Modern Marketing Strategies: Amazon's Strategies & 2-Way Communications - Essay Sample

Introduction

I expected to learn about the marketing strategies amazon employs in its business. I also expected to learn the difference between top-down and outside-in marketing strategies.

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Academic Knowledge I have Received from the Week 8 Module's Content

I learned a lot from week 8's materials and lectures. Modern day marketing strategies are two-way communications which involve listening to customers' needs and wants to create products that meet those needs. Companies today customize products depending on the target market and also employ innovative distribution and promotional methods. Crowdsourcing is another tactic that is used to win customers. It is a method that involves collecting information from customers to establish what they desire to provide them. There is a potential for crowdsourcing to improve products since customers feel thanked, helpful, and part of a team Telpaz, Webb, and Levy, (2015) conducted a study that was designed to measure whether neural imaging technology could assist in determining decision making abilities of customers as well as their preferences to help in marketing and designing products. The use of Electroencephalogram (EGG) has been proved to be an economical method of predicting consumer choices in the future (p. 511).

Marketing in the postmodern era requires various adjustments to be effective in a period of new challenges. Segmentation and position are concepts that had meaning in the past; however, they need to be developed further so that they can suit the current environment. It is vital to understand modern marketing to be able to move to postmodern marketing strategies that will be effective in realizing sales (Fuat Firat and Shultz, 1997, p. 184)

I have also learned that marketing is largely depended on technology. Customers are empowered with technology meaning that they have become research participants and therefore they play a huge role in looking for items they desire (Quinn, Dibb, Simkin, Canhoto, and Analogbei, 2016, p. 2103). However, companies can improve their marketing based on a customer's preferences based on what they search for in the online platform. Amazon is a company that has succeeded in the market due to employing this tactic. The company uses past purchase history, a customer's search records, preferences, and other things to sell related products, and this has worked for the company. The changes in the world today require companies to be creative to implement marketing strategies that are effective in the market.

Marketing is changing in modern times. However, many scholars suggest that it has been declining, but this is not true. Studies indicate that marketing is rising in its influence. According to Denison and McDonald (1995), companies that believe that it has been declining is because they have implemented poor functional marketing capabilities (70). Successful companies are implementing marketing as a philosophy in their organizations. Formal and traditional marketing is likely to cause companies to shrink. However, innovative marketing strategies will help companies grow and succeed in the market.

The Process of Completing Assignment 1

The process of completing assignment 1 was a journey where I had to do a lot of research concerning Amazon. The task required me to prove that outside-in marketing strategy is the best compared to top-down marketing strategy. The outside-in strategy involves creating valuable products and services that meet the needs of customers. This strategy prioritizes the needs of customers and wants to be compared to the top-down approach, which targets the elites in society. I learned that Amazon realized this tactic and implemented it, and that is why it has grown to become a global e-commerce giant. Amazon employs low-cost strategy, technology, strong distribution network, fast delivery, and other tactics to meet the needs of customers. The company also has built warehouses and stores to reduce the customer's waiting time. The company also employs a segmentation strategy to customize goods based on customer's preferences. The goods that appear on a customer's account follow their history, preferences and beliefs and cultures rather than their desires. This makes sure that the company retains its customers and therefore invests fewer resources in marketing since word-of-mouth has helped in attracting new customers (Brodie, Coviello, Brookes and Little, 1997, p.384). Amazon also utilizes its strengths, which include aggressive pricing strategies, excellent customer service, and a wide variety of products to gain a competitive advantage over its rivals. The company also has advanced and innovative technology and a strong brand name and image that make it difficult for other companies to outperform it. Further, it provides customers with an opportunity to write their want-list, which determines products that will be placed on the platform. It also uses various technologies to protect credit card information of its customers, thereby preventing the risks of cybercrime.

Professional Benefits I Received While Critically Analyzed Amazon's Case

The professional benefit of completing assignment 1 is I have learned that outside-in strategy is beneficial to companies that employ the method, and it is the best marketing strategy. The strategy seeks to provide value to customers and also strive to satisfy their needs. A company that treasures customers is sure to succeed since people are attracted to companies that offer high-quality products and services at low prices. I also learned that Amazon is keen to satisfy customers' needs by doing anything in its power. For instance, the company provides free shipping services to its customers, which are a great cost to bear to please its customers. The company also sells its products at an affordable cost and also delivers the products to their doorstep. The company employs a customer-centric approach which has increased the number of customers purchasing goods from its platform. Completing assignment one about the Amazon case study helped change my mindset completely. I have realized the importance of creating value and putting the needs of customers first. It is crucial to implement innovative marketing strategies that are compatible with people in every generation (Telpaz, Webb and Levy, 2015, p.512).

How the Learning Prepares for a Future Role

The various marketing strategies and issues I have learned in this course will play a vital role in my future career as a marketer. This course has allowed me to appreciate the importance of the customer. Previously I thought that creating products is the most important thing for a business. However, this idea has been challenged as now I know that the customer should determine what a company produces. Most of the time, companies spend a lot of time designing products. However, they sometimes do not do well in the market since the customers were not consulted when creating them. According to Sheth, Sisodia and Sharma (2000), crowdsourcing is a new way of collecting information from the general public regarding the type of goods they desire (p. 55). Information collected from customers should guide companies to create products that will satisfy the needs of customers based on their individual preferences, culture, and beliefs. Two-way communication will play a great role in my future career since I will apply what I have learned to be a great listener to customers to identify their needs and fulfill them.

Knowledge Gained

The Amazon case study has helped me to analyze a real and successful company that has used the outside-in approach to excel in the market. It has given me practical tactics that can be applied to every company and ensure that it is successful. When working on the assignment, I was interested to know what made Amazon become a giant e-commerce company. After completing the assignment, I have understood why the company was able to make it in the industry. Amazon has time and again utilized its strengths to exploit opportunities. It has placed its customers at the forefront of all of its activities, and that is why it has a huge number of loyal customers. My knowledge has increased due to the learning activity I completed. I now appreciate marketing strategies that focus on the customer.

Gaps Areas

The area that I felt was not covered is the inside-out strategy whereby a company employs its resources and capabilities to provide customers with what they need. This area is important for companies since they need to harness their strengths and capabilities to achieve their goals. I believe the inside-out marketing strategy is essential, just like the outside-in strategy.

How My Current Practice Might Change

My current practice will certainly change since I know the most crucial marketing strategy which I will apply to improve production, sales, and profits. The outside-in marketing strategy is effective in the modern environment since customers want companies that gratify their needs and preferences.

Reference List

Brodie, R.J., Coviello, N.E., Brookes, R.W. and Little, V., 1997. Towards a paradigm shift in marketing? An examination of current marketing practices. Journal of marketing management, 13(5), pp.383-406. https://doi.org/10.1080/0267257X.1997.9964481

Denison, T. and McDonald, M., 1995. The role of marketing past, present and future. Journal of Marketing Practice: Applied Marketing Science, 1(1), pp.54-76. https://doi.org/10.1108/EUM0000000003880

Fuat Firat, A. and Shultz, C.J., 1997. From segmentation to fragmentation: markets and marketing strategy in the postmodern era. European journal of marketing, 31(3/4), pp.183-207. https://doi.org/10.1108/EUM0000000004321

Pires, G.D., Stanton, J. and Rita, P., 2006. The internet, consumer empowerment and marketing strategies. European journal of marketing, 40(9/10), pp.936-949.

Quinn, L., Dibb, S., Simkin, L., Canhoto, A. and Analogbei, M., 2016. Troubled waters: the transformation of marketing in a digital world. European Journal of Marketing, 50(12), pp.2103-2133. https://doi.org/10.1108/EJM-08-2015-0537

Sheth, J.N., Sisodia, R.S. and Sharma, A., 2000. The antecedents and consequences of customer-centric marketing. Journal of the Academy of marketing Science, 28(1), pp.55-66.

Telpaz, A., Webb, R. and Levy, D.J., 2015. Using EEG to predict consumers' future choices. Journal of Marketing Research, 52(4), pp.511-529. https://doi.org/10.1509/jmr.13.0564