Amazon's Strategic Marketing Strategy and its Implications for The e-commerce Industry

Oleh : Lyu Wanrong, Master Of Technology Management, Faculty Business, President University | Jumat, 17 Mei 2024 - 17:32 WIB

Amazon
Amazon

INDUSTRY.co.id - Intoduction, In today's globalized and information-based market environment, enterprises are facing increasing competitive pressure. In order to stand out in the fierce market competition, enterprises must formulate and implement effective strategic marketing.

Strategic marketing is not just an extension of traditional marketing activities, it is a systematic approach that aims to achieve sustainable development and competitive advantage of enterprises by deeply understanding market needs and dynamics and formulating long-term and forward-looking plans.

As one of the world's largest e-commerce companies, Amazon's success not only relies on excellent operational capabilities and technological innovation, but more importantly, its carefully designed and implemented strategic marketing. The following are Amazon's main strategic marketing strategies. This article mainly analyzes the reasons for its success from the perspective of Amazon's strategic marketing.

Theoretical Basis

1.  The core concept of strategic marketing: Strategic marketing includes market research, market segmentation, target market selection, market positioning, marketing mix strategy and other links. Market research can understand market trends, consumer behavior, competitive environment, etc. through data collection and analysis, and provide a basis for formulating marketing strategies. Market segmentation is to divide the market into several market segments based on the different needs, preferences and behavioral characteristics of consumers, so as to carry out marketing activities more targeted.

The selection of target markets can help companies select one or more markets from the market segments as the target markets of the company and concentrate resources for key development. Market positioning plays an equally important role in marketing. It can determine the unique position and value proposition of the company in the target market, so that consumers can form a clear understanding of the company's products or services.

In addition, making good use of marketing mix strategies can also comprehensively enhance the market competitiveness of enterprises through the optimal combination of marketing elements such as products, prices, channels and promotions.

2.  Market orientation theory is an important theory in marketing management, which emphasizes that enterprises should be guided by market demand, put customer needs and expectations in the first place, and meet customer needs and gain competitive advantage by constantly adjusting and improving products, services and marketing strategies.

3.  Relationship marketing theory emphasizes the establishment and maintenance of long-term, mutually beneficial, and stable customer relationships to achieve continuous transactions and value creation.

The theory believes that compared with short-term transactions, establishing solid customer relationships can bring more long-term benefits and growth opportunities.

4.   Market segmentation theory is one of the important theories in marketing management, which emphasizes that enterprises should divide the market into different market segments or customer groups, and provide personalized products, services and marketing strategies for each market segment or customer group.

5.   Brand building and marketing theory is an important theory in marketing management, emphasizing that enterprises should shape and spread a good brand image through effective brand building and marketing activities, enhance brand awareness and recognition, thereby attracting customers, establishing customer loyalty, and achieving sustainable growth and competitive advantage.

Amazon's Strategic Marketing Strategy

1. Adopt a market-oriented strategy

Amazon has improved customer satisfaction and loyalty through efficient customer service and quick response to customer feedback. At the same time, it optimizes the user interface of its website and mobile applications to make the shopping process simple, fast and pleasant, meeting customers' convenience needs.

This customer-centric market-oriented strategy enables Amazon to continue to attract and retain a large number of loyal customers.

2. Relationship Marketing Strategy

Establish long-term customer relationships by setting up Amazon membership. Prime members enjoy unlimited free fast delivery services, including same-day delivery and next-day delivery. They can use streaming services such as Prime Video and Prime Music for free, which increases the added value of membership .

In addition, Amazon members can enjoy special offers and discounts during shopping seasons, specific products and exclusive events. By providing a variety of membership benefits, Amazon not only improves customer loyalty, but also increases the frequency and amount of customers' annual consumption.

3. Market Segmentation

Using big data analysis and artificial intelligence technology, Amazon is able to provide personalized product recommendations based on customers' shopping history and behavior. This accurate recommendation system not only improves customers' shopping experience, but also significantly increases sales.

By analyzing the needs of different customer groups, Amazon provides customized services and product selections, such as home users, student users, enterprise users, etc., to meet the needs of different market segments.

4. Integrated Marketing Communications 

In terms of brand value proposition, Amazon is committed to being "the most customer-centric company on earth". This brand value proposition is deeply rooted in the hearts of the people and has won widespread recognition and trust.

And they have also developed a multi-channel promotion strategy, including brand promotion through TV advertising, digital marketing, social media and other channels to expand brand influence and visibility. In order to attract consumers, Amazon will hold regular large-scale promotions, such as Prime Day, Black Friday, etc., to attract a large number of consumers through discounts and offers, significantly increasing sales.

5. Blue Ocean Strategy

The rapid development of the inbound e-commerce economy and the rise of many cross-border e-commerce platforms have led Amazon to study the blue ocean market for better development.

For example, technological innovations in artificial intelligence, voice assistants (Alexa), big data analysis, etc. have opened up new growth space in the e-commerce and smart home markets. In addition to e-commerce business, Amazon is also actively expanding into cloud computing (AWS), smart home (Alexa), content services (Prime Video) and other fields to achieve business diversification and stable growth.

6. Resource-based View

Amazon has strong logistics and distribution capabilities , technical capabilities, brands and customer base. Through the overall planning of these resources, Amazon can develop better. The world's leading logistics and distribution network can ensure fast and efficient delivery of goods.

The technological advantages in big data, artificial intelligence and cloud computing enable Amazon to provide personalized customer experience and efficient operations.

At the same time, through continuous brand building and customer relationship management, Amazon has a large and loyal customer base, which provides solid support for its business development.

Reference

By studying Amazon's marketing strategy and the reasons for its success, we can get some inspiration and apply it to online stores:

1.  Ordinary e-commerce companies can improve customer satisfaction by providing high-quality customer service, responding quickly to customer needs and feedback, and solving customer problems. They can also optimize the user interface of websites and mobile applications to make the shopping process simple, fast, and enjoyable.

2.  during market analysis , provide personalized product recommendations and promotions, and increase conversion rates and sales. Learn to use AI tools to invest in big data and artificial intelligence technologies to improve personalized service capabilities.

3.  Ordinary e-commerce practitioners can also launch their own membership plans and provide unique membership benefits, such as exclusive discounts, priority delivery and member-exclusive products, to attract and retain customers.

4. Ordinary e-commerce companies should focus on brand building, establish clear brand value propositions, and enhance brand image and customer awareness.

Use multiple channels (such as social media, search engines, advertising, etc.) to promote the market and expand brand influence and customer coverage. Regularly hold promotional activities to attract customers through discounts, coupons, etc. to increase sales and market share.

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