Effects of Strategy of Useful Approaches to Promotions: Case of Amazon

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Executive Summary

Product and service promotion is critical to the development and success of a business. Amazon is one of the most developed online retailers, which has succeeded in using various marketing approaches. The marketing mix (7Ps) model is considered the most used promotional strategy. In this case, people, price, and place elements of the framework are used to promote the products and services of the company. Various tools such as banners, social media, and billboards are designed to help in the promotion. Furthermore, it has been found that skills and knowledge of the industry are crucial factors for managers in the service industry. I have also learned that I possess some of these skills, but at the same time, I have learned more from the course, which makes me ready to lead a service business.

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Planning and Promoting the New Service

Amazon has succeeded in business and became the highest online retailer in the world. The main factor, which leads to success in the organization is its approach to the advertisement. There are various promotional strategies, which can be used in different organizations depending on the needs of the business. The marketing mix (7Ps) model is considered the most used promotional approach, which comprises product, promotion, price, place, people, process, and physical evidence (Cravens and Piercy, 2009). In this analysis, however, people, price, and place elements are used as the advertisement approach. Managers in the service industry need to have specific skills, including promotional approaches to succeed in the business.

Amazon marketing strategy

Amazon’s vision has always been to satisfy its customer by offering products at low prices, convenient times, and a wide variety of selections. By adhering to this vision, the company has achieved buyer loyalty evident in its customers’ repeat purchases. According to Persoskie, Donaldson, and Ryant (2019), focusing on the targeted people is one of the best ways to increase sales. Zhou et al. (2018) agree with this sentiment by reiterating that some companies enable their customer to give testimonials and reviews. Customer feedback is critical as it enables a company to understand where it needs to perform more and provide better services (Hwang, Yoo, and Orr, 2018). As one of the largest online retailers, Amazon understands the need to listen to the market trends and dynamics.

Price is critical in the success of any business as it helps attract several clients. According to Chen and Chen (2019), customers mostly buy from online retailers offering their goods and services at lower costs than other companies. Free shipping is also used as an offer to motivate loyal buyers to order more products. Patak, Branska, and Pecinova (2020) indicate that most companies, for example, Amazon provide free deliveries when customers buy goods amounting to a set figure. This consequently increases the number and volume of buys from any specific purchaser and also increases the number of buyers attracted by the offer (Chong et al., 2017). The point of sale at which the delivery fee is zero enables Amazon to make sufficient profit.

Amazon communicates its intended need to fulfill its customer satisfaction needs by sharing all the relevant information with the customer, including the delivery dates, notifications before the dispatch and at the point of delivery, and asking recipients for service quality. According to Tynan, McKechnie, and Hartley (2014), satisfaction metrics monitoring is crucial to understanding the before of customers and their possible successive purchases. Du and Mao (2018) indicate that involving buyers’ thoughts regarding the service offered enables the company to provide better services. Amazon has built its online retail service over the years as a result of positive client feedback. Moreover, the company also improves its operations from any negative replies from the buyers.

Technology is key to the success of Amazon operations as it relies mainly on internet-related activities. The pace of technology is fast advancing, and Amazon tries as much as it can to remain at the top of the online retail service by providing several products simultaneously. This makes it possible for the firm to meet the customers’ needs at all times, places, and varieties. Shankar et al. reveal that technology is key to making progress in the current online businesses. Artificial intelligence (AI) has become of the most used knowledge in improving internet-related consumptions (Marr, 2019). AI or machine learning enables companies to collect information on their behavior through their devices (Dash et al., 2019). For instance, if a customer is fond of searching about a particular product, the cookies enable ease of detecting the possible products to advertise to any specific user.

Apart from the customer-friendly interface used by Amazon as a customer-oriented strategy, the company’s marketing also involves providing a wide range of products. As the world’s largest online retailer, the company provides billions of products in conjunction with its affiliates. In particular, since the firm found it challenging to provide all the items its clients needed, it decided to work together with third-party sellers who provide such products (Baker, 2007). This strategy enabled the organization to have all the products within its stores, thus becoming a one-roof shop for all products needed by the clients.

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Service Promotion Strategies

Every business relies highly on promotion especially, during the first few months of operation. However, product advertisement is a lifetime event, as numerous new entrants can overcome a relaxing company (Shareef et al., 2019). Several advertisement strategies exist and are used based on the company’s needs, niche, and organization goals. One of the most common frameworks used in service is the marketing mix (7P) model (Anjani, Irham, and Waluyati, 2018). The 7P is an acronym standing for a product, promotion, price, place, people, process, and physical evidence. All these elements are critical when a company wishes to promote its business. The mentioned promotion strategies help an organization understand how the element is critical in the company’s marketing approach.

Products enable the firm to understand how it needs to develop its goods and services to meet the market demands. Prices enable the organization to determine the minimum and the maximum prices of its products, which enables the company to make profits but remain within a range where the customers will buy them (Payne and Frow, 2006). Place refers to approaches the company needs to create new distribution facilities to enable targeted customers to get the needed goods or services (Hansen, 2019). Promotion refers to adding or substituting a combination of paid or owned multimedia channels, which the company can reach its intended buyers. Physical evidence involves reassuring the customers that of the availability of the products sold by the firm. The process entails possible internal issues that pose challenges to delivering value to the clients (Åkesson et al., 2016). Finally, people or partners involve effectively managing internal workers as well as the customers of the company. While all these elements are critical in promoting a product or service, the current analysis focuses on price, place, and people.

Some of the core communication tools, which will be used in this promotion will include broadcast media, event banners, and billboards. According to West, Ford, and Ibrahim (2010), different media can be used based on their point of placement. For instance, banners will be placed in strategic points to show customers the range of offers they can choose based on their needs. These specific tools have been used in this promotional plan to ensure visibility, persuasion, and ease of access to the advertised products and services.

Story board encourages buyers to purchase products and services and get discounts and free shipping during the specified time.
Figure 1. Story board encourages buyers to purchase products and services and get discounts and free shipping during the specified time.
Exhibition event stands show the customers the various promotions offered, including free deliveries, discounts, and gift hampers on the listed products.
Figure 2. Exhibition event stands show the customers the various promotions offered, including free deliveries, discounts, and gift hampers on the listed products.
Social media ads show various smartphones and computers, which are mainly used by such customers. The “Order Now” button makes it easy for the customers to place an order instantly.
Figure 3. Social media ads show various smartphones and computers, which are mainly used by such customers. The “Order Now” button makes it easy for the customers to place an order instantly.

Table 1. Promotional Planning.

Date Type of promotion Target Where Who Why Cost Resources Impact Linked to
15/5/2021 Price Bulk purchases and software users. Online purchases, software delivered to users customers The one month free delivery will enable increased purchases as buyers will have to reach certain limits to enjoy the promotion. The software subscription will be given on discount within the month to purchasers 0 The goods, services, and software to be purchased Increased sales Customers, who are to enjoy the services offered.
15/6/2021 Place North America and South American customers. To market the products in the USA, Canada, and South America. Customers There is need to increase the buying power of North and South American customers, who tend to have alternative products as a result of smaller retailers. $1,000,000 Banners, billboards, social media platforms, and exhibitions. Increased sales in the two continents Returning customers.
15/7/2021 People Amazon workers, third-party sellers, and customers. The firm, Stores, and Online platforms Workers, sellers, and customers. It is critical to motivating workers who have direct contact with the buyers, for instance delivery people. This is crucial as their services are critical to the clients’ feedback. Motivated workers tend to work more effectively. Thus, they can be added salaries for commissions for the deliveries they make. Moreover, high-performers will be promoted to new levels of control.

Third-party sellers will be charged less for using the platform. This will increase the number of sellers working with Amazon, but will also increase the availability of the needed products from the owners.

More attention will be given to the customers based on the quality of service offered and the availability and ease of accessing services and products.

$10,000,000 Banners, billboards, internal meetings and deliberations, social media platforms, exhibitions. Increased company performance, availability of products on demand, and increased sales of products and services. Promotion of company business operations.

Service Manager Skills and Knowledge

Customer management is one of the most critical aspects of a service company. Managers in this industry need some unique qualities to succeed in the business. Some of the critical skills needed include working with employees, customers, and third-party suppliers (Bower and Garda, 1985). Specifically, employee motivation is critical to the success of a service provider firm as it enables the workers to use their skills and expertise in satisfying the clients (Wang, Lee, and Trappey, 2017). In most cases, workers are the ones with direct contact with buyers; hence they can have first-hand experience with the clients (Botha, Saayman, and Kruger, 2016). The managers should also train their teams to make them ready to deliver the best quality work in their roles and stellar experience to the clients (Doyle and Stern, 2006). The employees should be given feedback as soon as often regarding any difficulties at work. Moreover, managers must organize their workflow, thus enabling efficient meetings and ease of conflict resolutions. Moreover, an organization enables a manager to make essential and critical decisions when they are needed.

Managers in the service sector also need to handle de-escalators, which can happen despite having a committed workforce. Sometimes a team can put dedicated efforts into their work; however, the customers can see the manager. When it gets to that point, it indicates that the buyer is unhappy with the service they received and can seek refunds. However, the manager can help clarify issues and address the purchaser’s needs at the point of confrontation (Hooley, Piercy, and Nicoulaud, 2008). This also makes it easier for the manager to make necessary changes without waiting for lengthy deliberations to ascertain new approaches. Furthermore, the manager should track the performance of the team and the effects of any changes made on their organization’s performance. Therefore, managers in the service sector can perform well by being proactive in their job and closely working with employees.

I believe I have the skills mentioned above and knowledge and can effectively run a service business. Specifically, I have also learned some crucial prowess in the course, which makes me ready to lead an organization. For instance, I have understood the need for improving operations, which is critical in meeting customer expectations. Moreover, I have understood the need for rethinking strategies to help solve new issues in the industry. Having learned about how Amazon works in terms of its promotions and the skills needed by managers, I am ready to lead an organization in the service sector.

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Conclusion

Amazon is one of the most successful online trading companies in the world. The company mainly succeeded as a result of using different strategies such as useful approaches to promotions. Even though several frameworks, which a company can use, this analysis used the marketing mix (7Ps) model to promote its activities. Specifically, people, price, and place elements of the model have been used as the promotional approaches. The service market is one, which is crucial and requires skilled and knowledgeable managers. For example, a manager should work with the employees and listen to their complaints or suggestions to improve their work. The managers also need to organize their workflow and handle de-escalators as soon as they meet them.

Reference List

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BusinessEssay. (2022, September 14). Effects of Strategy of Useful Approaches to Promotions: Case of Amazon. Retrieved from https://business-essay.com/effects-of-strategy-of-useful-approaches-to-promotions-case-of-amazon/

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BusinessEssay. 2022. "Effects of Strategy of Useful Approaches to Promotions: Case of Amazon." September 14, 2022. https://business-essay.com/effects-of-strategy-of-useful-approaches-to-promotions-case-of-amazon/.

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