Marketing Management: Strategies for Amazon Prime

This article discusses the marketing strategies adopted by Amazon Prime to target different customer segments, including college students and new mothers. It explores the different adopter categories and suggests strategies for managing the differences effectively. The article also discusses the reasons for changing the marketing strategy and the potential risks involved.

Running head: MARKETING MANAGEMENT
Marketing Management
Name of the Student
Name of the University
Author note

1
MARKETING MANAGEMENT
Table of Contents
Answer to Question 1.................................................................................................................2
Answer to Question 2.................................................................................................................3
Answer to Question 3.................................................................................................................4
Answer to Question 4.................................................................................................................5
Answer to Question 5.................................................................................................................6
References..................................................................................................................................7

2
MARKETING MANAGEMENT
Answer to Question 1
Amazon Prime is the second mover in the entire SVOD market which is after Netflix
in the entire competitive market. The Amazon tried to include the different kinds of strategic
decisions which has helped the company in trying to target different group or segment of the
individuals that included the college students along with new mothers in the market.
Furthermore, Amazon tried to include different kinds of individuals in the market, however it
has been seen that the percentage of the college students and new mothers are the major
target of Amazon Prime as they are the ones who prefer shopping and watching different
series online as compared to the others in the other age groups (Amazon.in, 2018).
Furthermore, promotions done by the Amazon Company are basically on the
respective market segment as this is the appropriate choice for the company in order to gain
competitive advantage in the entire market. Furthermore, there have been different surveys
and statistics which has helped in revealing that the percentage of the different college
students along with the new mothers are the ones who are high-frequency purchasers in the
entire market and this also includes that these customer segments are the ones who are keen
in trying to purchase different new products or services which are being introduced in the
entire market (Baker & Saren, 2016).
This kind of customer segment target is essential in nature and this has been beneficial
for the company as well as there are different shipping benefits and the word of mouth
application is being applied to the different products sold by the company in an effective
manner (Cascio et al., 2018). Lastly, the main emphasis of Amazon Prime to target the
respective customer segment is that they are the ones who stay at home and the greater
emphasis on the different individuals who prefer watching different serials staying at home at
lower cost than Netflix.
Furthermore, there are different other market segments which will help the company
in managing the differences and this will increase their revenue and profitability in the entire
organization as well that will result in improved customer satisfaction and the customer base
will be strong in nature as well (Lidstone & MacLennan, 2017). Amazon Prime has to
understand the different moves of Netflix and this can provide them with different
alternatives which will help them in being more competitive in nature and gain more
profitability in the future in a positive manner.

3
MARKETING MANAGEMENT

4
MARKETING MANAGEMENT
Answer to Question 2
There are various categories of the adopters in the customer behaviour that is essential
and required in nature in order to analyse the position of the company in comparison to the
different other competitors in the market. The adopter categories are as follows:
Innovators is the first adopter that helps and assists the company in understanding and
identifying the customer preferences in efficient manner. The customers of the
company are identified as the main innovators of the business; however, it is seen that
the word of mouth is not reliable in nature and this is the major risk factor for the
company as well (Kavaratzis, Warnaby & Ashworth, 2014).
Early Adopters is the one which wherein these companies which will be taking huge
advantage from the innovator companies and this will help them in maintaining their
position in an effective manner. The early adopters try to make the different initial
purchases and they are not so innovative in nature and these help me in managing the
different differences in an efficient manner.
Early majority is the other one wherein the different individuals rely more on the
word of mouth and these are the category which tends to be more cautious in nature in
comparison to the others in the market.
Late Majority is the one wherein this has been seen that there are different consumers
which are generally along with usually reluctant to change the entire purchase
behaviours which is different in comparison to the other competitors in the market.
Laggards is the last one wherein these are the group of customers in the market who
are not the attractive kind of market and the thinking of these individuals do not
persuade the thinking in an ineffective manner (Keller, 2017).
These are the different major five categories of adopters with the concern of the
consumer behaviour that has helped them in managing efficiently. Additionally, it has been
seen and analysed that Amazon Prime has to include one such adopters which has helped the
company in managing the differences in an efficient manner (Kotler, 2015). The marketing
strategy will help in understanding the tastes and preferences of the customers effectively and
this will increase the entire profitability of the organization as well.

5
MARKETING MANAGEMENT
Answer to Question 3
Apart from the new mothers and the college students, there are different other
customer segments which can prove to be beneficial in nature for Amazon prime in the entire
market. The customers or the men who are in their retirement age whose age is around 50s
can be the proper target market as this helps them in gaining competitive advantage in the
entire competitive market. The main competitor of Amazon Prime is Netflix which has
assisted the organization in completing a proper survey which will help them in gaining more
sales and profit in the organization (Kavaratzis, Warnaby & Ashworth, 2014).
Furthermore, the Amazon Prime membership can be offered to the different
customers in the market which will help Amazon in becoming more popular in nature.
Furthermore, this was seen and noticed that the market share of the company can be increased
in an effective manner and this has helped the individuals to refresh themselves by watching
different series on Amazon Prime at a reasonable subscription fee. Amazon Prime can
include different series of shows from the 1970s which will engage the viewers and this will
be useful in managing the customer base in an efficient manner as well (Melewar & Skinner,
2018).
Amazon prime can utilize the Ansoff’s matrix which will assist the company in
managing the tastes and preferences of the customers such as they can include the web series
of the customers and this will include the different kinds of attractions which will help in
inclusion of Ansoff’s matrix product penetration and market development strategies to gain
more popularity in the entire market (McDonagh & Prothero, 2014). It has been analysed that
proper development of the product is essential in nature which has helped the company in
managing the differences effectively and this helps the company in attracting more customers
effectively (McDaniel, 2014).

6
MARKETING MANAGEMENT
Answer to Question 4
There are different other customer segments who are required to be adopted and
attracted by the company in an effective manner. The different customers are the main target
segments which will help the company in gaining more competitive advantage in the market
and this helps the company in maintaining high profitability in the organization effectively as
well (McDaniel, 2014).
The Amazon Prime fees along with the subscription fees is required to be introduced
which will help them in managing the overall profitability of the organization efficiently. The
customer segments are required to be addressed in an effective manner which will help the
company in managing the differences effectively without much issues in an effective manner.
The middle-aged customers can be targeted which will be useful and attractive in nature as to
be more competitive in nature in comparison to the other competitors.
Furthermore, the respective company needs to categorize the different customer
segments effectively as per their tastes and preferences. Amazon needs to include different
kinds of packages for subscription fees which will assist them in offering the different kinds
of shows to the customers at an affordable rate. This will furthermore help Amazon Prime in
managing the viewership effectively without much difficulties. After Netflix, it is Amazon
Prime which has helped the company in improvising the different kinds of innovations,
however there is less difficulty in managing the complexities as Amazon tried to take
different difficulties in an easy manner (McDaniel, 2014).
It is essential for Amazon to maintain their competitive position in the entire
competitive market and they can be the early adopters stage or category. This is the
respective stage wherein these try to include the different innovations effectively without
much difficulty and this will help them in being more innovative in nature in comparison to
the other competitors in the market. Netflix is the first innovator which were the ones who
started streaming different videos for the various age groups and this will help the company
in gaining more competitive advantage in the entire industry. Lastly, there are various other
issues which can be addressed by the company effectively and this will improve the overall
marketing strategy of the organization effectually (Kotler, 2015).

7
MARKETING MANAGEMENT
Answer to Question 5
There are different reasons for changing the entire strategy of marketing which will
help the company in attracting and capturing the users in an effective manner. The main
reasons for changing the marketing strategy are as follows:
Firstly, Amazon Prime needs to adopt the respective strategy of marketing as the early
adopters along with the strategy of word of mouth which is useful in nature. With the help of
the different marketing strategy, this will assist various kinds of revenues and sales of the
organization as this will help in attracting the customers effectively (McDaniel, 2014).
Secondly, the marketing strategy change will assist Amazon in becoming more
competitive in nature against Netflix and this has become a major threat for the business of
Amazon prime as well. Furthermore, Amazon needs to include the promotional strategies
which will manage the differences effectively without much difficulties. This will attract
more customers in the market that will increase the overall profitability of the organization.
Thirdly, the analysis of the tastes of the customers is essential as this will assist
Amazon in distributing the various sections of individuals and this will help them in
managing the differences effectually as well (McDaniel, 2014).
On the other hand, there are different reasons wherein the marketing strategy should
not be changed as the reasons are as follows:
Firstly, it can be seen that the Amazon is not being able to increase the sales of the
company in an efficient manner. As the organization is not being able to understand the new
techniques of marketing, Amazon should continue with the marketing strategies which are
being used by them in the present scenario effectively (McDaniel, 2014).
Secondly, Amazon Prime should require to analyse the feasibility which will help the
company in targeting the young generation and the new mothers. It has been seen that this is
beneficial in nature as this will help in managing the different activities efficiently.
Furthermore, this has been noticed that there is no such feasibility that has been acquired by
Amazon wherein this has affected their brand image and reputation in an ineffective manner.
Lastly, Amazon should not change the marketing strategy of the organization in
comparison to the other competitors in the market. The employees are not being satisfied

8
MARKETING MANAGEMENT
with the different changes which are being addressed by Amazon and this can affect the
entire promotional strategy and brand image of the organization in a negative manner.
References
Amazon.in. (2018). Amazon.in: Amazon Prime. [online] Available at:
https://www.amazon.in/gp/prime?tag=googinkenshoo-21&ascsubtag=af437d37-2fc1-
41c3-9f10-7b9d6066aeef [Accessed 17 Jul. 2018].
Baker, M.J. & Saren, M. eds., (2016). Marketing theory: a student text. Sage.
Cascio, W., (2018). Managing human resources. McGraw-Hill Education.
Kavaratzis, M., (2017). The participatory place br&ing process for tourism: linking visitors &
residents through the city br&. In Tourism in the City (pp. 93-107). Springer, Cham.
Kavaratzis, M., Warnaby, G. & Ashworth, G.J. eds., (2014). Rethinking place br&ing:
Comprehensive br& development for cities & regions. Springer.
Keller, K.L., (2017). Managing the growth tradeoff: Challenges & opportunities in luxury
br&ing. In Advances in Luxury Br& Management (pp. 179-198). Palgrave Macmillan,
Cham.
Kotler, P., (2015). Framework for marketing management. Pearson Education India.
Lidstone, J. & MacLennan, J., (2017). Marketing planning for the pharmaceutical industry.
Routledge.
McDaniel, B.A., (2014). Entrepreneurship & Innovation: An Economic Approach: An
Economic Approach. Routledge.
McDonagh, P. & Prothero, A., (2014). Sustainability marketing research: Past, present &
future. Journal of Marketing Management, 30(11-12), pp.1186-1219.
Melewar, T.C. & Skinner, H., (2018). Territorial br& management: Beer, authenticity, &
sense of place. Journal of Business Research.