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Strategic Marketing - Amazon

Question 1: ( and BestBuy ( are two companies that, through a web presence, sell computers and computer related hardware and software. They are both similar and yet different in the ways in which they market their computer products to the consuming public. Examine each of these company websites, paying special attention to the product positioning and marketing strategies. Then, compare and contrast these websites, explaining how you feel they are working to satisfy such communication objectives as need recognition, finding buyers, brand building, and customer retention. (200 words)

Question 2: Suppose you have been asked to evaluate whether a regional camera and consumer electronics retailer should obtain Internet space. Discuss what criteria you would use in conducting this evaluation. (200 words)

Question 3: Explain advertising strategy and personal selling. What would you do to integrate these two strategies? (200 words)

Question 4: Visit the website of Amazon ( Discuss Amazon's marketing and sales strategies. How does Amazon employ direct marketing in order to reach its consumer base? (200 words)

Question 5: Visit the website Evaluate Amazon's pricing strategy. How do its prices compare to those of "brick and mortar" retailers? Critically evaluate the company's product offering and identify potential market segments. (200 words)

Question 6: Explain the strategic role of price in the marketing strategy. In your answer, discuss how some companies misuse price. (200 words)

Question 7: Discuss why senior managers concerned with strategic marketing would review marketing metrics concerned with internal processes. (200 words)

Question 8: Discuss the issues associated with integration or diffusion in the organizational design of marketing. (200 words)

Solution Preview

Step 1
The product strategy that Best Buy uses is low price guarantee. This means that Best Buy is positioned as a low priced computer seller. The perception created in the minds of the customer is that Best Buy has the lowest prices. To support this position Best Buy also challenges its customers to find a lower price and Best Buy will match it. The positioning of lowest price is matched with quality. Best Buy claims that it sells the latest devices and services, provides impartial advice, provides ability to show when and where you want, and to provide support for the life of the products. The overall positioning of Best Buy is high quality at lowest prices. The strategy is cost leadership. TigerDirect in contrast is approved by Best Buy. It claims providing excellent after sales service, TigerDirect positioning is that of offering the widest range of computer equipment and excellent after sales service. The positioning is high quality service and a wide variety of products. The strategy of TigerDirect is differentiation. it differentiates its website on the basis of high quality service and a wide variety of products available . To support its positioning of high quality it uses seller endorsement by Best Buy. The certification is used by TigerDirect to improve its own positioning.

Step 2
There are five criteria I will use for evaluating the regional camera and consumer electronics retailer. The first criterion is his ability to ship products within twelve hours of receiving orders. The second criterion is the range of internationally known brands. The third criterion is the prices offered by the retailer. The fourth criterion is the variety of products that the retailer can offer. The fifth criterion is the financial strength of the retailer.
I have considered the ability of the retailer to ship his orders. The retailer must have facilities to receive orders and simultaneously ship the products. This requires an easily accessible stock of products. The next criterion considered by me is the range of globally recognized brands. The brands must be recognizable. The next criterion is prices. The websites that display higher prices do not attract many customers. It is necessary to quote competitive prices. An important selling point for a website is the range of products being offered by the website. The higher the variety, the more attractive is the space on the internet. The financial strength of the retailer is important. He not only has to bear the cost of presence on the internet but also has to maintain a full inventory of products that can be shipped immediately.

Step 3
Advertising strategy gives the competitive frame, target market, and message argument that will be used in an advertising campaign. Personal selling refers to selling between person and person and between the prospective buyer and seller. This means human contact and direct communication. ...

Solution Summary

This solution explains important issues relating to strategic marketing. The sources used are also included in the solution.