Marketing Essentials: An Analysis of Amazon's Marketing Strategies

This report provides a detailed analysis of Amazon's marketing strategies, functions, and its application of the marketing mix. It begins with an introduction to the importance of marketing and its role in understanding customer needs. The report then explores the key roles and responsibilities of marketing functions, including market information, market planning, product design and development, and product development. It further examines how marketing relates to the wider organizational context, including research and development, information technology, finance, and human resources. A comparison of Amazon's and eBay's marketing mix is presented, analyzing their approaches to product, place, and price. The report also includes an evaluation of marketing functions and a critical analysis of the interrelation of marketing activities. The document concludes with a marketing plan, references, and a comprehensive overview of the findings.

Marketing
Essential

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1Roles and responsibilities of marketing functions..................................................................1
Roles and responsibility of marketing ........................................................................................2
P2 Roles and responsibilities of marketing which relates to the wider organisational context. .3
Evaluation of marketing function................................................................................................4
Critical analysis...........................................................................................................................4
Task 2...............................................................................................................................................5
P3 Comparison of ways where organisation apply the marketing mix to the marketing
planning.......................................................................................................................................5
Evaluation of different tactics.....................................................................................................7
Task 3...............................................................................................................................................7
P4 Marketing plan ......................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCE.................................................................................................................................12

INTRODUCTION
Marketing is the essential tool of business entity that help to understand the needs of
customers and provide them product and services. It contains marketplace, profitable relation,
customer's demand and customer driven market strategy in order to expand the business and
increase the profit margin. In current environment, business organisation realized the importance
of customer relationships and trying to innovate new products and services by adopting
marketing strategy within in business (Askoul, Khan and Lalitha, 2016). For understanding the
marketing essential AMAZON has been chosen. This is a multinational technology entity which
was established in 1994 by Jeff Bezos. This report emphasis on different topics such as key roles
and responsibilities of the marketing function, role and responsibilities of marketing relates to the
wider industry context and comparison of ways in which different company apply the marketing
mix to the marketing planning process in order to attain the goals. Moreover, this report will
define the marketing plan that will help to attract the customers.
Task 1
P1Roles and responsibilities of marketing functions
Marketing is the essential activities of a business which relates to purchase and sale of
goods and services. It contains main activity such as find out what customers want and states
whether it is possible to manufacture this products at reasonable price or not. After analysing this
company make strategy to producing products and selling it for achieving the goals and
objectives. In other words, Marketing is the core activity in business organisation that is used to
understand the needs and value of customers (Belz, 2017).
Marketing function
Marketing functions are relates with roles of a company that help to identify and sourcing
with important successful products in order to increase the profitability. Through marketing
function organisation can operate a business successfully and can promote in order to complete
the task. Such as the marketing manager of Amazon is build number of marketing strategy in
order to promote the products and increase the productivity (Marketing function, 2019). It
involves different types of marketing function that defined as:
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Market information: This is important function of marketing that involves identification
of needs and wants of consumers and analysis the various information in order to produce
products and services. The marketing manager of all business organisation analysis the market
and collects the information which relates to marketing and customer's demand. It help to know
about customer's taste and preference for completing the targets. Such as the manager of Amazon
visits market and interact with consumers in order to achieve goals.
Market planning: This function is used to make planing within organisation that help to
achieve company's marketing objectives. It help to make future strategy that can be used to
influence the customers. The main aim of market planning is to increase the number of customer
by making planning. The marketing manager of Amazon includes market presence, increase
market share and dominate the market through market planning. This function also covers
production level, promotions and other programmes that help to increase the customer loyalty.
Product design and development: The designing of products attracts the target market
that help to increase the number of customers. In competitive market environment not only
prices matters but also design of products, shape and suitability also matters. Such as Amazon
provide this opportunity to select and purchase different designing of products. This process
leads to continuous development of products and services. So organisation should also focus on
design and development of products and services.
Product development: This is marketing function which influence new and existing
customers. In this function, marketing manager are planning to launch new products and services
for expanding the business in different market place and increasing customer loyalty. The
manager of Amazon make plans to introduce new products and marketing them for selling the
products. The main aim of this function is to introduce from new products and increase the
customer.
Roles and responsibility of marketing
From the above mentioned roles and responsibility of manager of Amazon it has been
evaluated that marketing also affects marketing environment that gives many benefits. Marketing
functions also focuses on regulatory and political activity, economic conditions and changes in
technology that helps to perform functions in challenging environment. Manager of Amazon
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perform all roles and responsibility within organization that helps to maintain the productivity
and profitability by providing better quality of products.
P2 Roles and responsibilities of marketing which relates to the wider organisational context
Roles and responsibilities means duties of organisation that need to be fill for achieving
the goals. The manager of Amazon states following roles and responsibilities of marketing
department which is given below:
Marketing with research and development: Research and development means
analysing of market and get the demands of person what they wants. Research department guides
marketing department to build marketing strategy to find out the target customers and get their
needs. Both are related such as research department try to find out new products and services that
can be provide to customer and it concerns with marketing department for getting the interest of
customers. Amazon's manager analysis the market and collects qualitative and quantitative data
for making various products in market place. It helps to identify and development of new
products through marketing department (DIACONU, OANCEA and Brinzea, 2016).
Marketing with Information technology: This means to promote the products and
services digitally. Now days people are more concerned about new technology that help to
achieve goals making changes. Information technology has transformed the process of
marketing, purchasing and selling if products. Marketing relates with information technology
such as it uses digitally strategy to promote the products and introduce from new technical
services that influence customers. Amazon focuses on e-commerce, cloud computing, artificial
intelligence and digital streaming with the help of marketing and information technology. It help
to increase customer's interest and provide them best solution to purchase products by using new
technology. Moreover, Amazon is using technology driven formula for enhancing the sales
volume, productivity and profitability.
Marketing with Finance department: Marketing and finance are essential function of
business entity that help to run a business successfully. Without these a company can not run a
business as finance department provide finance to marketing department for promoting and
enhancing the business. Finance is concerned with financial aspects such as profit, cost and
expenses which is arises within organisation. In other side, marketing concerned with sales
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volume, promotions, advertising and revenue generation by raising the customers. Amazon is
multinational company that makes plans to promote the products through advertisement. For this
finance department make available finance to marketing department.
Marketing with Human resource: Marketing is related with human resource
department that help to increase the customer by hiring the right people. Marketing is done by a
person who have enough knowledge and experience about market and able to convince
customers. Human resource is handling the existing and current employees that help to advertise
the products and services within organisation. In Amazon, HR manager coordinates with
employees for fulfil their demands that enhance the productivity and profitability by marketing
the products. With the efforts of both marketing and HR industry can work efficiently or
effectively (Duffett, 2017).
Evaluation of marketing function
Marketing functions are important for Amazon as it helps to increase sale of organization
by performing all functions. These functions are helpful to operate business activities effectively
for the purpose of making profits. The manager of Amazon also perform other functions such as
risk taking, exchange function, financing, standardization and grading that helps to attracts
customers more for the purpose of making profits. Therefore, marketing function helps Amazon
to perform marketing function and maintain profitability.
Critical analysis
It has been critically analysed that functions of marketing like planning, packaging,
distributing, risk taken, production etc. are interrelated and they helps to achieve organizational
goals. In Amazon manager plans to introduce produce and does marketing by applying different
sources that helps to fulfil targets on given period. Manager of selected company analysis market
and communicate with people for the purpose of knowing their needs and wants and provide
them such products. They focuses on packaging of products which attracts customers and
emphasis to buy products. It also give offers to their customer that help to increase sale of
products.
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Task 2
P3 Comparison of ways where organisation apply the marketing mix to the marketing planning
Marketing mix is the collection of actions or tactics which is used by a company to
promote the products and its brand in market place. It help to define the what customer want and
how it can be satisfied by providing the products and services. The main aim of marketing mix is
expand the business or profitability by using elements of marketing mix. Amazon is international
company that provides different kinds of products and services to its customers (Ha and
Ferguson, 2015). The marketing mix of Amazon and E bay is described as:
Marketing mix of Amazon and E bay
Basis AMAZON E BAY
Product Amazon is multinational company that
deals in multiple products and services.
It provides different types of products
such as dresses, electronic gadgets,
food items, media content including
cloud based services, Amazon web
services such as global compute,
storage and data based services.
E bay is an American
multinational e commerce
company which is based on
consumer to consumer and
business to consumer sales
through its websites. It classify
its services in to different
platforms such as marketplace,
Star Hub, Classifieds. In Star
Hub it provides game tickets,
concert tickets, theatre shows
tickets.
Place Amazon provides products at different
places that help to attract the
customers. As it did not have physical
stores, it is relied on online sales
channel due to e- commerce nature. By
providing product through online
By suing E commerce business
and online platform it provides
online services in different
places. Customers have access to
internet and pay pal method to
for paying amounts. It establish
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services it expand its market at
different places. Moreover, it provides
prime free same day and prime free one
day services in more than 8000 cities
and towns. Prime now services are
available in more than 50 cities in 9
countries (Hill and Hill, 2017).
its services in 190 market and has
10 global retail brand. Moreover,
it has major sales channels for
business and provides application
services to influence customers.
The time of delivery vary
according to the nature of
product, physical location of
sellers and buyers.
Price Its business is depend on seasonal that
generates 33%, 32% and 34 % of its
annual revenue during the fourth
quarter of year. It adopts premium
pricing strategy that help to influence
customers. Moreover, it uses price
skimming and psychological pricing
strategy in order to influence the
customers.
E bay adopts cost leadership and
promotion pricing strategy that
attracts customers. It accepts
multiple payment plans for
private sellers like insertion fees,
shop subscription fees, final
value fees and others. It is using
economy pricing, captive and
promotional pricing policy.
Promotion Amazon is uses different types of
sources to promote the products like
new papers, applications, magazine,
T.V., Radio, social media and print
media.
E Bay is using online marketing
services that help to promote the
products. Like social media,
application and print media.
Physical Evidence It considers various factors hat
influences customers before making
purchase decision. It involves
supporting, physical environment
collateral and packaging hat help to
It considers physical cues that
influence customers. If any
confusion arises then this
physical evidence help to solve
the problems. It provides mailbox
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present the products in good manner. and other services for customers.
Process Amazon is using latest technology for
introducing the products and services in
different area (Hooley, Cox and
Shipley, 2015).
E bay is using cloud computing
and technological services for
production. It provides online
services to its customers.
People Amazon involves employers,
employees, distributors, marketing
manager and advertisement people who
help to introduce product and services.
It involves highly skilled and
experienced people who adopt
new technology for providing
news to people (Kontis and
Lagos, 2015).
Evaluation of different tactics
The management of Amazon analysis the market and decide some tactics to apply within
organization that helps to accomplish goals. Manager has applied paid advertising, internet
marketing, transactional and word of mouth marketing that helps to influence people and
increase profitability. Its main aim is to capture more market share by providing better quality of
products for attracting customers. It is more effective for business industry as it helps to
introduce from new products and that attracts customers. Such organization compare with E- bay
and improve its product as well as services for the purpose of beating competition by applying
marketing tactics (Jolliffe, 2016).
Task 3
P4 Marketing plan
Executive summary Marketing plan is the road map and blueprint of delivering product
and services. It is prepared by manager to introduce from new
products and services for increasing the profits within organisation.
All marketing plans are vary on the industry, types of product and
services and the goals that need to attain. Moreover, marketing plan is
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the process of defining and organising the marketing aim of a business
entity.
Strategic objectives The main objective of Amazon is to increase the sale by 30% by
introducing new products and services. The manager of Amazon are
planning to expand the market in other country such as Brazil along
with US. The marketing team believes in democratic leadership style
in which manager and employees shares problems and make strategies
to expand the business activities.
STP approach
Strategy
In Amazon, the manager makes plans by involving company's
information, proposition and target market. Strategy: Amazon's
manager formulates different strategy which is based on STP
approach:
The managers of selected company are formulating various strategies
based on STP approach:
Segmentation: In this phase, Amazon is consider as biggest
market as well as distributor of variety of products and services.
Amazon classify the market in to different segment which are defined
as:
Demographic segmentation: It mainly focus on woman fashion
which help to attract the customers. (Purvis, 2015).
Behavioural segmentation: Amazon provides quality service,
fashionable products and medium usage rate along with strong brand
image or loyalty.
Targetting: Amazon targets people who are more conscious
about lifestyle products as well as does not care about prices of the
product. Marketers targets clients between age group of 5years to 50
years.
Positioning: Amazon’s managers are planning to keep up
position the new product with the help of advertisements with
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celebrities, magazine, social media and newspaper articles.
Diversification: Amazon is planning to expand its market share in
multiple nations.
Differentiation: Amazon’s marketing strategy is product
differentiation.
Situation Analysis (SWOT)
Strength Weakness
 It is largest company that deals in
multiple products which influence
customers.
 It introduce new products and services
in different market place.
 It has strong background and large
market share.
 Proper delivery network for influencing
people.
 Shrinking margin due to extensive
delivery network.
 Tax avoidance issues that reduces
profits.
 High debts due to introducing new
products
Opportunity Threats
 It can increase the number of customer
by global expansion.
 Background integration that increase
product development.
 To open physical stores that increases
brand image.
 Low entry barriers that can affect
present business
 Government regulations.
 Local competition like snap deal, flip
cart etc.
Action Plan: Managers of Amazon are planning to introduce from new product and
services by allocating budgets in different aspects:
Product: Amazon provides different types of products such as clothes,
electronic devices, food items, grocery etc.
Price: The price set for the product is 5£ for sale. Moreover, it will
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keep reasonable prices of products and delivery services.
Place: It will introduce product in London UK.
Promotion:Amazon is planning to spend £5500 in marketing activities
such as promotion through direct marketing, advertisement and many
more.
Organisational
structure:
Horizontal organisational structure is followed at Amazon. Such
structure has few or no barriers are there between middle level and
lower level management. Managers focuses on teamwork, exchange of
ideas as well as collaboration at workplace (Wilson, 2016).
Distribution: This aspect is centred on elements where Amazon introduce from its new
products. Amazon is launching its new delivery services in the region of United kingdom as well
as other countries. Action plan is as follows:
Particulars Amount (£)
Advertisement 5500
Research and development 6000
Distribution channels 2500
Marketing 3800
Delivery services 2500
Total 17000
Forecasts: Forecasting is done for future. The planned forecasting is as follows;
Costs: The company wish to incur the cost of 13575£ (Simkin and Dibb, 2013).
Sales: Marketers are planning to increase the sale of new product by 37% till 2021.
Profit: The company is aiming to achieve profits of 10000£ in 2020 and 10890£ till
2021.
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