultimate customers can purchase.
Being a e-commerce platform Amazon follows a long chain for physical distribution
process. It basically starts with order processing, warehousing, inventory management
and then finally ends the delivering product.
 Standardization and Grading: It is one of the most important marketing function.
Standardization primarily involves producing goods and services at specification which is
predetermined. It focuses on ensuring that product successfully meets established quality
and quantity effectively. Furthermore, grading is concerned with classification goods on
predetermined characteristics. It includes size, weight, prices etc.
 Packaging and Labelling: This is also a very crucial marketing function which
significantly attracts new customers. Packaging basically involves designing a package
for product in which it will be delivered. Whereas labelling means putting necessary
information regarding product on package. In today's competitive world packaging and
labelling are promotional tools. With reference to Amazon, company uses different
packaging for each of its goods and services based on nature of products.
 Customer Support: Customer support is a very important and essential marketing
function. Without satisfying the needs of company’s potential customer a business
organisation cannot establish itself in marketplace. Customer Support basically involves
after sales services, handling customer complaints effectively, credit facilities, pre sales
counselling and several other such services are essentially included. In context to
Amazon, the firm extensively focuses on satisfying the needs of company’s potential
customers. Amazon customer support facility is available 24*7.
However, there many other functions which are performed by marketing department of an
organisation in order to effectively carry out business objective with proper efficiency.
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Marketing function within an organisation starts from identifying the potential needs of
customers and ends at satisfying them. Through effective implementation of all marketing
function by a firm desired business objectives are significantly achieved.
P2 Explain how roles and responsibilities of marketing relate to the wider organisational context.
Marketing Department within all business department plays a very vital role in promoting
the business vision as well as mission in potential market. It primarily serves as a face of
company because all the business activities revolve around marketing. Furthermore, marketing
department has the responsibility of increasing the overall profitability. Marketing department of
an organisation is interrelated with all the other major department within an organisation.
Interrelationship of different department with marketing department is mentioned below:
 Marketing with Human Resource department: Marketing and human resource
department are two sides of similar coin. Both of these department closely interact with
each other in order to significantly accomplish business objective with efficiency. It is
very necessary for an organisation to attract profitable customers towards them so that a
decent amount is sale is generated. But this cannot be done without the involvement of
employees. Moreover, it is the marketing of closely interacts with HRM department in
order to effectively communicate the needs of workforce in an organisation. The major
responsibility of human resource department is concerned with hiring and firing
employees. Proper coordination between both of these department is must. Marketing
department significantly initiates requirement of employees and further it is the HR
department which closely work in order to employ skilled and talented employees. In
context to Amazon proper coordination between both of marketing and human resource
department is effectively maintained. Through desired business objective is achieved
within allocated period of time.
 Marketing and Production Department: Both of these department also properly
coordinates with each in order to accomplish desired business objective. Furthermore, in
order to effectively satisfy and meet needs of company’s potential customer it is very
essential that marketing and production department of an organisation closely work
together. Both of these department helps in enhancing overall performance. Production
department primarily focuses on creating new products and managing quality and
quantity of products. However, marketing department is responsible for setting deadlines
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for production department. The marketing department of amazon closely interact with
production department to ensure that items are manufactured keeping in mind
specifications lead down by customers. It also ensures that volume of orders generated
during festival seasons are delivered within the time schedule. Amazon production
manager is responsible for making raw materials available timely. Managers keep
regular check on production in order to ensure smooth functioning. Production
Department of Amazon is sub divided into: Production and Planning Department that
decides quantity and quality of raw materials to be used for productions. The Design and
Technical Support Department deals with designing of product that would attract more
and more customers to enhance overall sales volume for company. The marketing
department draws deadline within which production department have to deliver the
items, whereas the production department tries to check and test product to ensure that
they do not have repair or replace defective products.
 Marketing with Finance Department: Finance and marketing are the two pillars of an
organisation on which foundation for growth and profit dependents. Responsibilities of
finance department includes financial accounting, budgeting, reporting and project
management. Marketing department of Amazon interacts with finance department on
regular basis which enables smooth functioning of both department. The primary
objective of finance department is to keep records of all financial transaction that are
undertaken by Amazon, the department publishes adequate budget to meet need for
research and development. Furthermore the finance department prepares a brief that
ensures that all operations of business operates within financial capabilities of Amazon.
Therefore all other departments will have to work within allocated budget. Main focus of
marketing department of amazon is mainly to concentrate on sales volume and generating
market share, while the finance department primarily focuses on cash flow statements,
covering costs and paying back investors as soon as possible.
Therefore, it can be concluded that each of department within an organisation closely interacts
with each other in order reach the desired position. With reference to Amazon, proper
coordination between all department is maintained. This interaction have significantly help
Amazon to each the position where it is today.
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TASK 2
P3 Marketing mix of two organisation that are required to achieve business objectives
The main objectives of Amazon are to deliver all that the customers need and wants, which will
lead to attracting new customers, growth and development of the business; to create jobs
available and reduce the unemployment rate and to reduce the amount of non-renewable energy
they use.
The marketing department is responsible with planning the strategies that will lead to the
objectives and the aims of the organisation. The marketing plan has to include a combination of
marketing mix, according to the target of the plan. The process needs to include a strategy that
will be achieved through the customers. Once the strategy reaches the customers, the
organisation has reached its objectives.
Below there is an analysis based on a comparison on how Amazon and one of its competitors
eBay use the tools of the marketing mix in the marketing plans:
Amazon eBay
Product Books, electronics, movies,
web services, clothes
Clothes, electronics, web
services
Price One of Amazon tools is
setting the correct price by
comparison, having different
sellers for the same products.
There is an added value to the
products with Amazon Prime,
a service that permits the
customers to subscribe and
pay a monthly fee and in
exchange receive early access
to offers and next day
E-bay has two options of
setting the price. One is a
fixed price that allows the
purchase at the price asked
by the seller. The second
one is auction-style, a
format that allows the
seller to set a minimum
price that the bid can start
from, and eBay is also
charging a separate fee for
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delivery. each item auctioned.
Place Amazon is a global
organisation and it tries to get
all around the world. In order
to be able to deliver to the
furthest places in the world,
Amazon has built enormous
warehouses and uses the post
and delivery couriers to
deliver the parcels.
As an e-commerce
business eBay services can
be used from everywhere
in the world if these
conditions are met:
- Customers use the
internet
- Customers use the
payment methods
allowed by eBay,
as PayPal or others
The time for delivery is a
big disadvantage within it
competitors, as eBay is
just an intermediary
between the customer and
the buyer
Promotion Amazon’s campaigns are
strong and targeted and use all
the channels, like newspapers,
television commercials and
social media marketing.
Amazon is very good in
promotions; discounts and it
also gives to charity.
EBay uses coupons and
discount, a 2% give back
for the customers using
PayPal. There is also eBay
Radio which provides the
eBay users with news and
views from around the
world.
People The unemployment issue is
very important for Amazon.
They are employing new
people every year, with more
- John J. Donahoe is the
President & Chief
Executive Officer
- Pierre Omidyar is
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than 600,000 employees in
2018.
Chairman of the Non-
Executive Board
- Scott Thompson is
President of PayPal
- Bob Swan is Senior Vice
President
Process Amazon business is a strong
process oriented business. It
has built warehouses all
around the world for making
the process of delivery more
efficient, it uses the newest
technology for its activities,
invests a big budget in
advertising and uses the most
efficient ways to deliver fast
and safe. Amazon Prime is a
great way to win more
customers and income for
Amazon, as the delivery is
next day for a monthly
amount. The deliveries are
tracked and the customers
service are very responsive on
the social media.
When a seller posts a
product on eBay, he is
charged an initial fee.
Once the product is sold,
eBay is taking another fee.
The process of selling on
eBay is composed of 2
fees, the initial one and the
final one.
Physical evidence As any e-commerce business,
Amazon’s biggest physical
presence is its website.
Amazon has also created an
The eBay headquarters is
located at 2145 Hamilton
Avenue, San Jose
California
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app that is very easy to use.
The warehouses and
fulfilment centers can be
found all around the world.
Their logo is placed on a large
scale on each of their
buildings. The logo itself is an
arrow from a to z, exactly
what Amazon is trying to do,
sell everything on their
website.
eBay provides the
possibility for some
listings to be posted on
international sites and the
listings will be able to be
seen exactly as they were
posted.
Amazon is the largest online retailer company and a leader in the e-commerce field. The main
objective of Amazon is customer satisfaction and gaining their loyalty. The best parts of Amazon
as a business is the vast variety of products, the low prices and fast delivery.
The major business objectives of Amazon.com:
– Gaining more customers and satisfying the existing ones. Amazon’s customers are separated in
three categories: consumers, sellers and businesses.
Amazon Prime was a great tool in the strategic plan that attracted the loyalty of existing
customers and new customers. By acquiring Whole Foods Market Amazon tried to enlarge the
customer’s vast selection of products.
 The growth of the profitability by diversifying and enlarging the products and services on
their portal, reduce the pollution caused by the delivery and developing Amazon Web
Services. Current sales of Amazon consist of 55.4%, that are made in the North America
and 44.6% of sales is made by the international market.
Marketing mix is a tool which significantly helps an organisation in creating the most accurate
marketing strategy. However, main motive of marketing mix is to effectively communicate with
company's target market. It is a combination of product, price, place, promotion, physical
evidence, people. All of these elements enormously helps in accomplishing desired business
objective with efficiency. It very essential for a company to effectively manage each of the
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element of marketing mix for the development of the company as a whole. Through proper
evaluation of seven's p's of marketing the established business objective is achieved.
TASK 3
P4 Produce and evaluate a basic marketing plan for an organisation
The Amazon Web Services segment involves in the global sales of compute, storage,
database, and AWS service offerings for start-ups, enterprises, government agencies, and
academic institutions. Founded: July 5, 1994 by Jeffrey P. Bezos
Amazon.com is a service company in the Catalog & Mail Order House industry that retails
consumer products to customers worldwide. With a market capitalization of $320.73B, the
Seattle, WA-based company is larger than both Walmart and Alibaba in terms of market
capitalization.
In January 2018, Amazon teamed up with JPMorgan Chase and Berkshire Hathaway to develop
a non-profit company that will offer its collective employees simplified, high-quality and
transparent healthcare at reasonable cost.”
Mission: To increase the number of customers for Food and Grocery and create a good imagine
for the brand.
Vision: To surpass the way people, think of Amazon.
The principal target of Amazon in United States of America is the teenagers that do not
have to struggle about the income or paying bills. There is a new service in place that allows
teenagers to place an order, that need to be approved by the parents in order to become a
purchase. After the teenagers choose the products that they want to buy, Amazon sends a text to
their parents that have the final decision.
Situational Analysis: In order to assess the external and internal environment of the market the
relevant tools and techniques are needed to be used adequately. PESTLE analysis is one the most
important tool to analyse external environment of the market. SWOT analysis is making an
analyse of the market’s internal environment.
PESTLE analysis:
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Political
- The Trump administration is applying trade protectionism in the USA. As most of the
goods sold by the organisation come from abroad, a possible reduction of foreign imports or
tariffs to foreign imports can be harmful for Amazon.
- Considering Brexit negotiations, the British and American government is currently
holding discussions about potential trade deals between the two countries. This could make
Amazon’s operations in the UK easier, as import taxes may be reduced and the regulations less.
Economical
- Sluggish economy of law GDP rate might influence the sales of books.
- Economic crisis such as the recession, retrenchment, may lead to decrease in demand for
books or other products online.
- Critics have stated that due to the new technology Amazon will reduce jobs. The
information seems to be incorrect as there have been reports that new jobs are open in the USA
and UK Amazon facilities.
Social
- Cultural values or beliefs may affect online sale
- The obesity is a growing problem all around the world, with 711 million people in the
world being overweight. Amazon service of delivering all the products to the door, even
groceries, may become a problem to be discussed as it seems that it encouraging the people to a
non-active lifestyle.
Technology
- Continuous change in the technology demands that Amazon continues to update its usage
to ensure that it can compete within its industry
- Use of mobile technology
- Innovation within e-business – the use of mobile technology to purchase goods
- Amazon needs the newest technology, in terms of logistics. In 2017 they released the
'Hub' service, a locker system that delivers parcels even when the customers are not at home.
Environment
- High literacy rate in a country may affect the sales of books in other products online.
Amazon in not able to launch its online facility in some countries – developing countries due to
issues such as war, famine etc.
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- The new regulations to reduce the organisational emissions may become a big issue for
Amazon, as all their deliveries in the UK are made by cars.
- As Amazon hasn’t so often released reports of sustainability, there are concerns about
how their worldwide operations are affecting the environment.
Legal
- Legislation regarding online businesses in all the countries it trades in – issues such as
Taxation, Loss in the US or Malaysia’s Cyber-Law.
 The Federal trade commission in the U.S. has investigated Amazon for for producing
misleading claims about pricing discounts on around 1000 products.
The PESTEL analysis is showing that the growth and diversification of the organisation
and the business has its advantages, but, if not supervised, can have a real harmful impact for the
environment and its customers. It is very difficult to control such a big organisation and some
products may go to the wrong customers. The easy process of the whole purchase process is
simplified to the point that it makes encourage the sedentary and the lack of effort for something
you want. And the rush of delivering everything so fast it will eventually harm the environment,
if a solution is not found fast.
SWOT analysis
Strengths Weakness
- The name of the brand
- The customer focused strategy
- Differentiation and innovation
- Cost leadership
- Large variety of goods
- Go global and act local strategy
- Large number of acquisitions
- World highest income in its
industry
- Great logistic system
- The business model is easy to
reproduce
- India has been a difficult area
for business
- Product flops and failure
- Tax avoidance controversy
- Limited brick and mortar
presence
Opportunity Threats
- To develop operations in different - Imitation
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markets
- Expanding physical online stores
- Improve their policies
- Backward integration
- More assets of e-commerce
companies
- Government regulations
- Cybercrime
- Aggressive competition
- Controversies about products
or employees
Objectives: To increase the number of customers.
Segmenting the market: The way that Amazon is differencing the market is based on the
customer behaviour, on the facts. Amazon is targeting each customers and segmentation of the
market is done on what the customers actually are interested in, not what they might be.
By targeting each customer individually they are able to create an environment that the
customers that are busy or convenient will come back to.
Target market
- People that are not Amazon customers, but are concerned about the children worldwide
that are suffering
- Current Amazon customers that were not Food and Grocery customers
- Customers that are not Prime customers but are Amazon customers
The market segmentation is based on the principles and concern about the environment and the
poor.
Positioning
- Prices for the products will be the same
- There will be advertised online and in print
Marketing mix
Amazon is a strong player that uses the Marketing Mix to gain more customers to its platform.
The Marketing Mix is a set of variables as per below:
 Product: Amazon has a wide range of products as retail services, electronics and has
currently organisation is aiming to add groceries items its wide range of product
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portfolio. However, food and groceries will successfully create a distinctive sales is this
because Amazon is a well established brand.
 Price: Whiling selecting the price for a product it very essential to effectively identify the
purchasing power of targetted market. Therefore, before adoption of particular pricing
strategy proper market research might be made. However, currently in order to
effectively establish range of food and grocery items into potential market moderate
pricing shall be adopted by Amazon.
 Place: Being a online e-commerce platform all the major products of respective
organisation are sold online. However, with regard to food and groceries products
Amazon shall effectively open up physical stores.
 Promotion: Promotion aspect of the marketing mix includes advertising, sales
promotion, direct mail, loyalty schemes, exhibitions, point of sale display etc. Moreover,
in order to effectively promote the current launch company shall following advertising .
Proper evaluation of all the major elements of marketing mix will effectively help the respective
organisation in successfully launching its potential product in the market.
Action Plan: It is a detailed plan which significantly outlines action which are required to reach
out the established goals and targets of an organisation. Prime details included under action plans
are objectives or goals which is expected to be achieved.
Marketing Budget:
MARKETING BUDGET
PARTICULARS I Year II Year III Year IV Year V Year
Initial money 5000 10000 12680 13000 15600
Investment 13000 12500 24950 33000 21000
TOTAL 18000 22500 37630 46000 36600
MARKETING OUTLAY
Promotion 5400 3000 7500 4500 3000
Sales publicity 6000 1500 6300 2500 5600
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Direct selling 5500 5400 2000 3500 2900
TOTAL 16900 9900 15800 10500 11500
Promotion: The company needs to advertise its products on social media and try to make it
more visible. Amazon is always very good in promotion new products as it has the necessary
resources, mainly the e-commerce platform itself. The free shipping or next day delivery are also
a way of promoting new products and increase the selling
Advertising: The advertising is done on the outdoor billboards or other similar methods. Online,
Amazon has an interesting setting that whenever you check something on Amazon and move to
another site, you will see advertises with similar products that the one that you were interested in,
poste on the website that you are on.
Budget
The studies have shown that Amazon has invested a big amount of money on marketing. In the
previous years, Amazon has spent more than 10 billion U.S. dollars on marketing per year.
CONCLUSION:
This assignment contains a detailed analysis of Amazon. The roles and responsibilities of the
marketing function are described and how those roles relate to the wider organisational context.
Amazon is analysed in the 7’Ps of marketing and compared with one of its biggest competitors,
eBay. The basic marketing plan contains a PESTLE and a SWOT analyses and a, as well as
business objectives, market analyse and marketing mix functions. The conclusion of this report is
that Amazon has a great marketing department and if it will continue to focus on customer and
diversifying the offer on their e-commerce platform, as well as making the delivery easier and
cheaper, the future of Amazon will be very bright.
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