Report on Amazon's Marketing Strategy: Principles, Decisions, and STP

This report provides a comprehensive analysis of Amazon's marketing strategies, focusing on key marketing principles, rationale behind marketing decisions, and the application of segmentation, targeting, and positioning (STP). The report begins by outlining the four Ps of the marketing mix—product, price, place, and promotion—and how Amazon leverages these principles to attract and retain customers. It then appraises the rationale behind Amazon's marketing decisions, emphasizing the company's customer-centric approach, SEO optimization, email marketing, and user-generated content. Finally, the report discusses the STP model and its application to Amazon's product and service offerings, highlighting how the company identifies target segments and positions its products effectively. The analysis reveals that Amazon's marketing strategies are heavily based on online mediums, with a strong emphasis on customer experience and building long-term relationships, contributing to the company's high customer retention rate and brand image.

Report

Table of Contents
Introduction.................................................................................................................................................3
Main Body...................................................................................................................................................3
Key marketing principles and their application in organization...............................................................3
Appraise the rationale of marketing decisions of organization................................................................3
Discuss concept of segmentation, targeting and positioning for specific product or service....................5
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

Introduction
Marketing is a crucial business function that is related with promotion and advertisement
of product or service. Main aim of marketing is to increase the customer base of company by
adopting suitable techniques of promotion. In addition to this, marketing is a process of creating,
communicating and exchanging products with customers in order to generate value. It is an
imperative activity which helps in setting unique and different identity of an organization in
market place (Tong, Luo and Xu, 2020). For present report, Amazon is taken into consideration
that is a prestigious organization of united state of America. It offers variety of products such as
home appliances, groceries, mobiles, electronics and more. It is one of the largest e-commerce
company across the globe. Amazon was started by Jeff Bezos as an online book shop and it has
gained tremendous growth over the period of time. Main aim of present report is to analyze
marketing strategies of respective organization. Here, principles of marketing are covered in
detailed manner. Further, it also includes appraisal of rational behind the marketing decision of
respective organization. At end, segmentation, targeting and positing is also assessed in respect
of product or services of chosen company. Moreover, marketing strategies play an integral role
in success and growth of business entity.
Main Body
Key marketing principles and their application in organization
There are four marketing principles of marketing generally referred to as 4ps of
marketing mix that mainly companies uses for forming its strategies of marketing. The four basic
principles of marketing is product, price, place and promotion that is interconnected and work
together to form a beneficial strategy for company. Now, in context of company Amazon discuss
about the key marketing principles and how how its application can be used to attract the
customers within organization (Rozaq,and et.,la 2020).The marketing strategy of Amazon mainly
analyses the brand with framework of marketing mix which generally covers the product, price,
place and promotion. In addition, the Amazon marketing strategy assist brand and company to
position itself within competitive environment to achieve company business goals and its
objectives.

Product - Amazon is one of the leading company of e-commerce and also recognized as
one of the top five IT companies in global context. Amazon has a vast offering in its product
portfolio in its marketing mix. These products are not only sold by Amazon but also by sellers of
third party. These are the models of company that brings several profits to company Amazon.
The company Amazon also focused to start marketing gadgets like e-book, fire tablets as well as
phones. The company Amazon also focused to providing a host of web services like for example
cloud storage, database services to undeveloped new start-ups and other organization (Ribeiro,
Fernandes and Lopes, 2020 ).
Pricing- The company Amazon has got a market leader as well as competition that is
based on pricing strategy in marketing mix. As the different types of services are offered by
Amazon and its pricing strategies are also different. The amazon uses technology to its
advantages in setting the prices of products. However, Amazon offers the lowest prices and also
this is made possible by the efficiency as its operations. In relation to the company pricing
strategy the company Amazon also provides several value added services like prime users and
one day delivery to Amazon prime users.
Place - The company Amazon is a global brand and its presence all across the world.
Once the customer will place the order the distribution channels of Amazon will comes into an
effect. The Amazon comprise a huge warehouse in various strategic location. However, the
company Amazon uses the local, postal and courier services in relation to their transportation of
packages.
Promotion- The promotional and advertising within Amazon marketing strategy is as
follows. The Amazon uses its competitive campaigns of marketing for doing promotion of its
brand. When this comes to promotion the Amazon leaves the no stone within its marketing mix
promotional strategy. However, the another important things in sales promotion is an effective
sales promotion as well as discounts during holiday seasons and festivals that provides results to
high visit of customer to website (Sari, and et.,la2021)
People - The Amazon provides a great importance to their workforce. In relation of what
level and domains of organization. There are also some working peoples that gets various
benefits from company Amazon which can helpful to make it is a desirable employee. Also

there are nearly 2,30,800 employee that is working across the globe to make sure the best
customer experience. The company offers its employee a extraordinary deal of training as well as
development of activities.
Process - The Amazon is world leader in terms of e-commerce as well as web services.
As Amazon is strategically will divided its warehouse as well as fulfilment of centres for
operational efficiency. The company also uses its best business strategy to support of technology
and its daily activities and its advertisements.
Physical evidence; The Amazon is the biggest physical presence of in its websites. As
this is an online retailer of the place and its websites, that is very user friendly and helps to built
the attractive design. However, Amazon warehouse and its fulfilment centres will present in
every country and its operations are the largest and it can be easily find by anyone. The Amazon
packages also supports the logo of company. However, Amazon releases its financial reports for
its investors and yearly providing some information about company. However, the above
assessment will summarizes the report of marketing mix on company Amazon (Zhou, 2021).
From the above assessment the amazon strategy has been proved in a successful manner in
order to attracting and retaining the customer in a very large number. In addition the customer
service and its pricing strategy also plays an important role in making the company popular
globally. The company amazon is position as the e-commerce players has become the challenge
for the physical retail players. However, company Amazon has found the success by using the
promotion as a way of marketing of company. The company used such tools to attract them by
the help of website, convert them for visitors into a potential customers and also close them as a
customers. Moreover, they are also focused to build a relationship through e-mails and social
sites like Facebook, Instagram, Twitter. Etc.
Appraise the rationale of marketing decisions of organization
Amazon is a well-known company in the field of e-commerce. It is analyzed that
marketing strategies of respective organization are also remarkable. Customers are considered as
the major stakeholder by company thus they focus on building long term relationship with
buyers. By keeping the requirement of customers in mind, they add new and advance feature in
website. Main aim of Amazon is to offer best possible experience to customers, each & every

time they visit to website. In this context, they also take reviews of buyers and work for further
improvement. Looking at the current scenario, marketing strategies of Amazon are based on
online and modern techniques. They apply practices of digital marketing in order to get success
in current competitive environment. In case of respective organization, digital and online
marketing is really important as their business is completely based on Web. In addition to this,
perspective of customers is also getting change nowadays. As a result online practices might
drive positive outcomes. In 2020, nearly 2 billion people purchased goods through online mode.
In the same year sales of e-commerce retailer cross 4.2 trillion USD. Due to impact of pandemic
sales of global e-retailers grow with more than 25%. Online marketing strategies played a crucial
role in success of Amazon. In 2020, Amazon became most renowned online retailer at global
level (
E-commerce worldwide - Statistics & Facts, 2021). In this context, marketing strategies
of respective entity are mentioned below:Optimized SEO: In current time, users generally search for the products of Google before
making actual purchase. Here, search engine optimization helps in improving the ranking of
website by increasing traffic. It helps to meet with the requirements of customers while they
search for a particular products using certain keywords (Fullerton, Brooksbank and Neale, 2019).
In case of Amazon, SEO of organization is really effective hence they are able to optimize the
content. Better SEO practices help company in meeting with needs of customers in real time. It
allows Amazon to enhance its presence over Google so that people can easily reach to their
products. This practice is a crucial step towards enhancement of sales and brand image.E-mail marketing: It is one of the crucial marketing strategies that is applied by Amazon.
Apart from the other marketing practices, company also sends personalized product
recommendation to customers. In addition to this, emails for friendly reviews are also sent by
Amazon in order to get genuine reviews of customers (Saura, Palos-Sanchez and Correia, 2019).
Apart from that, respective organization also introduces discount offers in different intervals. For
this purpose, they also forward reminder mails to customers. It is the best practices to get in
touch with buyers. This strategy help company in building trust among existing and potential
buyers. With this, it is possible to build long term relationship with buyers which will lead entity
towards growth & enhancement.

User generated content: Content of Amazon is created by considering customers.
Amazon is known as customer-centric company where more importance is given to customer
satisfaction rather profit. They offer such products which are required by customers. In addition
to this, content of website is also optimized to meet with need of buyers in an appropriate way.
With this approach, organization is able to drive more and more traffic over website which will
help in enhancing sales & profitability in future period of time.Customer Centric approach: Customers really play an integral role in marketing. Ultimate
goal of each and every company is to attract more and more new buyers and retain existing ones.
For this purpose, marketing practices are performed. In case of Amazon, they also give high
importance to buyers (Vergamini, and et. al., 2019). In this context, they prepare user centric
approach, add new features in website. On the top of that they also send customized emails to
buyers. With this, customers feel that they are a valuable part of business. This approach helps
company in maintaining trustworthy relationships with buyers. In current competitive world,
loyal customers are considered as one of the imperative assets of company.
With above discussion, it is found that marketing strategies of Amazon are moreover
based on online medium. Looking at the current time, online marketing practices are best for
enhancement of business. These practices will also help company in facing competition in best
possible way. All the marketing strategies of organization are based on single aspect which is
customer experience. Main aim of marketing practices of Amazon such SEO, E-Mail marketing,
content is to get connected with customers. With the effective implementation of such strategies,
they ensure to facilitate long-term and positive association with buyers. This association will
enhance brand image of organization in market place. It is analyzed that majority of customers of
Amazon are repetitive buyers. Retention rate of company is more than 90%
(How Amazon
Maintains over 90% Customer Retention, 2020). They not only purchase products for one time
but also visit website frequently. This is because of the trust which Amazon has built among
buyers over the period of time.
Discuss concept of segmentation, targeting and positioning for specific product or service
STP is a well-known model that is used in order to select an appropriate target segment
and position the product among target segment in right manner. It is a method applied in modern
marketing with an aim to prepare tailored marketing strategies. This tool aims to meet with

requirements of customers by creating personalized message during launch of product. STP
model includes segmentation, positioning and targeting (Handoyo, Nurdyansyah and Haryanto,
2020). Here, main aim of this model is to position product or service in target group efficiently.
This framework also helps in making optimum use of available resources. In context of selected
company, STP framework is outline below:
Segmentation: It is the first step wherein whole market is divided into smaller
components. This process helps marketers to understand requirements of customers in better
manner. With this, it so possible to prepare more targeted and effective advertisement in order to
formulate better image amongst target segment. It includes four dimensions which are mentioned
below: Geographic segmentation: This is based on location, region wherein customers reside.
Here, marketers divide the whole market into smaller regions, cities so that they can target
potential customers. In context of Amazon, company covers nearly 100 countries across the
globe. In addition to this, Amazon has been expanded its market reach thus serving both to urban
as well as rural market.Demographic segmentation: It is based on age, income, occupation, marital status and
other such factors. It is a widely used method of segmentation that is applied by majority of
companies globally (Paruchuri, 2019). In context of Amazon, they are using demographic
segmentation where they are targeting customers of age group between 18-45. Products for
males and females both are offered by company. Here, products are available for students,
specialists as well as working professionals.Behavioral segmentation: It comprises factors such as frequency of purchase, brand
loyalty and more. In case of Amazon, they use this method of segmentation in order to divide
customers as per their purchasing behavior, habits. They also divide people as per user status
such as non user, potential users, first time user and more.Psychographic segmentation: This method of segmentation includes elements such as
attitude, personality and behavior of customers. Each and every customer differs in terms of
personality traits. In context of Amazon, they segment people on the basis of social class, life

style and other such factors. They have made different customer segment based on life style such
as resigned, explorer, aspirer and more.
Targeting: After segmentation, the next step is to determine target segment. Here, certain
factors such as profit, cost, needs of customers, available resources and more need to analyze. It
is important to select an appropriate target segment in order to ensure long term success of
business entity (Islam, 2020). In case of Amazon, they are targeting to youth segment majorly as
millennia’s have better exposure with technology. In addition to this, they are targeting to people
of all gender, race, caste, social status and more. Whether high or lower social status, there are
products for all customers are available on website of company.
Positioning: It refers to the way in which a product or service is perceived by customers.
In order to survive in current competitive market, it is imperative to ensure positive positioning
of organization. Here, markers use suitable techniques of promotion and advertisement in order
to position the product or service in positive manner. Positive positioning is not an easy task.
Company is required to put significant efforts with an aim to build loyal customer base (Jan and
Victor, 2019). In context of Amazon, it is perceived as lower cost provider company. Apart from
this, it also offers extraordinary convenience to customers as they can get all the necessary
products at one place. In addition to this, it is also perceived as a loyal service provider. That is a
reason that most of the customers of Amazon stay with them for longer period of time.
After going through with above mentioned points, it is found that Amazon adopts suitable
method for segmentation. Here, geographical, behavioral, demographic and psychographic
segmentation is applied by entity for effective segmentation. Apart from this, they majorly target
to young customers who are efficient in use of technology. In terms of positioning, Amazon has
been positioned itself as a quality service provider at relatively lower price.

Conclusion
From the above report, it has been analysed that marketing is the process of getting
people interested within company products as well as services. This can only be determined by
the help of market research, market analysis and understanding the ideal interest of customers.
The marketing pertains to all aspects of business that includes the development of product,
distribution of method, sales as well as advertising. In addition, this report also comprised the
principle of marketing mix and what are its affects within organization, as well as a rationale of
its marketing decisions of company amazon this includes optimized SEO, E-mail marketing and
customer centrist approach. The concept of segmentation, marketing and positioning for the
products and services of Amazon is discussed in above report. However, this above report
consists of an appropriate information about the strategies of company Amazon and how it
become useful for achieving goals and targets of company.

References
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