Case Study on Amazon.Com

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Myriads of Marketing Strategies
Amazon.com bases its marketing stratagem on six pillars.
1.It freely proffers products and services.
2.It uses a customer-friendly interface.
3.It scales easily from small to large.
4.It exploits its affiliate’s products and resources.
5.It uses existing communication systems.
6.It utilizes universal behaviors and mentalities.
Much of its marketing is subliminal or indirect – it does not run $1 million dollar ads during Super Bowls nor post flyers in mall marketplaces. Amazon.com relies on wily online ploys, strong partner relations and a constant declaration of quality to market itself to the masses. Pay Per Click Advertising

Independent Pay Per Click (PPC) advertising has been the black sheep of Amazon.com’s marketing campaign. Their first PPC campaign attempt, spawned by their subsidiary company A9, was the mediocre Clickriver, a middling PPC program that kept its head above water but certainly swam no great channels. ProductAds replaced Clickriver in August, 2008. It allows any web merchant to purchase PPC ads on Amazon.com’s website, leading some pundits to sardonically comment about Amazon.com’s possible pursuit of Google’s web browsing crown. Despite its potential interest in Google’s regime, Amazon.com continues to purchase PPC advertisements on Google to direct browsing customers to their websites. It buys space on the left side of Google’s search listing results, and pays a fee for each visitor to Amazon.com who clicks on their sponsored link. This is typical of Amazon.com’s marketing strategy. No big banners, loud colors, or pristine men casually conversing about Amazon.com on America’s tube – just a demure advertisement on a web page which, incidentally, may wordlessly lead thousands to Amazon.com Continual Website Improvement

In today’s stop-and-go internet traffic, an engaging, simple and easy-to-use website is a necessity. Amazon.com expends millions of dollars and hundreds of man-hours to identify problems, develop solutions, and further enhance the customer’s online experience. Rob Enderle, head analyst at Enderle Group, states that “Amazon.com has always been very aggressive about analyzing its website’s traffic to a high degree and making modifications based on what they see.” This constant pursuit of perfection lead to Jakob Nielson’s prestigious ranking of Amazon.com’s website usability. In a 2001 study of 20 ecommerce sites, Amazon.com scored 65% higher than the average of the other nineteen sites’ usability. It has a class-leading 99.9% mobile device availability, and uploads several seconds faster than some of its competition. In one test, Amazon.com uploaded in 2.4 seconds, while Target took nearly seven to finish. A navigable website has consistently topped the priority charts of Amazon.com Occasionally, management skirts customer relations and engages in under-the-table investigations. Following several lawsuits from aggrieved loyal customers, who were charged several dollars more for the same item than newcomers, Amazon.com apologized for their underhanded differential pricing and discontinued the project. However, Amazon.com continues to noiselessly experiment on their website, garnering new information and augmenting their already popular website. Offline Advertising

Martin McClanan, CEO of upscale gift cataloger Red Envelope, notes that TV and billboard ads are roughly 10 times less effective when compared to direct or online marketing when concerning customer acquisition costs. Amazon.com has observed McClanan’s advice by reducing their offline marketing, especially during the holidays. In 1999, Amazon.com spent a gargantuan $80 million in offline advertisements during the fourth quarter. A year later, during the same time span, the company splurged only fifty million. Later years brought even more drastic cuts. According to Competitive Media Reporting, Amazon.com frittered $36 million in offline advertising in 2008, but through August of 2009,...
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