Introduction
Businesses market their products directly to consumers or to other businesses. Regardless of the circumstances, they all require marketing skills to effectively sell their products. The approaches taken to market products may differ or be similar at times. In the US, several businesses are primarily business-to-business (B2B), while others are business-to-consumer (B2C).
It is essential to examine how the two models attract and retain their customers. It is also noteworthy to understand how such companies conduct their market strategy and planning. Scientific theories have been developed to explain business marketing strategies, which can be examined and analyzed. Conducting such an analysis sheds light on business practices in the US.
Marketing Strategy and Activities
Businesses require strategic market plans and activities to attract customers. B2B and B2C companies utilize different approaches to find their niche in the market. A company that markets directly to consumers is classified as B2C, while one that markets to businesses is classified as B2B (Zhou et al. 364). For example, Microsoft Corporation is a B2B company, whereas Amazon is a B2C company. When it comes to marketing strategies, both companies heavily utilize digital marketing tools such as social media and online campaigns to reach their customers (MacQuarrie et al. 596).
The online space and social media attract many potential customers who can be strategically targeted. In addition to marketing strategies, branding is a key component of marketing. Amazon and Microsoft have established reputable names that help them gain the trust and confidence of customers (MacQuarrie et al. 597). The two companies have strong brands and take pride in producing high-quality products and services for all their customers.
Microsoft and Amazon are known for creating platforms that allow their products and services to be accessed simultaneously. The two companies have created their ecosystems of products and services (Zhou et al. 370). An example is Amazon and its Prime services, such as Prime Video and Microsoft Office 365. Such a move retains customers and prevents them from outsourcing external services.
The two companies create traffic on the online platform to increase their targets. Methods such as search engine optimization (SEO) and pay-per-click (PPC) apply to both companies. For instance, Microsoft utilizes its search engine Bing to prioritize its products and services. Amazon allows the sellers on its platform to pay for advertisements once a potential customer clicks on their products (MacQuarrie et al. 597). The strategies used aim to attract customers, market their products, and build their brands.
Differences in Marketing Strategy and Activities
The two companies differ in terms of what they offer and whom they target. As a result, they are bound to use different marketing strategies and activities. Microsoft’s strategies are aimed at enterprise-level customers.
At the same time, Amazon focuses on consumers of goods and services (Neuhaus et al. 99). Microsoft, on the other hand, is a software company whose goods and services primarily target corporate customers. Amazon contrasts with Microsoft in that it is an e-commerce business that prioritizes customer satisfaction above all else.
In terms of budgeting, the two companies have varied budgeting purposes. Microsoft allocates a huge budget toward research and software development (Neuhaus et al. 101). On the other hand, Amazon allocates more resources to increasing sales and generating website traffic. Their budgets primarily fund research into market trends and customer preferences with different goals. Amazon focuses more on getting online buyers, while Microsoft focuses on developing software services for enterprise customers.
Amazon and Microsoft use varied methods to distribute their products. Amazon primarily relies on customers who visit its online stores to make purchases that it then delivers. Microsoft relies on two modes of product and service distribution: using verified resellers and partners and online purchases (Neuhaus et al. 110). It is also crucial to analyze how the two companies get their customers. Microsoft’s partnerships and deals attract corporate customers (He and Zhang 694).
Amazon relies on advertising and referrals to attract customers to its website (He and Zhang 697). Microsoft thus focuses on closing deals with other companies, while Amazon focuses on appealing to individuals. Overall, both companies are forces to reckon with in the digital market. However, the products they deal with give them different marketing approaches. No blanket strategy exists since each company has varied needs, products, and customers.
Soliciting Customers’ Confidence and Repeat Purchases
For any business to thrive, it must appear appealing and attractive to its potential customers. Amazon and Microsoft have mastered the art of wooing customers. Both companies use advertisements in online and print media (Neuhaus et al. 103). Given that most of their products are best used digitally, personalized advertisements have been embraced. They also print advertisements in newspapers and business articles to appeal to a broader audience and increase their targets.
They also use creative television commercials that address problems that people face and how they come in to remedy the situation (Neuhaus et al. 107). Advertising aims to make the product appealing and convince potential customers that it fits their needs. For instance, Microsoft advertises its Office packages as an efficient tool for data entry and management. Amazon, on the other hand, advertises its online shopping services as fast and reliable.
Events and sponsorships have proved to be a big selling point for most companies. Sponsoring events, activities, or famous individuals helps promote the brand and appeal to a broader customer base. People tend to buy a product only because they find it attractive or helpful when they see someone else use it (He and Zhang 704). An example would be Microsoft partnering with the famous Spanish Football League, La Liga Santander (Ratten 72).
A football league contains fans who could be potential investors or partners. Therefore, Microsoft will utilize this platform to demonstrate the effectiveness of its products. Both companies provide customers with adequate information to establish confidence. They provide information on product composition, functions, features, and even customer reviews (Neuhaus et al. 105). Openness about product information enhances a customer’s confidence in their purchasing decision. Soliciting customers can be done in various ways, provided they align with the company’s needs.
Repeating Purchases
Companies ensure that their customers make repeated purchases of their products. To achieve this, Microsoft and Amazon have developed several strategies. Both companies offer customer support services to their clients (Kim and Kumar 4). Both companies have a system that gives customer assistance and enables them to track their purchases. Additionally, they have responsive complaint handling and feedback platforms. Customers are more inclined to products that offer practical solutions to their problems.
Their established and reputable brands enable customers to continually consume their products (Kim and Kumar 5). Amazon is known for its effective delivery and refund process. Such an attribute maintains the trust of online shoppers and retains them. The ability to continuously purchase from a single supplier depends on customer confidence in the product or service. A brand established and known to be trustworthy is a confidence booster for customers.
Companies also use testimonials and case studies from customers to retain their customers. Microsoft is known for using testimonials about how its scholarship programs and software packages have transformed people’s lives. On the other hand, Amazon conducts case studies on how to appeal to consumer needs (Boldosova 124-125). The goal of such moves is to make a product user feel special and dependent on the service at the same time.
Additionally, they offer incentives to their existing customers to encourage them to make repeat purchases. Both Amazon and Microsoft offer incentives, such as discounted rates and free deliveries, for making two or three purchases (Kim and Kumar 3). Customers will likely continually buy from a company that helps them cut costs. Companies like Microsoft and Amazon aspire to retain customers. Their strategies initially aim to build confidence and then incentivize customers to continue purchasing from them.
Theories Explaining Companies’ Actions
Scientific theories explain the actions taken by huge companies such as Microsoft and Amazon. The 4Ps of marketing theory provide a framework for marketing strategy and planning. The theory suggests that there are key components to creating a robust marketing strategy. Effective marketing factors include product, place, promotion, and price (Sheth 5-6). A company has to identify how the 4Ps relate to each other when formulating a market strategy.
Microsoft and Amazon heavily use product promotion to market their products. They use strategies such as advertisements and promotions to reach potential customers. Furthermore, they consider the products they deal with to tailor their promotions. The 4Ps theory is more closely related to the marketing strategies employed by Amazon and Microsoft. Different theories can be used to explain different strategies. Regardless of the theory applied, it depends on how much a company seeks to promote its product.
Companies also study consumer behaviors, as explained by various theories. The Decision-making theory suggests that customers are influenced by their cognitive and emotional abilities when buying a product (Mishra et al. 156). For this reason, Microsoft and Amazon provide sufficient information about their products to help customers make informed decisions. Such a move relates to their cognitive ability.
They also use hyped advertisements that make their products appear aesthetically pleasing and important (Mishra et al. 149). This directly affects people’s emotional inclination to buy a product. Microsoft uses testimonials to demonstrate how its products address common office challenges. Amazon, on the other hand, informs how reliable and fast shopping from them is. Different models can be applied to explain both marketing strategy and customer preferences. Each move aimed at promoting the company and keeping customers is backed by theory. Theories explain how customers make decisions and how companies should plan.
Conclusion
Marketing strategy and plans are important for any business to thrive. The two business models, B2B and B2C, necessitate distinct approaches to succeed in the market. Microsoft and Amazon are excellent examples of the two models and their market dominance. The two companies are strategic in their approach to and solicitation of customers.
Additionally, the company aims to maintain its customers and encourage them to make repeated purchases. For a business to succeed, regardless of the model, it must incorporate strategies that Amazon and Microsoft use. In applying strategies, the focus should be on the needs of the business and its target market.
Works Cited
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