Marketing and Digital Communication

This article discusses the marketing strategy of Amazon Prime for capturing users in the streaming video on demand market. It explains the consumer adoption categories and reasons for changing or not changing the marketing strategy. The article also highlights the benefits of one-stop solutions and the importance of maintaining a stable product cycle.

Running head: MARKETING AND DIGITAL COMMUNICATION
Marketing and Digital Communication
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Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................3
Question 3........................................................................................................................................4
Question 4........................................................................................................................................4
Question 5........................................................................................................................................5
Three Reasons for Changing the Marketing Strategy for Capturing the Users...............................5
Three Reasons against Changing Marketing Strategy for Capturing the Users..............................6
References:......................................................................................................................................7

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Question 1
As second mover in Streaming video on demand (SVOD), Amazon Prime made an ideal
strategic decision by targeting young mothers and the college students, as they seem to be higher
frequency purchasers(Wayne, 2018). For the young mothers it is the infant and the baby
necessities and for the college students it is the frequency of buying the required textbooks.
However, the purchase is done for availing the benefits of shipping. Convenience seems to be a
major factor for this segment in determining the product valuation. They also emphasize on the
desire for the on demand and staying at home service. Nevertheless, the extensive experience of
this customer segment with Amazon allows them to try out new offerings put forward by the
company. The newer Amazon Prime offers rental services for e books and instant video
facilities. Once satisfied this customer segment not only acts as product ambassadors but also
brands thereby undertaking the advocacy through the word of mouth with peer groups.
By being product ambassadors, this segment of customers enables humanizing the brand
(Rehmet & Dinnie, 2013). These customers also represent one of the many faces of the
organization who undertook duties of the marketing team and the sales representative without
receiving any payment from the concerned brand. They even help in increasing the social reach
and helps in protecting the online reputation thereby protecting it from any kind of negative
publicity. In addition, they also helped in increasing the traffic of the website. This segment of
customers also undertakes positive word of mouth that acts a credible in increasing the web
traffic of the brand. This implies that this segment of customers targeted by Amazon prime
possess the capability of turning the people into the potential customers.
Question 2
The classification of the consumers based on the adoption categories relates to the
willingness of taking risk and switching the purchase behavior based on specific categories of the
product. However, the standardized adoption categories of the consumers include the innovators,
early adopters, early majority, late majority and the laggards (Lim & Park, 2013). However, the
segment of consumers chosen targeted by Amazon Prime falls under the category of innovator
and the early adopters. Given their experience with the brand these segment of customers, do not

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shy away from trying newer offering of Amazon that includes e-book rental and instant video
services. Consumers falling under the innovator category place lesser reliance on the word of
mouth and the persuasion of the others (Kim & Martinez, 2013). These consumers are willing to
take risk and are more adventurous. These categories of consumers have higher knowledge level,
interest and confidence in a particular product. The early adopters have certain characteristics
similar to the innovators but they place more reliance on the word of mouth and reassurance
from the other people in making a purchase that enables in reducing the risk of their purchase.
The early adopters usually influenced by people who have already made a purchase also known
as the innovators. Nevertheless, the early adopters also perform their own research in addition to
the discussion of the word of mouth along with having interest in the respective product
categories. Early adopters also known as the opinion leaders and are considered experts by
consumers. They also have enhanced social connections as well as networks and act as the
foundation for gaining extensive adoption of the newer product (Reinhardt & Gurtner, 2015).
This consumer adoption category is increasingly concerned about the maintenance of the
reputation and the coolness factor that helps in moving them ahead of the curve. Therefore, the
shift of product cycle from introduction to growth phase depends on the transition that takes
place from the purchase by the innovators to the purchases made by the early adopters.
Question 3
Another category of audience who believes in one stop solution would be more beneficial
for capturing a greater market share. This is because Amazon is preparing to bundle the
streaming video on demand (SVOD) products with features that would eliminate the necessity of
the consumers in acquiring different services from different vendors and provide a perception of
delivering greater value to the customers(Pandit & Poojari, 2014). The recent offering of
Amazon helps in saving time through the eliminations of interfacing with the additional vendors
for duplicating the services thereby promoting the idea of one stop solution. There are additional
conveniences offered by Amazon which includes the usage of a single annual fee instead of
monthly practices for billing. Amazon prime also allows its customers in enjoying the benefits
with a one time payment instead of managing the SVOD account on regular basis. The
subscription structure put forward by Amazon not only locks the customer for a specific time
period but also prevent switching of brands.

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Question 4
This segment would include the mainstream customers consisting of the young, middle
aged and the old. The adopter categories include the early majority and the late majority. The
early majority influenced by early adopters that moves the product to mainstream consumer
(Laukkanen, 2016). They rely heavily on the positive word of mouth as they represent the
cautious purchasers who seek social influence in justifying a decision in selection of a particular
brand. This is a stage of market development where there is a shift towards the stabilization of
the market share since the word of mouth recommends or suggests specific preferences of a
particular brand. The late majority however consists of the consumers who remain reluctant to
change purchase behaviors but they step out of such norm when others seem to do it (Stålsby &
Tamhankar, 2014). They only start or decide buying products when they see it in widespread
amongst retailers and in the possession of the other people. The late majority represent the
adopter category that support purchases in decline phase of the product cycle and determines the
growth in the later stage of growth phase. Some of the customers in this adopter category
forcefully adopt the newer product as the existing solutions remain withdrawn from market.
Question 5
Three Reasons for Changing the Marketing Strategy for Capturing the Users
These include (Armstrong et al., 2014):
1. Keeping Pace with Changing Taste of the Consumers: The changing marketing
strategy will enable Amazon in constantly keeping up with the services and products as per the
customer demand. This will enable Amazon prime in capturing a greater market share.
2. Countering Competitive Strategies: The changing marketing strategy will help
Amazon in counter attacking Netflix thereby creating a position and ensure an increased market
share.
3. To Ensure a Stable Product Cycle: The four stages of product life cycle that includes
introduction, growth, maturity and decline. The sales figure often remain stronger during
introduction and the growth stages which eventually gets slower in maturity stage. Hence, it

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becomes difficult in maintaining the sales growth in the maturity stage. A change in strategy will
enable the company in maintaining substantial sale through capturing users.
Three Reasons against Changing Marketing Strategy for Capturing the Users
These include (Baker, 2014):
1. Involves Additional Cost: Bringing a change in the market campaign involves some
amount of cost. For instance, marketing though advertisements in radio, television and the local
space for advertising is expensive, as there is immense competition in capturing the user
attention.
2. Effort and Time might Not Yield Return: Change in the marketing campaign might
result in a lower return on the investment. It might be the case that in spite of spending months in
creating a specific strategy it might not help the bottom line of the business.
3. Might Lead to Confusion: As no one has the surety of the result, change might be
scary. Therefore, with a change in the marketing strategy people not only become frustrated but
also confused.

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References:
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson
Australia.
Baker, M. J. (2014). Marketing strategy and management. Macmillan International Higher
Education.
Kim, S., & Martinez, B. (2013). Fashion consumer groups and online shopping at private sale
sites. International Journal of Consumer Studies, 37(4), 367-372.
Laukkanen, T. (2016). Consumer adoption versus rejection decisions in seemingly similar
service innovations: The case of the Internet and mobile banking. Journal of Business
Research, 69(7), 2432-2439.
Lim, H., & Park, J. S. (2013). The effects of national culture and cosmopolitanism on
consumers’ adoption of innovation: A cross-cultural comparison. Journal of International
Consumer Marketing, 25(1), 16-28.
Pandit, V., & Poojari, A. (2014). A study on amazon prime air for feasibility and profitability: A
graphical data analysis. IOSR Journal of Business and Management, 16(11), 06-11.
Rehmet, J., & Dinnie, K. (2013). Citizen brand ambassadors: Motivations and perceived
effects. Journal of Destination Marketing & Management, 2(1), 31-38.
Reinhardt, R., & Gurtner, S. (2015). Differences between early adopters of disruptive and
sustaining innovations. Journal of Business Research, 68(1), 137-145.
Stålsby Lundborg, C., & Tamhankar, A. J. (2014). Understanding and changing human
behaviour—antibiotic mainstreaming as an approach to facilitate modification of
provider and consumer behaviour. Upsala journal of medical sciences, 119(2), 125-133.
Wayne, M. L. (2018). Netflix, Amazon, and branded television content in subscription video on-
demand portals. Media, Culture & Society, 40(5), 725-741.