DISCUSS THE COMPANY’S 4PS (PRODUCT, PRICE, PROMOTION, AND PLACE) (30 MARKS)

MARKETING MIX

Marketing in its entirety focuses on the activities performed by a specific organization to create and deliver
a standard of living while also emphasizing the economic welfare of the entire society. (Perreault &
McCarthy, 2002, p. 08)

A marketing mix is a group of tools used to develop and implement exchanges with target audiences, such
as product, distribution, promotion, and price strategies. (Išoraitė, 2016) Business success is determined by
how effectively they promote their goods and services, which has an impact on their profit margins and
ability to stay in business. (Leva & O’Shea, 2017)

Amazon uses the 4Ps discussed below to attract and retain customers & employees, increase productivity,
lower costs, and create a memorable shopping experience to achieve success.

PRODUCT

According to (Singh, 2012) A tangible good or service that a customer is willing to pay for is referred to as a
"product." A company’s merchandise is one of the first marketing key aspects noticed by customers.

Amazon was formerly known for selling books, although now it has millions of goods and services available
in various categories. The primary product of this business is its retail service which gets distributed
through physical stores and digital platforms. It offers products from a variety of merchants and small
businesses while actively pushing its private label brands such as Kindle, Echo, and Amazon Basics. Many
goods and services are constantly added to the collection providing a strategic edge to Amazon over its
competitors.

PRICE

Price is the value that must be given/ exchanged by the customer to obtain the product. (Singh, 2012) It is
one of the most flexible elements of the 4ps which is used as a pointer to measure profitability, sales,
market share, and consumer value.

Amazon uses competitive, persuasive, and behavioral pricing strategies to value its products to keep the
market afloat. (Simplilearn, 2023) It also uses a variety of AI technologies to set its prices according to
customer behavior, seasonal promotions, and competitive gains. Value-added services such as Amazon
prime and AWS solutions also become a major factor in considering price points. Amazon can alter its
prices regularly, making it difficult for rival businesses to compete with it.
PLACE

The procedure and means by which goods or services are delivered to consumers, is known as distribution
or place. It is another crucial component of marketing as the consumer is directly or indirectly (through
middlemen) connected to it. (Luenendonk, 2019a)

Amazon rose to popularity due to its fast mode of shipping in times of need. Prime members can get
products in a matter of 24 hours, and over 100 nations and areas can receive goods through Amazon
Global. This is made possible by their top-notch distribution means facilitated by Amazon itself, making it
more cost-effective and efficient while having warehouses all around the world.

PROMOTION

Promotion is the process of informing the consumer about a product's characteristics and values through
as advertising, direct marketing, sales promotion, direct selling, and public relations, to increase brand
awareness and sales. (Luenendonk, 2019b)

Amazon primarily focuses on price and place as the fundamental marketing components which are
publicized aggressively through the mentioned strategies depending upon the occasion that it entails.
However, one of the unique approaches maintained by Amazon has been promoting products through
affiliate links. This allows both parties, blog/ website owners and potential customers to benefit from the
information where social media marketing reaches the next level.