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Creating brand equity
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Creating brand equity
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2.5 Positioning options
The main ways of positioning a product or brand are:
By product attribute – This positioning focus on few of the benefits or characteristic of the product.
By product class – Looking for a leadership position of the product in the market.
By user – This approach focus on the ideal consumer. Suggesting that the product is perfect for that type of person and even is contributing for the social identity.
Against competition – Here the company use comparison against the competitors.
By quality/value – positioning of the product based on high quality. Also can be claimed that the product have high value.
By application- The product or the brand are positioned as the best solution for a particular task or use.
By using combinations from the above – But this approach has to be made with caution, because confusion can appear in the message.
Comparing with the competition the products of Amazon are with high quality and lower price.
On the Ansoff matrix below is shown what growth strategies for new and existing products and markets can be used from the company.
BCG Matrix
Relative market share
The marketing plan of Amazon is focused on increasing the costumer traffic on their website, strengthen and expend the brand name, encourage repeatable purchase, developing revenue opportunities, bringing awareness of the products and the services, improving costumer experience, free shipping options. That leads to more customer visits and word of mouth promotion. They use various methods of advertising including online and portal advertising, e-mail campaigns and others.
3.1 Competitive advantage
Competitive advantage which is also a strategic advantage enables the company to ...
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...competition.
4.1 Marketing Mixes for two different segments on the market
Buying everything from books to electronics and food online is something very common today. People from different demographic segment and different backgrounds are shopping thru internet retailers. Some of them are more likely to shop on internet than others.
Demographic marketing mix:
Product –
Price –
Place –
Promotion –
Lifestyle marketing mix:
Product –
Price –
Place –
Promotion –
3.4 How promotional activity is integrated to achieve marketing objectives
Promotion is the way of informing customers for a product or service. This element of the Marketing mix is important for attracting customer’s interest and convincing them to buy the product. The important elements for promotional activities to achieve marketing objectives are consistency, coordination, reach and repetition.
Product positioning - Refers to consumers' perceptions of a product's attributes, uses, quality, and advantages and disadvantages relative to competing brands. Our R&D department is doing tremendous job meeting all our customers’ expectations.
Although Amazon has been active trying to find the perfect strategy to make profits, the numbers in its financial statements had not shown the most optimal results. We have discuss that even though its strategies have been right according to supply chain and logistics methodologies and theory, something had been missing to represent this successful strategies into financial results. It is seen that Amazon had spent too long time finding the right strategy which the last might be the one because in the financial statements profits started to come up. Amazon still have a long way to go to mature its strategy and represents it into profits for its shareholders.
Another part of Amazon’s retail strategy is to serve as the channel for other retailers to sell their products and take a percentage of cut of every purchase. Amazon does not have to maintain inventory on slower-selling products. This strategy has made Amazon a ‘long tail’ leading retailer, expanding its available selection without a corresponding increase in overhead costs.
Amazon has been able to maintain sustainable competitive advantage based on three operational strategies. These are low cost-leadership, customer differentiation and focus strategies. Low cost-leadership is pursued by Amazon by differentiating itself primarily on the basis of price. By offering low prices to customers Amazon ensures its future success. Partially modifying the costs of lowering prices over time through achieving higher sales volumes, negotiating better terms with suppliers, and achieving better operating efficiencies. Amazon makes sure that it offers the same quality products as other companies at a considerably cheaper price. Another strategy that Amazon has is its fast delivery service and there are many delivery services that one can choose from. With Amazon Prime, there are certain, but many products that have free two-day shipping. Also, with Amazon Prime, there are many offers specifically for people that have Amazon Prime. For example,
Amazon is one of the world’s largest online retailers and is known to be the titan of e-commerce. As a go-to site for shoppers of all ages, as of 2017, it ranks number 83 on Forbes’ Global 2000 list of the world’s biggest and most influential companies. (Forbes, 2017) Targeting everyday online shoppers to merchants alike, in this technology based era, this company has grown exponentially over the years and altered the way people shop. Compared to the industry growth percentage of 15% over the past five years, Amazon has grown nearly double that amount by 28.3%.
As the organization continue to grow they continue to expand their market power around the world. Amazon is able to use this market power to their advantage by requiring merchant`s to maintain certain price points and help resolve customer disputes that occur with purchase on their site. Competitors for Amazon have a hard time matching the price points established by Amazon because Amazon does not have the same operating cost associated with a traditional brick and mortar organization. Customer satisfaction is one of Amazon key goals to ensure they meet customer demands and attract new customers. Amazon`s market power continues to grow and as that market power grows so does Amazon presence in multiple market.
Amazon.com creates value for its customers by offering customers broad array of products to select from through their website and ensuring timely delivery of products to exhibit high level of commitment towards their business and customers
A key part of an organizational strategy is to identify market opportunities by finding a niche or a gap in the marketplace that they can pursue to take their company ahead of all their competitors. An organiz...
Amazon has recorded a magnificent success in its business throughout the years that it has been in operation. It has attracted almost all people to use it when necessary. Amazon has built its success in business methodically and slowly. Amazon has made much success because of its ability to read market trends and diversify its operations. It started as an online book selling company. However, it changed its operations and started selling other products. Currently, many large retail shops use Amazon to host and power their websites, for instance, sears and virgin megastores. Amazon now attracts over fifty million visitors in a period of one month. Amazon has tried to make their services fit each individual user. It has based its services on the end user. It has shipping discounts, customer product reviews and a credit card with bonuses. It also has prime membership, product forums and 1-click ordering system among other services. The company has tried to make a remarkable experience for customers and visitors (Thomas, 2006).
By quality/value – positioning of the product based on high quality. Also can be claimed that the product have high value.
Product. Companies that follow this approach try to create a consumer product or service that is supposed to be unique or better than that of the competitor 's. Uniqueness or some upgrades in the product were believed
This statement is still driving Amazon to provide the best for their customers. It is impressive when a business is able to fulfill their original mission statement, while being an E-business that is demanded to provide and keep up with the most current wants and desires of the consumer, especially as Amazon began and still is highly driven from popular department of electronic related products. Amazon began by selling their first book, progressing to 1-Click Shopping experience, then to creating their symbol “AMZN” on the NASDAQ, while launching the Music Store, Advantage Program, and opening numerous Fulfillment and Customer Service Center within and outside of the United States (History of Innovation). Next, let’s look at how Amazon uses all these characteristics to be a financially
As some of you may know, Amazon has recently become a client of Deloitte. Amazon is a company that sells merchandise, produce and other goods through Amazon.com. They have also expanded into the same day delivery industry through its new venture, Amazon Prime. Recently, Amazon has been looking to focus more on growing its business outside of the United States. In order to do this, Amazon needs to increase profitability in North America. Thus, they have requested our team’s recommendations on how they can increase sales from online shoppers within the next 12 months.
How to Position the Product in Relation to Other Products – Where to sell/to whom do you sell? The Right Marketing Mix – Is the product right? , Is it sold in the right market? right places? , At the right price?, Is the product promoted in the right places?