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GHPIBM
Marketing Strategies of
E-Commerce Giant
Marketing strategy of Amazon
Omkar Mishra
11/20/2019
Division: A
Marketing Strategies of Two E-Commerce Giants Amazon and Flipkart. In this project all the
marketing strategies of Amazon and Flipkart are covered, along with their marketing
philosophies, marketing concepts, and there marketing mix is included. Along with this the
advantages, vision, and benefits of E_Marketing
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E-Marketing
E-marketing is the use of information technology for the marketing activity, and the
process for creating, communicating, delivering, and exchanging offerings that have
value for customer, clients, partners and society at large. E-marketing affects traditional
marketing in two ways. First, it increases efficiency and effectiveness in traditional
marketing functions. Second, the technology of e-marketing transforms many marketing
strategies.
Simply E-marketing is the process of marketing a product or service using the Internet.
E- MarketingStrategies
A marketing strategy refers to a business' overall game plan for reaching prospective
consumers and turning them into customers of the products or services the business
provides.
Marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable
competitive advantage. A marketing strategy should be centered on the key concept
that customer satisfaction is the main goal. Fulfillment of wants of the prospects is one
the important goals of marketing activities.
MarketingManagementPhilosophies
 The Production Concept: This concept is the oldest of the concepts in
business. The basic proposition of the production concept is that customers will
choose products and services that are widely available and are of low cost. So
business is mainly concerned with making as many units as possible. By
concentrating on producing maximum volumes, such a business aims to
maximize profitability by exploiting economies of scale.
Managers focusing on this concept concentrate on achieving high production
efficiency, low costs, and mass distribution.
 The Product Concept: The product concept proposes that consumers will
prefer products that have better quality, performance and features as opposed to
a normal product. The concept is truly applicable in some niches such as
electronics and mobile handsets.
Product concept is the understanding of the dynamics of the product in order to
showcase the best qualities and maximum features of the product. A product is
not complete in itself and requires other factors of business like marketing,
distribution, sales, service etc to be successful.
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 The Selling Concept: The Selling Concept proposes that customers,
be individual or organizations will not buy enough of the organization’s products
unless they are persuaded to do so through selling effort. So organizations
should undertake selling and promotion of their products for marketing success.
The consumers typically are inert and they need to be goaded for buying by
converting their inert need in to a buying motive through persuasion and selling
action.
 The Marketing Concept: A marketing concept is a strategy that companies and
marketing agencies that work for companies, design and implement in order to
satisfy customers needs, maximize profits, satisfy customer needs and beat the
competitors or outperform them.
Recently social marketing concept has been coined in which it is believed that
the companies can give back to society through better products that increase
welfare and make the world a better place.
The initial three ideas: production, product and selling, concentrate all on the product.
The last two ideas, marketing as well as societal marketing, concentrate on the
consumer. The decision as to which philosophy or concept to embrace relies on the
circumstances of the situations.
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Holistic Marketing
The all encompassing promoting idea is focused around the advancement and outline
of the advertising program, techniques and exercises that perceives the expansiveness
and between conditions. It endeavors to create and keep up different points of view on
the organization’s business exercises. “Everything matters,” is the motto. This boils
down to the fact that one must take into consideration every external factor which
affects or is affected by the business.
 Internal marketing- It is important to establish secure and informative internal
communication for the benefit of both employers and employees.
 Integrated marketing- The integration of product, place and promotion of the
marketing plan to touch all aspects of marketing. The product offering has to be
communicated to the customer using appropriate promotional methods and it has
to be made easily available too. Nestle Slim Milk is available across all major
departmental stores in Tier one cities and is promoted as a healthy calorie-free
milk for health conscious audience.
 Relationship marketing- This is possibly the most important element of holistic
marketing. It is important to maintain cordial and mutually beneficial relations with
the suppliers, distributors and of course customers to ensure long term effective
partnership.
 Socially responsible marketing- A firm needs to fulfill its responsibilities
towards the society. Only having a profit making approach with no consideration
for the environment will result in bad word of mouth, loss of reputation, loss of
customers in to future, imposing penalties and loss of license to continue the
business.
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MarketingStrategies
Market Segmentation
Market segmentation is the process of dividing a market of potential customers into
groups, or segments, based on different characteristics. The segments created are
composed of consumers who will respond similarly to marketing strategies and who
share traits such as similar interests, needs, or locations.
Market Targeting
A target market is a group of customers (individuals, households or organizations), for
which an organization designs, implements and maintains a marketing mix suitable for
the needs and preferences of that group. A target market refers to a group of potential
customers to whom a company wants to sell its products and services. This group also
includes specific customers to whom a company directs its marketing efforts. A target
market is one part of the total market for a good or service. Identifying the target market
is an essential step for any company in the development of a marketing plan.
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Product Differentiation
Product differentiation is a marketing strategy that strives to distinguish a company's
products or services from the competition. Successful product differentiation involves
identifying and communicating the unique qualities of a company's offerings while
highlighting the distinct differences between those offerings and others on the market.
Product differentiation goes hand-in-hand with developing a strong value proposition to
make a product or service attractive to a target market or audience.
The major sources of product differentiation are as follows.
 Differences in quality which are usually accompanied by differences in price
 Differences in functional features or design
 Ignorance of buyers regarding the essential characteristics and qualities of goods
they are purchasing
 Sales promotion activities of sellers and, in particular, advertising
 Differences in availability (e.g. timing and location).
Positioning Strategies
Positioning refers to the place that a brand occupies in the minds of the customers and
how it is distinguished from the products of the competitors. In order to position products
or brands, companies may emphasize the distinguishing features of their brand ("What
a product does, and who it is for") or they may try to create a suitable image
(inexpensive or premium, utilitarian or luxurious, entry-level or high-end, etc.) through
the marketing mix. Positioning refers to an overall strategy that "aims to make a brand
occupy a distinct position, relative to competing brands, in the mind of the customer".
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The Marketing Mix
Simply put the Marketing Mix is a tool used by businesses and Marketers to help
determine a product or brands offering. Where once there were 4 Ps to explain the mix,
nowadays it is more commonly accepted as more 7 Ps model.
The Marketing Mix 4 Ps
 Product: The Product should fit the consumers want it for, it should work and it
should be what the consumers are expecting to get.
 Place: The product should be available from where your target consumer finds it
easiest to shop. This may be High Street, Mail Order, e-commerce and online shop.
 Price: This does not necessarily mean it should be the cheapest available; the main
thing is that customers are usually happy to pay a little more for something that
works really well for them.
 Promotion: Advertising, Sales Promotion, Personal Selling and, in more recent
times, Social Media are all key communication tools for an organization. These tools
should be used to put across the organization’s message to the correct audiences in
the manner they would most like to hear.
The extended 7 Ps:
 People: All companies are reliant on the people who run them from front line Sales
staff to the Managing Director. Having the right people is essential because they are
as much a part of your business offering as the products/services you are offering.
 Processes: The delivery of your service is usually done with the customer present
so how the service is delivered is once again part of what the consumer is paying.
 Physical Evidence: Almost all services include some physical elements even if the
bulk of what the consumer is paying for is intangible. For example a hair salon would
provide their client with a completed hairdo and an insurance company would give
their customers some form of printed material.
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MarketingImplications ofInternet Technologies
 Lower cost: Reach the right customers at a much lower cost than with traditional
marketing methods.
 Traceable and measurable results: Obtained detailed data about customer’s
responses to marketing campaigns.
 Global reach: Access new markets across the globe.
 Personalization: Connecting a database two a website allows for individually
targeted offers. The more consumers and businesses buy, the better the data
and more effective the marketing.
 One-to-one marketing: Gain instant access to individual customers on
computers and mobile phones.
 More interesting campaigns: Use creative multimedia content to engage
customer.
 Better conversion rates (increased purchase): Online customers are only a
few clicks from a purchase, whereas when offline they must make a phone call or
a visit to store.
 Twenty-four-hour marketing: allows24/7access to firm’s products and services,
even when the office is closed.
 What is driving customer power: More options, More information, Simpler
transactions and Network model versus broadcast model (or why the Internet is
not TV)
 Privacy: Customers want marketers to keep their data confidential + don’t want
to be bothered by sales calls at home during dinner, want marketers to ask
permission before sending commercial e-mail messages, want e-commerce to
provide convenience, self-service, speed, good customer service, personal
attention, and value.
 Mass customization: Individuals can contact firms over the Internet and receive
responses tailored to their needs; Business can also customize and personalize
products and communications to strengthen long-term relationships with
customers.
 Build credibility: Creating a permission-based email list that includes a
checkbox for users to opt-in to your mailing list ensures that a customer knows
which emails they’re signing up for, and how often they’ll be receiving emails
from you.
In its 2012 Trust Barometer, public relations company Edelman asked survey
respondents in developed nations who they thought provided the most credible
information. Sixty-five said they find “a person like yourself” to be more trustworthy.
Consumers trust each other more than companies.
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E-Marketing Pros and Cons
E-Marketing Increases Benefits
 Online mass customization (different products and messages to different
stakeholders)
 Personalization (giving stakeholders relevant information)
 24/7 convenience
 Self-service ordering and tracking
 One-stop shopping
 Learning, engaging, and communicating with customers on social networking
sites
E-marketing Decreases Cost
 Low cost distribution of communication messages (e.g., e-mail)
 Low cost distribution channel for digital product
 Lower cost for transaction processing
 Lower cost for knowledge acquisition (e.g., research and customer feedback)
 Creates efficiencies in supply chain (through communication and inventory
optimization)
 Decreases the cost of customer service
E-Marketing Increases Revenue
 Online transaction revenue such as product , information, advertising, and
subscription fees; or commission/ fee on transaction or referral
 Adds value to products/services and increase price (e.g., online FAQ and
customer support)
 Increases customer base by reaching out to new markets
 Builds customer relationship and, thus, increases current customer spending
(sharing of wallet)
Cons
 Dependability on technology.
 Security, privacy issues.
 Maintenance costs due to a constantly evolving environment.
 Higher transparency of pricing and increased price competition.
 Worldwide competition through globalization.
 No instant trust
 Competition
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Steps for Effective SocialMedia Strategy
Amazon: A BriefOverview
Amazon incorporation is an American international e-commerce company. It was
started by Jeffrey P. Bezos in the year 1994. When many .com companies were not
able to survive during the 90‟s, Amazon managed to survive and is successful now. It is
the 11th most searched site around the world. it began as one of the first major
companies to sell goods over the Internet Started as solely as an Online Bookstore Due
to success diversified into many other product lines and services Multinational e-
commerce company.
By 1995, Amazon quickly became the world’s top online book selling website. Two
popular web portals (Yahoo! and Netscape) placed it in their featured website lists. Two
business practices correlated with Amazons immediate scalable success, it was
capable of adjusting to rapid demand of products while maintaining satisfied customers.
Amazon became a public company in May of 1997 with an initial public offering (IPO) of
three million shares of common stock.
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By 1998, Amazon was fast becoming one of the world’s leading Internet startups. They
conducted business with over one and half million customers, reaching both the United
States and 160 countries. Outstanding success as an e-commerce bookseller
influenced the development of new services, products and additional markets to enter.
Amazon posted a $3 million first quarter net profit in 2002, signifying the end of its
internal recession. Operating as a lean cost cutting corporate culture led to their first
annual profit in 2003 at $35.3 million.
In 2005, the debut of the still popularized service “Amazon Prime”, a “shipping club”
arrived. Shipping time was a decision criterion customers used when evaluating online
ordering, and Amazon Prime wanted to close this gap, experiencing profitability with the
service soon after. Amazon had now expanded their product categories far beyond
books, offering apparel and electronics since the early 2000‟s.
World’s largest online Retailer Amazon is the largest online retailer, according to the
Wall Street Journal, selling $67.8 billion worth of products in 2013. The second largest,
Apple, sold only $18.3 billion online in 2013.
Amazon’s annual global marketing expenses have been consistently increasing during
the past seven years to exceed USD 10 billion in 2017. This includes Advertising and
other promotional costs that amounted to USD3.8 billion, USD5.0 billion, and USD6.3
billion in 2015, 2016, and 2017.
Amazon marketing strategy integrates a number of targeted online marketing channels,
such as Associates program, sponsored search, social and online advertising, television
advertising, and other initiatives.
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BusinessModels of Amazon
Amazon has three distinct businesses, plus a slew of nascent enterprises and
developing opportunities:
1. Amazon Retail
Starting in books and then expanding into electrical and other goods, Amazon built an
online retail business around three aims:
I. Best prices: Amazon products are generally offered at a discount, a steep discount in
the case of books.
II. Unrivalled selection: Amazon often has the largest selection of goods in a particular
category, especially books (outside S/H marketplaces like Abebooks.)
III. Convenience: Amazon focuses on the customer and try make purchasing an
enjoyable experience, offering:
 An attractive, easy-to-use customer interface (which evolved through many
trials)
 Fast and reliable delivery from vast, fully automated warehouses, first located in
strategic spots in the US but increasingly worldwide.
 A no-nonsense returns policy.
 Reviews by customers of the product.
 Purchase suggestions based on previous purchases and webpage viewing (an
example of real-time systems).
2. Amazon Marketplace
Amazon also offers a third-party selling platform, Amazon marketplace that allows
merchants to offer goods and services through an online shopping mall. Amazon
charges a commission based on a formula involving the sale price of the item, a
shipping credit, a referral fee of 6-25% of the sale price, a variable closing fee and a
$0.99 fixed closing fee. This has now been augmented or replaced by four comparable
services:
 Sell on Amazon. Merchants pay $39.99 per month, plus a commission varying
as above, generally between 15% and $1.35 per item.
 Amazon Web store. More complete service. Merchants pay $24 per month plus
2% of sales.
 Checkout by Amazon. Similar to PayPal and Google Checkouts, but needs to
integrate into shopping cart.
 Fulfillment by Amazon. Allows merchants to use Amazon's advanced fulfillment
technology.
 The services are being expanded from USA, Canada, UK and Germany to other
countries. Amazon does not release information on these businesses, either
revenues or usage levels.
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3. Amazon Web Services
Amazon leveraged the technology it developed in retail to offer an increasing number
of web services.
Companies owned by Amazon Incorporation
Marketingstrategyof Amazon
All of us know that Amazon is an online shopping forum and they bring the sellers and
buyers together through this forum. The main aim that was behind this online portal of
shopping was to make shopping easy, through this the customers can help the
consumers choose and go for the product that they see online.
This activity saves the hassle of traveling costs and saves time; because if you go to the
shop choose and then get it then the price of the commodity is increased due to the
additional travel cost. Amazon is a real-world experience for the consumers and the
sellers both.
The question here remains unanswered that what is the reason behind the successful
business run by Amazon. All the business experts have a fair idea that it is the business
strategy of the Amazon. The Amazon business strategy is stunning. The marketers
know that Amazon has personalized its business strategy in a way that it attracts the
majority of the consumers and makes it one of the top web sites being visited in the
entire world.
1. Costleadership strategy
A cost leadership strategy is where the price may be similar or usually lower than the
competition, but costs are certainly lower. In Amazons case, the core strategy is clearly
more a cost leadership one when compared with bricks and mortar retailers. Amazon
has massive warehousing facilities and processing capability, which give it physical
economies of scale. That in turn gives it cost advantages. But in its service it is
differentiated - so it is something of a hybrid.
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2. Marketsegmentation
E-commerce giants like Amazon uses demographic & psychographics segmentation to
segment the markets. Amazon’s segmentation is based on actual purchase behavior:
not what people might have expressed interest in, but what they actually did. Amazon’s
micro-level segmentation targets each customer individually, allowing the company to
convert visitors into long-term, high-value customers.
Customer segmentation often involves creating personas who will buy in a certain way
& certain products. Similarly Amazon targets the middle class & upper class people who
have got hands on experience in the basic technology but don’t have time or prefer
convenience over shopping from the physical outlets. Amazon has successfully
positioned itself as a Glocal (Go global Act local) e-commerce giant where one can buy
anything & get it delivered at any remote locations. Using the catchphrase #AurDikhao
in its most recent campaign in India, it has further helped them carve a distinct space in
the consumer’s mind.
3. Generic Corporate Strategy
Concentric diversification creates value for customers by using their technology
expertise. The lowest cost customer centric the market place. Founder of Amazon
incorporation Bozos’ goal is to be a cost leader. so it is committed to leveraging
amazons’ core competencies in whatever ways they can find to realize the value of the
company’s assets.
4. Web Marketing & Promotion Strategy
One of the reasons that customers are attracted to the website is the variety of products
that are listed at the website; the provision of such a facility extends the limitations of
the business. The business strategy of Amazon is simply to make buying easy by giving
a user friendly and customer friendly forum for shopping.
The websites interface is absolutely amazing and simple for anyone to use. One more
business strategy by Amazon is to build a strong bond between the people who have
designed the website and the people who use it. The acceptance of quality of products
along with the provision of such a market to the masses makes the life easy for all those
who want to shop while staying at home.
To help the consumers with a shopping suggestion it would be a good idea to provide
them with the views of the product being promoted on the website. It is amazing that
most of the people rely on what the others tell them about the thing they are about to
buy and one of the most important business factor is “the word of mouth”. This attracts
the most strongly motivated customers who are willing to spend on the things from the
shop and in the case Amazon; they are willing to buy from the web site.
When it is about the website business strategy then it definitely is about the search
engines optimizations. Business strategy of Amazon is definitely relying majorly on the
concept of how their website can be ranked as one of the websites that are searched for
most. Amazon makes sure that it targets the audience and then uses its own personal
experience of business catering the needs of the customers that are well known to be
beneficial for the business.
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The search engine optimization is a business strategy for Amazon because it gives the
website an opportunity to provide visual offer to treat for the product online this way the
customers have to an option of buying from Amazon.
Efficient business based on the concept of search engine optimization will need a strong
background with a well build and well organized website. Now the idea is to focus on
how Amazons business strategy works, it works on the basis how well build the
websites individual pages are and how those pages are indexed. The organization of
the web pages will increase the opportunity to find Amazon while they are looking for
products online.
The visual impacts of the web site leave a major effect on the consumer’s mind and
then n turn the choices of the consumer of the product to buy. The layout of the entire
website has the same impact on the consumer as the packaging of a commodity has on
the consumers. One of the Amazons business strategies is the well organization of the
website. In addition, the color and the well-designed web pages attract the maximum
customers.
5. GlobalBrandingStrategy
The Company also manages to engage a number of partners and businesses for the
global branding strategy for the web site to flourish as the online web market. This also
is based on how the Amazon is affiliated with the industry and the people it works with
for the development of their global business.
6. Pricing and Business strategy
The Amazon works with a well-developed business plan that includes the business
strategies of the company specifically designed for the customers so that they not only
make the most of the website themselves but also provide benefit for the company
itself. It makes sure that like all the other markets this online market also earns them the
maximum profit through not just the advertising strategies or the pricing strategies but
also from the business strategies.
Amazon not just carter to a specific kind of consumer but it also has to look upon the
customers from a global point of view. Amazons position is strengthened when it is
known as a global bookstore that provides the variety throughout the world to all kinds
of customers. The pricing and the business strategy redefines the Amazons business
plan comprehensively.
Marketingmix of Amazon
Amazon is one of the world’s biggest online retailers, selling a vast array of goods such
as books, music, games, clothes and movies. As of 2013, Amazon employs 117, 300
members of staff, and has a global net revenue of 74.45 billion US dollars. Since its
conception in 1995, Amazon has outgrown several competitors in its field, and has gone
on to become a market leader, and has around 240 million customer accounts
worldwide. Amazon has used careful investment and acquisition of other smaller
companies to enable itself to stay ahead in its field, and continues to expand its product
range, whilst offering competitive prices to customers, and faster deliveries to those who
choose to sign up for its various account packages.
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In July 2013, Amazon launched its services in India, choosing not to employ an
advertising campaign. The site is ranked as the 27th most popular in India, with around
4.2% of all Amazon customers coming from this country. The company is doing well
here, and this Indian venture is part of a bigger effort to offer its services to a wider
range of people in Asia.
Amazon is an international ecommerce company, using connections to the internet from
various gadgets such as phones and tablets, to allow its customers to browse and
purchase products immediately. These products are then delivered to the customer,
using delivery service companies. Amazon has built up a huge product base, and sells
almost everything, including:
en and children
Jewellery
1. Place in the marketingmix of Amazon
In the recent past, sites such as “indiaplaza” and “allshcoolstuff” were forced to close
due to the lack of trust when buying goods online. However, the brand image of
Amazon enables it to have a far and wide presence and the bottom line of the company
is enough to enable massive R&D efforts to secure the website. Amazon has customer
service bases in many of the countries where it has an online presence, with most
bases being located in the different states of the USA. Amazon employees are friendly
and relaxed.
2. Promotion in the marketing mix of Amazon
While Amazon has broadcast television commercials, these are mostly in the American
market. Amazon uses mainly web based advertising, and they make some use of
billboard and smaller methods of advertising. Amazon also uses advertising networks
online so that whenever you check something on Amazon, you will see an ad for the
same thing somewhere else on some other website. Search engine marketing and
getting the company’s name high up the search engine’s results is also a smart
promotional strategy by Amazon. The founder of Amazon had this in mind when
creating the company, deciding that it should start with an „a‟.
In India, Amazon can be seen to rely on the best source of promotion there is – word of
mouth. People telling others about the site, or mentioning it in a positive way is a sure
way to have a new future customer. However, there are several print media ads to
make their presence felt to the people. However, much more is needed in the
promotions department from Amazon in India because the traffic of Amazon is being
taken over fast by Flipkart.
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3. Price in the marketingmix of Amazon
Amazon is competitive with its prices, and has little ways of staying ahead of its market
contemporaries. For example, if you are looking to buy a book, Amazon offers you a
new copy, or a used copy as well, complete with pricing and condition. Another initiative
is to pay to have a premium account, ensuring faster deliveries. Amazon can also keep
their prices competitive due to their use of staff. Minimum numbers – but well trained –
ensure that consumers benefit from the lack of overheads, and the result is shown in
the prices online.
4. Amazon has shipping down
Because it has no physical stores, Amazon has optimized its efficiency in the delivery
business. This includes warehouses strategically dotted around the country and the
aforementioned robots. The company also has highly advanced software that helps it
set inventory levels and even begin packing orders based on predictive algorithms.
Amazon also has progressive deals with the United States Postal Service and UPS that
give it a shipping edge. It's possible that a competitor could make similar arrangements
and the biggest retailers might match the company's warehouse network, but it's very
difficult, if not impossible, for a competitor to match all of the shipping advantages
Amazon has built itself over time.
5. Amazon's Sustainable Competitive Advantage
The company has built up a size and scale that makes it very hard to compete with.
Amazon.com so thoroughly dominates the online retail world in the United States that
no pure digital competitor would have a chance at knocking it off its throne. Amazon not
only has the ability to offer the lowest prices (though it does not always use it). It also
has a well-developed delivery network with warehouses dotting the country. Those
regional fulfillment centers which were and continue to be a massive investment for the
retailer allow the company to cut shipping costs.
The online retailer has one last advantage that gives it an almost insurmountable edge
over its competitors and any would be challengers its massive number of users with
credit cards on file. But the digital leader has a combination of sustainable competitive
advantages that make it very hard to compete with.
Let's break them down and look at why it's the way each edge the company has built
works together than keep competitors at bay more so than any one on its own. Pricing
is a deterrent: Amazon has achieved such a massive scale that it gets the best prices
possible from its vendors.
Amazon can operate on razor-thin margins and still make money on the transaction.
Physical retailers can't do that and if they drop prices online they risk cannibalizing their
own sales and driving margin down while having all the same overhead costs.
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Issues faced by Amazon during framing its marketingstrategy
1) Generating Traffic and Leads: Clearly, marketers are struggling with producing
enough demand for their content. And as the year’s progress and competition stiffens,
this will only become truer. With so many options of platforms for marketers to publish
their content and even more ways to promote it, it's hard to know where to focus your
efforts.
2) Providing the ROI of Your Marketing Activities: Measuring the ROI (return on
investment) of your marketing activities has remained a top marketing challenge year-
over-year. But, it also continues to be a vital way for marketers to understand the
effectiveness of each particular marketing campaign, piece of content, etc.
3) Securing Enough Budgets: Securing more budgets is a pressing challenge for
marketing globally. And often, getting more budgets is easier said than done especially for
smaller organizations that aren't working with sizable nor flexible marketing spend.
4) Managing Your Website: It's an asset that works around the clock to draw in
visitors, convert them, and help you hit your goals, after all. Issues with website
management include a variety of different factors, from writing and optimizing the
content to designing beautiful webpage’s. Here are a few things marketers can do to
deal with this challenge.
5) Identifying the Right Technologies for Your Needs: Finding the right technologies
was the fifth biggest concern for marketers this year. Oftentimes, this is because
feedback on technology is scattered. Marketers might turn to colleagues, friends in the
industry, and/or analyst reports to figure out which technologies best fit their needs only
to find that feedback is spread across emails, social media, and so on from people of
varied reputability.
6) Targeting Content for an International Audience: Targeting is a key component of
all aspects of marketing. To be more effective at targeting, one of the first things any
marketer needs do is identify their buyer personas to determine who it is they should be
marketing to. If you're expanding internationally, it can be a big challenge not only to
figure out the best ways to market to an international audience but also to organize and
optimize your site for different countries.
7) Training Your Team: As companies scale and technologies continue to evolve,
training your team will become a greater challenge for marketers. Whether it's training
them on the concepts and tools they'll be using every day or making sure they're
achieving their full potential, the struggle is real across the board.
8) Hiring Top Talent: Hiring top talent was the eighth biggest challenge marketers
reported experiencing this year. Why? Many companies are shifting more resources to
inbound marketing, which means higher and higher demand for top marketing talent.
But supply simply isn't keeping up. From sourcing the right candidates to evaluating for
the right skills, finding the perfect person could take months or more.
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Conclusion: Generally, Amazon marketing strategy is based on the
following principles:
 Amazon 7ps of marketing mainly focuses on product and place elements of the
marketing mix. Offering more than 480 million products in the USA alone,
Amazon product range is the widest among online and offline retailers. Moreover,
the company is able to offer its products for competitive prices due to massive
cost savings based on online nature of business operations.
 Amazon segmentation targeting and positioning practices are associated with
targeting the widest customer segment. The retail giant does this with the
application of multi-segment, adaptive and anticipatory positioning techniques.
 Amazon’s unique selling proposition integrates the widest choice of products and
services offered at competitive prices, fast delivery and exceptional customer
service. The e-commerce giant places these unique selling propositions at the
core of its marketing communication messages.
 Amazon marketing communication mix integrates print and media advertising,
sales promotions, events and experiences, public relations and direct marketing.
The company places a particular focus on print and media advertising and sales
promotions elements of the marketing communication channels.
steps to successfulmarketingstrategy
1. Understand customer needs
2. Formulate a strategy to fill those needs
3. Implement effectively and efficiently
4. Build trusting relationships with customers

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Report on marketing strategies of Amazon

  • 1. GHPIBM Page 1 GHPIBM Marketing Strategies of E-Commerce Giant Marketing strategy of Amazon Omkar Mishra 11/20/2019 Division: A Marketing Strategies of Two E-Commerce Giants Amazon and Flipkart. In this project all the marketing strategies of Amazon and Flipkart are covered, along with their marketing philosophies, marketing concepts, and there marketing mix is included. Along with this the advantages, vision, and benefits of E_Marketing
  • 2. GHPIBM Page 2 E-Marketing E-marketing is the use of information technology for the marketing activity, and the process for creating, communicating, delivering, and exchanging offerings that have value for customer, clients, partners and society at large. E-marketing affects traditional marketing in two ways. First, it increases efficiency and effectiveness in traditional marketing functions. Second, the technology of e-marketing transforms many marketing strategies. Simply E-marketing is the process of marketing a product or service using the Internet. E- MarketingStrategies A marketing strategy refers to a business' overall game plan for reaching prospective consumers and turning them into customers of the products or services the business provides. Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered on the key concept that customer satisfaction is the main goal. Fulfillment of wants of the prospects is one the important goals of marketing activities. MarketingManagementPhilosophies  The Production Concept: This concept is the oldest of the concepts in business. The basic proposition of the production concept is that customers will choose products and services that are widely available and are of low cost. So business is mainly concerned with making as many units as possible. By concentrating on producing maximum volumes, such a business aims to maximize profitability by exploiting economies of scale. Managers focusing on this concept concentrate on achieving high production efficiency, low costs, and mass distribution.  The Product Concept: The product concept proposes that consumers will prefer products that have better quality, performance and features as opposed to a normal product. The concept is truly applicable in some niches such as electronics and mobile handsets. Product concept is the understanding of the dynamics of the product in order to showcase the best qualities and maximum features of the product. A product is not complete in itself and requires other factors of business like marketing, distribution, sales, service etc to be successful.
  • 3. GHPIBM Page 3  The Selling Concept: The Selling Concept proposes that customers, be individual or organizations will not buy enough of the organization’s products unless they are persuaded to do so through selling effort. So organizations should undertake selling and promotion of their products for marketing success. The consumers typically are inert and they need to be goaded for buying by converting their inert need in to a buying motive through persuasion and selling action.  The Marketing Concept: A marketing concept is a strategy that companies and marketing agencies that work for companies, design and implement in order to satisfy customers needs, maximize profits, satisfy customer needs and beat the competitors or outperform them. Recently social marketing concept has been coined in which it is believed that the companies can give back to society through better products that increase welfare and make the world a better place. The initial three ideas: production, product and selling, concentrate all on the product. The last two ideas, marketing as well as societal marketing, concentrate on the consumer. The decision as to which philosophy or concept to embrace relies on the circumstances of the situations.
  • 4. GHPIBM Page 4 Holistic Marketing The all encompassing promoting idea is focused around the advancement and outline of the advertising program, techniques and exercises that perceives the expansiveness and between conditions. It endeavors to create and keep up different points of view on the organization’s business exercises. “Everything matters,” is the motto. This boils down to the fact that one must take into consideration every external factor which affects or is affected by the business.  Internal marketing- It is important to establish secure and informative internal communication for the benefit of both employers and employees.  Integrated marketing- The integration of product, place and promotion of the marketing plan to touch all aspects of marketing. The product offering has to be communicated to the customer using appropriate promotional methods and it has to be made easily available too. Nestle Slim Milk is available across all major departmental stores in Tier one cities and is promoted as a healthy calorie-free milk for health conscious audience.  Relationship marketing- This is possibly the most important element of holistic marketing. It is important to maintain cordial and mutually beneficial relations with the suppliers, distributors and of course customers to ensure long term effective partnership.  Socially responsible marketing- A firm needs to fulfill its responsibilities towards the society. Only having a profit making approach with no consideration for the environment will result in bad word of mouth, loss of reputation, loss of customers in to future, imposing penalties and loss of license to continue the business.
  • 5. GHPIBM Page 5 MarketingStrategies Market Segmentation Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations. Market Targeting A target market is a group of customers (individuals, households or organizations), for which an organization designs, implements and maintains a marketing mix suitable for the needs and preferences of that group. A target market refers to a group of potential customers to whom a company wants to sell its products and services. This group also includes specific customers to whom a company directs its marketing efforts. A target market is one part of the total market for a good or service. Identifying the target market is an essential step for any company in the development of a marketing plan.
  • 6. GHPIBM Page 6 Product Differentiation Product differentiation is a marketing strategy that strives to distinguish a company's products or services from the competition. Successful product differentiation involves identifying and communicating the unique qualities of a company's offerings while highlighting the distinct differences between those offerings and others on the market. Product differentiation goes hand-in-hand with developing a strong value proposition to make a product or service attractive to a target market or audience. The major sources of product differentiation are as follows.  Differences in quality which are usually accompanied by differences in price  Differences in functional features or design  Ignorance of buyers regarding the essential characteristics and qualities of goods they are purchasing  Sales promotion activities of sellers and, in particular, advertising  Differences in availability (e.g. timing and location). Positioning Strategies Positioning refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors. In order to position products or brands, companies may emphasize the distinguishing features of their brand ("What a product does, and who it is for") or they may try to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end, etc.) through the marketing mix. Positioning refers to an overall strategy that "aims to make a brand occupy a distinct position, relative to competing brands, in the mind of the customer".
  • 7. GHPIBM Page 7 The Marketing Mix Simply put the Marketing Mix is a tool used by businesses and Marketers to help determine a product or brands offering. Where once there were 4 Ps to explain the mix, nowadays it is more commonly accepted as more 7 Ps model. The Marketing Mix 4 Ps  Product: The Product should fit the consumers want it for, it should work and it should be what the consumers are expecting to get.  Place: The product should be available from where your target consumer finds it easiest to shop. This may be High Street, Mail Order, e-commerce and online shop.  Price: This does not necessarily mean it should be the cheapest available; the main thing is that customers are usually happy to pay a little more for something that works really well for them.  Promotion: Advertising, Sales Promotion, Personal Selling and, in more recent times, Social Media are all key communication tools for an organization. These tools should be used to put across the organization’s message to the correct audiences in the manner they would most like to hear. The extended 7 Ps:  People: All companies are reliant on the people who run them from front line Sales staff to the Managing Director. Having the right people is essential because they are as much a part of your business offering as the products/services you are offering.  Processes: The delivery of your service is usually done with the customer present so how the service is delivered is once again part of what the consumer is paying.  Physical Evidence: Almost all services include some physical elements even if the bulk of what the consumer is paying for is intangible. For example a hair salon would provide their client with a completed hairdo and an insurance company would give their customers some form of printed material.
  • 8. GHPIBM Page 8 MarketingImplications ofInternet Technologies  Lower cost: Reach the right customers at a much lower cost than with traditional marketing methods.  Traceable and measurable results: Obtained detailed data about customer’s responses to marketing campaigns.  Global reach: Access new markets across the globe.  Personalization: Connecting a database two a website allows for individually targeted offers. The more consumers and businesses buy, the better the data and more effective the marketing.  One-to-one marketing: Gain instant access to individual customers on computers and mobile phones.  More interesting campaigns: Use creative multimedia content to engage customer.  Better conversion rates (increased purchase): Online customers are only a few clicks from a purchase, whereas when offline they must make a phone call or a visit to store.  Twenty-four-hour marketing: allows24/7access to firm’s products and services, even when the office is closed.  What is driving customer power: More options, More information, Simpler transactions and Network model versus broadcast model (or why the Internet is not TV)  Privacy: Customers want marketers to keep their data confidential + don’t want to be bothered by sales calls at home during dinner, want marketers to ask permission before sending commercial e-mail messages, want e-commerce to provide convenience, self-service, speed, good customer service, personal attention, and value.  Mass customization: Individuals can contact firms over the Internet and receive responses tailored to their needs; Business can also customize and personalize products and communications to strengthen long-term relationships with customers.  Build credibility: Creating a permission-based email list that includes a checkbox for users to opt-in to your mailing list ensures that a customer knows which emails they’re signing up for, and how often they’ll be receiving emails from you. In its 2012 Trust Barometer, public relations company Edelman asked survey respondents in developed nations who they thought provided the most credible information. Sixty-five said they find “a person like yourself” to be more trustworthy. Consumers trust each other more than companies.
  • 9. GHPIBM Page 9 E-Marketing Pros and Cons E-Marketing Increases Benefits  Online mass customization (different products and messages to different stakeholders)  Personalization (giving stakeholders relevant information)  24/7 convenience  Self-service ordering and tracking  One-stop shopping  Learning, engaging, and communicating with customers on social networking sites E-marketing Decreases Cost  Low cost distribution of communication messages (e.g., e-mail)  Low cost distribution channel for digital product  Lower cost for transaction processing  Lower cost for knowledge acquisition (e.g., research and customer feedback)  Creates efficiencies in supply chain (through communication and inventory optimization)  Decreases the cost of customer service E-Marketing Increases Revenue  Online transaction revenue such as product , information, advertising, and subscription fees; or commission/ fee on transaction or referral  Adds value to products/services and increase price (e.g., online FAQ and customer support)  Increases customer base by reaching out to new markets  Builds customer relationship and, thus, increases current customer spending (sharing of wallet) Cons  Dependability on technology.  Security, privacy issues.  Maintenance costs due to a constantly evolving environment.  Higher transparency of pricing and increased price competition.  Worldwide competition through globalization.  No instant trust  Competition
  • 10. GHPIBM Page 10 Steps for Effective SocialMedia Strategy Amazon: A BriefOverview Amazon incorporation is an American international e-commerce company. It was started by Jeffrey P. Bezos in the year 1994. When many .com companies were not able to survive during the 90‟s, Amazon managed to survive and is successful now. It is the 11th most searched site around the world. it began as one of the first major companies to sell goods over the Internet Started as solely as an Online Bookstore Due to success diversified into many other product lines and services Multinational e- commerce company. By 1995, Amazon quickly became the world’s top online book selling website. Two popular web portals (Yahoo! and Netscape) placed it in their featured website lists. Two business practices correlated with Amazons immediate scalable success, it was capable of adjusting to rapid demand of products while maintaining satisfied customers. Amazon became a public company in May of 1997 with an initial public offering (IPO) of three million shares of common stock.
  • 11. GHPIBM Page 11 By 1998, Amazon was fast becoming one of the world’s leading Internet startups. They conducted business with over one and half million customers, reaching both the United States and 160 countries. Outstanding success as an e-commerce bookseller influenced the development of new services, products and additional markets to enter. Amazon posted a $3 million first quarter net profit in 2002, signifying the end of its internal recession. Operating as a lean cost cutting corporate culture led to their first annual profit in 2003 at $35.3 million. In 2005, the debut of the still popularized service “Amazon Prime”, a “shipping club” arrived. Shipping time was a decision criterion customers used when evaluating online ordering, and Amazon Prime wanted to close this gap, experiencing profitability with the service soon after. Amazon had now expanded their product categories far beyond books, offering apparel and electronics since the early 2000‟s. World’s largest online Retailer Amazon is the largest online retailer, according to the Wall Street Journal, selling $67.8 billion worth of products in 2013. The second largest, Apple, sold only $18.3 billion online in 2013. Amazon’s annual global marketing expenses have been consistently increasing during the past seven years to exceed USD 10 billion in 2017. This includes Advertising and other promotional costs that amounted to USD3.8 billion, USD5.0 billion, and USD6.3 billion in 2015, 2016, and 2017. Amazon marketing strategy integrates a number of targeted online marketing channels, such as Associates program, sponsored search, social and online advertising, television advertising, and other initiatives.
  • 12. GHPIBM Page 12 BusinessModels of Amazon Amazon has three distinct businesses, plus a slew of nascent enterprises and developing opportunities: 1. Amazon Retail Starting in books and then expanding into electrical and other goods, Amazon built an online retail business around three aims: I. Best prices: Amazon products are generally offered at a discount, a steep discount in the case of books. II. Unrivalled selection: Amazon often has the largest selection of goods in a particular category, especially books (outside S/H marketplaces like Abebooks.) III. Convenience: Amazon focuses on the customer and try make purchasing an enjoyable experience, offering:  An attractive, easy-to-use customer interface (which evolved through many trials)  Fast and reliable delivery from vast, fully automated warehouses, first located in strategic spots in the US but increasingly worldwide.  A no-nonsense returns policy.  Reviews by customers of the product.  Purchase suggestions based on previous purchases and webpage viewing (an example of real-time systems). 2. Amazon Marketplace Amazon also offers a third-party selling platform, Amazon marketplace that allows merchants to offer goods and services through an online shopping mall. Amazon charges a commission based on a formula involving the sale price of the item, a shipping credit, a referral fee of 6-25% of the sale price, a variable closing fee and a $0.99 fixed closing fee. This has now been augmented or replaced by four comparable services:  Sell on Amazon. Merchants pay $39.99 per month, plus a commission varying as above, generally between 15% and $1.35 per item.  Amazon Web store. More complete service. Merchants pay $24 per month plus 2% of sales.  Checkout by Amazon. Similar to PayPal and Google Checkouts, but needs to integrate into shopping cart.  Fulfillment by Amazon. Allows merchants to use Amazon's advanced fulfillment technology.  The services are being expanded from USA, Canada, UK and Germany to other countries. Amazon does not release information on these businesses, either revenues or usage levels.
  • 13. GHPIBM Page 13 3. Amazon Web Services Amazon leveraged the technology it developed in retail to offer an increasing number of web services. Companies owned by Amazon Incorporation Marketingstrategyof Amazon All of us know that Amazon is an online shopping forum and they bring the sellers and buyers together through this forum. The main aim that was behind this online portal of shopping was to make shopping easy, through this the customers can help the consumers choose and go for the product that they see online. This activity saves the hassle of traveling costs and saves time; because if you go to the shop choose and then get it then the price of the commodity is increased due to the additional travel cost. Amazon is a real-world experience for the consumers and the sellers both. The question here remains unanswered that what is the reason behind the successful business run by Amazon. All the business experts have a fair idea that it is the business strategy of the Amazon. The Amazon business strategy is stunning. The marketers know that Amazon has personalized its business strategy in a way that it attracts the majority of the consumers and makes it one of the top web sites being visited in the entire world. 1. Costleadership strategy A cost leadership strategy is where the price may be similar or usually lower than the competition, but costs are certainly lower. In Amazons case, the core strategy is clearly more a cost leadership one when compared with bricks and mortar retailers. Amazon has massive warehousing facilities and processing capability, which give it physical economies of scale. That in turn gives it cost advantages. But in its service it is differentiated - so it is something of a hybrid.
  • 14. GHPIBM Page 14 2. Marketsegmentation E-commerce giants like Amazon uses demographic & psychographics segmentation to segment the markets. Amazon’s segmentation is based on actual purchase behavior: not what people might have expressed interest in, but what they actually did. Amazon’s micro-level segmentation targets each customer individually, allowing the company to convert visitors into long-term, high-value customers. Customer segmentation often involves creating personas who will buy in a certain way & certain products. Similarly Amazon targets the middle class & upper class people who have got hands on experience in the basic technology but don’t have time or prefer convenience over shopping from the physical outlets. Amazon has successfully positioned itself as a Glocal (Go global Act local) e-commerce giant where one can buy anything & get it delivered at any remote locations. Using the catchphrase #AurDikhao in its most recent campaign in India, it has further helped them carve a distinct space in the consumer’s mind. 3. Generic Corporate Strategy Concentric diversification creates value for customers by using their technology expertise. The lowest cost customer centric the market place. Founder of Amazon incorporation Bozos’ goal is to be a cost leader. so it is committed to leveraging amazons’ core competencies in whatever ways they can find to realize the value of the company’s assets. 4. Web Marketing & Promotion Strategy One of the reasons that customers are attracted to the website is the variety of products that are listed at the website; the provision of such a facility extends the limitations of the business. The business strategy of Amazon is simply to make buying easy by giving a user friendly and customer friendly forum for shopping. The websites interface is absolutely amazing and simple for anyone to use. One more business strategy by Amazon is to build a strong bond between the people who have designed the website and the people who use it. The acceptance of quality of products along with the provision of such a market to the masses makes the life easy for all those who want to shop while staying at home. To help the consumers with a shopping suggestion it would be a good idea to provide them with the views of the product being promoted on the website. It is amazing that most of the people rely on what the others tell them about the thing they are about to buy and one of the most important business factor is “the word of mouth”. This attracts the most strongly motivated customers who are willing to spend on the things from the shop and in the case Amazon; they are willing to buy from the web site. When it is about the website business strategy then it definitely is about the search engines optimizations. Business strategy of Amazon is definitely relying majorly on the concept of how their website can be ranked as one of the websites that are searched for most. Amazon makes sure that it targets the audience and then uses its own personal experience of business catering the needs of the customers that are well known to be beneficial for the business.
  • 15. GHPIBM Page 15 The search engine optimization is a business strategy for Amazon because it gives the website an opportunity to provide visual offer to treat for the product online this way the customers have to an option of buying from Amazon. Efficient business based on the concept of search engine optimization will need a strong background with a well build and well organized website. Now the idea is to focus on how Amazons business strategy works, it works on the basis how well build the websites individual pages are and how those pages are indexed. The organization of the web pages will increase the opportunity to find Amazon while they are looking for products online. The visual impacts of the web site leave a major effect on the consumer’s mind and then n turn the choices of the consumer of the product to buy. The layout of the entire website has the same impact on the consumer as the packaging of a commodity has on the consumers. One of the Amazons business strategies is the well organization of the website. In addition, the color and the well-designed web pages attract the maximum customers. 5. GlobalBrandingStrategy The Company also manages to engage a number of partners and businesses for the global branding strategy for the web site to flourish as the online web market. This also is based on how the Amazon is affiliated with the industry and the people it works with for the development of their global business. 6. Pricing and Business strategy The Amazon works with a well-developed business plan that includes the business strategies of the company specifically designed for the customers so that they not only make the most of the website themselves but also provide benefit for the company itself. It makes sure that like all the other markets this online market also earns them the maximum profit through not just the advertising strategies or the pricing strategies but also from the business strategies. Amazon not just carter to a specific kind of consumer but it also has to look upon the customers from a global point of view. Amazons position is strengthened when it is known as a global bookstore that provides the variety throughout the world to all kinds of customers. The pricing and the business strategy redefines the Amazons business plan comprehensively. Marketingmix of Amazon Amazon is one of the world’s biggest online retailers, selling a vast array of goods such as books, music, games, clothes and movies. As of 2013, Amazon employs 117, 300 members of staff, and has a global net revenue of 74.45 billion US dollars. Since its conception in 1995, Amazon has outgrown several competitors in its field, and has gone on to become a market leader, and has around 240 million customer accounts worldwide. Amazon has used careful investment and acquisition of other smaller companies to enable itself to stay ahead in its field, and continues to expand its product range, whilst offering competitive prices to customers, and faster deliveries to those who choose to sign up for its various account packages.
  • 16. GHPIBM Page 16 In July 2013, Amazon launched its services in India, choosing not to employ an advertising campaign. The site is ranked as the 27th most popular in India, with around 4.2% of all Amazon customers coming from this country. The company is doing well here, and this Indian venture is part of a bigger effort to offer its services to a wider range of people in Asia. Amazon is an international ecommerce company, using connections to the internet from various gadgets such as phones and tablets, to allow its customers to browse and purchase products immediately. These products are then delivered to the customer, using delivery service companies. Amazon has built up a huge product base, and sells almost everything, including: en and children Jewellery 1. Place in the marketingmix of Amazon In the recent past, sites such as “indiaplaza” and “allshcoolstuff” were forced to close due to the lack of trust when buying goods online. However, the brand image of Amazon enables it to have a far and wide presence and the bottom line of the company is enough to enable massive R&D efforts to secure the website. Amazon has customer service bases in many of the countries where it has an online presence, with most bases being located in the different states of the USA. Amazon employees are friendly and relaxed. 2. Promotion in the marketing mix of Amazon While Amazon has broadcast television commercials, these are mostly in the American market. Amazon uses mainly web based advertising, and they make some use of billboard and smaller methods of advertising. Amazon also uses advertising networks online so that whenever you check something on Amazon, you will see an ad for the same thing somewhere else on some other website. Search engine marketing and getting the company’s name high up the search engine’s results is also a smart promotional strategy by Amazon. The founder of Amazon had this in mind when creating the company, deciding that it should start with an „a‟. In India, Amazon can be seen to rely on the best source of promotion there is – word of mouth. People telling others about the site, or mentioning it in a positive way is a sure way to have a new future customer. However, there are several print media ads to make their presence felt to the people. However, much more is needed in the promotions department from Amazon in India because the traffic of Amazon is being taken over fast by Flipkart.
  • 17. GHPIBM Page 17 3. Price in the marketingmix of Amazon Amazon is competitive with its prices, and has little ways of staying ahead of its market contemporaries. For example, if you are looking to buy a book, Amazon offers you a new copy, or a used copy as well, complete with pricing and condition. Another initiative is to pay to have a premium account, ensuring faster deliveries. Amazon can also keep their prices competitive due to their use of staff. Minimum numbers – but well trained – ensure that consumers benefit from the lack of overheads, and the result is shown in the prices online. 4. Amazon has shipping down Because it has no physical stores, Amazon has optimized its efficiency in the delivery business. This includes warehouses strategically dotted around the country and the aforementioned robots. The company also has highly advanced software that helps it set inventory levels and even begin packing orders based on predictive algorithms. Amazon also has progressive deals with the United States Postal Service and UPS that give it a shipping edge. It's possible that a competitor could make similar arrangements and the biggest retailers might match the company's warehouse network, but it's very difficult, if not impossible, for a competitor to match all of the shipping advantages Amazon has built itself over time. 5. Amazon's Sustainable Competitive Advantage The company has built up a size and scale that makes it very hard to compete with. Amazon.com so thoroughly dominates the online retail world in the United States that no pure digital competitor would have a chance at knocking it off its throne. Amazon not only has the ability to offer the lowest prices (though it does not always use it). It also has a well-developed delivery network with warehouses dotting the country. Those regional fulfillment centers which were and continue to be a massive investment for the retailer allow the company to cut shipping costs. The online retailer has one last advantage that gives it an almost insurmountable edge over its competitors and any would be challengers its massive number of users with credit cards on file. But the digital leader has a combination of sustainable competitive advantages that make it very hard to compete with. Let's break them down and look at why it's the way each edge the company has built works together than keep competitors at bay more so than any one on its own. Pricing is a deterrent: Amazon has achieved such a massive scale that it gets the best prices possible from its vendors. Amazon can operate on razor-thin margins and still make money on the transaction. Physical retailers can't do that and if they drop prices online they risk cannibalizing their own sales and driving margin down while having all the same overhead costs.
  • 18. GHPIBM Page 18 Issues faced by Amazon during framing its marketingstrategy 1) Generating Traffic and Leads: Clearly, marketers are struggling with producing enough demand for their content. And as the year’s progress and competition stiffens, this will only become truer. With so many options of platforms for marketers to publish their content and even more ways to promote it, it's hard to know where to focus your efforts. 2) Providing the ROI of Your Marketing Activities: Measuring the ROI (return on investment) of your marketing activities has remained a top marketing challenge year- over-year. But, it also continues to be a vital way for marketers to understand the effectiveness of each particular marketing campaign, piece of content, etc. 3) Securing Enough Budgets: Securing more budgets is a pressing challenge for marketing globally. And often, getting more budgets is easier said than done especially for smaller organizations that aren't working with sizable nor flexible marketing spend. 4) Managing Your Website: It's an asset that works around the clock to draw in visitors, convert them, and help you hit your goals, after all. Issues with website management include a variety of different factors, from writing and optimizing the content to designing beautiful webpage’s. Here are a few things marketers can do to deal with this challenge. 5) Identifying the Right Technologies for Your Needs: Finding the right technologies was the fifth biggest concern for marketers this year. Oftentimes, this is because feedback on technology is scattered. Marketers might turn to colleagues, friends in the industry, and/or analyst reports to figure out which technologies best fit their needs only to find that feedback is spread across emails, social media, and so on from people of varied reputability. 6) Targeting Content for an International Audience: Targeting is a key component of all aspects of marketing. To be more effective at targeting, one of the first things any marketer needs do is identify their buyer personas to determine who it is they should be marketing to. If you're expanding internationally, it can be a big challenge not only to figure out the best ways to market to an international audience but also to organize and optimize your site for different countries. 7) Training Your Team: As companies scale and technologies continue to evolve, training your team will become a greater challenge for marketers. Whether it's training them on the concepts and tools they'll be using every day or making sure they're achieving their full potential, the struggle is real across the board. 8) Hiring Top Talent: Hiring top talent was the eighth biggest challenge marketers reported experiencing this year. Why? Many companies are shifting more resources to inbound marketing, which means higher and higher demand for top marketing talent. But supply simply isn't keeping up. From sourcing the right candidates to evaluating for the right skills, finding the perfect person could take months or more.
  • 19. GHPIBM Page 19 Conclusion: Generally, Amazon marketing strategy is based on the following principles:  Amazon 7ps of marketing mainly focuses on product and place elements of the marketing mix. Offering more than 480 million products in the USA alone, Amazon product range is the widest among online and offline retailers. Moreover, the company is able to offer its products for competitive prices due to massive cost savings based on online nature of business operations.  Amazon segmentation targeting and positioning practices are associated with targeting the widest customer segment. The retail giant does this with the application of multi-segment, adaptive and anticipatory positioning techniques.  Amazon’s unique selling proposition integrates the widest choice of products and services offered at competitive prices, fast delivery and exceptional customer service. The e-commerce giant places these unique selling propositions at the core of its marketing communication messages.  Amazon marketing communication mix integrates print and media advertising, sales promotions, events and experiences, public relations and direct marketing. The company places a particular focus on print and media advertising and sales promotions elements of the marketing communication channels. steps to successfulmarketingstrategy 1. Understand customer needs 2. Formulate a strategy to fill those needs 3. Implement effectively and efficiently 4. Build trusting relationships with customers