Marketing strategies and online business. The example Amazon

Essay , 2021 , 13 Pages , Grade: 800

Business economics - Offline Marketing and Online Marketing

Amazon began as a small online version for books, going through a series of demanding market situations that were constantly updated. Based on a long-term modern oriented strategy, which was still important in the field of advertising and marketing, the agency became a giant in the enterprise. This method has helped the organization update unique threats, update them, reduce costs and achieve profitability. The updated primary key renewed this success: it is updated with an excellent price and enjoys the purchase until it has started several physical updates in special places, has introduced improved software and garage centers.

Table of Content

1.0 Introduction

2.0 Main Body
2.1 Marketing Strategy
2.2 Vision and Mission Statement
2.3 Amazon Positioning
2.4 Action and Control
2.5 Amazon’s Marketing Strategy Analysis
2.6 Amazon Segmentation
2.7 Strategic Gap Analysis
2.8 Scenario Forecast
2.9 Bottom-up as against Top-down Marketing Strategy
2.10 Conclusion and recommendation

References

1.0 Introduction

Marketing and promoting an online business is, here and there, like advertising some other business since it involves comprehending the clients and what the client is searching for that online business can give. Strategic marketing involves determining what customers want and the organization is able to serve, what products and services should be offered to them and how. Amazon.com, Inc. participates in the arrangement of online retail shopping administrations. It works through the accompanying industry sections: North America, International, and Amazon Web Services (AWS). The North America section incorporates retail offers of buyer items and memberships through North America-centered sites, for example, www.amazon.com and www.amazon.ca. The International fragment offers retail offers of buyer items and memberships through universally engaged sites. The Amazon Web Services fragment includes in the worldwide offers of PC, stockpiling, database, and AWS administration contributions for new companies, undertakings, government organizations, and scholastic foundations. The organization was established by Jeffrey P. Bezos in July 1994 and is headquartered in Seattle. Amazon.com fixated on the rousing vision articulation to be "Earth's most client driven organization whiles the strategic Amazon which steady with the vision explanation, "to use innovation and the skill of indispensable workers to furnish client with the best shopping experience both neighborhood and at global level. This has vehemently contributes to its awareness creation and income generation globally.

2.0 Main Body

2.1 Marketing Strategy

Successful companies create and rely on business plans to help guide them and clarify priorities. Business plans detail the ways in which companies try to rationalize their resources, participate in production and even manage their customers. The most important thing is that solid business plans include strategic marketing plan. An effective marketing plan will enable an organization to comprehend the market it is focusing on and the challenge in that space, comprehend the effect and consequences of marketing choices and give guidance for future activities. Although marketing plans may vary by industry, the type of products or services and the objectives intend to achieve.

According to Hydoxdwlrq, Frqwuro, and Pdunhwlqj (2009), strategic marketing is a that prompts the procedure by which association, gathering and people what they need and need by recognizing esteem, accommodating and conveying it to other people. The fundamental idea of marketing strategy are clients needs and qualities; items, trade, relationships and communications. In line, Amazon.com's advertising methodology is intended to reinforce the Amazon brand name, increment client traffic to the Amazon.com Web destinations, encourages customer’s patronage, manufactures client dedication, develops increment product and services income opportunity. This has amounted to strategic of clients driven.

Client driven included asking clients what they needed, and sifting through how their needs would be conveyed to them, and at last, conveying it to them (Omalaja and Eruola, 2011). The other significance for client driven is advancement for the benefit of the clients. As per Amazon, advancement just methods looking for what the clients don't realize they need and conveying it to them, which is known as “bottom-up marketing strategy”. Bottom-up marketing strategy is just building up successful technique from the base up. Simply after the requirements, needs, and psyches of the customers are comprehended. Once the opportunity emerges, strategies are created to fulfill the need, center and refine the activities of the organization. Once a sensible picture develops, a strategy can be made to such an extent that the whole entire company can take the right moves and make bit of leeway of chances that really exist. The third significance is the personalization idea of the web. So as to suite this third importance of client driven, Amazon updated their store to suite every client, by propelling their store administration'. This made an interpretation of this vision into the real world. Amazon esteemed to convey advantageous, chose, services at a broadest value (Timothy, 2000).

On the other hand, looking at top down strategy is for officials to characterize the technique and focus on the service to finish execution and strategies. The more compelling strategy is for an official to be on the bleeding edge working with the clients. This is on the grounds that a procedure created in relative seclusion from clients is probably not going to use off of the organization's situating in the client's psyche. The official's target is distinguished the serious mental point or the position/specialty an organization holds in the clients mind. This prompts distinguishing a straightforward differentiation strategy. Certainly, Amazon engages both in bottom-up and top-down marketing strategy, only that bottom up is kept abreast for effective deliveries and best shipping experience to the customers.

2.2 Vision and Mission Statement

Various factors must be taken into account when a company is competitive on a global market. The team members and strategic plan makers would give a flow of ideas and suggestions. Out of them are the most relevant ideas, understanding the customer and its demands, establishing a correct network for reaching them, knowing and becoming one of their cultures and traditions.

When it comes to the first point of customer understanding, it's not just an inspection and knowledge. Other companies would supply them with their products of necessity. The customer must perform the most cost-effective improvisation to enter into their market-orientation strategic analysis and planning in relation to the products requirements (Papulova, Z. 2014). Instead of the company approaching the customer, he should be attracted to the product. The next step is networking or marketing. The company must always be alerted to networking by an efficient and energy-efficient team (Hawthorne, 2019). Amazon.com's mission statement has been constantly based on it’s essentially – the online Amazon.com customer. Amazon has had an unmistakable, since it began in 1994, concentration, solitary and crucial mission, has made to be in the forefront of global market. Amazon has a long-term vision of relentlessly focusing on customer experience by offering wide selection of merchandise, convenience and low price. Amazon's marketing strategy plan, one of the most recognized online retail brands around the world. Amazon.com is obsessed with its visionary vision to become "the most customer-centric company on Earth, while Amazon's mission in line with its vision statement," to leverage the technology and expertise of our valued employees to provide our customers with a shopping experience and the best on the internet (Amazon, 2010).

The above explanation reflects that amazon.com wants to be global leader in the e-commerce business by providing quality items with a understandable value by using recent innovation to fabricate customer database and add marketability to their brand; in this way, taking into account benefits of the partner and producing benefits for the organization. Spread out them and create a virtual commercial center where customers can buy conveniently from home.

2.3 Amazon Positioning

Once an organization has clearly characterized its objective fragments, it has remained as customers view their articles / administrations in comparison with various available articles. Situation elicits in a relative way "a buyer takes a gander at the article and the other controversial articles available on the market" (AMIN, 2017). Depending on how customers position an item as a top priority depending on their benefits and highlights, the company can put together its situational methodology with respect to an assortment of highlights, such as value, quality, feeling, article customer, article usage, traces, and so on.

Amazon is positioning itself at cost because they focus on a wide range of customers that can at least be for separate merchants. So to determine its difference, Amazon has started explicitly launching internet business pages for each nation and has opened several client sites that receive customers in their local language and with customer delegates who understand the requirements of the customers.

This is an important prerequisite for reaching and serving customers when it suits them as well. Major advertising system is the decentralized structure that can serve customers 24 hours / day and draw customers into the business. Despite introducing free shipping in 2001, Amazon has additionally presented several neighborhood installation choices that facilitate installation techniques. Fadikar (2015) becomes a case in which the organization presented and supervised the postal services for German and French clients and the organization of the European shipping dispatch organization in the case of the transfer of local customers.

In any case, this dependence on the ground transport organizations is elementary. To some degree, the management of the organization may be wild or involve other expenses to be passed on to the client in the long run. A run of the mill model is the point at which the transportation of an item or administration requires costs on fuel or other tax collection that the organization cannot assimilate. Currently, costs are passed on to the customer where the later negative effects can reduce consumer loyalty.

Once again, despite the fact that the free delivery of the administration offers a decent methodology for attracting and looking after clients, it can also dissolve the organized benefits.

2.4 Action and Control

Amazon started out as an online bookstore and then expanded its business to another class of articles that allowed some retailers to sell their products through the Amazon platform. Web technology innovations enable organizations to capture buyers’ purchases behavior, which organizations use to personalize their services, provide meaningful products and display market-based measures that customers show when they buy or visit goods.

2.5 Amazon’s Marketing Strategy Analysis

The main underlying assumption is that, the best marketing strategies aren’t top-down but outside in, begin with the customers wants and needs. In this sub-section, internal and external marketing strategy of Amazon will be analysed concentrating on how they give listening hears to customers’ voices in satisfying their needs (Goi, 2009).

2.5.1Amazon Internal Marketing Strategy

In today's business world, all companies try to be organized customers (Kaushik, 2013). One of the key factors in achieving this goal is to remind allies of employees a progressive process with the goal that they can work together to address customer issues. This top-down framework for managing company’s product and service for their employees is known as internal marketing. The system incorporates unique and impressive boundaries in the same correspondence as the merger which assists representatives in understanding the goals of promoting overall cohesion. To provide a method for development, Walter et al. (1994) argue that to directors must first adopt it.

Internal marketing has become a critical activity in building Amazon's customer-driven strategy, which has helped the association improve client organizations, build strong clientele, and in the long run, defeat their opponents. It has been said that for a long time Amazon's opponents have been focused on an exceptional natural arrangement of referenced applications and organizations, while Amazon is based on booths that serve their customers in the best way and as quickly as normal in light of the current situation. . These exhibitions understand customer evaluation is at a standard with understanding company’ goals, so all specialists should meet this standard, beginning with the board. How tremendous levels of director get this process and how the organisation strategy focuses strongly on the customers: "Our customers are winning for us until the consistency improves," said Amazon CEO Jeff Bezos (2017) as shown by Walter et al. (1994): Internal marketing is the best approach to unthinkable support and the result has come to the reach of outside promotion. "To enhance customer support and meaning in the external marketing, Amazon has made it imperative to understand sales desires for the customers they work with.

2.5.2 The 4Ps of Amazon Marketing Strategy

Marketing mix is a combination of different marketing decisions that companies use to sell their products and services (Rahmani, Emamisaleh & Yadegari, 2015). After identifying the market and gathering basic information about it, the next step is to program the brand instructions, determine the tools and strategies to meet the customer's needs and the challenges of the competitors (Singh, 2012). The term "marketing mix" was coined by Neil H. Borden. This is a combination of the initial contribution of all the important elements or ingredients that make up marketing programs, as shown in Figure 1.

Fig 1; Marketing Mix For legal reasons deleted. (Anm. d. Red.)

Amazon is one of the largest online retailers in the world, selling a large stream of goods, such as books, music, games, clothing and movies. As of 2013, Amazon employs 117, 300 people by staff, and has a worldwide net income of $ 74.45 billion. Amazon has outgrown some rivals in its field, and has gone on to become a market head, having around 240 million customer accounts around the world. Amazon has used cautious speculation and acquisition of other smaller to make itself felt to stay ahead in its field, and continuing its article, offering competitive price, and continues to expand its product range, offering competitive prices to customers, and faster delivery to those who decide to sign up for their various account packages.

Amazon product mix

A product refers to body services or products for which the user is inclined to pay (Singh, 2012). Amazon is a worldwide e-commerce organization that uses a network connection of various devices, including telephones and medicines, to allow its customers to surf and buy products right away. These goods are then shipped to customers via shipping agencies. Amazon has created a huge base and sells almost the entire batch of books, books, jewelry, clothing, and many others. Amazon originally started with books and is now referred to as the leading provider of books in the world. That's why Amazon added the Kindle just as well. Kindle is Amazon’s e-book reader and, therefore, the reason the publishing markets have undergone such a spectacular revolution in converting hard paper into virtual e-books because of the ease of analysis with Kindle (Bahadir, Bharadwaj, & Srivastava, 2015).

Amazon price mix

This component of the marketing mix focuses on the pricing and pricing strategies that a company uses to sell its products. Amazon.com Inc. uses low prices as a way to attract customers to their e-commerce website and product offerings. Price is the amount the consumer must exchange to receive the offering (Borden & Marshall, 1959). Amazon occasionally sets different costs for the same item (value split). Ferguson (2017) presents a case where Amazon costs for different items in the UK and the US. This procedure allows for the modification of cost-based conditions but at the same time is coupled with price-based estimation techniques that take into account the value of the goods and the tendency of the market (Huang & Sarigollu, 2014).

Nevertheless, if the variety of the company’s products is used, the following pricing strategies are used: market-oriented pricing, price discrimination strategy and valued-based pricing strtetgy (Ferguson, 2017)

Amazon uses market-oriented pricing as its primary pricing strategy. For example, companies evaluate competitor prices as the basis for evaluating Amazon Basics products. The advantage of this pricing strategy is that it makes the sale more competitive, affordable and attractive to target consumers. Instead, the price discrimination strategy involves different pricing for the same product. Amazon uses this pricing strategy through different websites. For example, company prices for similar products vary between the United States and the United Kingdom, which has its own Amazon website (amazon.co.uk). This strategy is advantageous as it allows the company to adjust its price based on national market conditions, perceived product value, and consumer preferences and expectations. In this regard, Amazon.com Inc. using a value-based pricing strategy, which involves pricing based on product value, given the consumer's perception of value. Therefore, the company's marketing mix reflects the flexibility in adjusting to current market prices.

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• College: Ahmadu Bello University
• Course: Accounting and Finance
• Grade: 800
• Author: MSC olawale sanni (Author)
• Publication Year: 2021
• Pages: 13
• Catalog Number: V1007342
• ISBN (eBook): 9783346419743
• Language: English
• Tags: marketing, amazon