Amazon Marketing Strategy: a brief overview

By John Dudovskiy
March 23, 2022

Amazon Marketing StrategyAmazon marketing strategy relies on the following four pillars:

1. Offering the widest range of products. The largest internet retailer in the world by revenue offers hundreds of millions of products. The wide range of product it offers has earned the online retailer the moniker The Everything Store.

2. Using customer-friendly interface. The tech giant has an advanced interface that integrates personalized recommendations and recent browsing history, among others. Ever-improving user interface is the result of the company’s focus to become Earth’s most customer-centric company.

3. Scaling easily from small to large. The e-commerce and cloud computing company has experience and competence in scaling from small to large. This factor plays in instrumental role exploring new business segments. Scaling from small to large has allowed the online retail behemoth do disrupt increasing ranges of industries such as retail, transportation, entertainment and now industrial distribution.

4. Exploiting affiliate products and resources. Up to date, the tech giant has taken a full advantage of affiliate programs, products and resources to contribute to the bottom line of the business.

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.

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 hundreds of millions of 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, anticipatory and stop-gap 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.

  • The tech giant also uses product placement as an effective marketing strategy. Amazon Echo smart speaker has featured in a number of shows such as “Dagobah, a Room and a Chimney Sweep” (2022) and “The Whole Enchilada” (2022). Similarly, Amazon Halo Band has been seen in series “Welcome to the Knockout” (2022). There are many other instances of successful product placements by Amazon. Inc. Report contains the above analysis of Amazon marketing strategy. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Amazon. Moreover, the report contains analyses of Amazon leadership, organizational structure and organizational culture. The report also comprises discussions of Amazon business strategy, ecosystem and addresses issues of corporate social responsibility. Inc. Report 2022

Source: Annual Report (2020) Inc.

Category: Marketing
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