Strategic Marketing: Top-Down vs Outside-In Approach and Amazon's Marketing Strategies

This article discusses the top-down and outside-in marketing approaches and compares their pros and cons. It also analyzes Amazon's marketing strategies, including its SEO and advertising tactics. The article emphasizes the importance of customer-centric marketing strategies.

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STRATEGIC MARKETING
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11-24-2018

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Contents
Introduction......................................................................................................................................2
Top-down marketing approach........................................................................................................4
Pros of the top-down approach of marketing..............................................................................4
Cons of the top-down approach to marketing..............................................................................5
Outside- In marketing approach......................................................................................................5
Pros of the outside- in approach of marketing.............................................................................6
Cons of the outside- in approach to marketing............................................................................7
Amazon marketing strategies..........................................................................................................8
1. Amazon SEO.....................................................................................................................8
2. Advertising........................................................................................................................9
3. External marketing..........................................................................................................14
4. Technological advancement............................................................................................16
Why Outside In approach of marketing strategy is better than Top Down approach of marketing
strategy...........................................................................................................................................17
Customer satisfaction through outside in strategy.........................................................................18
Conclusion.....................................................................................................................................21
References......................................................................................................................................23

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Introduction
Marketing strategies are the forward-looking approach, to a long-term planning with the main
motive of gaining competitive advantage, along with strategic planning, where the company’s
strategic situation is analyzed. According to that, it is formulated, evaluated, and selected
market-oriented position in the competition, which will contribute the marketing objectives and
goals of the company. For studying this topic, focused over a statement, that is “The best
marketing strategies aren’t top down, they’re outside in, starting with the customers’ needs and
wants,” amazon.com, Inc. will be considered.
Amazon.com, Inc. is an American based cloud computing and electronic commerce company,
founded on 5 July 1994, by Jeff Bezos, and is based in Washington. It is one of the largest
worldwide internet retailers, according to market capitalization, and revenue. The company
initiated by offering books online and now it is sell streaming videos, MP3, software, electronics,
furniture, video games, apparel, toys, food, jewelry, and audiobook. The latest products added to
the brand list are Kindle e-readers, fire TV, fire tablets, and echo devices (Amazon, 2018).
The company’s mission is always center around the online customer of the company, who are
kept on the priority every time. The focus is on the customer of the company, which is the reason
for the successful internet retailer worldwide. Moreover, the vision of the company is to become
globes most customer-centric brand and create a place where individuals can visit and search for
their required product online (Forbes, 2018).
One of the advantages observed of the company over other companies is its delivery time. For
example, Alibaba group, one of the major competitor of this brand, has the largest sales online in

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this industry. Nevertheless, Amazon competitive advantage is that it delivers the products with
guaranteed time like one-day delivery, or two-day delivery.
To justify the statement, “The best marketing strategies aren’t top down; they’re outside in,
starting with the customers’ needs and wants,” Amazon marketing strategies will be analyzed.
The concept, pros, and cons of both the marketing strategies approach, that is top- down, and
outside –in will be discussed in detail. The comparison between both the approaches will be
helpful in justifying the statement.

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Top-down marketing approach
The top-down marketing approach is one of the traditional methods of marketing, where a new
idea is been generated and is implemented to target customers in the market. This is the oldest
and well-known strategy in the business world and is responsible for keep uniformity in the
company. According to this strategy, the salesperson of the company tries to appeal to the
executives and key decision makers from a potential customer. Generally, large or encompassing
goods are included that will be implemented in the whole organization (Bhave & Mishra, 2014).
This system is important for ensuring large deals more efficiently. In simple words, the need of
the potential customers is identified and is offered to those customers. For example, the
enterprise software system including Oracle and SAP are used in global companies, where the
software company provides training and resources to the customers so that the purchased
products worked for them (Mura & Mariani, 2016).
Pros of the top-down approach of marketing
 Large contracts- one of the advantages of this approach is that the contracts for which the
teams are working are generally large in nature, and are responsible for large revenues
 Lock out competitors- the stress of competitors are not once the deal has been done since
the nature of the deal is not timely, that is not reselling the goods each year (beverland ,
2016)
 Large product roll out- this is one of the benefits from the large sales, this strategy
facilitate huge product rollouts, where the advantage is that the company will sell a
physical product that is to be maintained

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 Recurring revenue- this is another benefit, that is the recurring revenue, which will
depend upon pricing of the company’s product (Wilson & McDonald, 2016)
Cons of the top-down approach to marketing
 Sales took a longer time- the completion of sales took a long time to complete after
initiating, as the contract is large and involve attracting the key decision makers, and
these sales are also expensive to implement
 Large amounts involved- since the amounts are involved in each contract, the payment is
not made in one installment by the customers. For this reasons, the customer could have
timeline drawn for the purchase.
 After sales services- the services are not over with the sale of the goods, the training of
the service is generally involved afterward. Moreover, the sale team have to be active
even after the sale has been taken place
 Losing a contract- this is one of the major disadvantages of the approach since the
contracts involved are very large and large revenues are involved. If one contract is lost,
this could be a great loss to the company (cleverism, 2018).
Outside- In marketing approach
This approach to marketing is focused on the customer; it is seeing your business through the
eyes of the Company’s customers. This marketing approach is customer centric and enhances the
customer’s direct link, to observe and adapt the purchasing pattern soon. The responsibility of
the company with this approach is to search for growth opportunities and involves the
positioning of the organization. It includes building customer value, and relationships with the
sales and research and development team. Through this marketing approach, the company is

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framing strategies that will help to attract more and more customers and enhance the ability to
grow the customer’s value. Therefore, it is responsible for the effectiveness of marketing
performance, and offer counsel to the leadership team of the company (Day, 2014).
The initiation point for this strategy is customer value. The company using this approach is
concentrating more over nurturing and creating customers by offering high value to the
customer. To enhance this value, they keep themselves in their customer’s position and observe
them from their point of view or perspective. To be staying focused over the customer, a
company can follow certain tips like observing what customers are trying to do and understand
them well. Utilizing the understanding, in order to create the products, which will fulfill the need
of the customer while solving their issues. Moreover, for a successful strategy, a company must
be good at listening to their customers considering all key touch aspects, closing the loop with
the consumer while considering their feedback. It involves making a decision, which is in the
best favor of the customer and attempts to reduce the confusion and convolved experience,
which will eventually reduce the efforts of the customer (Hutt & Ferrell, 2016).
Pros of the outside- in approach of marketing
 An innovative idea- this strategy is more innovative in nature, as the company is offering
the customers the product they are need of by observing their actions, and perception of
the customers are considered.
 Customer focused- the strategy is truly customer-centric, it the customer for which the
products are developed and marketed. Therefore, the customers must be the key to the
strategy to make

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 Customer satisfaction- customer satisfaction is the most important aspect for any
company to increase sales, and become successful. Satisfaction of customers is
maximized through the application of the marketing approach
 Customer relationship management- through this approach, the CRM is also possible,
buy knowing and observing customers of the company, the customer relationship
management is easily approachable.
 High profitability- since the customers are highly satisfied, the company, which will
eventually affect the profits of the company, also increases sales.
 Long-term success – this approach is responsible for the long-term success of the
business, this is one of the major advantages of this marketing approach (Vellas, 2016)
Cons of the outside- in approach to marketing
 Difficult to implement- this approach is easy and attractive to listen, and understand but
when it comes to implementation, it is very hard to implement when compared to other
approaches
 Dynamic market- the market is dynamic, and changing every day, due to which it
becomes more difficult to observe and bring changes according to that, and change their
strategies respectively
 The higher risk involved- the risk involved while adapting this marketing strategy is very
high than other approaches because the taste and preferences of the customer are
changing very drastically (Jawoski, 2018)

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Amazon marketing strategies
The approach used by the company for marketing strategies is Outside- In strategy. This has
already been discussed that the vision and mission of Amazon are focused around the customers
and their needs and wants.
1. Amazon SEO
This strategy includes a high ranking of SEO, which is search engine optimization. SEO
of Amazon is on the platform of Amazon that is On Amazon. These include:
 Keyword- the keywords selected are the best for researching and finding a
product. For example, if a person is searching for designer cover, even if the
customer is searching cover, all the option will be open, or if customer type
designer, the designer cover products will be available to the customer
 Product text- the text used is optimized for machines and humans for best
outcomes. This includes the information that is necessary to provide for the
decision of buying, communication, that is the major benefits are highlighted of
the products to attract customers, and presentation, that is the structure and
present of the information so the customers can search it easily and quickly
(Johanson & Mattsson, 2015).
 Product images- the availability of visual appearance of the product are available
in plenty number and quality of high resolution, which will attract more and more
customers, and improve the busying decision speed of the customers (sellics,
2018).
 Product reviews- the reviews of the products are also available, with which the
customers can judge how other like the product and make their buying decision

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accordingly. It could be not advantageous for the company but since Amazon
works for the best of the customer, the motive is the benefit to the customer and
not just the company (sellics, 2018).
 Questions and answers- the customers are free to ask questions, and the
representative of the company gives the answers within 24 hours. This is the
helpful act of the company to clarify any confusion regarding the product or
service
 Product information- the information of the product is essential for filter
navigation and additional information is beneficial for the customer to understand
the product quantity, description, the warranty by the manufacturer or the seller.
This includes specialized product finders (sellics, 2018)
 Delivery method- the method of delivery, as discussed before is the main
advantage of the company; it uses the fulfillment by Amazon shipping services
that have a positive impact on racking. The delivery availability is quick and easy.
The shipping fees are not charged to the customer if the amount of the purchase is
above to a level mentioned (Finne, 2017)
2. Advertising
The advertisement is part of the marketing strategies of the company. The types of
advertisement done by the company are:
 Paid advertisement
 Amazon marketing services- many kinds of advertisement could be
displayed on product pages and in the search result of the website by
utilizing AMS. The charges of AMS are click based that is pay per click

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(PPC) or cost per click (CPC). AMS address the potential customers very
precisely. It must be part of all Amazon marketing strategy, as it is very
effective services (Ryan, 2016).
Three different formats of ads are offered by AMS, which are headline
search ads, product display, and sponsored products. The vendors can use
any of these formats, the only criteria are that they must have an AMS
account and have to log into it. Seller central account can directly access
tools of headline search ads and sponsored products and sellers are limited
for this access. Sponsored products of Amazon allow sellers in the search
result to bid on the ranking of an advertisement. Sponsored brands can be
deployed in various places on the search result page of Amazon, which
includes banners that are linked to the landing page of Amazon with
specific products that are selected. Moreover, product display
advertisements are displayed on pages of products below the buy option.
They are also deployed in keyword targeting or response to a particular
keyword or through interest-based targeting (sellics, 2018)
(Source: (sellics, 2018)

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 Amazon advertising platforms – this is and display advertising Amazon’s
network. With Amazon advertising platform various advertising formats
like banners are viewed on Amazon, as well as on other external websites,
which means that is one of the on and off Amazon campaign. Both
products on external websites and on Amazon cab be linked or advertised,
that is a link out and link in. Impression based cost is there of Amazon
advertising platform and is accessible to every advertiser that are sellers,
vendors, and third parties, but the high minimum budget is required for
this (sellics, 2018).
 Amazon media group – amazon-advertising department consists of
Amazon media group. All the advertising services are combined together
at this platform. Amazon media group is a managed service, which offers
whole planning as well as the implementation of the activities of
advertising all along with multiple channels. The advertisement formats of
AAP and AMS are included in the AMG package. More options for
advertisement are newsletter campaigns, flyers in the parcel, various
choices for advertisement to be displayed on the homepage of the
Amazon, customer solutions, and advertisement through devices of
Amazon like Fire TV or kindle fire. Advertising media group is also
accessible to every advertiser, with minimum budget relatively high
(Ottman, 2017)
 Discounting deals/ free promotions- there are many discount promotions are
available for sellers and vendors conducting marketing online with Amazon.

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Some promotions are liable to charge and some are free. Free of charge
promotions include:
 Sale price- this is a sale price which is less than the regular price. It one of
the most common ways to provide a discount, where the regular price is
strikethrough and a deducted amount, with the saved amount of the
customer is displayed at the product page itself (sellics, 2018).
 Percentage off- the price of the item will be deducted on a percentage
basis. The discount can be on selected products or a group of products.
The promotions are either visible on the product page or it can be used
using specific coupons which are provided to the customer through
different channels for example cross-selling (sellics, 2018).
 Free shipping- this is a common promotional technique, that is providing
shipping free. This could be with the condition of minimum purchase, or
with no minimum purchase (sellics, 2018).
 BOGO- buy one get one free promotion is very common in today’s world.
This is executed, when the customer added two products to purchase and
have to pay for one product, which is the product with less price become
free of cost (sellics, 2018).
 Giveaway- this promotion is done to create competition. The giveaway is
given to people either to the winner of a challenge or similar games
(sellics, 2018)

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 Social media- the promotional codes are provided to the customers
through social media like a percentage off coupons (Dahl & Solomon,
2014)
Paid promotions include:
 Lightning deals- these are the special discounts that are time-bound, which
is from four to twelve hours, and are available in largely reduced price.
The display of these promotions is on central deals page of Amazon,
which is accessed separately. The special highlighted labels are visible in
search results with lightning deals (Pappas, 2016)
 Prime days - these are the special offers given to the prime members and
are visible on the separate pages similar to the lightening deals. These are
the special promotions of Amazon that are set up through lightening deals
(sellics, 2018) that are visible to prime members before it actually starts
for whole public
 Today’s deal- this is the promotions, where daily basis coupons that are
valid for 12 or 24 hours are available to the public applicable on specific
products (sellics, 2018)
 Coupons- these are reserved for the vendors for very long time, these
coupons are visible on search results of Amazon, on product pages, on
the central landing amazon page, it the cart, and on marketing pages of
Amazon. With this promotion, the discount can be provided to
customers of choice of specific products (sellics, 2018)

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 Brand stores – sellers and vendors who have brand registered with Amazon can
have brand store created. This is kind of shop that is gathered with the modular
system and contain various navigational layers to display the goods assortment.
Unique texts and images are used to present a more appealing brand. The brand
shop has its personal URL.
(Source: (sellics, 2018)
3. External marketing
External marketing strategies are off-amazon marketing, which is advertising the goods from
outside the Amazon website. This is the way to attract the customer, who are not yet on Amazon
indirectly or directly and can reach the product page of the Amazon.
 External strategy – external marketing strategy includes:
 Pay per click- these are the models based on pay per click like Facebook
ads, Google ads, and banners for placing the external links to the product
page. Whenever an individual click on the advertisement on other sites,
they directly reach the Amazon's product page

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 Newsletter- the new products are offered to the customers through the
newsletter of emails. The activity of the customers are observed and the
products similar to those seem to be the interest of the customers are
generally sent through the email for more convenient purchase
 Content targeting- another way of products marketing is through content.
The blogging is very much in trend these days, the well-known bloggers
from Instagram or your tubers with trying and reviewing the products, will
influence their followers to purchase that product, and links are provided
by them, that will make one comes to the product page directly. Moreover,
an individual can be actively participate in-group through that platform
(Calboli, 2015).
 Deal sites- the Amazon coupons can be provided to the customer through
well-known dealing sites or coupon sites. Customers can redeem those
coupons on Amazon, this promotional tactic is helpful in leading more
sales of the brand
 Social media- pages of the brand in a social network are useful in the
growth of awareness of the brand, especially with the new brand launch,
strengthen the loyalty of customers, and enhance the awareness about the
offer of the product on Amazon (Tuten & Ashley, 2015).
 Amazon or own Online store- some individual think that why to offer through
Amazon when they can trade through their personal online shops where they do
not have to pay fees to the Amazon and have control on their own marketing.
Nevertheless, selling through Amazon will let them offer their products at very

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large platforms and any additional sale will enhance the organic ranking and
Amazon visibility. Off marketing can be combined with a specific landing page,
successful sellers are using a personal landing page, which means instead of a
direct link to Amazon product page, they reach to the landing page.
The organic search result is based on a number of products sold on the Amazon of
a particular seller, which means that the benefit of the seller lies with the selling
quantity of the products. The more the products are sold, the more marketing is
been done on Amazon, which will eventually lead to more sale of the product and
better ranking of the seller (Sillani, 2015).
(Source: (sellics, 2018)
4. Technological advancement
Amazon for making the buying experience more convenient for the customer is
upgrading the technology timely. Moreover, it is an e-commerce industry, where
technology plays a most important role in the business. Advanced technology is being
used in the company, like upgraded and easy to use application for various operating
systems like IOS and Android. Most convenient way to shop through an online website,

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providing the product to the customer in minimum time that is a fast delivery option. This
can be done through the best technology used by the company. Moreover, the return
process also need an advanced technology and advanced payment system, that will let the
package of return to collect back and the amount is returned either to the customer’s bank
account or Amazon cash. Amazon cash is used for purchase on Amazon in future.
Therefore, it can be said that the customer preference, convenient, and needs are always
on priority for Amazon while deciding on marketing strategies. Through these outside in
marketing strategies of Amazon, the customer is the key and are at the most benefit
(Song, 2017).
Why Outside In approach of marketing strategy is better than Top Down
approach of marketing strategy
Customer capitalization
This is one of the major reason, why outside-in approach is better than that of top-down
marketing strategy. In today’s world, where building relationships are more important than the
transactions, outside in approach is considered over other approaches. The traditional perspective
of the Top down approach of “praise and manufacture demand” does not work in the competitive
industry of e-commerce. There are various products offered to the customers all over the globe,
which means analyzing the demand and then producing the good for each customer is not
possible. The platform of Amazon is selling all ranges of the products, and that would not be
suitable for Top Down approach (Fan & Lau, 2015).

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According to the perspective of outside in approach, it is believed that the business is moving
around customer need and wants, and customer satisfaction. In today’s age of customer
capitalization, where the customer is seeing its benefit to link to a particular company or switch
to another option. The company has to work for customer satisfaction, in order to gain a
competitive advantage. While creating products, services, and marketing of goods must be done
by viewing the perspective of the customers, and their benefit. Like the strategy includes
discount coupons to the customer, which are in favor of the customer, that they have to pay, a
lesser amount for the same product and since these promotions are time bound, the customers are
influenced to purchase. This is beneficial for both buyers and sellers (Petersen & Kumar, 2015).
Innovation
Outside In approach is most suitable for creating more innovation in the organization, which is
important for a company like Amazon; it is the innovation, which leads to more customer
satisfaction and increases productivity. The Top-down approach is more towards disciplined
execution than promoting innovation. Therefore, it can be said that for Amazon, innovation is
more important as it is running in a dynamic environment (Kaplan, 2015).
Customer satisfaction through outside in strategy
Amazon major objective is a most satisfied customer, and all the decisions regarding marketing
strategies are for customer satisfaction. The company as mentioned before is following outside in
marketing strategy approach for maximum customer satisfaction (Russell, J.D & Hull, 2017).
The major activities of Amazon that are responsible for maximum customer satisfaction are:
 Products and services

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The products and services offered by the company can be classified as MSP that is a
multi-sided platform. Services, products, and technology can connect with various
kinds of customers to one another. The company has enhanced the original book
selling strategy by product diversification; in order to create a platform from where
customers can purchase a variety of products at a single place. Now, business
portfolio of Amazon includes a retailing online store, amazon kindle, amazon web
services, fire TV stick, and digital books. Through its best quality products and
services, Amazon has gained a lot of customer loyalty and customer satisfaction.
Moreover, in order to satisfy the customer to large extent, the company is accepting
all the returns of the product within the mentioned time span (Chung & Fiore, 2017).
 Distribution efficiency – one of the best strategy of Amazon, which is responsible
for maximum customer satisfaction, is a quick delivery. The delivery system of
the company is so efficient that they are able to reach to the customer before
guaranteed time. The company with its prime membership scheme has made one
day and two-day delivery free for prime members. For this membership, the
customer has to pay a particular amounting starting of the year and can enjoy the
prime member benefits for a year. For example, prime days, that is the
accessibility of lightening deals sometime before the actual initiation of the deal,
and free deliveries with no minimum bill amount (Armstrong & Giardina, 2016).
Moreover, the company’s distribution strategy is to eliminate the number of
intermediaries by negotiating contracts with sellers and publishers, leveraging
expertise, and building large warehouses. Due to this, the company is able to

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deliver the package within time, which is beneficial for both the company and
customers.
 Digital age – in today’s world, instead of brick and mortar organization, the
company is offering online commerce, where a customer with a click can
purchase goods and have them on the doorstep in next 24-48 hours. The
technology offered by the company to the customer is one more reason for
customer satisfaction. With the ease of using website and application, having a
check over the orders, tracking the order, easy replacements and refunds (Tiago,
2014).
 Attractive deals- moreover, various promotional tools are used to influence
customers to purchase the product and enhance the satisfaction of the customers.
For example, discounts, lightning deals, coupons, and various other advertising
tools to increase customer loyalty and customers benefit from these offered deals.
 Relationship marketing- through its marketing strategies, the company is more
focused on building a strong relationship with the customers instead of increasing
the transaction. The customer service of the company is playing a vital role in this
concern, as the company tries to resolve any customer issue within 24 hours of the
complaint (Hudson & Roth, 2016).
 Monitoring control- through monitoring control, a company is having control over
the satisfaction of the customer. For this, the company asks for customer review,
to check if the customer is satisfied with the product and services of the company.
In case of any variation, the company tries to improvise in that area, to maximize
customer satisfaction in the next order. Customer feedbacks are taken very

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seriously, and the teamwork upon negative feedbacks as soon as possible, as this
may hamper company image too (Moses & Ambrose, 2018).

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Conclusion
From the report it can be concluded that the statement “The best marketing strategies aren’t top
down, they’re outside in, starting with the customers’ needs and wants,” was justified by taking
an example of Amazon, which is an e-commerce retailer, serving worldwide.
The report discussed, that the top-down approach of marketing strategy is one of the traditional
ways, which is very common in the business world. It includes creating a product according to a
particular customer and offers them, and provides service for the same. The example for this
method can be providing SAP or Oracle software to the customers, where directly decision-
making person is being contacted for trading the product. Moreover, the work is not over here,
after sales services like training is being provided by the company to the customer company’s
employees. Whereas outside in marketing strategy approach is customer-centric, where customer
satisfaction is most important for the company and decision are made as per the customer
perspective and benefit, Amazon follows this marketing strategy.
Amazon outside in marketing strategies includes amazon SEO through keywords, product
description, product image and presentation, product review, questions and answers, and delivery
method. Another strategy includes advertising, various paid promotions, and the company uses
free advertising tools as well. The paid advertisement includes amazon marketing services,
Amazon advertising platforms, and Amazon media group. Discounting deals or free promotions
included the sale price, percentage off, free shipping, BOGO, giveaway, and social media. Third
marketing strategy includes external marketing that is marketing through other than Amazon’s
website, a link, which will make customer reach to the Amazon product page. These strategies
include, pay per click, newsletter, content targeting, deal sites, and social media. Paid promotions

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over Amazon include Lightning deals, Prime days, Today’s deal, Coupons. Lastly, the marketing
strategy of the company included technological advancement, that is the company is promoting
through the best use of technology, where the customers can order or purchase goods through an
online website, or application, from any device like mobile, tablets, I pad, or laptop.
With the successful marketing strategy of the company, it can clearly be stated that outside in
marketing strategies are better than Top Down strategies, focusing over customer wants and
needs.

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