Amazon's Marketing Strategy: A Detailed Blog Post Assessment

This report presents a series of blog posts analyzing Amazon's marketing strategies, covering various aspects of the company's approach to reaching and engaging customers. The blogs delve into Amazon's history and evolution, tracing its origins as an online bookseller to its current status as a global e-commerce giant. The analysis includes a breakdown of Amazon's target audience, focusing on demographics and online behavior, and examines the company's segmentation, targeting, and positioning (STP) strategies. Furthermore, the report discusses Amazon's diverse product portfolio, pricing strategies, and distribution channels, highlighting the role of technology in setting prices and the importance of Amazon's fulfillment centers. The blog posts also explore Amazon's promotional activities, emphasizing the company's reliance on internet-based marketing and the use of various advertising channels to maintain its global brand presence. This comprehensive assessment provides insights into the key elements of Amazon's marketing mix and their contribution to the company's success in the competitive e-commerce landscape. Desklib offers similar solved assignments and past papers for students.

Fundamentals: Assessment 1

Contents
INTRODUCTION...............................................................................................................................3
Blog 1....................................................................................................................................................3
Blog 2....................................................................................................................................................5
Blog 3....................................................................................................................................................7
Blog 4..................................................................................................................................................10
Blog 5..................................................................................................................................................12
Blog 6..................................................................................................................................................16
CONCLUSION..................................................................................................................................18

INTRODUCTION
Marketing is an important aspect for any organization and it ensures that there is an
increase in the awareness about the products among the customers. The respective report
includes various blog posts for the company, Amazon. The blog posts will help the company
to enhance its performance in the market and attract a greater number of customers.
Blog 1
Amazon – History and Evolution
History
Amazon is one of the leading organizations within the retail industry that offers a variety of
products as well as services to the customers. The company has operations across different
locations in the world. The company was incorporated in the year 2005 by Jeff Bezos and
it can be stated that the company was initially started by the founder of the company, Jeff
Bezes in his garage in Washington.
Figure 1 Amazon History
Source: AWSome Day 2016 - Module 1: AWS Introduction and History, 2021
Initially when Jeff Bezos started the company, his parents invested a certain amount of
money. In the year 1995, the company started its operations by selling various books
online. The company was said to be selling the largest collection of books online. This
helped the company in attracting a greater number of customers as well as gain their
loyalty as well.
Evolution
Over the years, the respective company, Amazon, has evolved to a great extent. This is
because the company initially started off as an online book seller and now sells to the

customers. Amazon stated its income grew 37% compared to the same duration ultimate
yr, to $96.1 billion, and income extended 197% to $6.3 billion. Sales at on line shops,
which include products like Alexa and gadgets Amazon sells immediately to clients on its
internet site, grew 38% in the 0.33 zone. Amazon Prime Day units a new document, with
income growing with the aid of greater than 60% in comparison with 2016. The market
makes even greater headlines when it pronounces the acquisition of Whole Foods.
Additionally, features which include Amazon eclipses Google because the location extra
people begin whilst searching for products. Meanwhile, AmazonSupply, launches as a web
marketplace for industrial and scientific goods.
Figure 2 Amazon Logo and its History
Source: Amazon Logo and its History. 2021

Blog 2
Amazon – Target Audience
Target market plays a significant role in the success of an organization and it is important
for it to make sure that appropriate market is targeted. Additionally, 60% of Amazon’s
target marketplace are from the US who select buying online for comfort, fast transport,
and competitive charges. With that, Amazon seeks to target a client base that has access to
and often visits the net, making younger generations the ideal Amazon purchaser.
Additionally, people a long time 35 to 44 are the majority of Amazon Prime subscribers.
Amazon Prime participants have get entry to even extra financial savings, different deals,
and additional savings than non-Prime individuals. However, with the internet constantly
rising in recognition, Amazon’s target age extends to all ages.
Figure 3 Amazon’s approach to audience segmentation
Source: STP of Amazon, 2021
Segmentation, Targeting and Positioning
Segmentation – It can be stated that segmentation is an important aspect of marketing for
any firm because it ensures that there is an increase in the reach of the company to the
customers. Segmentation entails dividing populace into businesses consistent with certain
characteristics, while targeting implies selecting particular companies identified as a result
of segmentation to promote merchandise to. Positioning refers to the choice of the
marketing mix the maximum appropriate for the goal patron segment.
Targeting – Product targeting, additionally referred to as Amazon ASIN concentrated on,

is a mechanism supplied in Amazon PPC advert campaigns that allows the company to
display your Sponsored Product advertisements in other ASIN pages and in category seek
consequences.
Positioning - A positioning approach is when a agency chooses one or important key
regions to concentrate on and excels in the ones regions. An effective positioning strategy
considers the strengths and weaknesses of the corporation, the wishes of the customers and
market and the position of competitors.
Figure 4 STP of Amazon

Blog 3
Amazon - Products
Amazon is one of the leading ecommerce structures within the world, and is identified as
one of the top five IT groups globally. Amazon sells all its merchandise on-line in which
the users login to Amazon via internet site or App and place orders. Although Amazon
started out as a web e book dealer, it assorted its product portfolio by leaps and boundaries.
Amazon has a large offering in its product portfolio in its advertising blend.
Figure 5 Over 91 Amazon Products & Services You Probably Don’t Know
The ‘product’ Amazon is the website and the apps which gives one of a kind varieties of
items for purchasers. Its retail department include the whole lot from apparels to car
elements, toys to electronic gadgets, home décor to health utilities. And that is pretty tons
exactly what’s within the portfolio these days. In 2013, the common UK person spent £70
on Amazon which accounted for over half of all on line retail income. Since so there’s so
many customers at the web site, why no longer deliver them an possibility to buy and
promote from each other and take a cut every time? This has reached a point wherein 40%
of Amazon’s international income are actually via third-birthday celebration dealers. But
perhaps the destiny for Amazon lies growing its very own services and products.

Figure 6 Amazon Kindle
These products aren't only bought by means of Amazon however also via 3rd party sellers
listed with Amazon. This marketplace region version of enterprise is bringing large income
to Amazon. It also started selling devices like e-book reader, Kindle and Fire pills and
phones. Amazon’s digital services like on demand song, video and e-books is likewise one
of the major contributor in its income. The agency is likewise imparting a host of net
services like cloud storage, database services to budding start UK and different agencies.
Grocery items also are being added to consumers via Amazon through its offerings like
Amazon Prime Pantry and Amazon Fresh. It is likewise offering publishing offerings to the
commercial enterprise and individuals.
Figure 7 Amazon Fresh
Source: Amazon Fresh grocery store: Meet Just Walk Out, 2021
Amazon’s AWS offerings, which presents net hosting offerings for clients and customers,
is likewise a sturdy product in its portfolio. The organisation has acquired some companies
like IMDb, Ring, Twitch, Whole Foods Market and so forth, which has strengthened its
position.

Figure 8 Amazon Books

Blog 4
Amazon - Price
As the exceptional varieties of offerings are presented by way of Amazon its pricing
techniques also are numerous. It makes use of generation to its advantage in setting the
charges. Most of the time the price of merchandise is set following the aggressive pricing
strategy.
Figure 9 Amazon Sale
It adjusts the fees frequently based totally at the class of product, time of the day and
season. Amazon additionally presents price delivered offerings like Prime wherein users
pay subscription fees for one-day shipping and early get right of entry to the offers.
Amazon additionally follows differential pricing, for the same product it charges one of a
kind fee relying within the area of consumer as it's far having specific web sites in every
united states it operates. AWS is likewise a market chief in presenting excessive
satisfactory low-cost net hosting answers.
Figure 10 Promotions of Amazon
It can be stated that the products are priced at affordable rates and this ensures that there is

an increase in the customers that re attracted by the company.

Blog 5
Amazon - Place
Amazon is a global emblem and has its presence all internationally. All the purchasers buy
products and services from the internet site and Apps of Amazon.Com to buy. Once a
consumer places the order the distribution channel of Amazon comes into picture where
the goods are procured and saved at Amazon’s fulfilment centres. Amazon uses its reliable
e-commerce web sites as its number one locations for transacting with customers. These
web sites include Amazon.Com, Audible.Com and some of different websites with unique
target markets. In addition, the enterprise operates a bodily bookshop named Amazon
Books in Seattle. This place allows the enterprise to attain out to customers who want to
bodily compare merchandise before purchase.
These are classified into sortable fulfilment centres, non-sortable, purchaser go back and
speciality objects warehouses. From those fulfilment centres the goods are transferred to
distribution centres after which to clients. Amazon uses the nearby postal and courier
services for the transportation of applications.
Figure 11 Amazon Website
But recently few professionals are claiming that Amazon is conceptualizing for its very
own distribution community for transport of programs. This will bring the costs even down
for the agency. Amazon makes use of its authentic e-trade websites as its primary locations
for transacting with clients. In addition, the enterprise operates a physical bookstall named
Amazon Books in Seattle. This location enables the organization to attain out to customers
who want to physically compare products before buy. Moreover, the firm makes use of
different venues to briefly transact with clients.