Marketing and Market Share
Marketing Strategies
Every organization has a marketing strategy. It can be a for-profit operation, non-profit organization or government agency, but they all have formal or informal marketing strategies. Perreault, Cannon, & McCarthy (2014) defines marketing strategy this way ?A marketing strategy specifies a target market and a related marketing mix.? (Pg. 33) There are many companies that have successful marketing strategies and plans. The company I chose to write this discussion on is Amazon.com.
Amazon.com (Amazon) started as an online bookstore and has developed into the largest online retailer in the United States. They have done this by creating partnerships with other online retailers. Amason.com uses mass marketing techniques. It uses the data collected from its customers to determine trends and buying patterns. Perreault, Cannon, & McCarthy (2014) Describes E-commerce this way ?E-commerce refers to exchanges between individuals or organizations?and activities that facilitate these exchanges?based on applications of information technology.? (Pg. 11) This description of E-commerce describes the marketing strategy that Amazon.com and Amazon Web Services has used to build its market share. AWS is an extension of Amazon .com. FRPT- Software Snapshot (2016) states that ?AWS is the pioneer in cloud infrastructure services and is the world’s largest in the space, with revenue expected to be $6.2 billion in 2015, out of Amazon’s overall revenue of over $90 billion (most revenues now come from the e-commerce business, but AWS is growing at 40-50% annually). (Pg. 22) These results show the success of Amazon?s marketing strategies. Perreault, Cannon, & McCarthy (2014) defines marketing as ?Marketing is the performance of activities that seek to accomplish an organization?s objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client.?(Pg. 7).
When it comes to developing international markets, Amazon has created a marketing strategy that seems to be successful. An example of Amazon?s success is their expansion of its operations in India. FRPT- Software Snapshot (2016) ?Amazon will establish multiple data centres in India in 2016 with an investment of millions of dollars, Andy Jassy, the head of Amazon Web Services (AWS), told TOI in an exclusive interaction. Jassy said the investment could scale to billions of dollars as the region grows.?(Pg.22) This type of investment shows the commitment AWS is willing to make to develop a new markets. Part of their marketing strategy is to target small to medium size organizations. FRPT- Software Snapshot (2016) Andy Jassy states that ?We have grown very, very quickly in India. At this point, we have tens of thousands of active customers in India, across enterprises, small-to-medium sized businesses, and startups,” (Pg.22). This is the impact that AWS has made in Cloud computer in India.
I would suggest that Amazon needs to continue to use the data it collects from sales to target its markets. It should work to maintain its market share with superior customer service. The company should monitor its retail partners to ensure a high level of customer experience. Continued innovation would create entirely new markets with a different target group of customers. All of these activities would improve Amazon?s market share and create sustainability for the organization.
Amazon Web Services to set up data centres in India for its cloud computing platform. (2016). FRPT- Software Snapshot, 21-23.
Perreault Jr., W. D., Cannon, J. P., & McCarthy, E. J. (2014). Basic marketing: A marketing strategy planning approach (19th ed.). New York, NY: McGraw-Hill.
A company I have selected is a clothing store for people who are not considered normal size individuals they cater to both men and woman. The store consists of clothing that people would not normally see in the local clothing stores. The store supplies men and woman that were big and tall. The store carries clothes that would fit perfectly for people who are bigger and taller than a normally person is considered. Since I am a taller person I shop there often because I love for my pants, dresses, shirts, and skirts to fit perfectly without them being too short or even too small. The store has many varieties and they have a huge selection that will make people come back each week for new arrivals.
Two marketing strategies a firm can grow their market share domestically I think would be best is price marketing and promotion marketing. Since many do not know about the company only from word of mouth and other local media advertisement the company need to find ways to get to people who have having the same issues that big and tall people live with finding clothes that will fit them correctly. Promotion marketing has to step it up to get into many household and make it more known outside of the local city and state. The price marketing would help the company get material for cheaper with great quality so people would be able to shop there. It is a little more expensive when you have to use more material to produce larger merchandise.
The two strategies will help the company grow with consumers and also investors who want to become involved to gain profit and brings other people aboard. Companies have to keep an open mind about any situation brought to the table in order to expand their brand and bring people to visit and purchase clothing from their store. When the price and promotions of the company are brought to the consumer?s attention they would be interested to buy because something in that ad or announcement made people want to go check it out. The company only has a local following so they have to build and promote from the success they have and ask the customers to get involved and start promoting on social media which would help out 2 times faster.
Comstock, B., Gulati, R., & Liguori, S. (2010). Unleashing the power of marketing. Harvard Business Review
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