SAMPLE - Strategic Marketing
SAMPLE - Strategic Marketing
SAMPLE - Strategic Marketing
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3. Market Segmentation....................................................................................................... 21
3.1 Market Segments for Amazon Go ...................................................................... 21
3.2 Market Segmentation .......................................................................................... 21
3.3 Brand Positioning ................................................................................................ 22
Conslusion ........................................................................................................................... 28
References ......................................................................................................................... 29
Task 1 – Briefing Report
Executive Summary
Introduction
Marketing is about identifying and meeting human and social needs. One of the shortest good
definitions of marketing is “meeting needs profitably.” (Kotler and Keller, 2012). It involves
understanding customer needs and determining how the organization can meet those needs
or a way to create a strong and mutually beneficial exchange between the two (Kotler et al.,
2020). It is the art and science of creating value by designing and managing successful
exchanges. (Chernev, 2014).
The purpose and nature of strategic marketing can be evaluated from different perspectives:
Strategic marketing's nature and objectives focus around identifying what customers need,
developing a competitive edge, connecting marketing efforts to company goals, efficiently
allocating resources, responding to shifting market conditions, and tracking performance.
Organizations can improve their market position, stimulate growth, and achieve sustained
success in a dynamic business environment by using a strategic marketing approach.
1.2 Marketing Planning Process and marketing concepts
Each stage of the marketing planning process is depicted in the diagram in the picture
below.
A framework for comprehending how marketing strategies will be created and applied during
the marketing planning process is provided by marketing models and concepts.
Understanding a company's goals and objectives, gathering data and information, analyzing
market and competitor trends, developing strategies, establishing goals and objectives,
designing and implementing tactics, and monitoring and evaluating the marketing plan's
effectiveness are all typical steps in the marketing planning process.
Throughout the marketing planning process, data collecting, analysis, and strategy
formulation are all aided by marketing models and concepts. Some common
concepts/models are as follows.
figure 1.2 The 4 Ps of Marketing. Graphic from Hitesh Bhasin, Marketing Mix – The 4
p’s of marketing (2021)
The four Ps of marketing - product, pricing, place, and promotion—form the basis of every
successful marketing plan. The process of developing products involves producing goods or
services that meet consumer needs. Price has to do with how goods and services are valued
and established at certain prices. Place is the location where goods or services are offered,
whereas promotion is the process by which potential customers are made aware of the goods
or services that are being provided. To achieve the marketing plan's overall success, all four
components need to be carefully handled.
1.2.2. The SMART Model
figure 1.3 The SMART model. Graphic from Van Toan, What is SMART Model? How to
setup SMART goals (2023)
A useful tool for developing a fruitful marketing strategy is the SMART Model (Specific,
Measurable, Achievable, Relevant, and Time-Bound). By giving the marketing team specific
areas to concentrate on while creating a marketing plan, adhering to the SMART Model aids
in directing the team. It also aids in the definition of objectives that can be successfully
attained within reasonable time limits and that are measurable. For the best outcomes, it's
crucial to make sure that the SMART Model goals are directly tied to the marketing strategy.
In service marketing, the 7 Ps (Product, Price, Promotion, Place, People, Process, and
Physical Evidence) help marketers to deliver the desired customer experience. The product
refers to the experience that the customer experiences and should be designed to meet their
needs. Price involves the cost of the service and any incentives available. Promotion
encompasses all activities to create awareness or persuasion, while Place refers to any
channels to deliver services. People, Process, and Physical Evidence speak to the necessary
steps and tangible things needed to deliver a good customer experience.
These three marketing ideas are connected and help to create a comprehensive marketing
plan. The 4 Ps of marketing place a strong emphasis on the development of goods and
services that meet consumer expectations, the assessment of costs and accessibility, and
the promotion of the good or service. The SMART Model outlines the plan's explicit goals,
objectives, and completion dates. The customer experience, including others in the process,
and taking the required steps to ensure a great customer experience are the three main
focuses of the seven service marketing concepts.
The processes involved in strategic marketing may depend on what kind of industry. In
general, it includes the following key steps:
1.3.1 Branding
Branding is the process of creating the brand identity of a company. This process also
delivers materials that support the brand, like a logo, tagline, visual design, or tone of voice
(Decker, 2023). Amazon's customer-centric mission and strategy are crucial to its success.
The foundation of Amazon's brand is providing convenience and consumer happiness, which
it does through providing a wide range of customer-focused initiatives like its Prime
membership program, reviews, simple returns, and customer care support. This has helped
Amazon not just win over many customers right away but also draw in a sizable following of
devoted clients who are interested in the firm's customer support.
Brand Pyramid
The brand pyramid is an important concept for Amazon Go UK to consider when building
their brand identity. The brand pyramid is a tool used to help build strong, consistent brand
identity by creating a hierarchy of brand elements, from the core values and mission of the
company to the logo and messaging. At the core of the pyramid is the brand’s purpose, which
should be the foundation of all of the brand’s activities. This is followed by the brand’s values,
which should be used to guide all of the brand’s messaging and communications. Following
that is the brand’s promise, which should be communicated clearly and consistently in all of
the brand’s activities. At the top of the pyramid is the brand’s logo and visual identity, which
should be used to reinforce the brand’s core values and promise. The brand pyramid is an
important concept for Amazon Go UK to consider in order to ensure that its brand identity is
effective, consistent, and memorable. (O'Connor, 2017). As the pyramid continues upward,
these basic components of brand identity manifest in the various elements of brand
experience and communications, composing the various touchpoints, experiences, stories,
and visuals associated with a brand (Givens, 2018).
figure 1.5 Brand Pyramid. Image by Chelsea D'Angelo, The Essential Guide to Brand
Pyramids. (2022)
Brand Positioning
Brand positioning is a process of getting your brand out there and establishing it as something
worth thinking about (Thimothy, 2022). It refers to the unique value that a brand presents to
its customer. It is a marketing strategy brands create to establish their brand identity while
conveying their value proposition, which is the reason why a customer would prefer their
brand over others (Amazon UK).
Conclusion
The study of Amazon Go Marketing Strategies, Marketing Planning Process, and Marketing
Concepts has provided us insight into how vital it is to have a well-defined strategy when
chasing new prospects, as well as how critical it is to have a plan in place to ensure success.
It has also demonstrated that Amazon Go's use of technology and data-driven decisions to
improve the customer experience is a wise move that distinguishes them from the
competition. Amazon Go's success is ultimately down to the strategic analysis,
implementation, and meticulous attention to detail that goes into the marketing process. This
emphasizes the need of a well-thought-out marketing plan.
Task 2 – Marketing Plan
Executive Summary
Amazon Go is a revolutionary shopping idea that has seen enormous success in the United
States and is now ready to launch in the United Kingdom. The marketing strategy for the
launch of Amazon Go in the UK will center on using the Amazon brand to raise awareness
and trial, capitalizing on the UK's strong collaboration, convenience, and food retailing trends,
and providing end customers with a truly seamless, simple, and personalized service. By
offering a grocery store without cashiers and a variety of sub-services to make consumer
shopping simple, Amazon Go offers a wealth of practical services directly to customers. With
the most recent technology, Amazon Go offers services that are all available at the touch of
a finger. The emphasis will be on walk-in and walk-out retail using only a smartphone and the
Internet. It is challenging for people to purchase because of the time constraints they confront.
We believe that everyone is anticipating this with the Amazon Go. By offering the Amazon
Go service, we hope to give other homeowners and families peace of mind knowing that they
may purchase whenever and wherever they choose.
Introduction
The UK's retail sector could undergo a change with the launch of Amazon Go, a revolutionary
convenience store without cashiers. The need to wait in line and wait for a cashier is gone
thanks to this innovative technology, which enables customers to make purchases and then
simply walk away. Amazon Go accelerates and optimizes the buying experience by
streamlining the process through the use of cutting-edge computer vision and machine
learning. Amazon Go's introduction to the UK is intended to meet the needs of UK customers
by bringing convenience and speed to the buying experience. The audience segmentation,
price strategy, and promotional activities will all be emphasized in this marketing plan, which
will concentrate on the strategic steps that may be performed to launch Amazon Go in the
UK.
2. Tools for analyzing the business
PESTLE analysis is a crucial tool for Amazon Go UK to gain insight into the external
environment. It aids in the development of a plan for dealing with risks and opportunities in
the market. Amazon Go UK can identify potential risks and opportunities that might affect its
operations by examining the political, economic, social, technological, legal, and
environmental variables. Better judgments and future planning are made possible as a result.
Furthermore, PESTLE analysis gives Amazon Go UK a comprehension of the external
environment, enabling it to foresee new trends and promptly respond to them.
• National regulatory and taxation policies such as tax breaks, sales taxes, and import
duties
• Recent Brexit uncertainty and the potential implications for legislation, regulation,
and import/export tariffs
• Government trade policies and regulations on imported goods
• Legislative reforms such as GDPR
Porter’s Five Forces is a model developed by Michael Porter in 1979 to analyze an industry's
competitive environment (Porter, 1979). It is composed of five forces: the threat of new
entrants, the threat of substitutes, the bargaining power of consumers, the bargaining power
of suppliers, and competition among existing rivals. The goal of Amazon Go's marketing
approach is to reduce inconvenience in the shopping experience by doing away with
checkouts and lineups. Porter's Five Forces is the foundation of Amazon Go's marketing
strategy.
When an industry starts becoming profitable, it will entice new entrants. If the barriers to entry
are low, new entrants can easily capture market share and threaten profitability (Kleweno,
2022). Due of the substantial barriers to entry, including the requirement for significant
expenditures in infrastructure, Amazon utilizes its dominance as the top online retailer to
make it difficult for competitors to enter the traditional retail market. It has established
scalability in technology, an established client base, and e-commerce infrastructure. It is
challenging to create a substitute for Amazon Go that can compete with current technologies
because it is an integrated system.
Threat of Substitutes
The threat of substitutes is informed by switching costs, both immediate and long-term, as
well as consumers’ inclination to change (Martin, 2023). Amazon Go provides the convenient
choice of online purchasing from a laptop or mobile device at home. Its two-minute pick-up
process does not require standing in line or waiting to choose things. Customers can
purchase in a convenient and affordable way as a result.
The customers have a lot of power when there aren’t many of them and when the customers
have many alternatives to buy from (Bruin, 2016). It alludes to how abrasive customers are
about the goods or services a firm offers. Amazon Go is a well-liked option among its clients
because of its convenient retail environment. Its main contribution to the bargaining power of
customers can be understood as the convenience store experience it offers. Another benefit
of Amazon Go over other traditional businesses is that customers do not need to worry about
long queues or carrying cash.
Bargaining Power of Suppliers
When the bargaining power of suppliers is high, there’s a strong chance your suppliers could
raise prices or reduce quality without retaliation (Kleweno, 2022). With strict supervision over
the production, packaging, and pickup of food products, Amazon Go runs as a closed system.
Additionally, it provides complete product traceability, which enables it to more accurately
gauge demand. As a result, suppliers have less leverage in negotiations, giving the market
leader a pricing advantage.
Rivalry is high when there are a lot of competitors that are roughly equal in size and power,
when the industry is growing slowly and when consumers can easily switch to a competitor
offering for little cost (Bruin, 2016). Amazon Go is still in its inception stage and hasn't drawn
many serious rivals. As the market's dominant player, it does face competition from
conventional retailers, grocers, and convenience stores. Amazon Go has gained popularity
and customers since its debut, giving it a competitive advantage.
Amazon Go is a revolutionary grocery store concept that lets customers to pick up things and
depart without ever having to wait in line or check out. When customers enter the store, it
uses technology such as computer vision and sensors to identify things and recognize their
accounts. Considering Amazon is one of the most inventive corporations in the world, this
unique notion has gotten a lot of attention in the retail industry and beyond. Amazon has a
culture of testing ideas rigorously and then doubling down on the things that are effective.
And as a company that’s not afraid to fail and will put money on the line to develop a product
or service, even if the product poses some risk of failing (Baldwin, 2020).
Stakeholder analysis is the process of identifying, assessing, and prioritizing the people who
will be affected by your business or project (Gregoire, 2022). It can assist organizations in
understanding the interests, needs, and impact of stakeholders, as well as in developing
productive connections. A stakeholder study of Amazon Go could look at the many groups
and individuals who have a vested interest in the company's success and provide insight into
how different actors are likely to respond to company choices and developments. Changes
in the store's policies, the quality of its products, and the overall value Amazon Go delivers
may have an impact on Amazon Go customers, either positively or negatively. Amazon Go
employees are likely to be impacted by any decisions made by the corporation, such as
reducing hours or introducing new technologies that may necessitate further training and
experience. Amazon Go is also likely to be impacted by government regulations and laws,
such as taxation and public health initiatives. Suppliers, on the other hand, assist the store in
providing excellent products to consumers. Amazon Go's decisions, such as increasing the
overall weight of purchases to reduce transportation costs, may have an indirect impact on
their suppliers.
A SMART goal is used to help guide goal setting. A SMART goal must be achievable and
attainable. This will help you figure out ways you can realize that goal and work towards it
(CFI team, 2023).
S pecific:
Customers' checkout wait time will be reduced to 15 seconds or less with Amazon Go.
M easurable:
Amazon Go checks customer wait times on a regular basis using customer feedback surveys
and data from its digital tracking systems.
A chievable:
Using AI data collecting capabilities, technology, and customer input, Amazon Go can change
customer wait times and make appropriate improvements.
R elevant:
Amazon Go's goal of reducing customer wait times is critical, as waiting in line is widely seen
as a customer pain point.
T ime-Bound:
Within six months of its launch, Amazon Go will cut customer wait times to 15 seconds or
less.
3. Market Segmentation
Market segmentation is a crucial aspect in the success of Amazon Go UK. It divides a market
into well-defined slices. A market segment consists of a group of customers who share a
similar set of needs and wants (Kotler and Keller, 2012). Amazon Go is a retail concept
headquartered in the United Kingdom that blends the convenience of online purchasing with
the experience of in-store shopping. Customers may shop whenever they want, without
having to deal with lineups, tills, or cashiers. Customers simply stroll into the store, select the
items they require, and walk out. Amazon Go then charges them automatically for their
purchases.
Market segmentation is a dynamic process, and target clusters may vary as consumer
preferences and market conditions change. Amazon would perform thorough market
research before to launching Amazon Go in the UK, taking into account demographic data,
consumer behavior trends, and competitor analyses to establish the most feasible and
profitable target market sectors. As Amazon launches Amazon Go in the UK, the evaluation
of targeted market segments depends on several factors:
Urban Areas - Amazon Go outlets are often located in densely populated urban areas.
Busy professionals, students, and residents of densely populated areas could be a
key target market for they often opt for convenience and time-saving solutions.
Tech-savvy consumers - cashierless idea is based on modern technologies. As a
result, tech-savvy consumers who acclimate innovative solutions and value the
seamless integration of technology into their life may represent a large target segment.
Young Professionals and Millennials - Young professionals and millennials are
frequently the first to embrace new trends and technologies. They tend to be more at
ease with digital platforms, mobile apps, and internet purchasing. This demographic
values convenience, value, and tailored experiences, making them prospective
Amazon Go customers.
Food and Grocery Enthusiasts - Amazon Go may appeal to customers that value
quality, variety, and convenience in their food and grocery purchases. This
demographic could include health-conscious people, urban professionals looking for
quick lunch solutions, and those looking for premium or niche products.
Amazon’s brand is built on customer satisfaction. It wants to be known as the most customer-
friendly company on the entire planet (Baldwin, 2020). This means Amazon wants to position
itself as the most convenient company with the lowest prices and the best customer service
out there (Baldwin, 2020).
"Amazon Go UK - the revolutionary shopping experience where you can shop with speed
and convenience" effectively communicates the brand's commitment to:
4. Marketing Mix
Amazon Go UK is the company's new physical grocery store idea. Amazon Go UK aims to
transform the way people purchase for daily things. It introduces a new style of retailing that
is centered on the customer experience, with no checkout lines, no checks, and no hassles.
The significance of an integrated marketing mix stems from its ability to provide a cohesive
and consistent brand experience, improve customer satisfaction, increase marketing
effectiveness and reach, establish a competitive advantage, and produce higher returns on
marketing spending. Companies may establish a powerful and impactful marketing strategy
that resonates with their target audience and drives business growth by aligning and
combining multiple marketing elements.
To promote the proposition, Amazon must employ the 4 Ps of marketing mix: product, pricing,
place and promotion.
Product:
Amazon Go UK offers a one-of-a-kind purchasing experience by allowing consumers to shop
without having to go through a checkout process. They sell packaged foods, fresh vegetables,
our own chef-prepared meal solutions and meal kits, ready-to-eat items, beer and wine, and
other items (Amazon). To attract customers and differentiate themselves from other
convenience stores, Amazon must ensure that their products are of the highest quality.
Price:
The pricing structure of Amazon Go is intended to make it an appealing alternative for
customers while being profitable for the corporation. Amazon Go stores provide both physical
and digital discounts to customers, making it simple to save money when buying in-store.
Customers can also take advantage of Amazon Prime features including discounts on select
items and free shipping on qualified orders.
Place:
Amazon Go outlets can be found in major cities throughout the United Kingdom. There are
currently stores in London, Manchester, Birmingham, and Glasgow. Customers may shop
anytime they want because the sites are convenient and quick to get to. Amazon Go also
offers online ordering and delivery services to clients in specified areas.
Promotion:
Amazon Go has utilized a range of marketing strategies to get the word out about the store.
To inform the public about their unique shopping experience, Amazon has used internet
marketing, in-store displays, and radio promotions. Amazon has also partnered with
celebrities such as Drake, Steph Curry, and Harrison Ford to advertise the store.
4.3 Relationship between the product lifecycle and the marketing mix for Amazon Go
The product life cycle is the process a product goes through from when it is first introduced
into the market until it declines or is removed from the market. (Sraders, 2021). The
relationship between the product lifecycle and Amazon Go UK's marketing mix involves
modifying marketing techniques at each step to maximize growth, maintain market share,
and meet changing market dynamics. The product element, pricing tactics, promotion
activities, and distribution channels would be updated to fit with the particular qualities and
needs of each stage of the product's lifecycle.
Critical analysis of the relationship between product life cycle and marketing mix:
1. Introduction stage: during the introduction stage of the product lifecycle, the
marketing mix Amazon Go UK, as a cashier-free and novel shopping idea, would
have entered the market with the goal of raising awareness and encouraging
experimentation. Pricing strategy could have focused competitive pricing in order to
attract early adopters and build a customer base. Promotional efforts were most likely
comprised of targeted advertising, digital marketing, and media coverage to generate
buzz. Initial distribution channels would have been limited, with only a few store
locations.
2. Growth stage: the marketing mix in the growth stage is striving to expedite market
acceptance and expand market share. The product element could include adding
new features, expanding product offers, or integrating additional services. Pricing
strategies could include maintaining competitive prices while considering profitability.
Promotional efforts would focus on increasing brand preference, emphasizing the
benefits of ease, and differentiating from typical shopping experiences. Distribution
methods would be expanded to reach a bigger audience, with the possibility of
creating more store locations.
3. Maturity stage: in this stage, Amazon Go UK prioritizes market share and profit
maximization. The product factor may include ongoing improvement, the introduction
of new technology, or the diversification of offerings to meet changing client needs.
Pricing strategies may be altered to remain appealing while considering profitability
and future premium offerings. Promotional initiatives are to concentrate on increasing
consumer loyalty, confirming the brand's positioning, and enhancing retention of
customers. Distribution networks would be adjusted to ensure universal availability
and convenience.
4. Decline stage: If the concept declines popularity or relevance in the future, the
marketing mix must adapt to the changing market conditions. To renew the brand,
product strategies may include repositioning or exploring new concepts. Pricing
strategies could include cost-cutting measures or offering discounts to clear
inventory. Promotional campaigns may be decreased, To maintain abreast of
changing market demands, distribution routes may be simplified.
Branding aims to nurture an extensive and distinctive market presence that attracts and retains
loyal customers. The nature of brands; targetability, awareness, consistency, design and
loyalty has evolved substantially in recent years, driven by various factors such as brand
equity, consumer behavior, brand management, and the digital era.
AWARENESS
• Brand awareness is the percentage of people who are aware of a
particular brand. Companies that are well- established usually enjoy
the highest levels of brand awareness (Shital, n.d).
CONSISTENCY
• Organizations make several promises about their brands in
commercials and advertisements, and consumers want business
organizations to keep those promises therefore, a brand must
maintain consistency. Consistency gives you a firm foundation for
evolving into offering even more options for even more people
(Arruda, 2016)
DESIGN
• Brand design influences how consumers perceive brand. Brand design
convey the primary value of a brand, demonstrate what makes it
special, and allow consumers instinctively recognize the brand.
LOYALTY
• Brand loyalty focuses on customer perception, which can also be
considered emotional loyalty. How do customers see your brand? How
do customers feel about your brand? Brand loyalty can be associated
with so much more than the price of products; it’s also developed by
how customers see, feel, and value your bran(Amazon ads).
The significance of branding can be illustrated by the case of Amazon, one of the world's
largest and most known enterprises. Amazon's success can be credited in part to its
outstanding brand strategy and the brand equity that has resulted over time. Amazon has built
itself as a dependable and trustworthy brand, which is critical in the e-commerce market. The
company's emphasis on customer service, efficient delivery, and hassle-free returns has
fostered a sense of trust among consumers (Chaudhuri & Holbrook, 2001). The convenience,
wide product selection, and personalized recommendations offered by Amazon have resulted
in high levels of customer satisfaction and loyalty (Liu & Park, 2015). Through online
bookstore, cloud computing, online streaming and smart devices, Amazon brand has paved
the way for successful diversification into a wide range of product categories and services.
The company's focus on competitive pricing, fast and reliable delivery, and a seamless
shopping experience has created a perception of value for customers (Zhu & Zhang, 2010).
Brand Competitive
Extensions Advantage
Customer
Credibility
Loyalty
Amazon
5.2 Need for integration between the brand pyramid, the brand’s positioning and
brand management.
The integration of the brand pyramid, positioning, and brand management is critical for
successfully managing and placing a brand in the market. The brand pyramid provides a
framework to describe the various layers of a brand's identity and purpose, whereas
positioning focuses on how consumers perceive and differentiate the brand. The methods
and strategies used to develop and sustain a successful brand are referred to as brand
management. Effective communication, brand equity, strategic decision-making and
alignment to its core identity are the several reasons why it is crucial for the integration
between brand pyramid, positioning, and brand management.
5.3 How branding is used to strengthen a business or product.
Conclusion
Based on the PESTLE analysis, Porter's five forces, branding position, and marketing mix,
Amazon Go UK should pursue a marketing strategy that highlights the company's
innovative technology, highly efficient supply chain, and online delivery capabilities. Hence,
It has a strong brand presence, and a wide range of products and services the approach
should also emphasize utilizing its brand name in order to remain competitive in the market
and position it as the go-to grocery shop in the United Kingdom. The strategy should look into
methods such as giving competitive prices, targeted promotions, and investing in product
expansion to drive sales and assure sustainable growth, with a focus on the 4Ps of marketing
(product, price, promotion, and location). Furthermore, Amazon Go UK has been able to
stand out from other retailers and acquire a significant share of the market through market
segmentation and brand positioning. Branding is significant in strategic marketing and is used
to strengthen businesses or products by establishing a unique identity, building trust, fostering
brand loyalty, and differentiating from competitors.
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