Marketing Strategy is basically to answer the question, How will we provide supe
ID: 375998 • Letter: M
Question
Marketing Strategy is basically to answer the question, How will we provide superior customer value to our target market? To answer this question we must review the marketing mix. Select two companies and compare and contrast the product, price, communications, distribution, and services provided.
Directions: Write a 2 – 3 page paper describing and comparing these perspectives and discuss which marketing strategy is superior, and why. Use the APA 6th edition formatting guidelines below.
Your paper must follow these APA 6th edition formatting guidelines:
Double-spaced
12 point Times (Times New Roman) font
1 inch margins
Include a title page and a reference page (title and reference pages will not count in page total)
Use at least two scholarly sources, properly cited reference materials
Writing is clear and easy to read and uses proper spelling, grammar, and punctuation.
Explanation / Answer
In order to analyze the marketing strategy, two companies Google and Amazon has been identified and their products will be compared. Products mainly Google Nexus and Amazon Fire Phone are compared.
POSITIONING AND MARKETING MIX OF GOOGLE AND AMAZON ALEXA
Product
Google was having a highly competent approach to innovation. The company has a diversified line of products in different categories, which mainly include web-based products, desktop and mobile applications, hardware products and services, operating systems.
In android platform, Google has introduced Nexus range of phones with models like Nexus 5X and Nexus 6P. Nexus phones are light weight with features like hexa-core Snapdragon 808 processor. Hence though in android platform, Nexus used a quite impressive technology. Nexus camera is very powerful with a 5 MP camera, even in dimmest light to produce sharp images. It is available in white and black colors.
Amazon has developed its Fire Phone in 2014. In order to design the features of the phone, Amazon has adopted a differential strategy with features not that common for other similar products in android platform. Fire Phone is a 3D smart phone. Fire Phone has an innovative and stamped itself in introducing “Dynamic Perspective” where four cameras in the front were designed with a gyroscope for giving a 3 D effect. Fire Phone even introduced the X-ray among its features. Hence Fire Phone stands way ahead in technology and innovation. It also used a Firefly technology with Firefly button to take quick actions on most used features. Fire fox was available in five different colors
The product features of Google Nexus and Fire Phone proves that both Google and Amazon believes in innovation in their product features and trying to differentiate themselves in the market.
Price
Google has adopted different strategies for pricing its products. It’s pricing structures are mainly value based, penetration based, market based etc. An important positioning strategy adopted by Google in positioning the products is penetration pricing, where the products are offered a very low price, in order to attract customers. This will help the company to acquire substantial market share among a number of competitors.
With regard to Nexus, it has been affordably priced. Nexus has been releasing is range of series with Nexus 5X and 6P models.
In the case of Fire Phone, the prize was not officially released. But as a result of the declining prices, analysts concluded that Fire Phone was not successful, since its launch. The initial price of Fire Phone was quite high that it failed to attract potential customers.
Place
For the selling devices in Nexus, it mainly depends on distribution channels and retailers. This will help the company to have a wider reach for their products. Nexus products are available globally and can be purchased through retail stores and other distribution networks.
But Fire Phone was available only through AT&T stores.
Promotion
Google mainly use advertisements for promoting their products. The company has adopted intense promotional strategies to market and position Google Nexus. Google promoted the Nexus products through online and TV advertisements and commercials.
Google adopts an Entice strategy to market its products and services.
Thus through their acquisition strategy, Google has an edge on its competitors by increasing its revenue through advertisements of their products
But Fire Phone haven’t adopted intensive promotional activities like Nexus. Hence, it was not known much in the market.
Conclusion
Considering the product features to pricing, distribution and promotional activities, it could be concluded that overall Google Nexus stands a long way ahead compared to Amazon’s Fire Phone. Fire Phone introduced innovative features and was quite impressive. But Fire Phone failed in pricing, place and promotions.
With regard to understanding the tastes and preferences of the target market, Google could understand the taste and preferences of the market. Hence Google Nexus was developed based on the expectations and taste of the market. Google Nexus products are affordable to low-end to high-profile customers.
But Fire Phone didn’t try to understand the taste and preferences of the market. It adopted a high-end and sophisticated technology which made Fire Phone quite expensive, which was not affordable to common man. Due to the low market performance after its launch in 2014, Fire Phone had to immediately slash its price.
With regard to Amazon, it lacked foresight. Fire Phone couldn’t include features like Google maps and many other applications required by customers. Due to poor marketing mix strategies of Amazon, Fire Phone is very soon in its decline stage. But Google has adopted outstanding strategies in terms of marketing mix of Nexus, and hence it is still in growth stage. Product life cycle of Nexus is much better compared to Fire Phone.
Hence it can be concluded that Google adopted a better marketing strategy than Amazon in terms of its marketing mix.
References
https://www.amazon.co.uk/gp/feature.html?ie=UTF8&docId=1000819073
https://www.cnet.com/news/fire-phone-one-year-later-why-amazons-smartphone-flamed-out/