2. JEFF BEZOS
Amazon was founded in 1994 by Jeffery P
Bezos, who has since been serving as its
chairman. However, the online business of
Amazon opened in 1995. The company has
come a long way from being an online
bookseller to being the leading online retailer of
the world. Today, it sells hundreds of millions of
products, several of which is it's own and
others sold by third-party sellers through its
website. 2
3. PRODUCT.
Amazons products are also at a much higher quality than their competitors.
ïAmazons products are also divided into 4 categories:-
ïŒAmazon's website - enables hundreds of millions of products to be sold by
Amazon and third parties across dozens of product categories.
ïŒElectronic devices - Such as Amazon's personally manufactured fire tablets,
kindle, fire tv, headphones, mobile phones, and many more
ïŒMedia content - An extensive range of products and services, including
cloud-based services that can be used to produce content.
ïŒAmazon web services (AWS) - This segment offers a range of global
compute, storage, database and other service offerings.
3
4. PLACE
ï¶Traditionally, Amazon did not have any physical stores and the company
relied on online sales channels, due to the e-commerce nature of its business
operations.
ï¶As mentioned, not only did Amazon rely on online sales, but they also sell to
wholesalers who then sell onto different retailers located all over the country.
ï¶Amazon also partners up with numerous delivery service providers to provide
timely deliveries.
4
5. PRICE
ï±"Amazon's strategy is to frequently lower prices until they beat competitors for all
products.â
ï±With Amazon's pricing strategy, they fluctuate their prices at a rate that competitors
such as Walmart, best buy or toys r us cannot battle. â
ï±They are also come up with amazon prime. Amazon Prime is a paid subscription
program from Amazon that gives users access to additional services otherwise
unavailable or available at a premium to regular Amazon customers. Services include
same, one or two-day delivery and streaming music and video
5
6. PROMOTION.
ïAmazon's most effective strategy for marketing is through their promotional skills.
âȘ Amazonâs promotional strategy is successful because not only do they regularly
promote their product or service very clearly but while doing this, they are having a
bright understanding of what the customer wants.
âȘ They want quality products, they want it at a reasonable price, and they want it
delivered fast and within the excellent condition. Amazon has been able to uphold
this promise, which is why Amazon is growing with such success.
âȘ Amazon also believes that their most effective marketing communications are a
consequence of their focus on continuously improving the customer experience.
Which then creates a word-of-mouth promotion which is useful in acquiring new
customers and may also encourage repeat customer visits. 6
7. PEOPLE
7
ï They are trained in using persuasive techniques, and they learn all about
customer preferences.
ï Amazon also has an on-call customer service, to assist with any issues with a
product that a customer has purchased.
ï Amazon work with suppliers to obtain raw materials. This helps with
maintaining and improving the quality of the final product.
8. PROCESS.
ï¶Below explains the process of how to purchase products from Amazon and a
link to how the warehouse runs and how inventory is controlled, to ensure
products are always available.:-
âȘ In order to purchase online, they have a 5 step process.
âȘ Identify their client.
âȘ Select shipping address and special options.
âȘ Select the payment method.
âȘ See an overview of the entire order.
âȘ Confirm and place the order.
8
9. PHYSICAL EVIDENCE.
âȘ Amazon has an online website that is user-friendly and allows customers to view
products in high-quality images taken from various angles.
âȘ This is one factor on how it has helped Amazon make many sales due to its easy-to-
navigate website because a wide range of people is able to use it.
âȘ The simplest meaning behind the Amazon logo was created to represent a message that
it sells everything from A to Z (the arrow connects the two letters.)
âȘ It also represents the smile that customers have when experiencing shopping with
Amazon
9
10. IN CONCLUSION
âȘ Amazon's strategy has proved successful at attracting and retaining customers in a very
large number. Apart from customer service, its pricing strategy has also played a central
role in making it as popular globally.
âȘ Its position as the leading e-commerce player has become a formidable challenge for
the physical retail players.
âȘ I believe Amazon has found success from using promotion as a way of marketing the
company to the world, as they have used all channels in a development such as the use
of paid advertisement, recommended emails, billboards and social media. They have
used these tools to attract them to their website, convert them from a visitor, into a
potential customer, and also close them as a customer, and then onto building a
relationship with them through emails, without trying to up-sell.
10