Analyzing Amazon's Customer-Focused Strategic Marketing Strategies

This report analyzes Amazon's strategic marketing decisions, focusing on the statement that "the best marketing strategies aren't top down, they're outside in, starting with the customers' needs and wants." The report examines Amazon as a case study, exploring how customer voice drives strategic marketing decisions. It reviews relevant academic literature and assesses Amazon's use of the 4Ps marketing mix, segmentation, targeting, and positioning. The analysis highlights Amazon's customer-centric approach, its use of web technology, and its expansion into physical stores. The report also discusses the competitive landscape and recommends strategies for maintaining a customer-focused approach. It analyzes the tactical marketing plan, mission, vision, tactics, and strategies employed by Amazon to achieve competitive advantage. Furthermore, the report examines Amazon's internal marketing strategy, segmentation, targeting, positioning, and strategic gap analysis, concluding with recommendations and a scenario forecast.

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