Analyzing Amazon's Strategic Marketing: A Comprehensive Report

This report provides a comprehensive analysis of Amazon's strategic marketing approach, focusing on its customer-centric strategies and their impact on the company's success. The report begins with an introduction to strategic marketing, emphasizing its role in increasing a company's reach and profitability. It then uses Amazon as a case study, examining its strategic planning, marketing plan, and the implementation of its marketing strategies. The main body delves into Amazon's corporate and business-level strategies, particularly its customer-centric approach targeting sellers, developers, and customers. It explores Amazon's marketing objectives, vision, mission, and the strategies and tactics employed, including the 4Ps of the marketing mix and the use of social media. Furthermore, the report analyzes Amazon's internal and external marketing strategies, including a SWOT analysis that highlights the company's strengths such as its customer-centric approach, effective delivery, strong brand, price leadership, diversification, and flexibility. The report concludes by summarizing the key findings and emphasizing the importance of customer-centricity in Amazon's marketing success. The report also includes references to relevant books and journals to support the analysis.

STRATEGIC
MARKETING

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Strategic planning...................................................................................................................3
Marketing strategies analysis.................................................................................................6
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16
Books and journal.................................................................................................................16

INTRODUCTION
Strategic marketing is a plan that is crated to increase the reach of products of the
company and satisfy the customers while increasing profitability and productivity. A company
cannot fulfill all the needs of its customers and therefore in order to maximize their benefits the
company segments the market into small sections and target one or two of them to get competitive
advantage. Strategic marketing helps in formulating strategies b y evaluating the potential of the
market in which the company wants to offer goods and services so that it can create maximum
customer value. Strategic marketing helps the company to maximize differentiation with other
firms in the mind of its targeted customers.
To understand the concept better, the report will take Amazon which is an E- commerce
company that is specialized in selling products and services over internet. It has taken the
advantage of web technology and deal with customers through internet marketing. There is no
denial that the company has long term vision and develop strategies to attract its customers. Due
to its continuous adoption of new marketing strategies.,
Amazon became world's leading retailer. To achieve success, the company has made
strategy that is fully customer focused and promotes both internal and external marketing. The
company is all focused on giving a delightful experience to its customers in most different ways.
The report will present Amazon's marketing strategy and will analyze Amazon's customer centric
strategy. It will discuss marketing plan, procedure of implementation of marketing strategies of
Amazon.
MAIN BODY
Strategic planning
Every business need to make strategy to be successful in the market and to retain the
customers. Strategies are the action plan that helps the company in achieving its objectives that
are set by them which can be increasing market share, profitability, retaining customers, customer
satisfaction etc. It provides information to the company as well as direction which allow it to have
competitive advantage over other firm in long term even when the environment of the business is
changing continuously (McDONALD, 2016).
With the help of direction sense and specified the company, strategic planning process is
very crucial to the company because it provides regular guidance to the company in taking
decisions and also helps it in evaluating the progress as well as point of reference when company

has to change it strategies and approaches in the fluctuation business environment. The effective
strategic planning helps in implementing business strategies and allow flexibility and changing
environment. This tool helps managers in defining objectives of the business along with
environment scanning with the use of various approaches and develop tactics which are necessary
to implement the strategy (Ansoff and et.al, 2018). The company has to make a strategic plan
which includes objectives, mission and vision statement, tactics, action and control etc. In order to
give tough competition to other companies in the global market, Amazon has developed and
implemented corporate strategy which is used by Jeff Bezos that is effective in nature and is fully
customer centric.
With the help of its strategies the Amazon has been able to deal with various changes that
occur in environment and rise in the market especially after attack on World trade center and
economic crises of 2008. It sustained the competitive advantage by expanding its business into
populated country like India and opening its first online store which gave boost to the company.
Amazon is most focused on its corporate and business level strategies and under which it focuses
on customer centric approach which serves three distinct groups of customers which are sellers,
developers ad customers.
Strategic marketing plan
Marketing is the most important function of any business which deals with identifying the
needs of customers and increasing sales and profit of the company. Marketing is the function of
managing profitable customer relationships (French, 2015). Companies to generate profit and
increase sales use market research, scanning of marketing environment and advertising with other
promotional techniques to promote its products and services. On the other hand, the process of
marketing needs to result in satisfying needs and wants of the customers but that is possible only
when company is able to design or provide a valuable product to the customers. To increase sales
and satisfaction of customers by designing unique products' which provides value to the
customers and they feel like the product are worth buying, marketing act as a tool used by many
companies in building customer loyalty and increasing competitive advantage of the company. To
get efficiency in marketing, company requires a planning process that guides and describes
particular set of outcomes that are need to be achieved to obtain desired objectives.
Strategic marketing is a tool that is used by top management people of the company and
helps to develop a strategy that fit between three attributes which are objectives of the company,

skills and resources available with market opportunities. It is a wide area that is concerned with
mission, vision, budget, target audience, objectives etc. The strategic marketing includes
collection of data and analysing it to help the company in understanding the market and to
develop strategy according to the information gathered. It ultimate helps in attaining long term
marketing goals of the company (Hanssens, 2016). The strategic market plan need to be flexible
in order to cope up with different situations and changes that occur in the market. The marketing
tool helps the manager of the company in deciding the path of the company that where it wants to
reach, provides deep understanding of targeted market and customers and focus on other
important factors. The Amazon's marketing plan focuses on providing efficient services to its
customers by providing personalized products to its customers which reflects a good image of the
company that puts its customer's first and is consumer centric company.
Objectives
The objective of Amazon is to be consumer centric and to satisfy its customers by
providing them personalized good ad services and to let them discover everything they want to
buy online in the cheapest rate possible (Marketing objectives of Amazon, 2019).
Mission and Vision
It is important for any company to setting up the vision and mission statement as a part of
strategic planning process and to give a clear idea to its employees and customers about
company's perspective. A mission statement of the company defines its objectives and approach
to reach those objectives. A vision statement evaluates the desired future position of the company.
The both statements clearly identify the culture, values, strategy and future view of the
organisation. The vision and mission need to be achievable and measurable (Marketing objectives
of Amazon, 2019). They guide management’s decision making on strategic issues especially
during times of significant change. They define standards of performance and inspire employees
to work more efficiently towards attainment of objectives. It also establish framework for ethical
behaviour.
Amazon's long term vision is delightful to its customers as it focuses on experience of the
customer by offering the products to the customers in low prices, convenience and wide range of
merchandise to select from.

The mission of Amazon also remains customer oriented and it states as earth’s most
customer centric company where customer can find and discover anything they might want to buy
online and make efforts to allow its customers to have the merchandise at cheap and lowest prices.
Strategies and tactics
To achieve competitive strategy and corporate advertising with distributors creates local
cost advantage in buying media space and time (Difference between strategic marketing and
tactical marketing, 2019). Amazon attracts its customers by using marketing mix strategy
commonly consists of 4Ps (product, place. Promotion and price). Also strategies and tactics used
by Amazon is positioning and targeting and segmentation as well as the tools and means of
communication means,
Action and control
Amazon started its business as an online bookstore and then expanded its operations with
other products in which it allowed other retailers to sale and post product through Amazon’s site
(Strategic marketing, 2019). The web technology of the company helped it in recording
customer’s behaviour of purchasing which company uses to make it services better and
personalized for its customers and offer relevant product and segment the market based on the
taste and preferences of the customers that are buying or seeing the product. Customer’s voice has
been the main element of Amazon’s marketing strategy as it focused on tracking packages and
quickly return it to the customers which brings simplicity and convenience to their online
shopping experience. Amazon uses social media techniques to engage with shoppers enhance the
quality of its customer service. It helps in addressing concerns of the customers and build solid
loyal followers of the coampny.
Marketing strategies analysis
The main assumption of the marketing strategy in the report is ‘the best marketing strategies
aren’t top down; they’re outside in, starting with the customer’s needs and wants’. Based on the
statement, Amazon’s internal and external marketing strategies will be analysed focusing on how
they target its customers in order to satisfy their needs and wants.
Amazon's internal marketing strategy
Every company in the world focuses on being customer oriented now a day. One of the
main factors to achieve this objective is to engage the employees of the firm in marketing process
that is effective so that the wants of the customers can be satisfied (Schroeder and Tunçer, 2017).

This top down strategy of promoting products and services of the company to its employees is
known as internal marketing. This strategy helps Amazon in staff building, and flow of effective
communication and integrations that help staff in understanding overall marketing within the
company. For the strategy, the top level management needs to embrace it.
Internal marketing plays a really crucial in building Amazon’s customer centric strategy
which helps Amazon to improve its customer services, to build strong customer loyalty which will
help the company in bearing its competitors. It was claimed that Amazon’s competitors are
obsessed with ecosystem of nested applications and services, while Amazon itself focuses on
platforms to serve their customers in the best way possible within limited time. It indicates that
company understands the expectations of its customers which are as good as achieving objectives
of the company; however, all employees need to understand this theory from the top management.
Amazon’s CEO speech indicates how top managers of the company adopt this approach and how
company’s strategy is centered to customers. Internal marketing is the key to superior service and
the outcome is external marketing success. In order to improve services and to be best in external
marketing (Greer and Vargo, 2016). Amazon made it important that employees understand
customer’s expectations which employees will meet together.
Swot analysis of Amazon
Swot analysis of Amazon:
Strength :
Customer centric strategy – Amazon’s customer centric strategy enable the company tom
record the purchasing power of the customers which Amazon uses to personalize its product and
services based on taste and preferences of the customers that visit to the site to buy or see the
product. This helps in managing customer relationships and loyalties (Moorman and Day, 2016).
Effective delivery – Through its partners and affiliation program Amazon has built strong
distribution networks which makes it product and services available in different places and offer
services in geographical locations.
Strong brand – Amazon has become a global brand due to being first website which
implement customer base marketing and hence became top online company.
Price leadership – Amazon has become cost leader in terms of supplying and delivering
books at lower cost to its target customers.

Diversification – Amazon has built its success with books and has expanded its operations
to different product categories which attracted new customer segments.
Flexibility and vision – Amazon has long vision and have flexibility in order to change
their marketing strategies according to the needs of the market and their customers.
Weakness:
Dependence on external delivery companies – The dependence on delivery companies on
outside can delay services of Amazon and it damages quality of product.
Other companies on Amazon platform – As Amazon allows other owners to sell and post
their products through Amazon’s website therefore it leads to damage of its global image in case
of the customer is not satisfies with the product and services offered by other marketers.
Vast delivery network – The income of Amazon is lower as the delivery network is vast.
Tax evasion – Amazon’s tax avoidance results in the negative publicity. It leads to
reduction in customers and lower down the income of the company.
Opportunities
Increase internet users – Web technology is dominant in the entire sectors and people use
internet and believed that online buyers will increase more over coming years which is
opportunity for e- commerce companies like Amazon.
Expansion opportunities – Amazon has expanded in pacific and Asian regions but it has
opportunity to expand its business in the developing world where e commerce is not in trend till
now which can create ultimate profits for the company.
Acquisition opportunities – Amazon can use acquisition strategy for expansion and
growth. The company can use this strategy to also decrease its competition.
Customer relationship programs – The Amazon can improve its customer relationship
program by assisting the customers 24 hours and assisting their issues and feedbacks in order to
improve products and services. It can also conduct training programs for its employees to train
them in order to give good services to the customers.
Threats
Increasing competition – As the entry of the firms is easy in e commerce industry and
many offline companies are coming online which means high competition for Amazon and price
wars between different competitors. This leads to decrease in margin of Amazon.

Regulations – Some countries do not have clear policies on FDI, which act as limitations
to many e commerce industries and Amazon is one of them.
Marketing mix of Amazon
Marketing mix of Amazon is regarded as a potential approach to attract customers. As
already mentioned Amazon is the biggest e commerce company which has different tactics and
strategies to gain competitive advantage and to increase competition in the industry. It is believed
that the customer centric strategy of Amazon works effectively (Schroeder and Tunçer, 2017). It
helps Amazon in attracting and retaining its customers and increases its market shares. The
marketing mix analysis of Amazon will be linked to make effective firm’s strategy. If the strategy
is well implemented, it helps Amazon in achieving their marketing objectives and establishes the
position of products and services in the target market by providing value to customers.
Amazon’s product mix – This strategy focuses on number of products that company offers
to its customers. The companies using marketing mix need to consider tools like variety, quality,
design, features, brand name etc.
There is variety of products and services that are available in the online store of the
company. Amazon has continued its expansion and product diversification which range from
retail goods and services such as Amazon fresh, web services, prime etc. This product line
supports the vision of the company of becoming more consumer centric as diversification brings
customers satisfaction and offer them many choices and can find what they really want and need.
Diversification leads to customer satisfaction. Company’s product expansion has been huge
improvement in marketing mix. In addition, The Company offers product membership which
includes shipping cost for customers who buy the products from the website.
On the other hand, Amazon allows other retailers to post and sell their products through its
platform which may damage the brand of Amazon and can reduce its value due to unpredictable
quality of products from other retailers hence the company is advised to check the quality of the
products offered by affiliate retailers before they are posted (Zhu, and Liu, 2018).
In order to retain and acquire existing market shares. Amazon’s marketing mix is gaining
efficiency as new products are being added to the sites which reflect efforts of the company to
expand its product line. However, Amazon needs to consider and check the quality of products
offered by its affiliate retailers on Amazon’s platform.

Amazon’s place distribution – Places include all channels of distribution, inventory,
locations, logistics and transportation. As being an online retail business Amazon uses its official
e- commerce website to reach to its customers. As based on preferences of the consumers, the
company has opened physical stores in some locations which allow the customers to valuate the
products before they make a purchase. Apart from their online place and some physical locations,
the company has organized events for its customers like Annual Amazon services in order to
reach to potential customers to interact with them and convince them to pay for the products
which they see online on Amazon sites. Amazon’s marketing mix based on place is highly
dependable on it online platform to reach the target customers.
Amazon’s promotional strategy – This strategy of company focuses on advertising, sales
promotion, publicity, public relations and personal selling etc. Under promotional mix of
Amazon, the company basically uses different tactics and strategies to convince and influence
customers to visit and pay for the online products and services. Among these various strategies,
advertising is the most important in collaboration with sales promotion and building public
relation as well as implementing technique of direct marketing,
The company uses different affiliate program to corporate with different website owners to
display advertisement of product with the link to their commerce website so that their party can
earn revenue on sales. Amazon uses discounts offers to attract customers and to generate sales and
profit. Again through Amazon smile, company offers part of it profits to charity organizations to
increase brand value and customers positive perception towards the company. All these strategies
of promotion are used to attract and satisfy customers and eventually increase sales. In short, this
strategy allows Amazon to effectively communicate to its target customers who persuade the
customer to visit the site and buy their product online.
Amazon’s price mix strategy – This strategy deals with fixing product price levels that
attract the customers. The price strategy consists of techniques like discounts allowance, payment
period and credit terms. Amazon uses the same strategy tom attract the customers for it various
kind of products which are available on the e commerce sites. It used a combination of pricing
strategies such as price discrimination, market oriented pricing, economic pricing etc which is
most common and most used for the company. The market oriented pricing deals with analyzing
the price that is fixed by competitors in order to provide affordable prices to the customers

targeted (Zhu and Liu, 2018). However, Amazon sometimes sets different prices for the same
product and does price discrimination. For example the product price between UK and USA is
different. Pricing strategy allows price flexibility based on conditions of the market and is backed
with value based pricing strategy which considers product value and market preferences.
Therefore, the marketing mix strategy reflects flexibility in the price adjustments to price
of the market in order tom attract more customers. In order to have market growth and market
share, the company need to consider the current condition of environment and complexity which
will result in high competition and instant changes in trends of the market forces company to keep
it market mix up to date and effective. The ability to retain competitive advantages relies on
satisfying customers and providing benefits to them, hence Amazon need to remember that
customers always want better selection of product with better service and ease of convenience.
Amazon’s price marketing strategy is influenced by voice of customer as customers seek for
products at low prices and good quality and Amazon provides the goods and services to its
customers at minimum cost.
STP of Amazon
Segmentation
For business to survive in the global market, they need to maintain their profitability and
hence focus on their profitable customers. Organization has to focus on their customers and need
to commit them to identify and fulfill needs of the customers. This is the most common key
principle to successful marketing, where all the other companies are fighting to retain existing
customers and capture market share. In marketing, the customers sharing same characteristics
referred as market segment.
It is a marketing strategy that divides the customers on the basis of their needs in order to
provide better service and product of their need to them. When customers have similar
characteristics, they are identified and grouped, the products and services are made in each
segment that satisfy needs and wants of customers. Segmentation can be done on the basis of
many traits and attributes which are customer behavior, demography etc.
Acquisition of new customers is very crucial to any business, considering the value new
customers bring to a business. The process that involves influencing customers to Purchase
Company’s product and services, require strategies and implement a proper plan. The most
effective strategy to acquire new customers is to understand their needs and wants and spend more

on acquiring them rather than spending. It is difficult to acquire customers, and beyond acquiring
individual customers, segment acquisition refers to acquiring customer segments. It is seen as the
process of acquiring specific customer segment through selected market share. (Hanssens, and
Pauwels, 2016) No business can survive without customers therefore the managers of the
company to understand and maintain customer’s needs and wants in order to maintain existing
customers as well as acquiring new customers.
Amazon is considered to be good in acquiring its customers as it made it easy for them to
order from their websites and has built strong customer relationship such as the customers did not
have to leave their houses but they still trust Amazon with their product and packaging and
Amazon deliver the product to them in limited time. The company’s ability to gain so much of the
market share is because of its personalization and brand engagement strategies which make
customers use their product more than other competitors (Greer, 2016). Automation techniques
has also made it easy for Amazon to record all the data related to purchasing which helps the
company formulating different strategies like adding the customers to newsletter list, sending link
to Amazon blog, suggesting customers about the products etc. All these tactics indicates how
Amazon is driven by acquisition of customers and retention.
Targeting
After market segmentation, another market strategy used by the company is market
targeting. It is done once the management of the company identified its segment in which they
want to sell their products in. the strategy analysis the consumer’s capability of spending and
company’s ability to satisfy their wants and needs. Implementing targeting strategy means
concentrating sales of company and efforts of marketing on a given segment. Customers need to
be provided with the products and services which are relevant to them else they will not buy it. On
the other hand, under this strategy the company loses business opportunities as some consumers
do not fall under the segment.
Amazon being a global e commerce company has been continuously targeting individual
customers where segmentation at micro level focuses on their purchase behavior. This helped the
company in converting its website visitors into long term customers. The company focuses on
customers that know about technology due to its online nature of business. The customers of
Amazon belong to both middle and upper class of all social groups. Some of them are business
professionals who do not want o waste their time in going to physical stores and buy products as it

is easy for them to buy it online. Amazon customers are those who are looking for offers and that
is why company offer discounts for specific days (Sliter, 2016). Currently the customers of
Amazon are from worldwide and its website is used by consumers, developers, sellers, content
creator and other enterprises. Each group has unique needs and preferences and Amazon keeps
innovating new solutions to make things better and cost effective.
Positioning
After clearly defining the target market, now the last thi9ng is that how customers perceive
the value of products and services offered by Amazon with other products offered by other
competitors. Positioning refers to understanding how consumer will look at a product and other
products available in the market. Due to this fact the customer position a product in their mind
based on the benefits and features (Chaffey and Ellis-Chadwick, 2019). The firm’s positioning
strategy can be based on variety of features like emotion, quality, price, use of product, attributes
etc.
Amazon has positioned itself on price as its targeting wide range of customers who can go
for offline retailers as well. Amazon has initiated specific websites for each country separately to
prevail them with prices that will be suitable for them. Amazon has opened some customer centers
that receive customers in their native language and with customer representatives understands the
need of the customers.
The main step is to satisfy the client with convenience. Good marketing strategies can
engage customers in the business. Amazon has introduced different local payment options that
ease the procedure of payment. However, the dependence on the external delivery companies is
very crucial. The services of the company can be uncontrollable and incur lot of cost while
passing to the customers (Kuma, and et.al., 2019). Although offering free shipping services is a
good strategy to attracting and maintaining customers which ended as making profits for the
company. Amazon has positioned its targeted audience by changing their marketing strategies
according to the demands of the customers.
Strategic gap analysis
Although the company has built strong and good relationship with its customers and third
party sellers, yet there is need to collaborate with public institutions like public libraries so that
customer can easily search the catalogue of Amazon. Since the company is also involved in

offline market therefore there is need to develop new offline marketing strategies to increase the
competition. Amazon can adopt the strategy of improving its product and services with the help of
review provided to them by the customers. If Amazon listens to the feedbacks and complains of
the consumers seriously then it leads to strong customer relationship.
Scenario forecast and recommendations
From the above strategies and tactics, there are some other factors which can lead to
Amazon’s success include Amazon goes live which included influence program, headline search
ads, prime subscription for customers etc. Amazon is advised to keep the strategies that worked
and were customer centric. In upcoming years, the drone delivery is believed to contribute to
Amazon’s customer service. This will attract new customers and will strengthen their loyalty
towards the company and will lead to boos tin sales which will maintain position of Amazon in
global market.
The 4ps marketing strategy becoming popular in today’s business, every company wants
to be customer oriented like Amazon. It requires Am Amazon to keep its relevancy rather than
focusing on its customer reach (Narula and Jain, 2015). To do this the company will need to
optimize more elements and principles of marketing mix such as pervasiveness, preferences, post
impression activity etc.
Customer preferences matter a lot in current marketing condition because what interests’
consumers has a major impact on their attitude and activities. When company understands its
customer’s preferences they are able to make relevant strategies. While focusing on consumer’s
preferences and needs, it will help the company to remain relevant and proper programmatic
which will ensure efficiency.
Programmatic indicates how well the relevancy can be achieved by the company in a cost
effective manner. Customizing services according to preferences to deliver individual campaigns
would be both time consuming and expensive as well therefore to achieve the level of
programmatic technologies will enable one to one customer relationship at large scale. Therefore,
Amazon needs to focus collecting analyzing and combining the data of customers for efficient
advertising which will increase customer’s ad experience and will show the company that product
or service that really interest them.
On the other hand, physical affect would help Amazon to speak to its customers in a better
way and to deliver the right message to the right customers when it will be more efficient. This

means to reach to the customers through any media and keeping constant interaction based on the
preferences of the customers (Goodman, 2019).
Finally, market research will inform Amazon about its growth and ultimate results in order
to remain relevant. This industry relies on real time technology and data driven solutions therefore
a device would be necessary to assess the marketing strategy of the company that is really taking
advantage of digital capabilities and cre4ating relevant campaigns for consumers or not. Amazon
is recommended to focus on these four attributes which will help it in creating more effective and
creative advertisements and better customer experiences.
CONCLUSION
The report however focused on how Amazon focused on being customer centric and achieved
success. It started as a small online retailer for books and faced a lot of challenges which lead tom
occasional loss for the company. As the company always driven by long term customer centric
strategy which started gaining importance in the field of marketing and company became giant in
the industry. The strategy of the company helped it in facing a lot of issues threats, competitors
and achieves profitability. The main key factor to the success of the organisation is to provide the
customers with superior value and effective shopping experience while introducing better
software and storage facilities. Although Amazon has successfully positioned itself in the market
it has to struggle with many emerging competition as many offline company are becoming online.
This makes it important form Amazon to keep its marketing mix up to date and relevant in order
to focusing on execution of its consumer centric strategy. However the 4 p’s strategy is becoming
more popular and for future success of the company it needs to keep up with new technologies
which helps the company in better understanding of customer’s needs and preferences and get the
exposure of what they desires. The report also consists of stp strategy to show segmentation,
targeting, positioning used by Amazon in order to gain competitive advantage and to retain new
and existing consumers. This strategy helped the company in positioned itself in the market where
customers are technology literate and did not have time to go to offline stores and hence shop
from online platforms which increases the level of trust among customers for Amazon. In short
the report concluded that Amazon is a consumer centric company and customer’s satisfaction is
it’s priority.

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