Marketing Fundamentals: Amazon Case Study and Analysis

This assignment on marketing fundamentals explores key concepts such as segmentation, targeting, and positioning, with a focus on the company Amazon. It delves into the stages of the consumer decision-making process, differentiating between high and low involvement decisions, and provides an analysis of the unique characteristics of service products compared to physical products, including a discussion of the marketing mix. The assignment covers geographic, demographic, behavioral, and physiographic segmentation strategies, as well as the importance of targeting specific customer groups. It also examines Amazon's positioning strategies, including its pricing strategy, and the factors that contribute to its competitive advantage. Furthermore, the paper discusses the seven elements of the marketing mix. This document provides a detailed overview of marketing principles and their application in a real-world context.

MARKETING FUNDAMENTALS

Table of Contents
MARKETING FUNDAMENTALS................................................................................................1
INTRODUCTION...........................................................................................................................3
QUESTION 1: SEGMENTATION, TARGETING AND POSITIONING:...................................3
Segmentation:.............................................................................................................................3
Targeting:...................................................................................................................................4
Positioning:.................................................................................................................................4
QUESTION 3..................................................................................................................................5
Stages of the consumer decision making process and their differentiation with high
involvement and low involvement...............................................................................................5
QUESTION 4:.................................................................................................................................7
Unique characteristics that differentiate a service product from its physical products and
discussion of marketing mix........................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing is defined as an asset to any organisation that are working and competing in the race.
Marketing helps the organisation to fetch the required reputation and the essence of the
organisation policy is conveyed to the public through different measures that are adopted.
Organisations adopt different marketing tools like promotions through advertisements and many
other ideologies which helps the company to incorporate their meaningful implementations into
the crowd. This report entirely deals with the marketing fundamental out of which one can easily
ensure the different components of marketing that can be used by the organisations to maintain a
good and a proper management. The company chosen in this regard is Amazon. The company
amazon is one of the largest retailers in the world that started off as a book store and later
evolved as a dynamite.
QUESTION 1: SEGMENTATION, TARGETING AND POSITIONING:
One of the most favourable means to maintain the good marketing structure is to main the
strategic marketing plan. When the company succeeds in identifying the means of developing
and penetrate into the crowd, then the company is said to succeed in the race. The segmentation,
targeting and positioning are the approaches that are carried by the companies to identify
different types of the consumers based on whose preferences the service can be rendered.
The organisations maintain a subtle record to identify the group of people that will carry out the
trade with the organisations. This is a simple framework that will bring the required reputation to
the company. many companies commit mistake in maintaining the standards in this regard the
organisations come with the prospect of segmentation, targeting and positioning. The three
aspects are as follows:
Segmentation:
The segmentation process involves dividing the heterogeneous market into the homogeneous
components in the company. The retailers are said to maintain products that will have to be
divided upon the basis of consumer preferences. Segmentation is important ad is adopted by
almost all the retailers that will make it easier to the organisation to maintain the product and
policy evaluation. The segmentation with regards to the company Amazon will define the groups
of customers that will make up their purchases. Amazon segmentation is of the following ways:
Geographic segmentation: where the company focuses upon 100 countries that ill carry forward
the service.

Demographic segmentation: where the company focuses upon the different age groups in order
to carry the trade mostly those that are 18+.
Behavioural segmentation: the behavioural patterns of the consumers will speak about the
purchasing decisions. The company will make sure that the behavioural patterns are met in the
way they are.
Physiographic: this depends on the social and the physiological segmentations. While one
company is maintaining the means and process then the physiological processes are to be
maintained properly.
Targeting:
Targeting refers to the act of enacting the measures to identify the means that can be focused
upon in order maintain the trade the most favourable one. Every company or an organisation
targets that special category that will make them stable in carrying the services. Amazon started
of as a book store which has furnished into being one of the top retailers by maintaining the
systematic strategies that will enhance the crowd. There will a set of people that will have to be
focused upon in order to increases the sales. Few customers will be more focused upon the way
the company offers them the means. Basically, the internet users will be main focused on the
ways they can purchase things that are available online. Amazon focuses upon these type f users
whose interest is to maintain the means of trade that will bring about both online and offline
sales. The company ensures that the middle class and the upper middle class will make sure to
carry out the purchases. A research at various centres of excellence have conclusively proved
that most of the retailers aims at the people that will be able to buy good on a large scale. The
targeting of Amazon enabled the customers to ensure a spectacular trade. The targeting of the
company will help to maintain the objectives that are able to bring the sales that are worthy to be
enhanced in the retailing.
Positioning:
Amazon positioning is regarded as the strategic one which consists of the factors that will endure
the company to be placed among the lot. Many companies maintain their position based on the
targets that they get through without fumbling for change in the perceptions. Amazon is said to
maintain sustainable competitive advantage upon three fundamental operational strategies. To

differentiate primary among the others, it maintains a pricing strategy. The company believes
that if low prices are offered then it will bring profits in the future. They try to mitigate the cost
by lowering the prices to the customers to achieve higher sales volume, upon negotiating better
terms with the suppliers. This will facilitate the better operating services.
QUESTION 3
Stages of the consumer decision making process and their differentiation with high involvement
and low involvement
Consumer go through from some main 4 stages while taking decision for buying products
and services such as:
Need recognition: When customers determine their needs then this stage and needs
recognition occurs. They feel something missing and for filling or satisfying that missing things
they need to buy things. It is important for businesses to have knowledge about their customers
as when and which types of needs their customers have. Companies that are able in identifying
needs of customers are more likely to get this opportunity and increasing sales.
Information search: It is other main stage of consumer decision making process in which
customers gather information to the great extent. They gather information by searching in order
to make better decision. One of the main sources and factor that is being considered by
consumers while making decision is reviews of people who have previous experience with
products. For better decision and on the basis of all information, consumer make a list of features
as well as disadvantages of products of companies (Stankevich, 2017). On this basis and
information, they take decision. There are some sources that may be used b consumers for
gathering information include: commercial, personal, public and experimental.
Evaluation of alternatives: It is the main stage on which basis the main buying decision
depend. In this stage, consumers evaluate products or alternatives of different companies where
products are available. Once selecting product that can satisfy their needs, they seek out for the
best option that is available and can be beneficial for them in all manners. Marketing mix plays a
vital role as on the basis of marketing mix, they compare all P’s such as pricing, products quality,
physical evidence of alternatives and make decision.
Purchase decision: After completing all stages that have been discussed above or after
evaluation, consumers finally take decision. They make conclusion on the basis of evaluation of

alternatives of products. Relation also does play a vital role as if they have strong relation with
any specific brand then they are more likely to buy products from them.
Post purchase behaviour: Buying purchasing decision does not end to purchasing of products
stage as consumer analyse or measure effectiveness of products they have bought. They analyse
whether their products has ability or features of satisfying tehri needs or not. If their bought
products satisfy their needs then they become loyal towards the brand or serve as a brand
ambassador who can influence other potential customers (Panwar and et.al., 2019). The same
applies with negative experience but in regard to Amazon it can be said that it provides high
quality of products and fast delivery services that can help it out in taking advantages of external
opportunities.
This buying decision varies in high involvement and low involvement such as:
High involvement decisions: It refers decisions that are important for buyers as it is tied to
consumers’ self-image and ego. Buts such decisions are risky. It includes all physical, financial
and psychological risks because sometimes wrong decision may cause anxiety. For this decision,
they have to complete 6 complex stages. As it is risky purchasing decision because products are
too expensive and costly so they have to gather more extensive information. From protecting
themselves against failure and wrong buying decision they have to mainly rely on this
information. From multiple sources they gather data and invest substantial efforts in making
better decision. Some examples of high involvement products are: homes, computers, buying
cars and others (Santandreu and Shurden, 2017).
Low involvement decisions: As compared to high involvement buying decision, it is not
risky because products in this stage are affordable and cheap. All types of risks such as financial,
physical and psychological risks are not nearly as great. Consumers do not require investing time
and money in searching or gathering information. They can make decision on the basis of some
views of customers that have already experienced with products. If ay cases, consumers take
wrong decision then also they do not have to pay much or worry about anything. This decision
involves an abridged decision-making process. There are some general and common patterns or
process of making low involvement process. Some examples of low involvement products:
chewing gum, toothpaste, detergent powder and others.
So, on the basis of above discussion and difference between high involvement ad ow
involvement buying decisions, it can be said that Amazon can take competitive advantages. It

deals with variety of products or products range. It is well -known and have great image in the
market as consumers trust on it. So, it does not require investing more money in promotional
activities. It can increase ranges if products for making position in the market.
QUESTION 4:
Unique characteristics that differentiate a service product from its physical products and
discussion of marketing mix
The unique characteristics of service product and physical product can be analysed as widely
crucial for analysis towards vision-oriented growth, on which Amazon as one of the most
globally recognised brand within serves its customers with varied advanced functional
innovation.
Differentiation between service product and physical product can be discussed as follows:
Products are tangible which are physical in touch and often part of the challenge of marketing
services is creating tangible elements that connect customers to the service bran which generates
specific consumer’s preferences. The services are intangible in format and are non physical
format which generate new range of consumers experience based on quality aspects (Grewal,
Hulland, and Karahann., 2020).
Products are the physical need that builds the want within consumers for specific product, based
on specific consumers and the services on other hand they focus on enhancing product delivery
which brings consumers goodwill on profound level. Amazon products and experiences are
specifically generating new varied advanced consumer’s experiences with its best hygienic
experiences and goal oriented paradigms for developed efficacy into longer run.
It is easier to return product than service which specifically brings forwards aspects that products
which are in physical format can be returned to company by customers, but the products services
cannot be as they are in non physical format and generate an intangible characteristic.
Products are objects or systems that Amazon makes customers avail and services are the
transactions on other hand where no physical goods that are transferred from seller to buyer.
Seven elements of marketing mix
The marketing mix elements are widely crucial for innovative business connective determining
pace which enhances new functional scope on varied paradigms to generate specific consumers
market target goodwill where Amazon usage of marketing mix can be discussed as follows:

Product: Amazon product mix has been widely strong where the products are widely innovative
and advanced as per consumer’s preferences which generate advanced work growth functional
goodwill. The product mix has been also found to be one of the strength within Amazon
marketing mix where there is specific focus developed for generating new range of products
functional advanced reach, which has made it one of the top most ranked global brand.
Place mix: Amazon within place mix has been strategically placing its strategies to be widely
component and functionally operative for wide reach among target consumers which makes
products and services widely available. Amazon has been competently growing within place
factor where there has been consistent growth in recent competitive domains, where there is
wider effective new scale evolving reach towards new potential metrics.
Promotion mix: Amazon uses advanced digital tools and platforms for promotion mix measures
where the promotion mix has been competently growing in recent industry scenarios, on which
promotion strategies have been advanced formatively growing, The promotion mix has been
identified as one of the most advanced aspects within Amazon working determinants on which
brand has been witnessing stronger innovative business growth, scaled scope efficacy in varied
larger scope (Appel, Grewal and Stephen, 2020).
Physical evidence: Amazon uses the website web page in order to deal with the evidences of the
further transactions and purchases that were made visible to the users. The physical evidence
helps the customers to make sure that they encourage upon buying the stuff that is more reliable.
The human tendency will persuade the users to go with things that are more relied upon.
Therefore, the company depicts the purchases through the website where the customer reviews
and feedbacks were given.
Process: the process is the subtle means that are associated with the purchase. The overall cater
that is available to purchase the components is related with the process. Te Amazon makes sure
to follow a systematic approach towards purchasing the product. The consumer will first enter
the website where the items that are being used by the customer and are wanted by the user are
displayed. After a thorough analysis the products are said to maintain a subtle means of being
able to be seen by the customer in the last purchase method. The items are then taken to the cart
and then the payment modes are depicted through which the service depicts the time and date of
delivery.

People: People that tend to shop with amazon are said to be the ones that are more into
household works and businesses. Amazon categorises the people and based on the groups the
items of the cart are displayed. The items in the website will show option based on the
demographic features. The major aim of amazon is to focus upon serving all categories of people
that will contribute towards the reputation of the company. there are many things that are
considered during the people perspective. The company extends its service to all the sectors and
age groups that are of subtle means. The rules that are employed to serve people are of clear
perspective and the person with mere knowledge can hope to trade with it.
Price: price is one of the essential factors that will determine the company. the customers tend to
opt for choices that are of minimal price and the quality maintained on a subtle basis. The price
of the amazon company is negotiable. The company offers the prices according to all the
categories of the people. some might not be able to purchase things that are of highest price.
Amazon offers the filters in the cart that contains category of prices through which one can easily
select the item based on the price. the service is used by all categories of people which will
further maintain the processes according to customers.
CONCLUSION
The entire report deals with the marketing strategy and the fundamentals and that with regards to
the company Amazon. The company is the largest retailers in the world with the demographic
count exceeds that of the other retailers. one may not be able to ensure the fact that the company
is more into targeting and segmenting which further enhances the roots of the trade. The report
deals with various segments like the marketing mix, segmentation, targeting and positioning and
various other marketing fundamentals that will enrich the company’s trade to an extent of being
the best out of the lot. The various elements of marketing mix which brings out the most
favourable means are included in the report with the set of policies that are a boon to the
company’s marketing. The segmentation process will help the company to maintain the
demographic means that will make the company endure the things that are able to carry on the
trade. The targeting and positioning will help to maintain the targets and then the positioning of
the company will rely upon. The marketing mix will help to maintain the means and standards of

the company by defining the process that will add to the fundamentals of the process. The weight
of the marketing department will lie upon this.

REFERENCES
Books and journals
Appel, G., Grewal, L., and Stephen, A.T., 2020. The future of social media in marketing. Journal
of the Academy of Marketing Science, 48(1), pp.79-95.
Dawson and et.al, 2020. The retailing reader. Routledge.
Farah and Ramadan, 2020. Viability of Amazon’s driven innovations targeting shoppers’
impulsiveness. Journal of Retailing and Consumer Services. 53. p.101973.
Grewal, D., Hulland, J., and Karahanna, E., 2020. The future of technology and marketing: a
multidisciplinary perspective.
KABASAKAL, 2020. Customer segmentation based on recency frequency monetary model: A
case study in E-retailing. Bilişim Teknolojileri Dergisi.13(1).pp.47-56.
Panwar, D. and et.al., 2019. Consumer decisión making process models and their applications to
market strategy. International Management Review. 15(1). pp.36-44.
Santandreu, J. and Shurden, M.C., 2017. Purchase decisions for high involvement products: the
new generation of buyers. Journal of Marketing Development and Competitiveness. 11(2).
pp.88-92.
Stankevich, A., 2017. Explaining the consumer decision-making process: Critical literature
review. Journal of International Business Research and Marketing. 2(6).
Witek-Hajduk and Grudecka, 2018. Positioning strategies of retailers’ brands in the emerging
market–a cluster analysis. International Journal of Emerging Markets.
Online
Segmentation, positioning and targeting of amazon: [ONLINE] Available through:
https://www.mbaskool.com/brandguide/it-technology/1293-amazon.html
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