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КужельАА The promotional strategy of a company

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The promotional strategy of a company
Кужель Алина Альбертовна
Студент ИМЭС
Аннотация: Аннотация: Speaking about brand positioning, it is always important to
take into account exactly how its development is connected with modernity, since often the media
image of a certain organization is made up of cumulative internal reasons for development. It is also
important to consider the goals of the marketing strategy, which is why the purpose of this work is
to explore the development of Amazon based on its previous marketing strategy, and the possibility
of forming a new one. As a result, it was found that the brand focused on online services, which
today
are
very
popular
among
customers
around
the
world.
Говоря про позиционирование бренда, всегда важно учитывать каким именно
образом его развитие связано с современностью, так как зачастую медиа образ определенной
организации складывается из совокупных внутренних причин развития. Также важно
учитывать цели маркетинговой стратегии, именно поэтому цель данной работы исследовать
развитие Амазона исходя из его прежней маркетинговой стратегии, и возможности
формирования новой. В результате было установлено, что бренд сделал упор на онлайн
услуги, которые в современности пользуются большой популярностью среди клиентов по
всему миру.
Key words: brand development, Amazon, marketing, strategic positioning, advertising,
branding.
Ключевые слова: Развитие бренда,
позиционирование, реклама, брендирование.
Амазон,
маркетинг,
стратегическое
Today, most companies pay more and more attention to ensure that the company's
brand is constantly present in the daily life of its consumers and becomes an integral part of their
lives. Positioning is a tool for brand promotion, the purpose of which is to occupy a separate place
in the mind of the consumer. The concept behind brand positioning: A brand is more than just a
product name. This special meaning is a perception that can be created and built upon. Once a brand
has taken its "position" in the mind of the consumer, it will remain there for a long time, and if the
brand is properly managed and constantly kept afloat, it is almost impossible to dislodge it. Many
companies focus on the mind of the potential customer first and only then on the product and their
competitors. In marketing, positioning is a classic marketing strategy principle that brands use
either to penetrate a market or to constantly emphasize their identity in front of masses of
consumers. The current information age is changing the way marketers develop their strategies,
especially when it comes to positioning. The main task of positioning is the formation in the mind
of the consumer of the uniqueness and significance of the brand, as well as its significant difference
from other brands. The purpose of brand positioning is to have an idea, thanks to which the
company will firmly take its place in the mind of the consumer [4, 22].
Positioning can be divided into the following main types: Attribute positioning. It is quite
common, but not suitable for everyone. You need to find an appropriate attribute that will allow you
to build a positive reaction from the consumer. For example, Germany is famous for producing
high-quality household appliances and, when promoting a product marked “Made in Germany”,
gives that worthy attribute to the brand. Positioning merit. This type involves highlighting the
benefits and features of the product. A brand attracts a target market because of the potential
benefits that a product or service can bring to it. It is also a marketing strategy in which the
manufacturer creates value for the buyer that is inherent not in the product, but in its use and merits.
Using this type of company positioning, the dignity of their product is emphasized, but this does not
always work. Each consumer himself evaluates the dignity of the product based on his or her
preferences. For example, the Volvo brand positions itself as a manufacturer of the safest cars and
confirms this with actual test data, while BMW highlights its main advantage - driving comfort.
Positioning of quality/prestige; this type of positioning is one of the main forms of brand
positioning. When people know that a product is of good quality, they will turn to that brand all the
time because they will know that the product will last a long time. Companies that produce
premium products more often use this type of positioning. There will always be a consumer willing
to pay for prestige, for having the best and most expensive product in its category. Price
positioning. The concept of value is to create a psychological effect by increasing or decreasing
prices. For example, a lower price than competitors for a product will generate interest due to
availability.
Amazon.com Inc. is an American multinational technology company that specializes in ecommerce. It is the largest company selling a huge number of goods over the Internet. It is also a
leader in online sales of consumer goods and one of the big five companies in the US information
technology industry, along with Google, Apple, Facebook and Microsoft. Amazon follows its core
four principles: they are customer focused, not competitive, they have a passion for invention,
excellence in work, and a long-term mindset. Amazon strives to be the world's most customercentric company, the best employer, and the safest place to work. Amazon.com is not only an online
store, but also an e-reader manufacturer and web service provider that has become a cult example of
e-commerce. The headquarters is located in Seattle, Washington. Amazon.com is a vast online
business that sells books, music, movies, homewares, electronics, toys, and more, either directly or
as an intermediary between other retailers and millions of consumers. Its web services business
includes data storage and computing resources, the so-called "cloud computing". Its presence on the
Internet is so significant that in 2012, 1% of all Internet traffic in North America was in Amazon
data centers [1].
Jeff Bezos founded Amazon in his garage in Bellevue, Washington on July 5, 1994. It
started as an online book marketplace but has expanded to sell electronics, software, video games,
clothing, furniture, food, toys, and jewelry. In 2015, Amazon surpassed Walmart as the most
valuable retailer in the US by market cap. The company is the world's largest online marketplace,
artificial intelligence provider, real-time streaming platform, and cloud computing platform.
Amazon is also the world's largest internet company by revenue and the second largest private
employer in the United States. As of 2020, Amazon has the highest brand valuation in the world. It
manufactures consumer electronics, including Kindle e-readers, Fire tablets, Fire TV and Echo
devices. Amazon is currently buying film and TV studios Metro-Goldwyn-Mayer.
Established in 1994, Amazon is still the world market leader in selling all kinds of product
categories online. The founder of the company, Geoff Bezos, began his journey with a simple book
sale. Bezos, after doing his research, concluded that books would be the most logical product to sell
online, but Amazon was not the first company to do so. The Computer Literacy bookstore in Silicon
Valley began selling books from its range to its customers back in 1991. Amazon.com had the
advantage at the time of delivering any book to the reader anywhere. Three years after the opening,
the company expanded the scope of its services and began to sell music records, as well as various
video products. Amazon.com has become a vast Internet enterprise that sells not only books, but
also electronics, various household goods, music, movies and other products directly or through
intermediaries. Bezos argued from the start that the site was more than just a consumer goods seller
[2].
He argued that Amazon.com is a technology company whose business makes online
transactions easier for consumers. The company was one of the first to see on the Internet the
possibility of appealing to a wide audience, which does not even have to leave the house to buy
goods. A characteristic feature of this online store is that each buyer can leave his own review about
the product he purchased. This system allows you to select the best quality products and place them
in the most popular positions. It also helps to weed out low-quality products with the help of
negative reviews. Many critics have argued that Amazon.com will end up losing out in the market
to established retail chains like Borders and Barnes & Noble after they launch competing ecommerce sites. However, Bezos dismissed naysayers who did not understand the Internet's
enormous growth potential. He argued that in order to succeed as an online store, a company needed
to watch not competitors, but consumers. After adopting this strategy, Amazon.com accelerated its
growth, reaching 180,000 customer accounts by December 1996, and less than a year later, in
October 1997, it had 1,000,000 customer accounts. In 1997, the company's revenue amounted to
148 million, and the next year, 1998, the company reached a record high of $610 million [3].
The company quickly began sales in other areas. In the same year, the company launched
international activities with the acquisition of online bookstores in the UK and Germany. By 1999,
the company was also selling consumer electronics, video games, software, household items, toys
and games, and more. Although offering more products increased its appeal, Amazon.com gave it
customer loyalty and maximum profitability. Its personalization tools recommended buying other
products based on the customer's purchase history. The publication of customer reviews of products
helped create a "community of consumers" who helped each other find everything from the right
book to the best blender. The company currently has a market capitalization of over $1 trillion. This
was achieved thanks to the growth of shares. The initial share price in 1997 was $18, and now the
price per share of the company is about $3,561. Amazon has warned that the company has large
planned expenses due to the coronavirus pandemic.
Despite this, all of Amazon's core businesses, such as e-commerce and the cloud business
remain profitable. Analysts have estimated the company's global retail sales in 2020 at $25 trillion.
One of the company's projects aimed at improving the logistics of goods is the creation of its
distribution centers near large settlements. To do this, they buy the buildings of bankrupt tiger
centers or large stores, turn them into their warehouses, and transport hubs. Because timely and fast
delivery is one of the company's advantages over its competitors. Given the current market
situation, it is safe to say that the company will continue to grow; this will also be facilitated by the
restrictive measures caused by the coronavirus pandemic, as a large number of people prefer to stay
at home and shop online. Amazon can hardly be called a traditional or conservative company; its
ideology is based on the desire for innovation in various areas, not limited to core businesses. Such
promising areas at Amazon are healthcare, global logistics, drone production, diagnostic testing,
and others. Given all the opportunities that Amazon has, it is almost certain that in 10 years the
company will be much larger and more profitable. It is hard to predict what share of global retail
sales Amazon will achieve in 10 years, but it will almost certainly grow. Today, with a share of just
over 1%, the company has huge potential. The COVID-19 pandemic has only accelerated the
growth of e-commerce, giving millions of people a preference for online shopping over physical
stores [5, 2].
Amazon is currently successful because at the beginning of its journey, the company was
able to discern the prospects for the development of the then new concept of the Internet for
everyone. Having successfully established a dominant position in online retail, the company is now
focused on expanding its services as well as expanding the number of physical stores. 25 years after
its founding, Amazon is one of the most valuable public companies in the world, and founder Bezos
became the richest man in the world thanks to his invention. What started as an online bookstore
has grown into a global online sales giant, with its own physical stores, its own smart devices, and a
delivery system that can deliver goods to customers anywhere in the world. Last year it became the
world's second public company with a $1 trillion valuation behind Apple, and it has the second
highest market valuation in the world behind Microsoft. The success of the company is also due to
the expansion of its share in other different sectors. Video streaming services and devices, cloud
services and most recently acquired grocery stores have placed the company in direct competition
with tech giants such as Facebook, Apple, Google and Netflix.
Bibliography:
1)
David, Streitfeld Jeff Bezos and Amazon Employees Join Debate Over Its
Culture / Streitfeld David. — Текст: электронный // The New York Times: [сайт]. —
URL: https://www.nytimes.com/2015/08/18/technology/amazon-bezos-workplacemanagement-practices.html (дата обращения: 28.11.2022).
2)
Daniele, Palumbo Amazon at 25: The story of a giant / Palumbo Daniele. —
Текст: электронный // BBC News: [сайт]. — URL: https://www.bbc.com/news/business48884596 (дата обращения: 28.11.2022).
3)
Mark, Hall Amazon.com / Hall Mark. — Текст: электронный // Britannica:
[сайт]. — URL: https://www.britannica.com/topic/Amazoncom (дата обращения:
28.11.2022).
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Будак Н.А. Управление маркетинговой компетентностью. – Коломия:
ИнтеллектНова, 2015, 22.
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Кензина Ц.З., Манджиев Б.А. Интернет-маркетинг как инструмент
развития предприятия // Молодой ученый, 2016. – № 27-2(131).
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