Impact of Amazon's Online Marketing Strategy on Conventional Retail Stores

Running head: SERVICES OF AMAZON
Services of Amazon
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1SERVICES OF AMAZON
Q.1 Describe how Amazon’s online marketing strategy is impacting conventional retail
stores. What specific advantages do Amazon and other online firms have over brick and
mortar department stores? What advantages do local retail stores have over online
shopping?
Answer 1)
The marketing strategies of Amazon are having a tremendous amount of impact on
that of conventional retail stores. The e-commerce giant like that of Amazon makes use of
demographic segmentation in order to divide the markets. The segmentation of Amazon is on
the basis of actual purchase behaviour of that of the customers that has an advantage over that
of the conventional retail stores (Heng et al., 2018) The conventional retail stores are
suffering great losses owing to the successful online marketing strategy of Amazon.
The marketing strategies of Amazon are simple and effective that applies 4 P’s in
relation to marketing. Amazon has got unlimited products and their prices are lower as
compared to that of the retail stores. The customers can shop very conveniently from the
comfort of their home. They can select a product and buy it within a very short span of time.
The local retailers enjoy some advantages as the customers can get the products on
immediate basis. The customers does not have to pay any kind of shipping cost which is an
advantage that the local retail stores enjoy over that of online shopping. In the event of
buying the products from the local retail store the customers can involve themselves in
discussion with that of the product expert who is on the site (Omar, 2018). They can thus help
in supporting the local merchants like that of the non-chain stores that depends on that of the
local traffic.
Q.2 How are brick and mortar retail stores responding to the online shopping
competitors? Provide an example.

2SERVICES OF AMAZON
Answer 2)
With the advent of mobile technology, listening to what the customers are saying has
become a necessity in relation to the retailers. The companies that have brick-and-mortar
store are experimenting and they have also started to offer different kinds of products in the
online mode. They are adding new product categories that can draw the customers towards
these stores. The products offered on website should be different from that of the store
inventory. This can help in preventing self-cannibalization in between the two channels
(Johansson & Kask, 2017). Brick and Mortar can mix the best aspects of that of in-store
along with that of online shopping. They can optimize the show rooms for serving
entertainment along with pleasure. The crucial factor can prove to be customer service. The
shoppers in the stores can get the services of an attentive clerk with whom they would be able
to connect very easily. They can contact the associate with the help of chat, telephone and e-
mail (Chiu et al., 2014
Costco has further added different categories like that related to apparel and health.
The retailer has managed to improve the shipment timings and it has three depots instead of
that of one. Costco operates the e-commerce operation in that of three international
geographies- Canada, UK and that of Mexico. The company is entering new market like that
of Japan, Australia and that of Korea.
Q.3 Can an “even playing field” be achieved for both the local department store and an
online merchant offering the same products? Explain and support your answer.
Answer 3)
There cannot be an even playing field for that of the local department store and that of
the online merchant. According to me, the online merchants who are offering the same
products as that of the department store will be able to capture the market on account of the