Founded in Seattle (Washington, USA) by Jeffrey Bezos in 1995, Amazon
is now the world leading internet sales platform for consumer goods.
Offering books in the first place Amazon now offers products in more than
40 different product categories.
Omnipresent everywhere in the internet Amazon claims to be "the world's
most customer-centric" company. Indeed Amazon is doing everything to
achieve this goal through continuous service-improvement. Whenever a
new service will be launched customers expectations always define the
key features.
But what an internet company would Amazon be if this customer centric
mission wouldn't be promoted and capitalised. Grown up with the internet
and familiar with all its marketing instruments, Amazon uses every
opportunity to promote its brand and the offered services.
Beside the user-experience Amazons success depends on its propagation
and accessibility. Amazon manages this by sophisticated partner
programs to grow fast and continuously. In consequence of the market
power Amazon has, the prices for goods are more than competitive in the
internet.
Since the internet still hasn't reached its maximum capacity and far not
everybody especially elder generations uses the internet for daily
shopping, Amazons growth will continue and further customer-centric
services will follow as long as the vision keeps alive.
Table of Contents
1 Introduction
2 Amazons Marketing Mix
The Product
The Price
The Place
The Promotion
3 Implementation of Amazons Marketing Strategy
3.1 Avoiding hurdles to the customer
3.2 Presence in the internet market
3.3 Offering a wide product range (product categories)
3.4 Offering competitive prices
4 Managing Amazons Marketing Programs
5 Conclusion
Objectives and Topics
The objective of this assignment is to analyze how Amazon has implemented its corporate vision of being the "earth's most customer centric company" and to evaluate the specific marketing strategies and tools utilized to attract and retain consumers on amazon.com.
- Analysis of Amazon's marketing mix (Product, Price, Place, Promotion).
- Evaluation of customer-centric strategies and user-experience optimization.
- Overview of Amazon's multi-channel internet presence and partner programs.
- Examination of competitive pricing models and product diversification.
- Assessment of marketing program management and data-driven customer behavioral analysis.
Excerpt from the Book
3.1 Avoiding hurdles to the customer
With today’s consumers armed with extensive product and price information, and the freedom to move from one website to another with a mere click, the balance of power in online commerce has shifted from the merchant to the customer. “The internet is this big, huge hurricane, the only constant in that storm is the customer. So, if the optimal business decision in the old world was to spend 30 percent of your time, energy, focus, and dollars on building great customer experience, and 70 percent on shouting about it, today that’s inverted…” (Spector 2003, p. 127-128 and Bezos 2007)
This quote and similar statements made by Jeffrey Bezos exactly describe the strategy behind Amazons internet presence. As Bezos furthermore said (Spector 2003, p.128) „Through anecdotal evidence, focus groups, and quantitative research, Amazon.com found that the three things that mattered most to customers were selection, convenience and price. “
With „Strategies with focus on the customer not on competition“(Bezos 2007), Amazon has implemented and still maintains some revolutionary user-/operating concepts:
• The idea of creating a community to customers by giving them the possibility to write and submit book reviews in the beginning and later product-appraisals for all products
• The “one-click” user experience (patent-protected in US by the United States Patent Number 5,960,411) which describes an online system allowing customers to enter their credit card number and address information just once so that on follow up visits to the website all it takes is a single mouse-click to make a purchase from their website
Summary of Chapters
1 Introduction: Provides a brief history of amazon.com and its foundational vision of revolutionizing the book business through customer service.
2 Amazons Marketing Mix: Outlines the four fundamental components of Amazon's marketing strategy, focusing on services provided rather than just physical goods.
3 Implementation of Amazons Marketing Strategy: Details the practical application of Amazon's strategies, including website usability, global market presence, and expansion into diverse product categories.
4 Managing Amazons Marketing Programs: Explains how Amazon utilizes internet-specific communication to track customer behavior and optimize marketing performance.
5 Conclusion: Summarizes Amazon's evolution into a global e-commerce and development platform while highlighting its continued focus on innovation.
Keywords
Amazon, Marketing Strategy, E-commerce, Customer-centricity, Marketing Mix, One-Click, Internet Marketing, Online Retail, Consumer Goods, User Experience, Affiliate Marketing, Competitive Pricing, Market Power, Business Strategy, Digital Transformation
Frequently Asked Questions
What is the core focus of this assignment?
The assignment primarily focuses on analyzing the marketing strategies and tools that Amazon uses to fulfill its vision of being the earth's most customer-centric company.
What are the central themes of the work?
The central themes include the application of the marketing mix to internet services, the implementation of user-friendly interfaces, and the strategies for maintaining competitive prices in global markets.
What is the primary research goal?
The goal is to determine how Amazon convinces consumers to choose their platform by examining their specific marketing implementation and operational concepts.
Which scientific methodology is utilized?
The paper utilizes a descriptive and analytical approach, referencing management literature, annual reports, and corporate statements to evaluate Amazon’s business strategy.
What is covered in the main body of the text?
The main body covers the theoretical marketing mix, practical implementation strategies such as partner programs and product category expansion, and the analysis of data-driven marketing programs.
Which keywords best characterize this work?
Key terms include Amazon, E-commerce, Marketing Strategy, Customer-centricity, and User Experience.
How does Amazon utilize the "one-click" feature as a marketing tool?
The "one-click" feature is described as a revolutionary, patent-protected user experience that reduces friction by allowing customers to purchase with a single click, thereby increasing convenience.
How does the author explain Amazon's management of customer service?
The author notes that Amazon aims for automated processes where customers only contact service representatives when problems occur, emphasizing that effective process management has steadily reduced the number of complaints over 12 years.
- Arbeit zitieren
- Manfred Damsch (Autor:in), 2008, Amazon Marketing Strategy, München, GRIN Verlag, https://www.hausarbeiten.de/document/162454
