Introduction

Marketing is one of the management activities in which an organization sells, promotes,

advertises its product or service and tries to attract and satisfy customers to achieve brand
awareness [CITATION Kot14 \l 1033 ]. This is the case study of the marketing management of
Amazon.

The membership program of Amazon was introduced for the first time to US in 2005 and the
benefits are free two-day shipping and discount one day shipping rates for an annual membership
fees of $79. Although the membership fees were raised from $99 in 2014 to $119 in 2018 and
added others numerous benefits to all members, the prime membership was successful in
creating a loyal based customer [ CITATION Bha18 \l 1033 ]. In 2015, Amazon had introduced
Prime Day as a global shipping event is a one-day event. But Prime Day ran for two days in 2019
which was the longest Prime day ever [ CITATION Kri20 \l 1033 ]. This event was similar with
Black Friday and Cyber Monday events in US but Prime Day event grew bigger and surpassed
the other events in 2016 by generating the revenue of $4.2 billion [ CITATION Jes18 \l 1033 ].
But this event is exclusively for Amazon Prime members because the purposes of this event was
to build Amazon Prime program and surpass the competitors.

Question 1: Discuss the various internal key success factors that have contributed to
Amazon’s successful growth in the ecommerce business globally.

1.1 Key Success factors

Key success factors, also known as critical success factors, are the most vital elements that can
contribute the huge results or outcomes for any businesses [ CITATION Han191 \l 1033 ].
Therefore, many famous organizations had their own success factors which had contributed to
the growth in their business.

Amazon became one of the uppermost choices of online shopping for US in 2012. It became not
only the largest E-commerce player in 2018 but also became as a search engine which is an
essential platform for products and brands including advertising and engagement. Many brands
used Amazon as their marketing platform to sell and distribute their products. Therefore, both the
customers’ shopping behavior and retail industry were changed because of Amazon.
Amazon developed the diversity of Marketing strategy which mean Amazon their product types
from book to other products which ranging from cloths from computers by cooperating with
Junglee Corporation in 1998 [ CITATION Ker18 \l 1033 ]. According to the annual report of
Amazon (2011), their marketing tactics was directing the customers to websites mostly through
targeted online marketing channels like their related programs, sponsored search, portal
advertising, marketing through email and other activities.

The other successful factor was Amazon analyzed and managed on their customers’ data
including purchasing history and shopping patterns to achieve different needs of different
customers. Moreover, Amazon evaluated the customer favorites of shopping by analyzing the
browsing history through many social medias such as Facebook, Google and YouTube. Amazon
practiced threefold strategies like limitless inventory, customer convenience and low price
[ CITATION Dag16 \l 1033 ]. With data analytics, management can make decisions about
customer trends and predicting behavior. Thus, it is possible to increase business profitability
and support effective decision making [ CITATION San18 \l 1033 ]. The online advertising
techniques could give instant result to all customers who made a sale on Amazon. Moreover,
among many success strategies of Amazon, some are the most success strategies that can move
forward the growth of business of Amazon.

1. Two-day shipping: Research found that 38% of e-shoppers were dissatisfied with some parts
of delivery relating with their most recent online purchase. In every E-commence business,
effective and the fastest delivery system is one of the key success factors [ CITATION Haz17 \l
1033 ]. Amazon offered two-day shipping policy by their own trucks and airplanes to its royal
customers. This is the strong supply chain management and the fasted way to deliver goods.
Therefore, it also transformed the shopping experiences of Prime members [ CITATION
Bha18 \l 1033 ].

2. Inventory efficiencies: Inventory management can be difficult for any business [ CITATION
Mel19 \l 1033 ]. Therefore, as an E-commerce business, inventory management is a fundamental
factor. Amazon offered product selection with many options and reasonable price to their
customers. Working with various third parties was also one of the smart and best decision of
Amazon because it could reduce the unused inventory problems of the company [ CITATION
Bha18 \l 1033 ].
3. Killer Product Search: This is one of the success factors that can make the Amazon as the
first choice of customers. Nearly 55% of online customers used the website of Amazon when
they search their products. In accordance with the annual report of Amazon (2011), this is one of
the marketing tactics that Amazon achieved because they direct the customers to their websites
through many online channels including their related programs, sponsored search, portal
advertising, marketing through email [ CITATION Bha18 \l 1033 ].

4. Data and Personalization: Today’s business environment is seriously competitive and the
organization need to depend on structured data to support its decisions. Among various analytical
tools in E-commence industry, data analysis is one of the most necessary tools [ CITATION
Ash20 \l 1033 ]. Data can help merchants monitor consumer behaviors and find the most
effective solutions to turn unique customers into repeat customers [ CITATION Thi172 \l 1033 ].
Amazon evaluate their consumer behaviors and shopping patterns through customer data. They
accessed the sale data, ratings the products and even customers suggestions. Amazon could
predict, offer and suggest based on the previous purchasing history of consumers and even
individual favorites [ CITATION Bha18 \l 1033 ].

5. Customer experience: Customer experience is all about an activity that impact the customer's
perception and feelings about it. Its emphases on the connection between a company and the
customers. Customer experience is important because it affects a company's results [ CITATION
Hue20 \l 1033 ]. Therefore, a good product and a competitive price are no longer enough to
generate loyalty and a personalized experience must be the differentiator. Amazon developed
one-click checkout, in depth detail of products, reviewing and rating the products which could
enhance the experience of customers. The most interesting system that could make a market
leader to Amazon was a trouble-free refund policy [ CITATION Bha18 \l 1033 ].
Question 2: Discuss the depth, how the PESTEL factors surrounding Amazon had
impacted the effectiveness of the marketing of Prime Day event globally.

PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal. It can
identify the macroeconomic variables to consider for business development [ CITATION
Ala20 \l 1033 ] and it is also a widely used strategic planning and management tool [ CITATION
Zan18 \l 1033 ]. The application of PESTEL analysis can help Amazon Prime Day as a
sustainable marketing tactic [ CITATION Iss10 \l 1033 ].

2.1 PESTEL analysis of Amazon

1. Political factors

In this factor, the key is to diversify systematic risks. The following policy factors need to be
considered during the strategic planning process of Amazon Prime Day. A stable and friendly
business environment can be due to high political stability. Because it can predict the trends of
market growth. But political instability can discourage investors and effect the confidence of
stakeholders in the organization's performance.

Currently, Amazon is present in several countries with their own political tensions. The policies
can change very frequently in host country that is also one of the harmful factors for business
performance because it can become uncertainty. Therefore, Amazon need to analyse the current
political trends in different countries. The next thing is the protesting by the pressure groups such
as social activists and workers is one of the vital roles in policy developing process and Amazon
Prime Day program need to collaborate closely with those groups to enhance the sustainability of
the business and achieve long-term goals of corporates [ CITATION Zan18 \l 1033 ].

Moreover, the high corruption level in political environment harmfully impacts the business
environment as well as weak law enforcement. Developing business in countries with high
taxing will definitely impact the profitability of Amazon Prime. Therefore, the organization can
also study industry-specific tax policies and trade policies before they developing business in
those countries [ CITATION Zan18 \l 1033 ].
2. Economic factors

The organizational performance can be impacted by the economic development of a county.

Entering mature industries is not easier due to saturated market than growing industries. The
GDP growth rate pursue the long-term growth strategies of Amazon Prime Day. It can explain
that if the GDP high, the purchasing power increase. Unemployment can reduce the production
costs with lower wages labours. The supply and demand of labour market condition regulate
wage rates. Amazon Prime Day need to learn and forecast market conditions to attract skilful
workers. However, operating in constricted labour markets can increase wages and other issues.
Therefore, Amazon Prime Day should also wisely analyse the readiness of skilled human capital
to increase efficiency of business.

3. Social factor

Social norms can really influence on organizational culture, values and trends. Understanding
demographic factors, power structures, spending patterns of consumers, and shared beliefs can
help the Amazon Prime Day program. The marketing department of Amazon Prime Day
obtained the information from the social and environmental analysis that can be used to select
groups of consumers and increase the attractiveness of the products offered to potential buyers.
In here, there are some social factors that influence on Amazon Prime Day like demographic
factors, genders roles, equality and power distance, and Spending patterns and behavior of
consumers. Amazon Prime Day need to learn conventionally allocated gender roles to align their
marketing and communication practices consequently.

The spending patterns of consumer are inclined by their purchasing power. Therefore, Amazon
Prime Day has to invest time to understand consumer motivations and social trends should focus
more on improving the customer experience. Lastly, Amazon Prime Day need to know the
behavior of online shopping and generational differences, when younger clients are more
motivated to purchase through online than older clients. They must adapt their business
management practices by entering markets with a high or low power distance.

4. Technology Factors

Capture technology trends to achieve certain business benefits, such as: increasing profitability,
driving the innovation process, and improving operational efficiency. In a modern business
environment, using social media is common. Therefore, Amazon Prime Day can take the
opportunities of social media marketing that offers to improve business performance.
Technological innovations can bring about major transformations in the sector and re-establish
the rules of success for market players. Market share can be increased by focusing on emerging
technological innovations [ CITATION Sér13 \l 1033 ]. Amazon Prime Day need to carefully
study the technological innovations taking place to keep up with the competition. New product
development puts pressure on Amazon Prime Day to rapidly develop new products, increase
product range diversity, integrate flexibility into the value chain, and develop healthy business
relationships with value chain partners.

5. Environmental factors

This is one of the necessary factors in the PESTEL analysis. The international existence of
Amazon Prime Day requests the organization to reflect these differences to carefully dodge
undesirable conditions. In some countries, recycling has almost become a corporate norm.
Furthermore, the implementation of well-organized waste management practices is located in or
near urban areas which is very crucial to the Amazon Prime Day. Most of the countries have set
high standards for protecting their urban environment through effective waste management.

Some countries provide supports to encourage investment in renewable technologies. Investing

in renewable technologies can increase stakeholder satisfaction and expand the customer base
through a better brand image. Changing in weather and climatic environments can affect
business efficiency. For example, extreme weather conditions can increase the cost of operations
and enforce a sustainable marketing scheme on Amazon Prime Day. These changes can also
impact customer spending forms, prompting the organization to review its marketing and product
strategies [ CITATION Zan18 \l 1033 ].

There is an increasing movement towards the use of eco-friendly products. Amazon Prime Day
must prioritize and focus on marketing the eco-friendly nature of its products over the usual
value propositions. Therefore, it is the opportunity for Amazon Prime Day and embrace green
business practices to gain stakeholder trust.
6. Legal Factors

This is the six factors in PESTEL analysis. A careful attention of the legal aspects is necessary to
avoid getting into serious trouble. Some countries have their own strict regulations to ensure
workplace safety. Therefore, Amazon Prime has to understand the worker health and safety laws.
Data protection also has become a vital problem due to the privacy and safety of consumers.
Amazon Prime Day need to study data protection regulations to protect customer data. In
addition, there are laws to set the maximum price, confirm a certain standard of quality and
protect consumers from fake marketing entitlements. The regulations of intellectual property are
planned to defend the patents and valued ideas of companies. Therefore, failure to protect
intellectual property rights can affect in the loss of a competitive advantage. This event can fail
Amazon Prime Day when they against with other market players [ CITATION Zan18 \l 1033 ].
Question 3: 7Ps of marketing to Amazon and discuss each component with critical analysis
in respect to global diversity

3.1 Marketing Mix of Amazon

1. Product

Amazon sold their products as separate product lines, and allow their customers to select the
variety of products that best suit them. Their products are unique in their high differentiation
with various features that other competitors did not offer. Consequently, clients are willing to
pay a higher price for these products because they perceive higher quality than others. All of
their products are sold under the Amazon brand.

Figure 1: Products of Amazon, Source:

(https://www.amazon.com/Best-Sellers/zgbs)
2. Price

According to [ CITATION Vis10 \l 1033 ], Amazon bought directly from the manufacture and
sold to customer with discounts. A competitive pricing strategy is current pricing strategy of
Amazon. Because of easily available data of other competitors. Another pricing strategy that
Amazon using was an optional product pricing strategy for certain products, where it offers the
price for the base product and separate pricing for accompanying accessories. This is because the
shipping costs have been included in the product price. Amazon has set prices for the final
product [ CITATION Add19 \l 1033 ].

3. Place

As the physical structure of Amazon, the head quarter is located in Seattle, Washington, United
States [ CITATION Qui20 \l 1033 ]. There are two marketing channels of Amazon such as
selling directly to the customers through online website and selling to wholesalers. Amazon has
an important quantity of online sales with regular traffic on its websites and it has joined with
many delivery service providers to provide on time deliveries. Amazon has a network of over
500 suppliers who supply the raw materials for manufacturing and developed a close working
relationship with its suppliers.

4. Promotion

Amazon used the very effective multiple media channels to promote its products and to attract
large numbers of people. Using online and social media advertising such as YouTube, Facebook
and Twitter are cheaper and more beneficial because of increasing internet usage. Moreover,
Amazon undergoes numerous commercial promotions by joining in various fairs and events
throughout the year [ CITATION Vis10 \l 1033 ]. Additionally, they send emails and coupons
for promotion.

5. People

People who work with suppliers for the procurement are the dynamic role in maintaining or
improving the quality of the final product produced. And those who work in the customer service
department are contacted by the customers in case of problems within the product and these
people assist the customers in the troubleshooting process. They are also trained to respect
 customers. The people who work on the sales team play an important role in the marketing
efforts. They have been trained with influential methods, but also to show respect to customers
who value their favorites. People who work in retail stores help the customer on the site,
answering any questions or helping him decide the product based on the customer's needs.

6. Process

To purchase the products in the cart, they must select the payment action. Checkout is a five-step
purchase process with the following activities [ CITATION Vis10 \l 1033 ]:

Select the
View the
shipping Select a Confirm and Receive
Identify the overview of
address and payment place your confirmation
customer the entire
special method order by e-mail
order
options

In addition, Amazon has prepared the system whereby products are always available to
customers when they need them. It has an online delivery process, where orders are received in
the computer system and based on these orders, the product was delivered from inventory to the
service provider.

7. Physical evidence

Amazon sells its products in packages of different colors that are easily identifiable on the store
shelves which is easier for customers to locate these shelves in busy retail stores. The webpage is
the easy way to use and to view products of customers in high quality images taken from various
angles. The following image is the physical evidence of Amazon.com.
Figure 1: Amazon Website, Source: (Google Image)
Question 4: Critically comment what is Integrated Marketing and why is it important for
companies to approach their marketing activities in an integrated and coherent way,
paying equal attention to various conditions

4.1 Integrated Marketing

According to [ CITATION Lau19 \l 1033 ], integrated marketing is the holistic approach to

making sure consistent message across all medias. It is also the process of combining all parts of
marketing communication like advertising, PR, and social media.

4.2 Importance of Integrated Marketing

a) Integrated marketing can build brand recognition and trust

If a brand can reach its intended consumer multiple times, through various channels, they begin
to resonate with their audience. If the various channels do a good job of communicating the
brand and message consistently, the person is more likely to recognize and trust the brand. An
integrated marketing communication strategy makes this consistent delivery possible. Without
this communication, the audience receives a disjointed brand experience and the desired message
is less likely to be translated.

b) Reach Larger Audiences

Using multiple channels to communicate can reach the greater audiences. Knowledge of
integrated marketing communications allows a company to create a multi-pronged marketing
campaign that targets a wider audience.

c) Higher Revenues and Better Results

Companies are extremely competitive. Therefore, they use a combination of efforts to generate
revenue, including their research team, strategists, public relations team, digital and social media
marketing team, design team, and more. Generally, the growth of revenue growth will increase,
once a company is able to take a clear brand message across numerous channels to a large
audience. If a company wants to continue competitive in its industry, it has to communicate
comfortably across all departments [ CITATION Lau19 \l 1033 ].
Question 5: Stepping aside from the given case study, explore and propose various
opportunities (and not benefits) that have emerged in the E-commerce industry in your
country, due to the pandemic outbreak. Opportunities can be in the form of a product,
promotion, market, etc.

5.1 E-commerce industry in Myanmar

According to [ CITATION The20 \l 1033 ], COVID-19 has hit Myanmar hard, with GDP growth
estimated to decline from 6.8% between 2018 and 2019 to 0.5% between 2019 and 2020. Along
with the growing opportunity, a wide variety of online stores have emerged across all types of
digital platforms. Myanmar's e-commerce companies have seen sales surge during closures to
contain COVID-19, with consumers stocking up on hand sanitizers, dry foods, canned goods and
other essentials [ CITATION Thi201 \l 1033 ]. Many businesses have booming their sale by
using digital platforms during corona virus outbreaks except retail stores. Many sellers and
buyers are depending on digital platforms for trading because of increasing and rising demands
very significantly [ CITATION Thi201 \l 1033 ].

According to (Liu, 2020), METRO is one of the largest wholesalers in Myanmar which also
serves hotels, restaurants, tea shops and catering. Based on their experiences during the
pandemic, the e-commerce system became more common and their business enhanced
meaningfully during the pandemic. They said that entering the traditional market in Myanmar is
not easy due to the strong relationship of consumers with other marketers. But people's shopping
behavior in Myanmar changed rapidly during the pandemic period. They don't have to spend a
lot of time waiting and traveling to buy the goods. Not only in the food sector, but also in other
goods, including healthcare, household items, and even electronic accessories, online demand
explodes and increases during the pandemic period.

According to (Chern, 2018), Shop.com.mm is one of the largest online shopping platforms in
Myanmar. Due to the 11.11 online promotional events at Shop.com.mm, more than 150,000
shoppers used their platforms (applications) the day after offering discounts on around 50,000
items, including cell phones, sports equipment, makeup and cosmetics. People in Myanmar
bought dry products such as rice, oil, soaps and baby products via GaMone online shopping and
"shop.com.mm" during the virus outbreak period and door-to-door sales and inquiries increase
compared to the previous time.
5.2 Recommendations

Here are some suggestions based on current Myanmar online shopping business experiences.
Recently, only Yangon and Mandalay areas are actively shopping through online due to limited
internet accessibility and transactions in some rural areas. New laws for online businesses should
include stricter and more precise rules for security and trust in online transactions. The national
postcode system is necessary for all online businesses and its reform will greatly facilitate door-
to-door services similar to online businesses. The Myanmar Payment Union (MPU) payment
offering system is expected to work to strengthen its card system. Finally, local banks need to
provide more ATM services in rural areas.
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