CRITICAL EVALUATION IN AMAZON’S CONTEXT
“The best marketing strategies aren’t top down, they’re outside in, starting with the customers’ needs and wants.”
Critically analyse this statement using Amazon as your case study organisation. You should aim to show whether the customer voice drives strategic marketing decisions in this organisation making reference to relevant academic literature in the process.
Executive Summary
In the contemporary business era, the intention of the firm management is towards making the customer-oriented organization. All marketing strategies are to be made by companies, from retail to manufacturing, to provide value for customers. However, things change when it comes to the internal marketing process. The whole study is in the context of internal marketing and internal customers. After introducing the Amazon Company, the concept of internal marketing has been understood. Key concepts, benefits, and impacts tell the whole picture. The impact of customers’ needs and wants is highlighted because the whole study revolves around this impact, especially in the strategic marketing process. The theme of the critical analysis starts from the elaboration of a top-down approach in the decision-making process. Instead of containing drastic critical analysis, it is good to move steadily and understand things effectively. Similarly, the Outside-In marketing process is described along with the impact on the effectiveness of the marketing strategies. The statement shows that the best marketing strategies are not top-down. According to the statement, the best marketing strategies are outside-In. Therefore, the study needs a comprehensive analysis along with some critical factors. After this analysis, the intervention of the argument “customer voice drives strategic marketing decisions in the organization, depicts a twist in this critical evaluation. This analysis depicts that not all marketing decisions are outside-In due to causes of decisions and nature of the business. Inside-out management approach and job skill assessing are some supporting elements to evaluate the statement critically. In the last phase of the study, internal marketing traits of Amazon Company have been examined. The critical evaluation of this statement is good to view the marketing strategies or process with different perspectives. Contemporary business needs effective marketing to create an impact on the customer, and it should be the main priority of the company in the marketing process.
Introduction
Effective marketing strategies are important for any organization, especially in the competitive market. Organizations are using different approaches to position better in the minds of customers through different approaches. Depending on the nature of the business and the internal business process, the management can shape a better marketing strategy that can also be aligned with organizational goals and objectives. The best marketing strategies aren’t top down because these are outside in, starting with the customers’ needs and wants.” This report revolves around the critical analysis of this statement. Traditionally, companies conduct comprehensive market or customer analysis to derive several insights and make effective marketing strategies. However, in this contemporary business era, trends of doing marketing have been changed.
The main source of marketing in the competitive business era is the customer’s voice. However, it is to critically evaluate how an outside-in approach can help an organization to make better marketing strategies. It seems the employee involved in the marketing process. However, investigating the viability of this approach seems interesting in this study by navigating different factors. The analysis is based on a particular company along with its key marketing moves in a competitive market.
The Company (Amazon)
Amazon is the world’s largest online retailer, based in the United States. It is the largest company in the world by its revenues. Main products of this company are Amazon App store, Amazon Video, Amazon Kindle, Amazon Prime, Amazon Echo and ComiXology. This company operates in different countries to serve an immense range of customers. The revenue of the company, according to 2017 financial reports is US$177. 86 billion.
Market capitalization has become one of the major strengths of this company. The firm has used an effective marketing approach to enhance the visibility of attraction and positioning in different parts of the world. Also, it is the 2nd largest employer in the United States. The product and marketing development are two major pillars that provide a lead towards success and business sustainability.
The focus of the study is on the strategic marketing decision of Amazon Company. However, before critically analyzing the statement and aligning it with Amazon’s strategic marketing, it seems interesting to understand the internal marketing concept
Internal Marketing
Internal marketing is a process of marketing customers to employees. It seems a modern approach to promoting the company’s vision, objectives, mission, and objectives to employees. The purpose of internal marketing is to increase the employee’s assertiveness to perform better. Modern organizations usually use internal marketing processes to make employees responsible. It is the best approach to understand the business and meet long term goals. If an organization promotes the goals and objectives to its employees by stating customer needs and wants, it can shape behavior and improve work processes. Internal marketing is an outside-in approach that can produce good results for organizations in the competitive market (Ahmed and Rafiq, 2003).
Customer Needs & Wants
Amazon, being the largest retailer in the world, deals with an immense range of customers in the competitive retail market. In this modern business era, Amazon’s approach to integrating with customer needs and wants is quite different as compared to other companies. For Instance, this company is using big data as a key marketing tool to derive customer or market insights and make effective marketing decisions. Also, it helps to contain the effective strategic marketing process. The management of the company usually designs different marketing strategies to meet the needs and wants of customers.
Traditionally, the firm uses a top-down approach to navigate customer needs and wants at the top level. The management usually drives employees through communicating work instructions and takes work from them. Now, due to the outside approach, Amazon has changed its marketing process. Customers know what is to be done for the betterment of both customers and company, and it motivates them to perform well (Bergiel, Bergiel and Bergiel, 2014).
Top-Down Approach is Traditional
In this modern business era, it is quite tough for the management of the company to make the best marketing strategies through a top-down approach. The delegation in the marketing process seems mandatory to make employees assertive and motivated. In the traditional marketing approach such as Top-down, it is difficult to involve employees in the marketing decision. Employees in an organization are usually not given a purpose. They do not know customers and cannot streamline some creative or innovative ideas to perform better for customers. The internal marketing process requires the marketing delegation that can produce better results for the company.
Now, due to changing trends in the global business world, internal marketing has challenged the top-down approach regarding the marketing process and its objectivity. The top-down approach contains limited marketing capacity along with some limited goals and objectives. Through internal marketing, understanding, and executing a broader view of marketing is possible. Marketing the customer to the employee is a new marketing tactic to streamline the employee’s efforts and highlight in the marketing process. Thus, the marketing process should be started from the bottom-line of the company, and it can help to produce results according to expectations (Cravens, Piercy and Prentice, 2000).
However, the viability of the outside-In approach, which is triggered by the internal marketing, is still to be investigated. If the company has used this approach in the retail market, it is necessary to evaluate the success and impact on both employees and customers. On the other hand, many negative insights may exist due to this approach. The purpose is not to prove that the statement is right. It is to be evaluated or examined with an impartial view and illustrates insights in the context of Amazon Company.
Outside In & Best Marketing Strategies
The outside-In marketing process is based on customer orientation, needs, and experiences. Amazon believes that it can prevail in the competitive market by streamlining the customer orientation, needs, and experiences to the internal force. It is to mention that it is the first step in the Outside-in marketing approach. If the company wants employees to work for shared customer needs and wants, it has to meet the internal needs and wants of the employees. Amazon has used an internal marketing approach to satisfy and motivate its employees. However, it has not been successfully implemented. No doubt, the firm has gained some key results due to this initiative to make better strategies.
Critically, the structure of the company is the biggest challenge when implementing the outside-In approach to make the best marketing decisions. Amazon contains systems, sub-systems and system interfaces, and it seems tough to make all strategies at the bottom-line and satisfy the needs of customers. For Instance, fast delivery, quality, and availability are the needs of customers in the online retail industry.
Amazon has shared it with all employees working at the bottom-line. The need of employees for such as pertinent work environment, flexible working conditions, and attractive incentives is in the limelight. Many people at the bottom line of the company are frustrated due to the heavy workload and tough work conditions. The employee turnover is increasing with the passage of time. In these conditions, the internal marketing or outside-In marketing approach is quite tough to execute. The company cannot streamline customer orientation, experiences and needs to employees because it has to meet their needs first. Amazon has to consider its employees as customers instead of assets now to make and streamline the best marketing strategies (Huang and Rundle-Thiele, 2015).
It is a fact that the best marketing strategies are not top down in modern organizations like Amazon. Outside-In is a key trait to focus on customer satisfaction and internal productivity. The Amazon management has also focused on the employee job satisfaction. The firm has utilized this approach or philosophy to align the individual efforts with the whole organization. However, critically, the company is still struggling to understand this philosophy.
Outside-In means communicating outside trends to employees and meeting their internal needs to improve performance and gain a competitive advantage. Amazon is making is best marketing strategies’ by aligning external factors (customer needs and wants) with the internal business process. Still, internal marketing seems controversial due to increased employee turnover. Thus, it seems the best strategies are still top-down in this big retail giant (Piercy, 1995).
Amazon aims to contain effective marketing strategies by implementing effective marketing mix strategies. Traditionally, the marketing mix strategy is to be done for the external business environment. Now, the need of an internal marketing mix is also in the limelight. The internal employee force is to be treated regarding the product, process, communication, and distribution. For Instance, the products are these, values, norms and attitudes, which are effective to implement the marketing plan. These attitudes or values are to be delivered to internal customers to deal with external customers effectively at the point of sales. The price for the internal customers is the job performance.
The firm wants high performance regarding productivity and motivation to serve external customers effectively. The third element of the internal marketing mix is communication. Communication with external customers is to be enhanced by face-to-face presentations and written communication. Also, it can also be done with the training and development process. The communication process is imperative for internal customers to enhance the understanding and recognition of values. The last phase is the distribution channel. Human resource management is a key distribution channel in the company to distribute products. Human resource management has to play a key role in engaging employees and shaping their attitudes and behaviors to satisfy customers (Mukerjee, 2013).
Critically, Amazon conducts the marketing mix by identifying different customer segments. However, internally, target groups are not streamlined. To implement their internal marketing mix, the firm has not identified key target groups. To make the best marketing strategies, the Outside-in approach needs particular internal employee groups. Amazon is dealing with an immense range of internal customers, and it looks tough to bring outside data to all levels in the company and make effective marketing strategies. The product price, communication, and distribution are to be executed for customer segments.
The best marketing strategies are not top down because they do not involve employees in the marketing decision-making process. In the top-down approach, the marketing team or management has to conduct an intense customer analysis to derive customer insights. On the other hand, to develop better marketing strategies and implement them in an effective and lucrative manner, the firm has to conduct internal market research. It seems a comprehensive employee analysis that can help to obtain the needs and wants of employees working in different departments. It has been revealed that Amazon Company focused more on external analysis instead of internal market analysis. Despite meeting the financial needs of employees, Amazon still has to derive more insights and compel employees to work for customer satisfaction (Cravens, Piercy and Prentice, 2000).
The statement seems right because employee participation in designing and implementing the marketing programs seems worthy. The internal marketing process depicts the involvement of staff at all marketing program levels. The purpose of internal marketing is to let employees understand their role in the marketing process. Outside-In and internal marketing are triggered by each other. With the top-down approach, Amazon has depicted effective marketing strategies. However, to convert them into the best marketing strategies, an outside approach can be the best option for the management. For Instance, the biggest benefit that the company has gained due to internal marketing is the management of the change.
Amazon has used big data tools to derive industry trends and streamline needs and wanted by customers. The information technology revolution in this company is in the limelight due to the workability of different online platforms. Outside data includes the customer’s need for fast delivery, quality, availability, and positive perception. These needs or requirements have been injected into the internal business process to initiate the internal marketing process.
The best marketing strategy is to develop the IT infrastructure to engage customers and enable rapid delivery. Thus, the management decided to involve employees in making this decision. When creating the marketing program, Amazon streamlines the rapidness of the delivery and IT infrastructure. It is sure that Amazon Company has used the internal marketing process for making major changes in different sections of the business (Donovan and Samler, 1994).
Another benefit or strength of internal marketing or best strategies through outside-in approach is the employee empowerment. The management believes that the best marketing strategies can be made through employee empowerment. However, the firm is struggling to reduce the employee turnover. Still, many best marketing strategies are made through top-down approval., For Instance, recently, Amazon has decided to pay $5000 to employees to quit or leave the organization, in reply, firm states that it wants people who want to work here. It indicates that internal marketing has not been implemented effectively.
In this modern business era, the working class usually prioritizes their personal needs and wants. Without a promising return, how can this company develop the best marketing strategies by involving employees? It makes this controversial statement. Amazon cannot depend on its employees to shape key marketing programs. As mentioned, employee turnover is increasing, and these people can reveal secret information when finding better opportunities in different organizations (Huang and Rundle-Thiele, 2015).
Making the customer-driven organization has become a major challenge for any firm. Amazon aimed to consider customer values and feedback to make effective marketing strategies. Key steps to make the customer-driven organization are setting the vision, gaining commitment, decision readiness, and segment, defining the criteria of success, customer feedback, resulting from the analysis, change, and change communication. It has been observed that all these steps are good to contain the external marketing process. It is a fact that many performance evaluation tools exist in Amazon Company.
The most critical thing is time. In these rapid operations, Amazon cannot spend much time on the continuity of internal marketing. Marketing trends are changing with the passage of time. Amazon intends to make better marketing strategies by using the outside-In approach. Critically, not every organization contains the capacity to evolve internally immediately with the evolvement of the market. Sometimes, due to market spikes, employees are to be sustained at work, and strategies are to be made at the top level.
The concept of work sustainability may contain a risk if the management communicates every trait of the customer. Thus, it can be said that the best marketing strategies’ can be made by using top-down and outside-In approach. Amazon is one of the top companies, which has the busiest employees in different departments. If it sustains the internal marketing process or outside-In frequently, the consistency of the work can be compromised (Piercy and Morgan, 1990).
Customer Voice and Strategic Marketing Decisions
The alternative to the outside approach or internal marketing is the use of the customer’s voice in strategic marketing decisions. Many ways have been adopted by companies to use the voice of customers to make effective or best marketing decisions. Instead of just considering the time consuming and costly internal marketing process to streamline the needs and demand of customers, some baby steps can be taken to make the difference. For Instance, Amazon has used big data analysis tools to obtain insights about customers.
However, on different digital media channels, the firm usually gathers the customer voice such as customer feedback, buying experience, and many other things. This data can be used by the marketing team of experts to improve the product quality and shape the appropriate content to attract and convert customers. Thus, it is to mention that the best marketing strategies can also be made immediately or in a short time if the management has better cognition, as far as the marketing environment is concerned (Piercy, 1995).
The voice of the customer can be used to make the best marketing strategies. In the competitive market, customers may raise their voices about the product quality, features, benefits, and many other things. Thus, for a particular product marketing strategy, it seems a pertinent source. Productive feedback in the form of the customer’s voice is a key source to make strategic marketing decisions. For Instance, in the marketing mix plan of Amazon, additional product decisions or strategies can be included to enhance the attraction and positioning.
Depending on the nature and pace of the business, Amazon can make the best marketing strategies through the most relevant approaches. The use of big data in the marketing process provides the rationale of an outside-In approach to making the best marketing decisions. At the same time, customer voices in the competitive market with the passage of the time seem worthy to make the immediate market decision at the top level (Mukerjee, 2013).
The customer’s voice may compel the company to differentiate the process. It is a fact that the idea of product differentiation may start from the top level of the company. Amazon’s marketing team always tried to integrate with the deep value of the customer to understand their voices. It also seems like a long process like internal marketing. The internal marketing also needs employee satisfaction because the management has to track them regarding needs and performance. Similarly, customers are to be tracked by this company regarding satisfaction.
Thus, it can be said that using the customer voice to make better marketing decisions or strategies is a direct way as compared to putting things outside, training employees, changing the process and then communicating with customers. It seems better for Amazon to depict this approach by using a group of marketing experts to evaluate the voice of customers and make decisions. Conversely, the significance of the outside-In marketing strategies cannot be ignored due to benefits such as change, motivation, reduced turnover, alignment, and empowerment. It looks good to evaluate the statement by navigating several perspectives, come up with the conclusive argument (Huang and Rundle-Thiele, 2018).
Inside Out Management Approach
Amazon has successfully prevailed in the competitive retail market by streamlining its internal strengths. The firm has identified its strengths and capabilities to gain the edge over other rivals. For Instance, it has been revealed that the company contains a low-cost structure, which helps to come up with lower priced products and services for customers. The voice of the customer in the competitive market is to get the high-quality products at a low price.
Thus, this cost structure supports the pricing strategy of the company. In the marketing mix plan, Amazon decides to depict the market-oriented pricing strategy. Coming up in the market-oriented pricing strategy is a good marketing strategy that can enhance customer attraction and increase sales. The low-cost structure of the company is a major strength that can help to streamline the effective pricing. The broad product line, big employee force, innovative culture, and financial capabilities are key strengths of the company.
The management of The Company makes an effective marketing strategy by integrating with these strengths. These strengths are also sources for the company to make products or services, which are to be generally accepted. The best marketing strategies can be streamlined or highlighted by the company management through an inside-out management approach. Interestingly, in the internal marketing process, the management can use this approach to build these strengths (Huang and Rundle-Thiele, 2015).
Aligning Organizational Purpose with Employee Behavior
Aligning the purpose of the company with employee behavior is necessary to improve the internal business process. Shaping employee behavior to meet goals and objectives is the best approach of the company to integrate with customer values. The focus of Amazon Company is on the value, which is to be delivered by the company to customers. In the internal marketing process, it is necessary to streamline this purpose and align it with the behavior of employees.
The purpose of the company has been streamlined the vision and mission statement of the company as well. The purpose is to link with the external stakeholders, especially customers. Thus, making employees assertiveness to align with the purpose, vision or mission by giving them a promising value seems relevant.
Critically, it may also contradict the voices of the customer, which provides a lead to better marketing strategies. In international business expansion, the firm may decide to change the mission and purpose to align with the values of customers. Aligning with the values of employees and customers at the same time in a swift business environment may also be a threat when making the best marketing strategies.
Customer analysis or feedback are two prominent pillars that may enable only relevant knowledge in the internal business. It is also possible to save time and make relevant market strategies. Best marketing strategies refer to the relevant strategies at the right time in the competitive market. Internal marketing or outside-In approach may lead to outdated marketing strategies. Employee behavior may be changed regarding efficiency, adaptability, and productivity (Hooley et al., 1999).
Another key concept in the internal marketing process is motivation and empowerment of employee attitude. It is also to be critically evaluated to understand the difference between customer voices and outside-In approach in marketing decision-making process.
Motivation & Empowerment of Employee Attitude
Employee motivation and empowerment regarding attitude are imperative to drive customer satisfaction. In the market, many customers are dissatisfied with the company with its delivery services, and product quality or features due to their perceptions. Based on the perception of the company, the top management can initiate the training process for the employee to shape their attitudes and behaviors. In the training process, the administration usually tells customer problems to employees and delegates the rest of the work to remove issues. The sense of appreciation and delegation is a key to drive motivation and behavior.
However, strategic marketing consideration is to be done at the top level. Employees at the bottom of the company can be motivated to improve productivity, efficiency, and the product development process. Strategic marketing thinking may need a higher cognition at the management or top level. It seems that employees at the bottom-line usually struggle to understand the external business environment. They just work in a provided work culture and contribute to meet work goals.
After gathering the customer’s voice, the marketing team just provides a short review of the possible change along with a promising return. Thus, the motivation and empowerment of employees are usually based on rewards, incentives and work conditions instead of market process delegation (Greene, Walls and Schrest, 1994).
Going deeper into this critical evaluation, it looks interesting to perceive employees as customers of the company and conduct the internal analysis.
Assessing Job skills
The best marketing strategies are necessary for internal customers. To assess customers, assessing job skills is a good approach. The best thing that the management of the company uses is the key performance indicator. Amazon uses the key performance indicator to assess skill gaps in the workplace. With the passage of time, the firm’s management intends to integrate with the modern performance trends.
The management usually identifies several skills which are to be adopted by internal customers. Cognitive, communication and critical thinking skills are in the limelight instead streamlining some technical skills. In the external business environment, customer satisfaction is triggered by differentiation. Amazon, by using big data, has identified that product differentiation is possible due to critical thinking, cognitive and communication skill in the internal business process. The outside-in approach still lies here, and it justifies that the best internal marketing strategies are not top-down (Donovan and Samler, 1994).
When navigating customer voices, strategic marketing decisions are ensured. In the business process, customer voices depict needs and wants in the competitive market. The main source of developing or identifying skill is the top management. The top management just takes data from the industry or market. The management trains employees by using internal resources. The best marketing decisions for customers are not completely outside-In because the role of the management at the top level is also critical.
Not all insights of external customer or market can be used to train employees to develop skills or capabilities. It is a process of using internal resources to implement job skill development as a key marketing strategy. For Instance, internal customers may want to develop some new ways to produce or deliver products with almost no impact on customers. Thus, the change or implementation will be top-down instead of considering it outside-In.
Changing the working conditions or ways of doing work is a requirement that Amazon usually obtains from the internal analysis. The resistance is a voice of the customer (Internal) that can also derive the strategic marketing decisions. Amazon can make the best marketing strategies, but all strategies are not outside-In, starting with needs and want (Donovan and Samler, 1994).
Amazon’s Internal Marketing Traits
The internal news campaign has emerged as a key marketing trait. The strategic decision of the company is to enhance communication and build them as an up-to-date internal customer force. The company does not want to let employees in different departments miss an announcement about the work process, change, and any external trends.
Thus, it cannot be directly said that this marketing strategy is outside-In. For Instance, the strategic decision to retain the internal customers is to announce holidays or trip plan for a particular group. It is the best marketing strategy to motivate customers and help them maintain a good perception. Interestingly, it is not outside-In because it is an internal policy to change the behavior of others. Fascinatingly, job security may be the voice of a customer from the company. Therefore, based on this voice, the firm drives this strategic decision. The purpose is to reduce turnover and keep the best talent in the company.
The training and event’s campaign is another key internal marketing trait. Based on customer wants and needs, the firm has to develop a new product. In each quarter Amazon comes up with something new and unique for external customers. The product development is a key strategic marketing decision or strategy, and it is outside-In. To implement the strategy the firm has to streamline the customer needs and wants in the training process. Due to this outside-In approach Behavior and attitudes of internal customers can be changed or molded accordingly (Huang and Rundle-Thiele, 2015).
Implementation
Nevertheless, after this critical evaluation, it is important to elaborate some steps of the internal marketing process. The Outside-In and Inside-out approach depicts the same marketing implementation process. The first step is marketing analysis. The firm has to identify the needs of the customer. After the comprehensive research, the firm has to set objectives to develop the appropriate strategy.
Interestingly, Amazon uses the same implementation plan to make marketing strategies for employees and customers. After the development of strategies, the firm designs several programs or traits and assigns responsibility for better execution. Monitoring and controlling are the final steps or phases of the company to evaluate customers and strategic marketing strategies. The pace of the implementation in Amazon is good as compared to other companies due to the systematic internal business environment.
Conclusion
In the end, it is to conclude that Amazon depends on its best marketing strategies. By using or navigating the needs and wants of customers, it has made many marketing strategies to enhance the attraction, get attention, and satisfy customers. Every organization has to depend on both internal and external business environment to make strategic decisions and sustain the business process. The most important thing is to make right or effective marketing strategies at the right time for the customer (internal customers). However, it depends on the nature of the business and evolution of the business that may compel the management to use outside customer ‘s needs and wants or internal voices of customers.
In this comprehensive critical analysis, the purpose is to view different perspectives on the strategic marketing process and the impact of different stakeholders. Employees in the internal business environment and customers in the external business environment are key stakeholders of the statement. Several arguments, based on the literature and further reading, have been illustrated in the context of Amazon Company. Amazon is not favoring that the best marketing strategies aren’t top down, as they’re outside In, starting with the customer’s needs and wants.
References
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