Marketing Objectives and Strategies for Amazon

This paper discusses the marketing objectives and strategies for Amazon, focusing on building brand awareness, enhancing customer relationships, and targeting new customers in the batteries segment. It also explores market segments and loyalty development strategies.

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Table of Contents
Introduction......................................................................................................................................2
Current Market Position..................................................................................................................2
Three marketing objectives..............................................................................................................4
 Building brand awareness....................................................................................................4
 To boost customer relationships...........................................................................................5
 Targeting of the new customers............................................................................................5
Three market segments and how Amazon will develop loyalty......................................................6
Target segments...........................................................................................................................6
Strategies to develop loyalty........................................................................................................6
Marketing mix and marketing tools to position the brand...............................................................8
Marketing tools that should be considered by Amazon...................................................................9
Jungle-scout.................................................................................................................................9
Jump-send..................................................................................................................................10
Camel-camel-camel...................................................................................................................10
Annexure to the report...................................................................................................................10
References......................................................................................................................................12
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Introduction
In this paper, the discussion will be made on the different aspects related to marketing
management. The company selected for the task is Amazon. It is examined that Amazon is one
of the largest multinational company and the activities are conducted on the e-commerce
platform. The company was established on 5, July 1994 in Seattle Washington (Amazon, 2019).
So, the different marketing aspects will be analyzed on the basis of the current position,
marketing objectives, target segments and marketing mix in relation to the company.
Current Market Position
Amazon is one of the biggest players in the e-commerce sector and the overall sales have been
enhanced by the company from 20% in 2013 to 28% in 2017. The company is at the top position
in relation to the current position in the highly competitive market. The competitors of the
company such as E-Bay, Apple, Wal-Mart are in the next position. Amazon is on the 1st
position with 49.1% sale on the e-commerce platform and the other companies such as E-bay
have 6.6% sales, Wal-Mart 3.7% sales and best buy 1.4% sales (Ingrid, 2019).
(Source: Ingrid, 2019).
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It has been analyzed that at the time of maintaining the track record of the online purchases
across 100 Million devices from 500 e-commerce retailers and market, the company is on the 1st
position in terms of online battery purchases. According to the Jump shot report, Amazon covers
97% market share of the online battery in the highly competitive market. There are other
products also such as kitchen and dining products with 94% purchase share and also home
improvement tool with 93% of the market share. Therefore, one of the products of the company
is an online battery which covers a large market share with 97% of the market share (Marketing
land, 2019).
(Source: marketing land, 2019).
STP is one of the best models that can help to evaluate the current position of the company in the
market. In reference to the product of Amazon, it is observed that the company focuses on the
concept of positioning in which the focus is given on adaptive positioning. The company
evaluates the online retail giants present in the external business environment and also analyze
the expectation level of the customers by repositioning the products and services in the market.
In reference to the batteries sold by the company, it is stated that the focus is on the needs of the
customers. At the time of offering the products; the emphasis is given on evaluating the needs of
the customers as it assists in repositioning the products in the market. Targeting is also done at
the time of offering the products in the market. To promote batteries segment in the market,
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Amazon targeted middle and high-class people. Also, the main target is on the people who have
their own factories and outlets. The target is on the upper and middle-class people because they
are inclined towards the E-commerce portal and also they are comfortable with online shopping.
The positioning of the products is done by the company, by considering "under the tent strategy"
in which the products are offered in less time to the customers. Free cost of delivery is offered to
customers as it could be simple for the consumers to order goods from Amazon. Therefore, it can
be stated that Amazon considers the STP model in which the main focus is to maintain the
market position. Also, in reference to the batteries segment, it has been seen that the company
have the top position in terms of current market position in the market. The STP model
considered by the company is effective and offered an opportunity to attain growth and success
by satisfying the level of the customers in the market (D. Banker, Mashruwala and Tripathy,
2014).
Three marketing objectives
The three marketing objectives that should be pursued by Amazon in relation to the batteries
segment over the next three year period are related to build brand awareness, enhance customer
relationships and to target the new consumers. It is important for Amazon to focus on these
objectives as it will assist in maintaining goodwill in the market.
 Building brand awareness
One of the marketing objectives is concerned with building the brand awareness, in which it is
important for the company to promote the products through different medium as it could help in
boosting the products demand among customers and it will help the customers to get more
information of the different batteries offered by the company. The best way that should be
considered is related to social media marketing. To achieve the set objective related to building
brand awareness, it is important to focus on social media marketing as it is the cost-effective
method to boost the awareness of the customers in relation to the different batteries offered in the
market. According to the above findings, it is analyzed that overall sales have been enhanced by
the company from 20% in 2013 to 28% in 2017. So, to boost the sales by enhancing the brand
awareness, it is necessary for the management to focus on adopting the social media marketing
as it is one of the best sources that can help to boost the sale of the company's products. In the
present era, social media marketing is popular medium, so for the next three year period, it is
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essential for Amazon to emphasize on considering the social media marketing as a medium as it
will positively impact the batteries segment provided by the company to its customers (Ingrid,
2019).
 To boost customer relationships
The next marketing objective that should be set by the company is "to enhance the customer
relationships". It is necessary for Amazon to boost the satisfaction level of consumers, as they
are considered as the assets. To promote the products in the market such as the batteries, which
has a large customer base; it is necessary for Amazon to emphasize on boosting the mutual
understanding through the technique of communication. The best marketing objectives that can
assist organization in boosting the market share and also the demand for the products related to
batteries can be increased easily among the customers. If the customers are satisfied then it is
considered as an opportunity for the company to boost its sales and also the goodwill in the
market. In the above findings, it has been examined that Amazon focuses on the "under the tent
strategy" which is effective and also useful for the company in fulfilling their set objectives
(Price, 2016). This strategy should be improved by the company so that the highest demand
products which are batteries can be promoted easily in the market. This strategy helps to boost
the satisfaction level of the customers by offering the products on time and also the delivery is
free. To market the product such as batteries, the main emphasis should be on the needs of the
customers and in relation to this the products should be offered at "No delivery cost" (Xu, Chen,
and Santhanam, 2015). Therefore, it is one of the marketing objectives that should be set by
Amazon as it could be simple to boost profits and sales of organization.
 Targeting of the new customers
The third marketing objective should be related to "targeting of the new consumers ". Amazon
should focus on targeting new customers, as it helps to boost the customer base of the company.
In relation to the batteries segment, it is essential for the company to search for the new customer
base, as it would help in boosting the overall sales and also demand of the products in the market
(Kim, Shin, and Min,2016). The competition level in the market is high, which affect sales. So,
in this case, the company should set an objective related to the new customer base. The targeting
can be done by offering the different range of batteries or the batteries of the different companies
at a low price. The best option will be related to providing the products at the low price as it will
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help in boosting the large customer base and also the set goals can be attained by the
management (Dudovskiy, 2019).
For the next three years, it is essential for the company to focus on targeting the new customers,
as it will assist in enhancing the products demand in the global platform. This will assist the
organization in maintaining the position in the market and to attain a competitive advantage on
the global platform. Amazon should focus on these objectives, as it will assist in managing the
entire operations and also will maintain the company positioning in the highly competitive
market. Competition level in batteries segment is high as there are many other companies and
outlets that are offering the range of batteries in the market (Dudovskiy, 2019). Therefore, in this
case, it is necessary for Amazon to focus on setting the marketing objectives as it will help in
attracting customers towards the organizational products offered in the market.
Three market segments and how Amazon will develop loyalty
Target segments
Amazon should focus on the target segments such as women, men and teenagers. If the emphasis
is given on targeting these segments, then it will be easy for the company to boost its sales and
also the growth in the market. Also, loyalty is the factor which is important to be maintained so
that it could be easy to attain a large market share. In reference to the three-year horizon,
Amazon should emphasize on maintaining loyalty with the customers as it will help in boosting
the entire market share and also boost the trust of the customers. There are different aspects that
should be considered by the company so that loyalty can be developed of the customers (Kantor
and Streitfeld, 2015).
Strategies to develop loyalty
Maintaining the quality of the products
The first aspect should be related to the quality of the products. Amazon should offer superior
quality of products among the customers, as it will help in boosting customer retention within the
company. If the company offers good quality products then the scope of growth can be boosted
with the high level of customer satisfaction. Quality of the products is one of the major aspects
which are considered by the customers at the time of purchasing the products. Therefore, it is
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necessary for Amazon to offer high-quality products as it can assist in building customer loyalty
in reference to the products and services offered to the customers (West, Ford and Ibrahim,
2015).
Effective online customer service
The next factor that should be considered by the company is to offer effective online customer
service. The services provided by the company should be effective and also it should have the
aim to maintain long term relations with the customers. Amazon should offer a chance to solve
the queries of consumers on time by bringing improvisation in the "Live Chat" option. It is
important to modify the "Frequently asked questions" section so that customers can resolve their
queries in a proper manner and also it will help in boosting the satisfaction of the customers.
According to Loyalty 360, survey there are 75% of the mobile shoppers who prefer to do
preferred online chat rather than speaking with the agents. Therefore, it is important for the
company to focus on bringing improvisation in the chat system as it could help the customers to
solve their queries on time and also it will boost the satisfaction level of the customers towards
the products and services offered to the customers (Wensley, 2016).
Offers and discounts
Offers and discounts can also help to boost the loyalty of the customers. It has been analyzed that
the company should offer discounts and offers given to consumers so that they prefer the
products and services in the market. In relation to Amazon, the best way to attract customers is
by providing the products at a low price as compared to the customers. In reference to the
batteries segment in Amazon, it is necessary to offer the batteries at less price so that the
customers prefer the Amazon products as compared to the product of the competitors. In
reference to the teenager's segment, it is necessary for the company to focus on promoting offers
and discounts through social media marketing. It is the best option that can help Amazon to
enhance the awareness of the customers and also will positively impact the overall sales in the
competitive market. At the time of offering discounts and offers to the customers, the company
should consider the actual cost of the products offered in the market to the customers and
according to that the discounts should be set (Pandit and Poojari, 2014). Therefore, it can be
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stated that these are the factors that can help the company to boost the loyalty of the customers
and also it will help in maintaining the three-year horizon (Rollins and Calabrese, 2016).
Marketing mix and marketing tools to position the brand
Amazon should emphasize on the marketing tools and on the marketing mix concepts as it will
assist in enhancing the demand of the products and services. In relation to marketing mix, there
are four factors that should be considered such as product, price, place, and promotion.
Product
Amazon should focus on the factor related to the product in which the products should be offered
to the customers according to the demand and need of the customers. It has been examined that
different batteries which are offered to the customers should be of the different companies so that
the options can be opened for the customers at the time of purchasing the products through
online medium. To position the brand, the company should continue with the strategy of
expansion and diversification by addressing the requirements of the customers. The company
should emphasize continuous improvement by maintaining the services such as Amazon video,
consumer electronics, digital content distribution service and Amazon prime pantry. These
services can help in brand positioning and boost the overall success rate of the company (Kim,
Shin, and Min, 2016).
Place
The company should focus on reaching the target customers through different mediums such as
official e-commerce sites and social media sites. The websites such as Amazon.com should be
designed in such a manner that it targets the customers of the company (Huo, Qi, Wang and
Zhao, 2014). To position the brand, proper distribution channel should be designed so that the
customers can avail the services and products of the company in an effective manner. If there is
effective distribution channel then it would be easy for the company to supply and distribute its
products to the customers on time, which will directly impact the activities of the company
(Rothaermel, 2015).
Price
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The price is considered as the major factor at the time of positioning the products in the
competitive market. One of the best pricing strategies that should be considered by the company
at the time of positioning the products is a market-oriented strategy. Amazon should emphasize
on market-oriented pricing strategy in which the prices of the competitors should be analyzed. It
is investigated that company should analyze the prices and should set low prices so that
customers can be attracted towards the products and the facilities offered to the customers. This
strategy will be beneficial as it offers a platform to the company to make the selling price more
competitive, affordable and attractive for the target customers (Voigt, Buliga and Michl, 2017).
Promotion
Social media marketing and web-based advertising are considered as the best options that should
be considered by the company to promote its products in the market. These two tools are
considered as the best technique that also offers the chance to the company to position itself in
the highly competitive market. Social media marketing boost awareness of the customers in
relation to the products offered, in this case, it is important for the company to post the details of
the products such as the details of batteries like price, manufacturing should be mentioned on the
website page. By mentioning the information on the web page the company can easily boost the
demand of the product among the customers (Nagle and Müller, 2017).
Marketing tools that should be considered by Amazon
Amazon should emphasize on promotion of the products so that goals can be attained. There are
various tools on which the company should emphasize and the tools are
Jungle-scout
It is one of the effective tools that can help the customers to find out the best products on
Amazon. This tool can be installed as a chrome extension or it can be installed as an application.
The chrome extension can be considered as a great time saver that helps to collect the
information of the product directly from the specific page of the company. It also offers the
product tracker feature that allows managing the performance of the product in the market. The
company offers different segment related to a battery that can be controlled effectively with the
help of the application related to Jungle-Scout. This tool is one of the best tools that can help to
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boost the demand of the product and it also maintains the information of the products offered by
the company in the market (S, NEWS,2019).
Jump-send
This is also the marketing tool on which Amazon should emphasize so that it could be simple to
manage the overall operations of company in competitive market. Jump-send is email
automation and also the coupon distribution tool which should be considered by the company. It
assists the sellers to enhance the online sales and also the customer base by executing the
automated marketing campaigns (Singh, Singh and Shriwastav, 2018). The emails are also
personalized which assist in matching the brand of the sellers and also it is effective for
scheduling the activities of the new and existing customers. By considering the Jump-Send
promotional section, the sellers can easily offer deals in relation to the new products and services
for the targeted shoppers. This email also encourages the customers to rate the sellers and also
generate reviews of the products in the large customer base (S, NEWS,2019).
Camel-camel-camel
It is a free tool for managing the historical data of the products in relation to the sale price and
also according to the ranking of the products. It has been examined that the company has the
histories of more than 18 Million products that can be monitored for the sellers to search the
fluctuation patterns and also the trends in the market. This is the tool that can help the company
to fix the price of the product in the market and it can also help in boosting the sales which will
directly impact at the time of positioning of the brand in the highly competitive market (S,
NEWS,2019).
Annexure to the report
It has been stated that in this report, the emphasis is given on the different aspects of marketing
management. The different models and concepts are explained in the paper. The model which is
used in analyzing the current position of Amazon is STP MODEL. The actual and accurate data
is taken from the website source. In the next phase of the paper, the three marketing objectives
are considered in relation to the product which is related to the different marketing segments.
The marketing objectives identified are Building brand awareness, boosting of the customer
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relationships and also targeting of the new customers. These marketing objectives are considered
as it will help the company to pursue with the batteries products in the next three year period.
The next part showcases the three target segments which are women, men, and teenagers. In
relation to these target segments, it is important for Amazon to develop loyalty with the customer
in the three-year horizon. The loyalty of the customers will be developed by considering the
different factors such as maintaining the quality of the products, effective online services, and
offers and discounts should be offered to the customers. These are the best techniques that will
help the company in maintaining loyalty towards the products and services offered in the
competitive market.
The last phase of the report highlights the marketing mix concept which is important to be
considered so that overall evaluation of the different factors can be made such as product, price,
place and promotion. These factors will also help the company to position its brand in the
competitive industry. The marketing tools that should be considered by the company are Jungle-
scout, Jump- send and camel-camel-camel. These are the effective marketing tools that should be
taken into consideration so that positioning can be done effectively. The information is examined
from different sources such as books, websites and journals. Therefore, it can be said that the
company should focus on managing the concepts of marketing management so that growth can
be attained.
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