Analyzing Strategic Marketing: Case Study of Amazon and Customer-Centric Approach

In this document we will discuss about Analyzing Strategic Marketing and below are the summary points of this document:- The report focuses on strategic marketing decisions based on customer needs and wants, using Amazon as a case study. It highlights the importance of web technology and physical stores in implementing the 4Ps marketing strategy. The analysis reveals Amazon's customer-focused approach and increased competition in the market.

Running head: STRATEGIC MARKETING
Strategic Marketing
Name of the Student
Name of the University
Author note

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Executive Summary
The report has thrown light on analysing the statement “The best marketing strategies aren’t
top down, they’re outside in, starting with the customers’ needs and wants”. Amazon
Company has been taken as the case study as to understand and analyse the different kinds of
strategic marketing decisions which will be helpful in the success of the company. There is
different usage of the literature reviews which helped in evaluating that the success of the
company is based on effective kind of strategic planning that is customer oriented in
approach.
The overall analysis of the company Amazon has helped in showcasing that web technology
usage is one of the major factors which has proved to be beneficial for success. However, in
order keep the customers first, Amazon has been able to open different physical stores in
various locations, and through the same, Amazon has been able to utilize the 4Ps marketing
strategy along with segmentation, targeting and positioning. Additionally, the organization
has been able to develop the strengths along with positioned themselves as the global giant.
As the company has become customer-focused, therefore there are other competitors in the
market who are using the online services, and it increased the overall competition.

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Table of Contents
Chapter 1- Introduction..............................................................................................................3
Overview of Amazon.............................................................................................................3
Chapter 2- Strategic and Tactical Planning................................................................................5
2.1 Tactical Marketing Plan of Amazon................................................................................6
2.2 Mission and Vision of Amazon........................................................................................7
2.3 Tactics and Strategies.......................................................................................................8
2.4 Action and Control...........................................................................................................8
Chapter 3- Analysis of Marketing Strategies of Amazon..........................................................8
3.1 Internal Strategy of Marketing of Amazon......................................................................9
3.2 4Ps Marketing Mix Strategy of Amazon.......................................................................10
3.3 Segmentation Strategy of Amazon.................................................................................12
3.4 Targeting Strategy of Amazon.......................................................................................13
3.5 Positioning Strategy of Amazon....................................................................................14
3.6 Analysis of Strategic Gap...............................................................................................16
3.7 Recommendations and Forecasting of Scenario............................................................17
Chapter 4- Conclusion and Recommendations........................................................................18
References................................................................................................................................20

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Chapter 1- Introduction
The report throws light on the overall analysis of the particular statement “The best
marketing strategies aren’t top down, they’re outside in, starting with the customers’ needs
and wants.” With the help of the Amazon company as the case study, the major aim and
purpose of the report are to analyse whether customer service helps in driving the decisions
related to strategic marketing in the respective organization with the help of the different
literature reviews which will be conducted.
Overview of Amazon
Amazon is one of the American e-commerce company which is specializing in selling
the different kinds of products and services through the help of internet. The company has
been founded in Seattle, United States and it was founded in the year 1994 by Jeff Bezos
(Amazon.com 2019). The areas served by Amazon is worldwide and the products which are
sold by them are different kinds of apparels, electronic devices along with the other products
which has helped them in improving their status. In the past few years, Amazon have been
able to generate considerable revenues in the market, and till the year 2018, there has been an
increasing of US$232.887 billion.
As opined by Zupic and Čater (2015), the respective organization has been able to
take competitive advantage with the implementation of web-technology as to become one of
the industrial giants in comparison to the other giant companies present in the market. Due to
the respective approach, the company has been able to create a huge deal of sales as the main
aspect is the better internet marketing along with the processes which are inclusive of the
online transactions. From the year of incorporation of the business of Amazon, the major
vision of the organization is to put forth the development of the various strategies for the
overall research and development of the infrastructure related to technology (Wolf and Floyd

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2017). Due to the proper implementation of web technology, it has helped the company in
becoming a world-leading leader in the retail business. Due to the same, the company has
been able to progress in the selling of the different other products which is exclusive of the
accessories, apparels and other items except selling books to the customers.
Figure 1: Annual Net Sales of Amazon
(Source: Welford 2016)
From the diagram, it can be identified that the net sales of Amazon have gradually
increased in the last few years and it has positively affected the overall growth of the firm. In
order to maintain their successful position in the competitive business environment, the
respective organization tried to develop a successful strategy named customer-centric
approach which helps in promoting both external and internal marketing aspects. The main
aim of Jeff Bezos was to satisfy the different requirements of the customers and he tried to
focus that the customers are the major assets of the company who should be valued and these

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are the various aspects through which the overall business will be able to enter into new
ventures and become competitive.
The respective report will be analyzing the different marketing strategies which have
been adopted by Amazon which will be discussing the strategic marketing plan, various
procedures of implementation along with the role of marketing (Waddock and Bodwell
2017). Proper and detailed analysis is required to be adopted for the marketing strategies of
Amazon along with recommendations to be provided which will be beneficial in improving
the overall scenario effectively.
Chapter 2- Strategic and Tactical Planning
As commented by Stead and Stead (2017), the strategy refers to the different plans
and actions which assists the companies in achieving certain goals effectively and
appropriately. As per the tactical planning of the company, it is inclusive of the direction of
the company which helps them in acquiring the competitive advantage over the long-term in
the market. As argued by Schlegelmilch (2016), the respective contingency related plan will
be helpful in configuring the various resources along with skills as to meet the different
expectations of the various customers in the changing business environment.
The process of strategic planning is essential in providing the companies with daily
guidance in making and managing the various decisions and it is essential in evaluating the
overall progress and it will be defining the point of time wherein the company needs to
change as per the fluctuations which are caused in the business environment. As opined by
Pyo (2015), the major aim of the strategic planning is rendering efficient strategies related to
business and it will be helpful in allowing flexibility on the different changes in the
environment.

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The respective tool of strategic planning helps the various managers in defining the
objectives of the business, scanning the overall business environment along with developing
a comprehensive kind of strategy which will be necessary for the strategy implementation. As
to compete with the other business organizations in the respective business environment, the
respective company named Amazon has tried to develop and implement the effective
corporate type of strategy that is customer-centric in nature (Ohmae 2016). From the
viewpoint of the strategic aspects, Amazon has been able to manage the different external
environmental aspects and they have tried to rise in the economy after the various attacks
which have been faced by them and they tried to survive the same apparently.
Amazon has sustained the overall competitive advantage in the competitive business
environment through expanding the business opportunities in different countries as well as in
India and they tried to open their first online store in the booming economy and through the
same, the company has been able to prove their strategic strengths and it positively affected
the different business opportunities. As commented by Nambisan et al. (2017), the Amazon
has tried to focus on the business and corporate level strategies that lie within the customer-
centric approach through serving the various distinct groups in the market which is inclusive
of developers, sellers, and the customers.
2.1 Tactical Marketing Plan of Amazon
As commented by Meyer, Neck and Meeks (2017), the strategic marketing is defined
as the function of managing the profitable relations with the different customers and improve
their overall scenario in gaining competitive advantage in the competitive business
environment. The marketing is defined as the process which helps in dealing with the proper
identification of the different requirements of the customers along with the proper generation
of sales in the market.

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Furthermore, as to generate huge sales in the market, the marketing tries to make
proper utilization of advertising and market research along with proper promotion of the
products and services. As argued by Lei and Moon (2015), the respective process of
marketing results in designing a proper along with valuable products and services which will
be satisfying the different requirements of the customers along with analysis of their needs
and wants. Additionally, as to increase the sales along with satisfying the requirements of the
customers, it can be done through proper designing of unique products which will be valued
by the different customers and marketing is considered as the tool which is being utilized by
the different organizations as to build customer loyalty and increasing the overall competitive
advantage.
In addition to the same, to improve the overall efficiency in the process of marketing,
the process of planning is adopted as to guide along with describe a specific set of goals
which is necessary for achieving the desired types of goals in the competitive market. As
commented by Lasserre (2017), it is defined that the strategic marketing is defined as the tool
which helps in developing a proper strategic fit between the different objectives, skills along
with different resources which are being set up by the firm along with the opportunities of the
market that is available. Proper collection of the data and data analysis is helpful in
attainment of the goals of the company which is long-term.
The marketing goal helps the manager decide wherein the company wants to perform
and provide in-depth analysis and understanding of the targeted markets along with
customers. The major focus is the other essential aspect which will be focusing on the
providing of customer services to offer the personalized services to the customers which
reflects the excellent example of the organization wherein customers first.

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2.2 Mission and Vision of Amazon
Proper setting of vision and mission statement is one of the significant parts of the process of
strategic planning. The long-term vision of Amazon has helped delight the customers wherein
the main aspect is to offer the customers with various products and services at low prices,
convenience along with proper and wide selection of the different merchandise (Kotler et al.
2015). The mission of the company is customer oriented in nature as the main aspect of
Amazon is that it is the most customer-centric organization wherein the different customers
try to find along with discover anything they want to purchase online and Amazon tries to
offer the same at the lowest possible prices which is available.
2.3 Tactics and Strategies
In order to achieve the competitive business strategy in the market, the cooperative
kind of advertising is the major tool along with the proper distributors which helps in creating
cost advantage in purchasing the media time and space. The company Amazon tries to attract
the different customers in the market with the proper utilization of the marketing mix aspects
which is termed as 4Ps (product, price, place and promotional aspects). There are different
other strategies such as positioning, targeting and segmentation which will be helpful in
managing the overall strategic marketing concept appropriately (John 2017).
2.4 Action and Control
Amazon started off their business as the online book store and thereon they expanded
the different product-related strategies which allows the different retailers to post along with
sell the different products through the platform of Amazon website (Inkinen 2016). The web-
based technology is assisting the company in recording the purchasing behavior of the
different customers which is being utilized by the respective company to personalize the
different services along with offering relevant products and segment the overall market which

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will be based on the preferences wherein the customers have shown while visiting the
company and buying the different products and services.
Chapter 3- Analysis of Marketing Strategies of Amazon
The major assumption which is primary in the respective report is that the different
marketing related strategies aren’t top-down, they are outside in, starting with the different
customers’ needs and wants (Hitt, Ireland and Hoskisson 2016). In this aspect, the external
and internal marketing strategies are analyzed which will be mainly focusing on the different
processes on analyzing the voice of the customers as to satisfy the different requirements of
the customers in the market.
3.1 Internal Strategy of Marketing of Amazon
In the present scenario, the different firms strive to become customer-centric in their
approach. The major factor to achieve the same is to require to engage the different customers
in effective process of marketing which can be helpful for them in cooperating and satisfying
the different requirements of the customers in an appropriate manner. The respective top-
down strategy of promoting the products and services of the company to the different
employees is known as the internal marketing strategy.
The respective strategy will involve the capacity building for the different staffs,
along with efficient internal communication along with integration which will be helpful for
the different staffs in understanding the marketing organization in the company (Hitt and
Duane Ireland 2017). In order to improve the overall strategy, it is essential for the top
management officials should embrace the same and improve the overall scenario
appropriately. The internal marketing plays a vital role in building the customer-centric
approach of Amazon that helped them in improving the services provided to customers,

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building strong loyalty among the customers and beat the different competitors in the market
as well.
As argued by Helfat and Martin (2015), the different competitors of Amazon are
mainly focused on the proper designed ecosystem of nested services along with applications.
The main emphasis of Amazon was on the different platforms which helps in serving the
different customers in the best possible manner which will be appropriate for the overall
success of the organization efficiently. It indicates that the company is trying to improve the
overall activities related to marketing in the company. The aspects of internal marketing
played a huge role in building the customer-centric approach at Amazon which assisted the
organization in creating strong loyalty among the customers and beat the different
competitors who are present in the market. As commented by the CEO of Amazon, Jeff
Bezos has indicated that how the managers of the company should be focusing on becoming
the entire approach of the company to become customer-centric. As commented by Heding,
Knudtzen and Bjerre (2015), internal marketing is the overall key to superior and the result is
successful external marketing. In order to improve the customer services along with excel in
the external marketing, Amazon Company has made it authoritative wherein the different
employees analyze the expectations of the different customers that is incorporated to meet
such objectives.
3.2 4Ps Marketing Mix Strategy of Amazon
As commented by Green and Warren (2019), the marketing mix strategy of Amazon
is regarded as the most potent aspects in order to attract different customers. As per the
mission of the company which is to become the most customer-centric organization wherein
the customers can discover and find anything which can be available to them through online
stores and at the lowest possible prices possible. As it has been discussed, Amazon is one of

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the largest e-commerce organizations which utilizes the overall combination of various
strategies along with tactics to gain the competitive advantage over the other competitors who
are present in the market. The customer-centric approach of Amazon company has helped
retain and attract the market shares. As opined by Gengler and Mulvey (2017), the strategy of
marketing mix helps the different organizations in achieving the marketing objectives along
with establishing the product position in the target markets and provide the customers with
different solutions in an appropriate manner.
Product Strategy of Amazon
The strategy helps in emphasizing that the different lines of products which are being
offered by the company to their customers. In case of Amazon, beyond wide range of the
various products and services which are available in the online store of the company,
Amazon has been able to continue the expansion along with diversification of the product
that ranges from different retail goods and services inclusive of Amazon fresh, web services
along with prime videos (Frynas and Mellahi 2015). It helps in supporting the vision of the
company to become customer-centric as the aspect of diversification will help bring
satisfaction among the customers. Furthermore, Amazon allows the retailers in selling and
posting the different products through the platform that may damage the brand, and it can
affect the brand image of the firm as the other quality of the products sold by them are
unpredictable. Therefore, it is advisable for the organization to check the overall quality of
the product items before they are posted.
Price Strategy of Amazon
As per the pricing strategy of the Amazon, is an online retail business, the company
has primarily been using the competitive pricing strategy to stay ahead of the different
competitors present in the market. The other initiative which has been used by Amazon is to

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pay to create a premium account wherein it ensures faster deliveries. On the other hand,
Engert, Rauter and Baumgartner (2016), have commented that Amazon sets differentiation
aspect wherein the different prices for the same product. The respective strategy helps in
allowing adjustment of pricing which is based on market conditions; however it is
complemented by value-based pricing strategy that will be considering the value of the
product along with preferences of the market as well.
Place Strategy of Amazon
The brand image of Amazon has enabled it to have far along with wide presence
through proper and massive research and development efforts which will help secure the
website. The customer base of Amazon is strong in various countries through appropriate
online presence, and most of the bases are located in different states of the United States of
America (Dibb 2017). The employees working at Amazon are friendly and relaxed, and they
try to achieve the goals appropriately. Being an online business, Amazon primarily utilizes
the official e-commerce website along with Amazon books to reach different customers.
However, based on the different preferences of the customers, Amazon has been able to open
physical stores which allows the customers to evaluate the products before purchase (Cook
2015). As to reach the potential customers, the convincing and interacting them pay for the
online stores and the marketing mix of Amazon marketing mix relies heavily on strong online
presence to reach the target customers.
Promotional Strategy of Amazon
Amazon uses various tactics to convince the different customers to visit along with
pay for online products and services. Advertising is one of the significant aspects with sales
promotion and building public relations and implementing the direct marketing strategy. The
respective approach which assists the company in reaching the target customers in the market

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is appropriately complemented by sales promotion in which the company utilizes various
special offers and discounts as to generate sales (Coltman et al. 2015).
3.3 Segmentation Strategy of Amazon
Amazon segmentation, targeting, and positioning involve set of activities which aimed at
determining the specific groups of individuals as their customers, and they try to develop the
different products and services which will be attractive for the group.
As commented by Kotler and Armstrong (2015), to make the business sustainable in
approach, they require to become profitable, and they need to focus on profitable customers.
As suggested by Menon et al. (2015), the companies expect to focus on customers, and they
need to identify the different requirements of customers in the market. The e-commerce giant
Amazon utilizes the demographic and psychographic segmentation to segment the market
appropriately. The entire segmentation is based on the actual purchasing behavior of the
customers, and the micro-level segmentation of Amazon individually targets every customer,
and it allows the organization to convert the different visitors in high valuable customers
(Collings, Scullion and Caligiuri 2018).
In case of Amazon, it is being perceived to be excellent in acquiring the different
customers as it is made easy as to order from their respective website and it has been able to
build strong relationships with the various customers. Amazon is one of the most trusted
brands which are being believed by the various customers and Amazon tries to deliver the
packages to the customers within the limited period.
The overall automation of the system at Amazon has made it easy for Amazon to
record the global purchasing data that the organization utilizes for the marketing strategies
which is inclusive of the different instances such as alerting the different customers relating
to the upcoming promotion, add them on the newsletter list along with sending the customers

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a link of Amazon blog which will be beneficial for the overall success of the firm (Certo et al.
2016). These are the different tactics which help in identifying that the Amazon company is
driven by the acquisition of the customers along with retention of the various customers in
the market from which the different businesses can learn from.
3.4 Targeting Strategy of Amazon
As Amazon is one of the e-commerce organizations which has been targeting
individuals wherein in the micro level, the overall segmentation has been grounded on the
overall purchasing behavior of the customers. Moreover, it has helped the organization in
converting the website visitors in long-term customers. Furthermore, the respective
organization mainly focuses on the customers who are technologically literate as the nature of
the business of Amazon is online.
As argued by Camilleri (2018), the segmentation, targeting and positioning practices
are being associated with targeting the most comprehensive group of customers. The
respective retail agent performs the overall aspects with the adaptive positioning aspect
wherein the customers belong to the different upper and middle class of the different social
groups. The customers of Amazon can be the ones who are looking for various offers and
discounts. Besides, Bromiley et al. (2015), have commented that customers of Amazon are
present in various parts of the world and the different users of the website are inclusive of the
different developers, sellers along with creators. The company tries to innovate various
solutions which will make things more cost-effective and better in nature.
3.5 Positioning Strategy of Amazon
When the company has successfully targeted the customers, the next step which is
required to be followed is the position the different products and services. The overall
positioning refers to the different comparative manner through which the customers looks at

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the various products along with other competing products in the market. Due to the different
kinds of characteristics of the product, the customers try to perceive the different products
according to the benefits and features.
Figure 2: Positioning Map of Amazon
(Source: Baumgartner and Rauter 2017)
Furthermore, as per the particular scenario, Amazon positions itself on the price as it
is targeting a wide range of different customers who can go for offline retailers in place of the
same. To become different and unique from the other competitors, Amazon has initiated
specific e-commerce websites for every country and opened new customer centers which
receive customers in the native language and with customer representatives which will
understand the needs of the customers.

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Adaptive Positioning- It is one of the most significant approaches which is being
adopted by Amazon through which they closely monitor the different types of changes in the
external market along with addressing the increasing expectations of the customers
(Armstrong et al. 2015). It will be done by sending the growing demand for the expectations
of the customers along with repositioning periodically as per the changes in the segment
appropriately.
Anticipatory Positioning- There are certain services within AWS which are inclusive
of Amazon Sage Maker along with Amazon Rekognition which currently have low turnover
(Andaleeb 2016). However, the e-commerce giant has developed these types of services with
the overall anticipation wherein the demand will increase shortly.
Multi-segment Positioning- Amazon has been able to offer the different kinds of
services along with products in a successful manner through exploiting various segments at
the same time. Individually, online retail giant sells more than 562 million products which
will be appealing the different needs and wants of the wide range of the segments of the
customers present in the market (Aguinis, Edwards, and Bradley2017).
Additionally, it has been noticed that the dependence on the external delivery officials
are critical and there can be some extent to which the services which are being provided by
the company can become dependable. However, with the help of offering free shipping
service to the different customers in the market which will help gain competitive advantage
and improve the overall efficiency of the company and increase competitiveness in the
market.
3.6 Analysis of Strategic Gap
From the above analysis, it can be identified that the company has been able to build
strong customer relationships with the different loyal customers along with the third-party

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owners, however Amazon needs to collaborate with the various public kinds of institutions
which is inclusive of public libraries wherein the customers can easily find and search the
catalog of the customers in the market effectively. Furthermore, as the company has been
involved in the offline market, the company is required to develop specific offline marketing
strategy as there is increasing competition. The SWOT analysis can be considered to analyze
the overall scenario both internally and externally (Refer to Appendix 1).
3.7 Recommendations and Forecasting of Scenario
From the global review of the Amazon, it can be analyzed that the customer-centric is one of
the most appropriate approaches which is being adopted by them for gaining success.
However, there are different other aspects such as Amazon goes live which helped in easing
the subscription for the different customers along with the new policy of refund which has
influenced the overall element of success.
Amazon can incorporate different other innovative strategies which will be helpful for
them to become more customer-centric. In the future scenario, the drone delivery system can
be one of the most efficient technological aspects which will be contributing towards
attracting new customers and strengthen their loyalties and boost the overall sales in the
market effectively. In implementing the same, Amazon needs to optimize the core elements
along with the different principles of the marketing mix related activities inclusive of
preferences along with pervasiveness (Adner, Ruiz-Aliseda and Zemsky 2016).
While the 4Ps of the marketing strategy is one of the essential concepts in the present
business environment, the different companies want to become customer friendly like
Amazon. The customer preferences are one of the unique aspects because it is the main
activity which interests the various customers and it creates a significant influence on the
attitudes along with beliefs of the customers. When the company can understand the

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marketing tactics and preferences of the customers, it will be helpful for them in becoming
relevant as the marketing the products in the market.
Therefore, from the above, it can be concluded that customization of the different
products and services which are being delivered by the company to their customers is time-
consuming and expensive as providing the individual campaigns can be costly. Therefore,
Amazon Company needs to focus more on the overall collection and combination of the data
of the different customers which will be used for efficient advertising which will increase the
total loyalty among the customers along with showcasing the different products and services
which really matter to the customers in the market (Baumgartner and Rauter 2017). These are
the various ways through which the company can gain a competitive advantage in the market,
and it will be helpful for them to improve the overall aspect of becoming the most efficient
companies to improve the overall success of the firm.
Furthermore, pervasiveness will be helpful for Amazon to improve their approach to
speak to their customers in a better manner and deliver the right type of message to the
customers at the right point of time. It helps in referring to reach the different customers
through the possible media along with keeping with constant interaction with them which
should be done based on the different preferences of the customers. Furthermore, the overall
market research will help inform Amazon regarding the results which should be achieved by
them, and it should be relevant as well. In the respective e-commerce industry, the central
aspect is regarding tracking the real time technology along with providing data-driven
solutions. In such cases, there should be the inclusion of the different technological
advancements which will help improve the overall efficiency of Amazon and gain a
competitive advantage in the market as well.

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Chapter 4- Conclusion and Recommendations
Therefore, it can be concluded that Amazon has started as one of the small businesses
of selling books to the customers, wherein the company faced various challenges which led to
the occasional losses which affected the growth of the firm. However, as Amazon is driven
by the long-term strategy of becoming customer centric, the company has been able to
improve the different marketing procedures, and it has helped them in becoming one of the
largest giants of the competitive business environment. The company has supported the
respective strategy in facing various competitors and threats in the competitive market and
achieved profitability. The primary key factor which contributed in the overall success of the
firm is providing the different customers with superior value along with proper experience of
shopping until starting few physical outlets in the various locations and introducing various
software along with storage facilities that will be beneficial for the overall success of the firm
in the competitive business environment.
Furthermore, it has been noticed that even though Amazon has positioned them in the
market in a successful position, however, the company is still struggling with the different
other competitors who are present in the market and they are becoming online like Amazon.
It is becoming one of the threats which affect the overall profitability of the firm as the
customers will prefer to choose the other competitors to try out their aspects. Due to the
same, Amazon is required to be keeping the marketing mix in the up to date position and
relevancy should be to properly continue the future success of the company in terms of the
other competitors present in the market.
However, the 4Ps of the marketing mix strategy is becoming one of the most popular
aspects which should be managed by Amazon for the success of their operations in the
competitive business environment. Amazon needs to keep up with the different newly
advanced technologies that will help understand the needs and preferences of the customers

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and receive proper exposure to media which is deserved by Amazon in the competitive
environment.

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