Amazon Inc. is an American-based multinational company that primarily deals in the wholesale and retail business. The management mainly focuses on e-commerce as the basic form of distribution and marketing of products due to the prominent factor of the global village. Technological advancement geared the intensification to the level of sharing information and interconnectedness worldwide.
As a result, the organization optimized on cloud computing that entails a platform used for interactions between the administration and the clientele base. In this case, the online space poses a niche and a significant opportunity for the emerging digital-based market (Arnett, Goldfinch, and Chinta, 2018). The key objective for Amazon entails the attainment of the best customer-centric organization hence the investment in proficient product and service information.
Apart from the optimization of cloud computing, Amazon utilizes such strategies as cost leadership to attract a significant consumer base. On the one hand, the company ensures the provision of a wide range of products for the clients. On the other hand, the organization asserts the purchasing value based on the provision of lower prices of the commodities despite the wide variety.
Amazon achieves the goal of incorporating affordable costs to the online shoppers due to the focus on the economies of scale hence compensating for the expenses incurred. One of the main factors that lead to customer satisfaction and loyalty involves the service experience. In this case, the Amazon management team empowers the buyer with adequate details about the different types of a particular good with a discounted price at a one-click shopping technique. Therefore, the convenience and efficient exposure alter the behavior and attitude among individuals as a tool to enhance the institution’s competitive advantage.
Social Marketing
Over the decades, the evolution of human society rendered the intensification of the global business environment along the gradient of technological advancement. Social marketing is one of the emergent factors from the progression that demands strategic management to boost the competence level of an organization. According to Key and Czaplewski (2017), social marketing is the initiative to integrate the interests of the audiences and the upstream decision-makers thus developing an integrated marketing communications framework. The benefits of the blueprint enshrine branding, understanding the expectations from the market, and the empowerment with insights on implementing a competent customer service experience (Salazar, Mills, and Verissimo, 2019).
The change relies on the use of digitized word of mouth, corporate social responsibility, and administration relationships with employees (Zainuddin and Gordon, 2020). One of the approaches that Amazon Inc. utilizes in merchandising is price leadership; however, the incorporation of the dynamic approach fosters satisfaction to the needs of the client and the management team.
The core factor that fosters customer loyalty is the accessibility of adequate information about products and services. It is an initiative that assists individuals in making a decision regarding the ultimate purchasing value. Therefore, the incorporation of social marketing poses dynamic benefits based on the effective provision of knowledge about a company and its performance in the market. One of the benefits is branding, imprinting improves an organization’s presence within the worldwide business environment (Wang and Kim, 2017). It is an approach that determines Amazon’s identity and association with a particular segment.
Technology fostered easy accessibility of goods and services details based on the varieties and quality. Therefore, the availability of product information empowered consumers with the knowledge to utilize while making a purchasing decision (Wang and Kim, 2017). A computer is a tool that empowers corporate society with the capacity to boost their operation innovations. In a different spectrum, the emergence of social media fostered the digitization of word-of-mouth mainly because of the dynamic channels of interaction.
The various channels of relation encompass TikTok, Instagram, Facebook, LinkedIn, and Twitter. The integration of these channels in the marketing strategies for the companies fosters the digitization of word-of-mouth. The conventional global market segmentation is a phenomenon that engulfs four categories. The levels include demography, geography, behavioral, and psychographic sects (Wang and Kim, 2017). The rise of the niche market significantly contributes to the growth and development of businesses such as Coca-Cola and Amazon Inc.
This benefit can be experienced by Amazon Inc. in high proportions due to its primary operation baseline that includes the use of cloud computing for advertising and business management. Digitization of word-of-mouth is a concept that fosters a profound impact on the brand business. In research, at least 92% of customers acknowledge a particular brand based on the word-of-mouth promotion from family and friends (Duralia, 2018). The researcher further argues that it is easier for an individual to believe a colleague regarding a product or service and its value. The reputation of a corporation highly influences the rate of loyalty among potential clients due to the impact of referrals.
A company’s success depends on the frequency of consumer intimation since it is a cheaper and convenient marketing strategy. The reputation of commodities reflects the previous experiences. As a result, the person develops expectations based on the past performance outline from other purchasers (Leppäniemi, Karjaluoto, and Saarijärvi, 2017). Nevertheless, reputation is a risk initiative for a company due to the interplay with the competitive advantage.
The fragile state of reputation based on the biased reviews from other individuals cultivates the essential quality of marketing strategy to the global market condition. The digitization of word-of-mouth is a factor that fostered the prominent issue of brand business due to the empowerment of client reviews to the universal consumer bazaar. The focus on branding is an initiative that overwhelms the impact of pricing and its influence on customer loyalty due to the adequate provision of knowledge about the organization and its operations.
Another benefit fostered by social marketing is the provision of adequate information for upstream decision-makers. One of the major factors that affect business competence is the role of management in the decision-making process. On the one hand, it is the mandate of the administration to ensure that employees successfully attain the objectives while enhancing optimal satisfaction levels among the consumers. On the other hand, the executive contributes to the growth of an enterprise based on the necessity of interpreting the financial data gathered from the daily cash flow records. Researchers establish different tools that influence the interpretation and presentation of information pose dynamic attributes (Oboh and Ajibolade, 2017). In this case, the integration of details concerning consumer behavior and monetary performance plays a vital role in boosting the development of strategic concepts for business growth.
Customer service experience is a phenomenon that is essential to the competence of a business internationally. During the evolution, there was a paradigm shift involving the elevation of consumers as the kings and queens. It is a situation attributed to the change in the control of product and service information. Organizations dominated the market and manipulated the clients’ preferences based on their key goals and values (Kennedy, 2017). However, modern society rendered the proficiency in the accessibility of the crucial knowledge based on the ability to objectively choose the preferred corporation.
Application of Marketing Mix through Social Marketing
Different businesses utilize various approaches to establish their competitive advantages. According to researchers, positioning is an ideal marketing initiative that leads to the development of an identity of an organization such as a convenience store (Thabit and Raewf, 2018). It is an essential factor for a company due to the impact on the market segmentation strategy. On the one hand, place-making attributes to a corporation’s initiative for a competitive advantage. On the other hand, the approach empowers the management with the knowledge about consumers based on their behavior and reaction to the dynamic preferential and perceived value.
Boosting communication within an organization such as Amazon poses a competitive advantage due to the impact on the coordination of operations. Efficient sharing of information within a corporation fosters the development of a functional company culture enshrining a teamwork environment (Duralia, 2018). One of the highly valued assets of an enterprise is human resources. Proper association of operations among employees translates to the excellent consumer service experience that attributes loyalty across the clientele base.
As a technology-based company, Amazon optimally uses computers and internet platforms as the basic form of communication both inbound and outbound. According to Duralia (2018), the primary duty of information sharing involves ensuring the effective flow of operations. However, the researcher further establishes another prominent affair crucial during social marketing is the provision of adequate product details to the clients. On the one hand, consumers appreciate the easy accessibility of critical insights about commodities that influences the essence of loyalty. On the other hand, the consistency in conveying knowledge about goods and services is a competitive advantage for Amazon within the global business market.
Pricing Marketing Mix Strategy
Amazon employs the cost leadership strategy in its business to reach consumers at the lowest prices possible for the commodities. At the same time, the minimum charge does not dissuade the business from achieving competence with what they are supplying to their clients. Customers find the quality of the products and services acceptable as they are meeting their standards and sometimes surpassing them, (Wu and Li, 2020). The effective development of cost leadership is an entity that depends on the implementation of policies that foster economies of scale in the distribution process.
Any services and product’s extra feature is eliminated in the process thus saving the company a lot of cash based on the necessity of economies of scale. In this case, Amazon ensures the provision of a variety of products at a lesser cost for the international clientele (Tou et al., 2019). Over the decades, the management team realized that apart from the provision of different types of commodities, there is an emergent issue of value despite the pricing. One of the essential niche market segments is characterized by the ability to establish an integral interdependence between the consumer service experience and the diversity of the goods. Primarily, it is important that the administration incorporate the ideal approach of marketing mix under the spectral view of social marketing.
Product Marketing Mix Strategy
Product refers to the actual item being sold by a company and in this case, Amazon Inc. One of the competitive advantages of Amazon encompasses the proficient utilization of diversity of the commodities hence empowering the consumers with the power to determine the quality of service experience. It is an approach that boosts the enterprise’s proficiency in the global business market. The primary duty of the marketing team involves integrating Amazon’s objective to optimize profitability and loyalty with the clients’ focus on value for the purchase (West, 2019). Business ethics is a multifaceted phenomenon that enshrines the ability to uphold authenticity and clarity in the decision-making process in a firm. Therefore, it is important to determine the branding effectiveness based on the quality and variety of goods.
Place Marketing Mix Strategy
Amazon inc. focuses on securing a significant percentage of the global market through the web forum than physical convenience stores. The company is retail hence attaining products from manufacturers at a wholesale cost and selling to end-users at a relatively lower price. In a different spectrum, the corporation utilizes the cloud platform as a rental for other enterprises to advertise and sell their commodities worldwide. Amazon Inc. keeps earning commissions even when it allows other e-commerce businesses to use its platform to sell their items. Moreover, Amazon Inc. achieves success as it processes the sales through itself and leases some space for the sellers and the customers (Culpepper and Thelen, 2020). This in addition sees the company make a lot of profits as it is providing quality services. But the customers also benefit from the transactions a lot as there costs of the commodities that they are acquiring are very low and affordable to them. Amazon Inc. has a very huge range of products that it stocks for its sales. This allows the company to eliminate the additional care and expenditures from the individual units of products.
Promotion Marketing Mix Strategy
Amazon has highly related economies of scale to the strategic management process since the company has used the factor to its advantage by ensuring that the gains from the economies of scale are utilized for the customer in the low pricing of the products. This has further enabled through bulk shopping whereby a client is offered an opportunity to purchase more goods under one click and at a cheaper price (Arnett, Goldfinch, and Chinta, 2018). The economies of scale enabled the provision of a choice to the client through diverse products and thereby offering high-end consumer satisfaction. This has highly contributed to the organization’s strategic management process of delivering the ultimate customer experience.
Impact of Marketing Strategies on Corporate Social Responsibility
One of the critical issues that threaten an organization’s performance level is copying business strategies from other corporations. The association culture of one establishment differs from another company’s culture to boost performance and employee satisfaction. Therefore, the lack of authenticity leads to unsustainable organizational culture hence negatively affecting competence (KaÄŤerauskas, 2019). Copying business strategies from another enterprise is an unsustainable approach mainly because it faces incompetence and inefficiency from the conflicting goals.
Ethical issues in business management due to competitors’ copying strategies engulf inherent issues such as conflicting business goals and poor management. The future of a business lies in establishing definitive goals such as the expected profit margin within one financial year. Further, incompatible business goals lead to the employees underperforming mainly because of the company’s lack of a clear vision board. In this case, the association faces an additional ethical issue of poor leadership due to the employees’ conflicting ideologies (KaÄŤerauskas, 2019). In a different spectrum, the lack of authentic business strategies leads to the firm’s stagnation and inefficient utilization of the available technological resources. Although the corporation spends on the acquisition of scientific supplies, the management lacks the insight regarding the optimal and sustainable utilization to enhance its operations.
Ethical issues that arise from the lack of authentic business strategies encompass poor decision-making processes and the establishment of a dysfunctional organizational culture. Sustainable business management is the ability to establish authentic business strategies that promote the development of competitive advantage. Authenticity in business management boosts the essence of innovation and the level of competition in the business environment. Therefore, it is vital that associations embrace innovation and technological advancement as the primary drivers of competence.
At Amazon, Cost leadership means that the company controls the pricing of the product in the market and thus a regulator of the entry of new contestants. It is a form of a competitive strategy that Amazon has utilized towards curbing the threat of new entries in the market. A case of adding value to the commodities and rarity perspective of the same manipulates the characteristic of the market for Amazon’s side. An excellent example is the diversification of the goods to fit the demands and needs of the evolving customers as well as establishing effective evaluation techniques (Moore and Tambini, 2018). Through the initiative, the corporation attained the capacity to ensure an increase in its sales. The concept of economies of scale has established the dominance in the costs cutting beyond the management level of contention by the rest of the retailers such as in the case of e-commerce.
Cost leadership has been a solution for Amazon towards addressing the issue of rivalries in the market as a threat. The enterprise faced rivalry from other technology-based companies but created a platform in which through the organizational structure, penetrated its way to the current market position (Flamand et al., 2020). It utilized the power of the economies of scale to manipulate the cost of production and distribution and thus acquiring cost leadership over time. The firm then used the approach in the management of all the chains of supply to its advantage thus gaining full dominance since it had eliminated other retailers from the sector and the only way the dealers had to establish their low profits is through the utilization of public relations in marketing their products.
The bargaining power of the consumer has been a force that Amazon utilized through cost leadership. Once the company sells goods in bulk, the buyer negotiates for a discount. The strategy has built up the capacity for Amazon to achieve a lesser price of the product than what is being offered by other competitors in the market (Hahn, Kim, and Youn, 2018). The bargaining power of the client, though a force to reckon with, Amazon has used it to its advantageous expense under the radar of economies of scale and a provision of a variety of products for the customer to choose from under the Amazon Web Services and Amazon Marketplace. This has been enabled highly by the capacity of the company to control the prices of the products.
Cost leadership has highly contributed towards enabling Amazon despite facing the threat of substitute products and or services in the market. Although it has caused an impact on the volume of sales, the capacity of Amazon in the strategy has been to its advantageous course (Gupta, 2019). This is to mean that majority of the clients who are willing to purchase from the substitute products are usually compelled to buy instead from Amazon due to the variable cost being offered, relatively lesser than that of the substitute productions and services to add onto the reputational status of the operations and excellent customer experiences from the loyal clients.
Cost leadership has been a pillar of engagement of the bargaining power of the supplier as a force to the operations of Amazon. Amazon deals in a wide range of products and therefore, the management encounters a lot of bargaining offers from the suppliers. However, it has been used by the company to establish negotiable deals that would favor both the suppliers as well as Amazon. An excellent example is the seventy percentage cost royalty that the authors and independent publishers are offered in the contract with the Kindle Direct Publishers (Tou et al., 2019).
Cause-Related Marketing
Different organizations implement various interaction settings on a shared domain of the company, such as through the firm’s emails, social media workgroups. On the one hand, the networks fostered the creation of a niche platform among the employees hence intensifying the spirit of teamwork. On the other hand, the forums enhanced the emergence of sophisticated platforms potentially risking the violation of employee rights through increased interactions. Fundamentally, these entities profoundly influence the behavior and performance of the employees within the organization (Lopatovska et al., 2019). The substantial value of the internet community to the workers and organization enhances the dynamism in the different ethical codes that initiate reasoning and conduct while fostering brand positioning and digitization of word-of-mouth.
Social media contributes to the intensification of the flow of data globally. The escalated trickle of information rendered the emergence of a universal village as a niche market for businesses. Therefore, the internet community has, directly and indirectly, impacted businesses facing both external and internal challenges (Wang and Kim, 2017). In this case, the higher the rate of knowledge acquisition about digital forums, the more the impact on exploiting the utilities in improving business competence. The knowledge and skills acquisition renders that the entity emerged as a dominant platform of interaction among people thus offering businesses opportunities to exploit from the emergent niche (Pourkhani et al., 2019).
These capabilities include brand awareness, loyalty, product innovation, diversification, and a global network. The interaction between the various tools and intellect with the capabilities contributes to the improvement of performance and sales volume. The competence of an institution mainly depends on the level of communication across the global village regarding the commodities.
The feasibility of the allowable execution strategy of cost leadership ensures exploiting the external factors using the available resources in a new dimension rather than trying for new skills acquisition for any different opportunity since it may deem expensive. The utilization of the approach of the resource-based view highly contributes towards the successful implementation of the strategy. The organization identifies and classifies the available resources and structures them according to their nature of diversity. Using the VRIO resources, the management evaluates for competitive advantage (Johansson, 2021).
A good example to explain the appropriate implementation procedures of cost leadership is the case of Amazon when they reduced the manpower in their stations and replaced with high tech machines and robots that operated efficiently and effectively, reducing the cost of production and distribution and improving the output level per time limit offered. That is one of the most appropriate implementations of the cost leadership strategy that has proven performance for Amazon’s dominance in the market.
Businesses collect information about their competence level through various capability entities and social media. These are referred to as strategic points, whereby companies use to create capable marketing responses. The structure influences the proficiency of businesses through the acquisition of strategic and efficient knowledge and skills (Moy, Cahyadi, and Anggraeni, 2020). Enterprises get equipped with knowledge of how to effectively use social media through the acquired dynamic capabilities, to make sales and marketing activities. Amazon Inc. focuses on the ideal solution of improving its efficiency in customer service experience through branding initiatives.
On the one hand, the corporation fosters a relationship building between management and employees based on the derivation of crucial details about consumer behavior. On the other hand, the enterprise poses a dynamic proficiency across the global market based on the optimization of cloud computing and online business.
Cause-related marketing refers to the ability to implement strategies based on the accrual benefits between two parties. In this case, the core factor involves the provision of marketing space for various companies to advertise their product while primarily promoting Amazon’s essence in the acquisition of a position in the global clientele. Therefore, all stakeholders attain different levels of competence through the cloud computing entity of the online business (Wayne, 2018). The emergence of the universal village encapsulates the intensified transfer of information fostering the prominent factor of a dynamic niche market and behavioral patterns. An excellent example is the diversification of the product to fit the demands and needs of the evolving customers as well as establishing effective evaluation techniques.
In conclusion, social marketing is a multifaceted phenomenon that provides significant opportunities for business competence hence boosting the quality of operations. The company has over time developed products under the bracket of the strategic management process. This means that even during its foundation and initial operations, it focused upon the utilization of strategic approaches so as to attain its dominance in the market.
On the one hand, the management attains significant empowerment tools based on the needs of the consumers from the different views and remarks from online platforms and forums. In this case, it is an essential factor in the marketing for Amazon Inc. due to the ability to gear the strategic administration and implementation of policies based on the performance of employees and consumer loyalty phenomenon. The use of cost leadership and diversity of commodities are the primary approaches that attract clients to Amazon Inc. and its competence. An optimal and functional interdependence between workers, executives, and other stakeholders relies on the ability to incorporate networking platforms as a form of promotion of the activities and its profitability.
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