Unlocking Amazon Marketing Mix: Studymode Analysis & 7Ps

Understanding Marketing Mix and Its Importance

Question:

Discuss about the Marketing Management of Amazon Company.

Amazon Company is Fortune 500 e-commerce organization that is based in Seattle, Wash. It has proper distinction of being one of the largest companies in order to sell different goods as well as services in the internet. In the year 1994, Jeff Bezos has founded Amazon that will be launched in the following year. There are two different issues that has to be discussed in the entire report is relating to the marketing mix as well as the different strategies in order to adopt as well as standardize different international area of marketing along with process of internationalization in order to properly describe the internationalization of Amazon.

Amazon considers itself as customer centric organization that will help in gaining huge competitive advantage in the competitive market. It is one of the cloud computing organizations that have been the largest internet retailer. The Amazon Company has different as well as separate retail stores in the United States, Ireland, and Germany as well as in Italy. The different theories as well as approaches have to be described in order to discuss the entire report. Furthermore, from the year 2000, the logotype of Amazon has properly featured curved arrow that is leading from A to Z and in the year 2011, there were 30,000 full time employees who were working with them (Fuentes-Blasco et al. 2017).

Marketing mix is a proper mixture of four Ps such as product, promotion, distribution, price as well as place (Festa et al. 2016). There are 7Ps of marketing has been discussed in the next chapters as this helps in determining the entire success or failure of the respective brand. The entire success as well as sustainability helps in analyzing the different strategies as well as tactics that is suitable in nature for making Amazon brand sustainable in nature. The different elements of the marketing mix is essential in nature as this will help in analyzing as well as ensuring the company to put the right kind of product at the right place at the right time as well.

Proper standardization process helps in comprising of different publication, formulation as well as implementation of different guidelines as well as specifications. It is such a process wherein proper equipments as well as methods will be used in order to gain competitive advantage in the competitive environment (Moorthy and Suresh 2014). Amazon can properly use different set of procedures, as this will help them in adopting new technologies that will help in having huge positive impact on the performance of the respective company. The Amazon can properly adopt different technologies in the new markets with existing range of products by making different changes in the strategy that will properly suit in local market (Sharma and Gautam 2017).

Marketing Mix Elements of Amazon

There are different marketing mix elements such as product, price, promotion as well as place. Amazon has properly incorporated different 4Ps of marketing mix in an effective manner that will help in achieving positive results as well. During the time for entering into the international market, Amazon has to adopt the marketing mix in order to choose different strategies that are accurate in nature for proper implementation such as adoption or standardization. As per Gupta and Pirsch (2014), the actual flavor of global marketing is to create proper balance between the standard approach as well as standardized that will indicate extension to marketing mix that will help Amazon in operating in a better way in the future. Amazon has to implement different global strategies that will help in understanding the entire global marketing mix.

Proper marketing mix is essential to be performed in order to understand the different issues relating to the different Ps in the competitive environment. Amazon requires to properly ascertaining the different Ps of marketing in order to analyze the different challenges that will be faced by the respective brand in the future (Khan 2014).

Product is one of concept that is adopted by Amazon that helps in making proper connections to internet with different gadgets like tablets, phones and this will allow the customers in order to properly browse as well as purchase products in an effective manner. These products are delivered to the customers with the help of delivery service organizations. Amazon has properly built huge product base and this will help in selling different products that includes Boos, jewellery, clothes for women, men as well as for children along with different mobiles as well as tablets (Ooi Kuan, Lloyd and Mou Chuan 2017). Amazon expanded business in India as well as in United Kingdom with the proper implementation of different other products as this will help them in making their presence in the entire market. This will help in ensuring that Amazon continues to properly deliver different variety products at a competitive price as this will help them in providing proper competition to the other competitors in the market (Ha and Lee 2018).

Price is another essential component in the marketing mix wherein Amazon is competitive in nature with the pricing techniques of staying ahead of the different competitors in the market. Amazon helps in offering different copies both new as well as old in order to provide the customers a premium account who is frequent buyers from Amazon. The prices can be kept competitive in nature by Amazon as this will help in ensuring proper benefit to the consumers and this will help in showing lesser prices online to the customers than the competitors. Amazon is providing huge competition to the other competitors such as Flipkart, eBay as well as other online stores as the price that is offered by Amazon is comparatively lower in nature in comparison to the others in the market and this is helping them in gaining proper competitive advantage in the competitive environment as well (Tapp and Spotswood 2103).

Internationalization of Amazon

Promotion is another essential component of the marketing mix wherein Amazon uses advertisements that are web based and they will use this as the search engine to advertise their different offers and products that is sold by them. The result that has been generated from the search engine has worked in favor of Amazon and this is the best promotional strategy that is used by Amazon as well. Furthermore, the formal level of promotion has properly grown in the recent years and this is becoming huge incentive for the market as well. Proper advertising techniques has to be applied by the different companies as this will help Amazon in gaining huge profit in the near future as well.

Place is another essential component that helps in maintaining proper brand image among the customers. The brand image of Amazon is strong in nature, this helped them in creating a huge presence across the globe, and the employees who are working in Amazon are friendly as well as relaxed in nature as well. There are different individuals in India who can access broadband and the likes for the competition gets toughen in nature as well. The main competitors of Amazon are Flipkart, eBay as well as snapdeal and they create tough competition for Amazon as well in different companies in different parts of the world. The online shopping will help in gaining proper competitive advantage, as this will help in avoiding the cost of rents as well as other issues as well. Proper ascertainments are required in order to generate proper techniques to increase their presence in the competitive market.

The argument that has been raised is such that the process of adoption in the product helps in raising production cost and this has weakened the entire band over the global scale. There is no such chance left wherein the consumers will adopt such product and this will help the company in improving the brand globally as well.

Amazon has properly used the proper strategy of adoption along with distribution strategy that will help in attracting huge number of customers in the market. Amazon properly realizes that the customers want proper as well as quick delivery of goods as well as services. Amazon has properly adopted the proper distribution system in order to serve the different customers in the competitive market.

There are different theories on internationalization that can be adopted by Amazon in order to properly such as:

• Uppsala Internationalization process model is the model that has been properly proposed by Johansson and Wiedersheim Paul in the year 1975. Both of the authors properly believed that process of internationalization takes place with various steps that are interesting in nature that is known as establishment chains. With the help of proper time, the decisions related to commitment as well as knowledge relating to market will help in enhancing the brand image of the company and this will help in exploring more future opportunities as well (Eddyono and Subroto 2014). The entire knowledge relating to the market is essential, as this will help them in getting proper commitment towards market as well as for the customers.
• Network theory is the next theory that has been raised after understanding the different concern of the Uppsala theory. In this theory, proper importance has been provided to the technological advancements rather than the experience as well as usage of resources (Abdul-Hamid et al. 2017). There are different authors who have commented that proper collective efforts are essential in nature as his will help in improving the relationship between the business and this is the source of knowledge as well (Akgün, Keskin and Ayar 2014).
• International Entrepreneurship theory is the kind of theory that is based on the advancements of technology and this will help in decreasing the different barriers that is present in the culture as well as increment wherein proper awareness relating to culture in the remote market exists (Gummesson and Gummesson 2017). New ventures as well as joint ventures are properly adopted by organizations in order to establish in the new area. The entrepreneurship theory is essential in nature as this will help in expanding their brand in the market and this will help them in gaining competitive advantage in the market as well.

Uppsala Model of Internationalization

The model of internationalization that is applied by Amazon is Uppsala Model, as this will help in analyzing the different internationalization path of Amazon. The Uppsala model used by Amazon helps in describing the foreign market entry as the proper process of learning. There is initial commitment of the different resources to foreign market that will lead to increase in knowledge relating to the local market and the proper continuation of the cycle will continue till sufficient market knowledge is gained for proper expansion of such knowledge. The implication of the Uppsala model helps Amazon in expanding their markets globally as well and this will minimize the psychic distance as well (Adams 2016).

• It can be analyzed that Amazon did not follow the Uppsala model to such an extent, as the main strategy that was adopted by Amazon.
• This helped in directly acquiring companies in the foreign markets without the local knowledge of the markets such as in UK, Germany as well in China.
• Amazon continued as well as expanded the business in Canada as well in India but there were no Canadian or Indian employees who were working with them.
• Proper as well as extensive experience research will help in analyzing the previous needs as well as other models as well.
• The entire Uppsala theory is based on proper as well as gradual way of proper collection as well as making information, as this will help in extracting different information as well as other knowledge from the entire market (Kesavan and Mascarenhas 2015).

• Uppsala Model did not provide competitive advantage to Amazon as there is huge competition in the entire market
• There is no such advancement in technologies in Uppsala Model and this has affected Amazon
• There has been different issues related to the Uppsala Model as the other competitors in the market who are competiting in the market

References

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Adams, M.E., 2016. Beyond the Glass: Examining Wine Tasting Room Profitability Using the 4Ps of the Marketing Mix(Doctoral dissertation, Virginia Tech).

Akgün, A.E., Keskin, H. and Ayar, H., 2014. Standardization and adaptation of international marketing mix activities: A case study. Procedia-Social and Behavioral Sciences, 150, pp.609-618.

Eddyono, F. and Subroto, B., 2014. Purchase Behavior of Noodles: A Case Study of Effort Primary Food Diversification in Indonesia. International Journal of Science and Technology, 3(10).

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