Comprehensive Report: Amazon's Strategic Marketing Strategies

This report provides a comprehensive analysis of Amazon's strategic marketing strategies. It begins with an introduction highlighting Amazon's online business model and customer focus, followed by an overview of strategic planning, including mission and vision statements. The report delves into Amazon's strategic marketing plan, emphasizing market segmentation, advertising, and the importance of customer relationships. It then explores various marketing strategies, such as competitive strategies, the 4Ps marketing mix (product, price, place, promotion), and internal marketing strategies. The analysis includes Amazon's segmentation strategy and a strategic gap analysis, culminating in recommendations and a scenario forecast for future growth. The report underscores Amazon's customer-centric approach, its use of technology, and its ability to adapt to market demands, offering insights into the company's success in the competitive e-commerce landscape.

STRATEGIC
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
STRATEGIC PLANNING..........................................................................................................1
Mission and Vision.................................................................................................................1
Strategic marketing plan:........................................................................................................2
Strategies of marketing:..........................................................................................................2
Action and control:..........................................................................................................................3
INTERNAL MARKETING STRATEGIES................................................................................3
4P'S MARKETING MIX STRATEGY:......................................................................................4
Amazon's Segmentation Strategy................................................................................................6
Strategic Gap Analysis.................................................................................................................8
Recommendations and the scenario forecast ................................................................................11
Conclusion.....................................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Amazon is the American company which have specialization in online business, which
means selling products online. According to various researchers the company have used the latest
technology and needs of the customers. Amazon is dealing in electronic items which are sold online
but amazon is also dealing in various other products like books, and clothes. Company is also
attracting customers by new offers and offering customers wide range of products. Amazon is using
various marketing strategies and techniques which are working in the favour of the company.
Business market is market for the customers choice, company works as per the need of the customer
and demand of the customer. Marketing means promoting the products of the company, amazon has
successfully promoted the products of the company. Amazon has set up company image as the
global giant in the market. Company is customer centric and focuses on the strategies used by team
for marketing of the company. Various other companies are also entering the online market which
is increasing competition in the competition in the market. Amazon is following marketing
strategies because of that company is able to fight the competitors in the market.
STRATEGIC PLANNING
Mission and Vision
Mission statement is company's business and its objectives whereas vision statement
describes about the future position of the company. These statements are fixed by the goals of the
company. Amazon has its mission and vision statement, every company has to set up these
statements, these statements are part of strategic planning. Amazon statement is focused on
customer's satisfaction and convenience. Company is running through customers so company is
offering them various offers and delivering right products on time. Seniors of company will
communicate these statements to the new employees and make sure that statements are
communicated in clear and simple language. This statement include performance of the employees
and customer satisfaction. Amazon is heading towards the goal of the company set by the
shareholders and stakeholders and promoters of the company (Taiwo, Lawal, and Agwu, 2016).
Company need to make certain goals, so that every member of company is followed on right path
and with right values. Company must ensure that vision statement is achievable and mission
statement is actionable in the company.

Strategic marketing plan:
Marketing is term which deals with needs of customers and sales of company. Marketing is
promoting product in the market of the needs of customer. Strategic Marketing is building strong
relations between the customers and the company. In order to increase sales of company marketing
is an essential tool for market segmentation and advertising. Market segmentation is done according
to need of customers and satisfaction of customer, through this plan company is able to build
loyalty among customers. Amazon is selling products like clothes, books, beauty products, daily
essentials and electronics. It is selling wide range of products that to branded and is including
discount offers which is attracting the customers. Online business is increasing day by day and
customers are attracted towards the technology, so the company is trying to provide good quality
products and provide good after sale services after buying products (Abratt, and Bendixen, 2018).
Strategic marketing plan must be flexible according to need of customer, employees need to
understand the markets that need to be targeted, this process of marketing will take company to new
heights. Amazon marketing in done through online and mouth publicity and as well customer
services.
Strategies of marketing:
Amazon is following competitive strategies for marketing and fighting the competitors in
the market. Advertising media and space is creating low cost of the marketing. Company is also
using marketing mix strategies for attracting the customers with the help of 4Ps which includes
product place price and promotion. Some other strategies such as STP and communication tools is
also used by company. Amazon has the biggest market place which results in sales, customer has to
link accounts with safe pricing mode. Amazon has the biggest advantage of mobile in the
advertising process because amazon is an online company and products are sell through phones.
Company websites or mobile apps usually face traffic problems while surfing, so company must try
to solve this problem for customer satisfaction. Entering in to the international market is still a
dream for the retailers but retailers can use the amazon market place and sell their products in the
international market. Customers have the preference of sorting products as per their needs.
Marketing is also through google ads and through the help of social media (Torres Behe and
Barton, 2018).

Action and control:
Amazon has started only with book store but later it expanded the business through
introducing more products like electronics and clothes. Retailers have option to sell their products
through amazon locally, nationally and internationally. Through technology the company is able to
keep record of each and every transaction and records of customers. Amazon is segmenting the
market through preferences of customers and purchasing behaviour of customers (Grönroos, 2016).
Action and control states that whatever company is planning to do whatever it is executed as per the
plan or not and if executed whether it is in control or not. This affects the goals of company as well
as vision and mission statements. Customers feedback regarding the products are part of marketing
plans.
INTERNAL MARKETING STRATEGIES
Amazon follows customer centric strategies which is focused on customers. This strategy is
based on customer is god and customer satisfaction is prime motive for company. It includes
awareness among customers regarding products of company. All the employees of the company are
dedicated and headed towards the efficient marketing process. Promoting of company products is
an important factor of internal marketing. Internal marketing consist of customers services and how
to fight with competitors. It focuses on certain points as given below.
 Feedback and reviews are helping company to improve the product according to need of
customer but at same time it creates negative image in the eyes of customers. It also affects
the goodwill of company (Liu and Hong, 2016).
 Understanding customers
This is an important apsect for company because products must be made according to customer
needs. If product is not useful for customer why would he buy product. On other way every
customer is different and has different choices, so amazon must have variety according to variety of
customers (Wirtz, and Lovelock, 2016).
 Security
Security of data of customer is important because amazon is an e-commerce company which deliver
products at home, but they are booked and ordered online through mobile apps and websites.
Customers have to give details regarding their bank accounts, and as time with technology cyber
crime is also increasing. So company must used advanced soft wares for the security of consumers

data. On other side company can use consumers data for their choices and preferences in the
products.
Sometimes customer is not able to buy brand products from retail shops because of high
prices but through amazon customers are able to buy those brand products with low price
because of discounts available on the products. So pricing as well as branding and quality
of product is preferred by customers.
 Mobiles and laptops
These are the major part through which customers are connected to company and are able to
communicate to the company regarding products and can give feedback and reviews.
Company is using consumer lifetime value which states that customers which are buying
products. Through these consumers are segmented and company focuses on that
consumers.
Amazon is customer centric approach in company but it also has some disadvantages are as follows
(Dolata 2017).
 Lack of innovation
Company is focusing on the customers needs and wants but it has major impacts on the innovation
and creativity among employees, so to overcome this problem company must try to create own
products which can be sold in the market.
 Needs of the customers
This is the big problem for company because company cannot arrange every product what the
customer wants. Some products are not liked by customers which are not in demand is waste for the
company these can create huge loss for company.
The company is primarily focusing on the customer needs, so company would always focus on the
profits of company. So company would act as the self-serving company.
Amazon need to look after the disadvantages and try to overcome the disadvantages for achieving
growth and development. Company is overcoming the situation for customers as well as employees.
4P'S MARKETING MIX STRATEGY
4Ps consists of internal and external factors which includes products, price of product, place where
product would sell and promotion of the product. Marketing mix is part of amazon marketing
strategies. Marketing strategies are base for company to stand and survive in market. It is a

mixture of all factors of product which are important for product to stand in market and fight
competitors.
 Product
Product usually includes quality, quantity, brand, features and design of the product. Amazon is
able to sell variety of products with various brands and specifications. Company is more
concentrating on consumer needs, as well company offers membership with free shipping. Amazon
is allowing the retailers to sell their goods on their name, which could damage the goodwill of the
company, so company is checking the goods effectively. Quality and quantity of product must be
checked before packing products for the delivery. As amazon e-commerce company, the market
have a large variety of products to buy, so consumer must know what is special in that product and
why he should buy product. Sales of product depends upon the place of product and promotion of
product as well price of product.
 Price
Price of product is fixed by the manufacturer, price includes cost of product and profit of the
manufacturer. In retail stores price of the product is increased as per profit and mediators between
consumer and manufacturer. On amazon the product is also kept for sale at 80% discounts, amazon
sets low prices for products because amazon is buying products directly from the manufacturer. It is
a major factor for attracting the consumers and company directly sells products to consumers. In
some products price depends upon the season like if customers want to buy sweaters then customer
would buy at time of need but at that time price of product will be high because of high demand as
well as if customer buy product in other season customer would be charged less because of low
demand of the product. Online shopping is also affected by the seasons and demand of products
(Lorenzo, 2017).
 Promotion
Promotion of the company fully depends on the marketing team of company which focuses on the
advertising of company and promotion of product. Company affiliates with advertising companies
for promotion of product. Amazon uses cash back offers on online payments and discounts up to
80% on various products, these offers are known to consumers by advertising companies. Amazon
also offers some goods to the charitable institutions. Company does all these things for satisfaction
of customer. Through these strategies customers are able to communicate through company
regarding complaints of customers regarding product. Through this marketing strategies company

will be able to achieve targeted sales of company. Amazon does promotion of products on social
media through Facebook, Instagram and websites (Jackson, 2016).
 Place
Place is an important factor for sales but on amazon market place is the online market where
customers are buying products. Place where customers buy the product is through the mobile
phones and apps and websites. Amazon has big marketed place to deal with variety of customers
and to fulfil the needs of customers with variety of products (Oliveira and Toaldo 2015). Amazon is
following marketing strategies to overcome the competition in the business of online market. These
strategies have come up sales factor for product with states that price of product must be reasonable
according to customers, promotion and place of product must be as per customers. Company motive
is to satisfy consumer, so company is looking in to the need of consumers and working on it.
Amazon's Segmentation Strategy
Amazon is the largest e-commerce company that are specialized in selling the electronic,
clothing or every household products and provides the better quality services. To create the
existence of business in the market, the company needs to be in a profit and having the long term
relationship with the customers. Segmentation is the research or the marketing strategy that
diversifies the customers according to their age, profession and the income generated. Segmentation
can be divided in terms of many factors such as the demographic, situational, psychographic and the
the geographic segmentation (Abell and Hammond, 1979).
 Demographic Segmentation
Amazon target the younger generation under the age group of 25-50 years and the maximum
consumers of the Amazon are under the age group of 35-49 years with the better knowledge of the
internet so that Amazon can get the feedback related to the services, product quality so that the
company can improvise the existing services (Mintzberg, 1994).
 Situational Segmentation
Amazon follows the situational segment such as the best and the lucrative deals every hour with the
low pricing and the fastest delivery options. These are the major factors that that Amazon has a
large customer base.
 Psychoraphic Segmentation

Amazon believes in the better understanding with every customer so, the Amazon focuses of the
customer needs and the personality traits, lifestyle, social status, degree of loyalty and the occasion
so that the company can under stand the consumers mindset and their needs in as better way
(Steiner, 2010).
 Geographic Segmentation
The geographic segmentation of the Amazon focuses on the international needs and expand the
business in the developing as well as in the developed areas and especially in the rural areas to
aware the people with the online services so that the countries can grow digitally.
Amazon focuses on the three main strategies that are as follows -
 Segment Acquisition
The process of gaining the new customers can be done by the integrity and building the trusts to
make the strong relationship with them. Amazon is the largest e-commerce hub with having the
huge customer base because of their better quality products and the faster delivery services.
Amazon is having the collaboration with the several famous and the highly demandable brands
makes the Amazon different from the other online markets. The technology advancement by the
Amazon in tracking the purchasing record is one of the useful step taken by the Amazon and it is
useful for making the better marketing strategies and Amazon sends the updates about the new
deals on the products and also takes the feedback from the customers about the products and
services. All these steps of the Amazon for the betterment of the customers gives the better
feedback to the Amazon and also helpful for the future growth of the organisation (Bryson, 2018).
 Targeting Strategies
After the Acquisition of the Amazon, another way to make the better marketing strategies is the
targeting. Amazon is the global online platform and the main aim of the Amazon is to target the
market audience and implement it on each ways that can give the better profit and growth to the
company. Amazon focuses on building the new customers and some of the customers do not waste
their time in visiting the stores so the online platform is the better option. Amazon always keeps on
innovating new things and the services that is helpful in building the long term relationship with
the customers and also makes the company management-effective and most of the customers are
now aware about the online marketing and the customers includes developers, sellers, content
creator and these type of innovative mind wants the better user interface and the easy delivery and

the Amazon is currently keep on innovating the better things in their website and giving the better
user experience ans the cost-effective (Ward, Griffiths and Whitmore, 2002).
 Positioning
On the basis of the positioning, Amazon is best in class across the world. To create the difference,
Amazon provides the Customer Care Centers in many countries that understand the needs of the
customers also can resolve the problems. Amazon always finds the new ways and keeps on
innovating the new technologies and the payment options for the error-free payments without any
interruption. Customer always rate the company according to their product quality, services and
past and present experience of the other customers that decides the position and the future of the
company (Hayes, 1985).
Strategic Gap Analysis
The strategic gap analysis analyze or helps the company in determining the company' s profit and
the best returns that is generated from the resources. The main aim of the strategic gap analysis is
determine the important steps can take to achieve the goals. The factors that can critically determine
the gap analysis which includes time frame, performance and the budget. As the Amazon is opening
the several offline stores, the different marketing strategies is involved to increase the competition
which is presented by the help of SWOT analysis -
 Strengths
◦ Customer centric strategy
Amazon asks the customers their feedback about the products and the services and uses the
feedback in the betterment of the company and also these type of small steps helps in building the
long term relationship with the customers and this is the only reason Amazon is the most trusted
online platform and also having the large customers across the world.
◦ Effective delivery Systems
Due to the strong network of Amazon in different companies, the company is completely focused
on the fastest delivery services in the different areas and also provides the free deliveries in the
several remote areas and due to its superior quality logistics and the distribution system, Amazon is
able to fulfill the needs of the customers (Godet, 1987).
◦ Strong brand

Amazon is now the most trusted and the largest platform across the world due to its strong
marketing strategies and the large customers base makes the company the bigger brand.
◦ Price leadership
Amazon is the global leader of the books and providing at very low cost to target the books
industries.
◦ Acquisition
Amazon is expanding the business to acquire the new products with the easy availability to attract
the customers.
 Weakness
◦ Dependency on the external delivery companies
The dependency on the third parties ruins the name of the company, The poor quality delivery
services can damage the product and also the decreases the customer's trust.
◦ Interference of the outside companies
Amazon allows the other companies to sell their products via Amazon website but this can damage
the brand name of the company.
◦ Free delivery
As the company provides the free delivery services at some of the geographical areas, so it is
dangerous for the company to lose its margin and this step is not helpful in recovering the cost.
 Opportunities
◦ Increase of internet users
As the technologies are regularly evolving and the the use of internet is increasing day by day, the
user are now more active and aware about the web technologies. Amazon is regularly working on
the websites for the better user experience and the better quality services will make the Amazon the
global leader in the e commerce sector (Robinson and Pearce, 1984).
◦ Expansion
Amazon is the established business in Asia and the now currently expanding its business across the
different nations where the e-commerce is not so much established. Amazon is opening the

Customer Care Centers to provide the offline services and can resolve the queries effectively. This
is helpful in maintaining the customer's trust for the long time.
◦ Acquisition opportunities
Amazon keeps on bringing the new and the top tier brands at a very minimal cost and the customers
can directly purchase the products from the Amazon website. Otherwise, some of the companies
redirects to the company's website for purchasing the particular products.
 Threats
◦ Competition
As the online marketing is increasing day by day and the website designing tools are freely
available, most of the micro and the small businesses are coming online there are so many online
shopping platforms are available, this increases the competition in the e-commerce sector and this
can affect the Amazon market.
◦ Hackers attack
The online activities and the knowledge of the user is increasing, this results in increasing the cyber
crime activities and the malware attack. So the Amazon is hiring the skilled and the professional
cyber crime experts to protect their confidential data (Heracleous, 1998).
◦ States Regulation
As some of the countries do not have the proper stability of the political parties and the regular
modification in the foreign policies can affect the sustainability of the company.
Recommendations and the scenario forecast
The goal of every company is to find the meaningful and the innovative ways to satisfy the
needs of the customers and built up the customer's trust for the long time. Amazon has introduced
the new services such as prime subscription for the new as well as the existing customers and this
gives the better online shopping experience, EBC video beta, headline search ads and the money
back policy brings the company to the new level in the e-commerce sector.
Amazon always introduce something new in the market that brings the revolution in the
market and currently, the Amazon is working on the high-tech delivery services i.e., by the use of
drone that will bring the revolutionary change in the delivery services and this step is expected to