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Amazon is one of the leading eCommerce giants in the world. It is a big hub for eCommerce buyers and shoppers. Today, this eCommerce platform is a buying as well as selling portal for everyone. Amazon Marketing Strategy is one of the best examples to motivate clients.

Positioning, Segmentation, and Targeting:

While studying the marketing strategy of Amazon which is an eCommerce giant, it is necessary to see what it uses. Amazon deploys psychographic as well as demographic segmentation to cover the markets. It relies on Actual Purchase Behavior because seeing what people find interesting is a mistake of sellers around the globe. It also has a Micro-level segmentation which targets the customers one by one enabling the company to grab more attention of customers in order to convert them in a long-term client.

Ecommerce segmentation strategy of Amazon is impressive as it encourages the buyers to take more interest in shopping activities, brands, and products. It preferably targets the customers from the middle class as well as an upper class who want to get modern technologies, fashion apparels, gears and more. Amazon enables these buyers to save more time while seeing neutral reviews and product descriptions.

Go Global Act Local:

“Go Global Act Local” is the latest approach of this eCommerce platform. It is the latest trend forcing the sellers to discover new markets and customers around the globe. On the other hand, corporate partners or sellers can act locally with the help of easy payment, delivery and refund facilities. Amazon is using recent trend #AurDukhao in India to encourage the companies, manufacturers, fashion designers, retailers, and sellers. This Amazon Marketing Strategy trend is helping the customers to make their minds while searching the desired products online rather than visiting local markets.


Marketing Mix – Read more details about the marketing mix of Amazon.

SWOT analysis – Read more about SWOT analysis of Amazon.

Mission – Amazon wants to be the most favored and attractive eCommerce platform for the customers in the world. The customers will find whatever they like, love and use here. It also likes to provide an unforgettable experience to the customers and sellers in a user-friendly way.

Vision: It helps to support modern expertise and technology for the users. This will improve the online shopping experience.


Competitive Benefit in Amazon Marketing Strategy:

In order to distinguish itself, Amazon is working with numerous IT and eCommerce start-ups such as audible.com, pets.com, Junglee.com, Zappos.com, IMBD.com, and Woot, etc. All these start-ups help this e-commerce platform to acquire better technologies targeting the customers in the online markets. This customer facilitation idea is more economical because of low-cost marketing and traffic production. It has achieved a status of “Economies of Scale” with the help of extensive product range containing toys, electronics, fashions, games, DIY, Apparels, travel, home decoration, and more.

These things support Amazon to maintain prices in an affordable range. This is a simple but direct way to deliver economic benefits to the buyers. Customer Buying Behavior is helping it to develop a robust client-centric approach. According to an analysis, more than 50 % of clients on this platform are “Repeat Buyers” who come frequently to shop. Today, it is among the leading eCommerce services in Europe and the USA. However, it is also planning to extend the network to other markets.

BCG Matrix:

According to the BCG Matrix, there are three types of businesses including Cash Cows, Stars, and Question Mark.

Amazon Prime, Movies on Demand and E-books are the cash cows for the eCommerce portal. These offer great margins to the portal. As a matter of fact, Amazon was an online book store when it started its business.

Amazon Web services and Kindle, VOD (which is Video on Demand service) are among the question marks. These are technology dependent. This is why these things drop demand with the passage of time.

Electronics are in stars category for the Amazon. These are durable and reliable products offering reasonable margins to this eCommerce portal. Amazon holds the highest market share in this industry.


Amazon Distribution Strategy:

Increasing online traffic has doubled the workload on Amazon. Today, it operates with more than 55 fulfillment franchises helping to improve the manufacturing to consumer’s end experience. Products or brands manufactured by different companies require proper marketing, vendors, retailers, and shipment & delivery options. All these things require more attention especially when it is about the management. Amazon uses an aggressive marketing strategy to serve its clients around the globe. This is a reason why Amazon is getting more recognition in the world.

In fact, Amazon has a structured and deep network ensuring that products will be available everywhere including the remote locations. The purpose of this strategy is to minimize the product availability cost especially the delivery charges. With the help of an extensive network, it continues to serve the customers in a friendly approach.

Brand Equity:

Marketing strategy of Amazon is a great example of brand equity. It took starting as an e-book provider but now it is a modern e-commerce service having a network in all six continents. This portal is increasing the service network in order to strengthen the brands and products. This is a successful approach for the promotion and marketing resulting in targeting the customers with the highest satisfaction rate.

By April 2015, the total revenue generation of Amazon was $176 billion. It is a big revenue production for any eCommerce portal with a short professional history. With the highest 55 % of repeat customers, it is going to get the most attractive status in the world of online markets. The Amazon has set itself as a most valuable brand (Forbes List).


Competitive Analysis:

Amazon has so many strong competitors in the markets. It is necessary to consider the business field or industry when comparing its competitors. For example, Apple is the biggest competitor of Amazon when it is about magazine, movies, books, and audiobooks. On the other hand, its iTunes store is another threat to this eCommerce portal. It is because of the Apple products such as iPhone, iPad, and Macbook. Google is the most dangerous competitor for Amazon when it is about web services.

Walmart is a considerable eCommerce system giving a tough time to Amazon. It appears as a large online retailer offering the best shopping experience with a wide range of products, brands, and services. Shopping can buy products online, pay easily and get deliveries at home in a simple manner.

In order to improve the service standards equal to Amazon, Walmart is interested to bring same-day delivery service. This service would be available in major cities and countries for everyone. This would make Walmart a leading service on the internet with excellent choices for buyers. In some developed countries, Amazon is facing high competition with Flipkart, Snapdeal, and others. This service is also facing threats from the Groupon and First Cry. These are some basic services targeting moms, new parents, and kids. These local competitors are going to be a tough presence for Amazon.

Market Analysis of Amazon

Market analysis of Amazon in relation to marketing strategy is very strong. The international e-commerce portals are in the evolution phase and these are updating the systems. With the adaptation of modern technologies, software, and systems, it would be possible for developing eCommerce stores and portals to grab more attention. Targeting customers is no longer an issue because of the increasing e-commerce shopping trends. There are several examples of eCommerce portals developing the systems regularly. These include the top names of eBay, Alibaba, and others. These things are going to change the eCommerce industry in order to provide more benefits to buyers.


Customer Analysis:

Amazon marketing strategy usages is for its business development and customer analysis. It believes to balance the e-commerce and customer’s shopping experience. Customers want to use eCommerce portals because of the ease of shopping. On the other hand, they also want to see the products or brands before paying for them. Amazon has launched a neutral reviewing system with descriptions so the buyers can see what they want. Majority of the buyers at this online store are professionals and businessmen. They want to see how to improve the business with the help of Amazon’s business choices. Remember, Amazon has a large network in hundreds of countries. This network is highly attractive to manufacturers, companies, retailers, and sellers. Anyone interested to find more exposure to target the customers can use this platform.

Amazon Marketing Strategy:

Amazon presents the best business expansion choices. It is a friendly platform for everyone. Those who have a product or service can take advantage of its large network. There are lots of interesting opportunities and choices for businessmen, companies, manufacturers, and others. Whether you have a small or large business setup, there are corporate advantages for users. Those who have an emerging business setup should take the support of Amazon. It would be a great step to take real advantage of Amazon’s largest network of online buyers around the globe. Get the high traffic to your website, store or even a local shop with the help of marketing strategies of this leading online portal.



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