Strategic Marketing Management: Amazon.com SWOT, STP & Mix Analysis

This report provides a detailed analysis of Amazon.com's marketing management strategies, utilizing the SWOT framework to assess the company's strengths, weaknesses, opportunities, and threats. It further examines Amazon's approach to segmentation, targeting, and positioning (STP) to understand how the company identifies and engages with its customer base. The report also explores Amazon's marketing mix, focusing on product, price, place, and promotion, to evaluate how these elements contribute to the company's overall marketing effectiveness. Recommendations are provided based on the analysis, aiming to enhance Amazon's marketing strategies and maintain its competitive advantage in the dynamic e-commerce landscape. This document is available on Desklib, where students can find a wealth of solved assignments and past papers.

Marketing Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
SWOT.........................................................................................................................................3
STP..............................................................................................................................................6
Marketing mix.............................................................................................................................9
Recommendations.....................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing management is defined as the study in which marketing aspects are being
controlled to achieve business targets. It also finds out the areas where the company's product
and services fail to fulfil customer needs. The current report will give detailed information about
marketing management adopted by one of the famous organization which is established by Jeff
Bezos, Amazon.com. The company deals with artificial intelligence, e-commerce, cloud
computing and digitalization. This will further provide SWOT analysis, STP and marketing mix
to attain marketing strategies. Additionally, it will examine the impact of this analysis on
organization. Further, it will provide brief understanding of competitive environment and impact
on developing effective marketing decisions. At last, it will give information about
recommendations on the basis of case study.
Discussing SWOT analysis in marketing management
The full form of SWOT is Strength, weakness, opportunity and threat. It is helpful in
organization to evaluate the position and performance of the business. (Baboolal-Frank, 2021). It
will help to increase profitability and minimize risks for business goals. It is helpful to assess
company's position before deciding any new strategy. The main aim of this study is to help
company in developing a full awareness of the factors which are included in making strategic
decision in the organization.
Strengths- Strengths are things that distinguishes particular company from their
competitors. These might be the motivation of company's staff to achieve targets. Strength gives
an idea about company's proposition of selling goods or services which is unique in nature.
Weaknesses- This study finds out the factors which stopping them from performing at its
optimum level. Using this, company can also find out the areas where the improvement is needed
(Bonfante, and et.al., 2021). It includes high level of debt, lack of capital, high turnover, low
promotion and weak brand. Using internal and external data company can understands product
line and its strategies.
Opportunities- This consists of External factors that could give an organization a
competitive advantage in the market (Bigo, Raj, and Situmeang, 2021). It is referred as chances
for something positive to happen. This will includes strategy and technology an organization is
using. So it is the process in which a company think about good opportunities in order to increase

profit margins. It also studies market trends and its impact on strategies which companies are
using. The firm must take care of various changes in policies and social patterns made by
government. Opportunities help to increase company's ability in order to achieve targets. Hence,
By increasing sales and market share an organization can give a competitive benefit.
Threats- Threats means the factors that can affect any organization negatively. This
includes problem in supply chain, shortage of recruits and many more. It is essential to take strict
action against them before becoming victim. It is essential to take care of advance technology in
order to avoid any unseen threats within the company. It is mandatory to considered what your
competitors are doing and what changes are needs in order to achieve target.
Strength
 The key strength of amazon is to use
strategic planning in order to evaluate a
company's position. On the basis of
current and future potential of business,
organization examines its performance
throughout the year.
 Amazon is one of the best retailer,
supplying different products to their
customer using digital platform. The
company offers better quality products
and services at very reasonable price.
 It provides the fastest shipping along
with free online services and excellent
customer support.
 The Strategic acquisitions adopted by
this firm have led to the development of
customer relationship management
skills within the market.
 From this, company measures fact
based analysis, new ideas and fresh
Weaknesses
 Amazon prime is currently driving up
shipping costs, which will affect
delivery costs to rise.
 Later it will provoke higher prime fees,
thus shoppers will find another sites
and adopt discount facility.
 This scenario would cause shipping and
revenue growth of this company.
 This company has gained negative
publicity due to tax avoidance so this
will affect reputation in the market.
 It is also stated that this company
maintains poor working conditions for
their employees.
 In India, amazon have faced big
challenges like low margins.
 As per the news, Its fire phones launch
in the US was a big failure while its
kindle fire device didn't work well.
 Amazon owns very limited physical

techniques (SWOT analysis, 2021).
This organization has a number of
warehouses in various countries, with
efficient logistics and easier
distribution. At last, this company experiences
economies of scope by utilizing their
new technologies (Davari Farid and
et.al., 2019). In addition, they also use
IT abilities in order to offer a larger
selection of commodities online.
stores thus, this sometimes create
problems for their customer.
 Unfair use of third party data has
created negative impact on amazon
image.
 Recently, environment protection
agency clearly stated to the company
about reducing hazardous products in
order to protect customer safety.
Opportunities
 Amazon.com presently offers Amazon
payments, which is far behind its
competitor PayPal. This company is
having a secure payment which is good
for customer satisfaction.
 Amazon accepts different modes of
payment, supports 11 currencies and
one shopping cart. It has the
opportunity to improve technological
measures.
 By expanding physical stores and
organizational policies, firm can
improve competitiveness against other
companies.
 Amazon must expand its business
operations in the competitive and
developing market to improve
profitability. By Launching electric
rickshaws in India the company can
Threats
 Nowadays, data theft is the most
common modern day criminal activity.
This can easily be conned by hackers
into personal details like bank account
details.
 Amazon has to move quickly to allay
consumer concerns over its website to
protect their customers online privacy
and security.
 Due to aggressive competition of the
market, the price wars have led the e-
commerce companies into lawsuits.
 Thus, in order to compete with other
companies' amazon focus on cost
leadership which lead self harming
game of losses.
 Government regulations also become
threats for amazon as they do not ship
their goods to critical countries like

make positive impact on the
environment.
 By making more products or service
available this organization can increase
its bargaining power with suppliers. Furthermore, amazon payments could
take benefit of the digitalization that
could be used to swipe credit cards,
debit cards with mobile devices known
as amazon square (Djellabi and et.al.,
2021). This process will help amazon
gain a lead in online retail business.
Cuba, North Korea, Sudan and Syria.
 Fake products and fake review
threatens Amazons profit.
STP model
The full form of STP marketing model is segmentation, targeting, positioning. It is
helpful in order to determine customers segmentation according to their demands. The model
focuses on selecting and classifying the most valuable segments for a business. The main
objective of STP is to classify customers, target each classified group on the basis of their
demands, tastes and preferences. Further, this model make positioning adjustments in marketing
strategies in order to achieve targets. This model is so effective and efficient because it divides
big markets into smaller parts thus, it makes easy to engage customers. First of all company
needs to define the market and create segment on the basis of age, location, interest. Then,
evaluate each segment and select the most relevant segments for developing the market.
STP marketing is relevant to digital marketing because it works totally based on digital
communications.
Market segmentation- The process in which customers are being classified according to
their preferences and which allows a company to engage marketing strategies (Dadzie and et.al.,
2017). It also includes particular needs and demand of customer in market. Sometimes company
may discover new opportunities in the competitive market. Types of market segmentation-
demographics, geography, values, behavioural, life stages, attitudes, habits. It includes gender,
education, marital status, length of residence and occupation (Irshaidat and Borgebund, 2021). In

psychographics there are various ways company can gather data with the help of interviews,
surveys, customer data, lifestyle, hobbies, values. This process helps a seller to evaluate the
customers paying ability, needs, desires, tastes of products. It further gives information to sellers
about budget of customers so that they can concentrate on time, money and efforts in order to
achieve profitability.
Market targeting- The process in which company targets each segmented group
according to their customers taste and preferences (JATMIKO and et.al., 2021). This model
evaluates potential and commercial attractiveness of each and every segment. It also includes
analysis the opportunities in terms of financial targets. It is helpful to evaluate the potential and
commercial attractiveness of each segment (The STP model of marketing, 2021). This includes
criteria size, money, focus on different benefits. At last, this stage collects accurate customer data
in order to identify opportunities to engage marketing campaigns.
Market positioning- The process in which company develops detailed product
positioning for selected segments in order to satisfy their customer (Jindal and et.al., 2021). It
will help you find out the unmet needs of the customer so that in future it can be fulfilled. Along
with that it also develop a marketing mix for each selected segment.
Amazon STP evaluates a set of business activities to examine specific groups of
customers and promoting products and services to engage them (Dost and et.al., 2019). It uses in
depth audience segmentation in all its commercial activities for classifying customers. The
company have segmented their audience in various category.
Element Description
Segmentation  Amazon current consumer
segmentation are demographic,
psychographic, situational and
geographic segmentation.
Targeting  Amazon targets age group of 25-
50years under the demographic
segmentation.
 Under situational segment, people
having interest in new categories are

taken into consideration.
 Customers who like new innovations
comes under psychographic
segmentation.
 Further, digital sales and international
appeal comes under geographic
segment.
Positioning  Amazon latest positioning strategies are
multi-segment, adaptive and
anticipatory.
 This company provides many products
and services, in order to find out the
ability to influence consumer.
 To satisfy its loyal customers this
company sell every product online,
comes under multi segment positioning.
 The online giant examines changes in
customer expectation of products and
services comes under adaptive
positioning.
 In anticipatory positioning the company
needs to set the position a new brand in
order to evaluate the customers needs.
Marketing mix
It is known as the set of various marketing tools that the company uses to sell goods or
services which helps them to promote its brand in the market. The study is all about putting the
goods at right place and time for customer satisfaction. The various elements of marketing mix
are place, promotion, price and product.

Product –The product or services which a company provides to attract audience
(Paruchuri, 2019). Additionally, it must be delivered a minimum level of performance to achieve
targets.
Price- It refers to the product or services costs, as it is totally depends on competitors and
demand of products.
Place-It refers to how and where the audience buy company's product. It includes online,
smartphones applications, retail stores, sales professional, trade shows or events, marketplace
channels like amazon, Walmart, jiomart and flipkart.
Promotion- It includes company's advertisement about product or services and business
(Lim, 2021). It includes promotion platforms like social media, Instagram, Facebook and various
campaign to reach its audience at the right place on right time.
The company uses these strategies as an important tool in order to satisfy its customers.
Also, to make relevant changes in its online business company focuses on innovation to achieve
success.(Raewf, Thabit and Jasim, 2021). The firm continues to expand its goods and services
range, and offer competitive prices to customers. Additionally, It also gives faster deliveries to
prime members of the amazon.
Components Description
Product mix  The company provides a wide selection
of products and services to their
customers.
 These products are now address market
needs: retail goods or services, amazon
prime, amazon video, consumer
electronics, video direct.
 The company provide various facilities
to customers while purchasing products
online.
 In order to satisfy audience amazon
have launched products like amazon
video.
 Amazon is famous for selling almost all

products online like jewellery,
gardening equipment, clothing, games,
electronic items, books and kindle.
 The company also launches kindly fire
(The 4Ps of marketing-product, price,
place and promotion, 2021). Thus,
amazon is known for knowledgeable
products.
 It also introduced its own fire phone
and later it established amazon fire TV
which allows streaming from various
channels.
Place  In this component various places are
taken into consideration by amazon for
transacting with customers.
 Amazon uses various places like e-
commerce website and amazon books
in order to transact with their clients.
 Thus, in this way amazon develop its
performance better than any other
brand in terms of online marketing. To
reach its customers.
Promotion mix  This strategy includes various strategies
to communicate with its target market.
 Advertising is the primary source of
communication with its target market
(Khan and et.al., 2021). They make
some use of billboard and various
methods of advertising.

 Secondary tactics like sales promotion,
public relation and direct marketing
includes in it.
 Amazon uses search engine marketing
in order to reach their clients.
 The company directly survey and
communicates with different platforms
to satisfy clients.
 With the help of print media ads
amazon make its presence felt to the
audience.
 With the help of amazon smile
company strengthens its brand image
through public relation programs which
donates in charitable trust.
Pricing strategies  This strategy focuses on the price levels
of the products or services in market.
 The company uses strategies like
market oriented strategy, value based
price discrimination.
 The benefit of using price strategy is
that it makes selling prices more
affordable to attract and target
consumers.
 Amazon makes its good image in India
due to its services and products
 This strategy helps to adjust its prices
on the basis of audience expectations,
national market conditions and
customers preferences.

Recommendations
The following improvements are recommended to the company-
 It is recommended to amazon, develop a marketing campaign to target customers seeking
better service (Singh and Pathak, 2021). Also, the company needs to develop certain
strengths to take advantage of opportunities.
 To improve margin in few areas, it is advisable to set proper shipping charges which can
reduce risks of losing margin in some markets.
 It is also suggested removing pesticides and unsafe products for customer safety. By
taking this step company will be able to attract more customer to achieve goals.
 Due to unsafe working condition, employees went on strike in Germany (Vinuales and
et.al., 2019). For the betterment of employees, the company needs to improve working
hours and also provide good environment.
 Amazon can improve its competitiveness against big company's, by expanding physical
stores globally. It will augment brand popularity and market reach (The 4Ps of marketing-
product, price, place and promotion 2021). It is also suggested expanding its operations
in developing market to achieve goals.
 It is also recommended improving security system by upgrading technology measures of
the company. As there is an increasing cybercrime, company needs to improve network
security systems in the firm for the customers safety.
 The company needs to strategically deal with global controversies in order to make its
reputation stable. The company needs resolve tax issues and fake reviews by upgrading
its brand name with the help of positive publicity in the market.
 Backward integration in the firm is essential, by expanding amazon basics into other
segments such as electronics and essentials (Wilman and et.al., 2020). This will again
promote the brand name to the customers and improve its profit margin.
 In order to generate sales, it is advisable to make use of market research and advertising.
It is suggested to promote products and services which satisfies customers needs and
wants.
 To develop market, a proper planning process is necessary in order to achieve the desired
goals (Al Badi, 2018). To improve planning process company needs to determine