Amazon Marketing Plan
Lauren A. Meier
In this paper you will find the marketing strategy of Amazon. As technology has advanced and internet can be accessed essentially anywhere more and more people are turning to online shopping. Amazon.com, a retail online super center has taken advantage of this and has successfully been able to adjust and expand their consumer base. Starting as an online book retailer they have grown to selling sports gear, electronics, and many other various items. This opened several marketing opportunities and target markets for Amazon. With the release of the Kindle and the soon to be introduced set-top box Amazon is looking at a whole new playing field of competitors. Keywords: Amazon, competitors, online shopping, marketing opportunities
Amazon Marketing Plan
Company Overview: Jeff Bezos, founder and current CEO of Amazon.com has been committing himself to Amazon’s mission for the past 18 years. Amazon was incorporated in July of 1994 with one sole mission… “Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.” Almost exactly year later Amazon.com had sold their first online book, "Fluid Concepts & Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought." With their headquarters located in Seattle, Washington and a support system of over 88,400 full and part-time employees; Amazon has successfully expanded and become a world renowned on-line retailer. By 1997 they began trading as AMZN on NASDAQ and selling products outside books. Not long after, they introduced the purchase friendly “one-click” shopping feature; which allowed Amazon members to simply click once and the purchase was done! This changed the face of on-line buying and sent “AMZN” internationally. In October of 98’ Amazon launched its first ever international websites in both Germany and the United Kingdom. Amazon didn’t stop there, by the year 2000 they had added Amazon kitchen, photo, electronic, and game stores and had established websites in both France and Japan. Since then Amazon has continued to expand their product and consumer base through partnerships, promotions, and product placement. Arguably, what sets them apart from competitors is there overall customer support and dedication to servicing each consumer’s needs. Awarded #1 in customer service by the National Retail Survey and to date earning a 4.5 out of 5 star rating on Google.com (Amazon.com). E-commerce is growing at a rapid pace with sales increasing by 120% just in the United States (Shim, Eastlick, Lotz, Warrington, 2001). According to Reportlink and yStats.com, by the year 2015 the e-commerce market industry will generate between 700 billion to 950 billion US dollars; with well over 3 billion internet users world-wide. Analysts have already begun to notice trends in developed countries where internet use is more accessible and online shopping is more popular.
Amazon’s operates on three key segments selection, price, and convenience. As one of the top three leaders in the online retail market industry they have the ability to take more risks. One of which was breaking into the electronic industry with the release of several electronic book readers. The electronic market segment leads the way in the U.S. generating approximately 26% of all online revenue; $36 billion (Reportlink). The Kindle series became Amazon’s top selling product ever sold on Amazon. According to Businesweek.com, Amazon is set to release a new product for fall 2013 called set-top box. Set-top box will be used to stream videos, TV shows, and books directly to your television. Their goal is to gain more revenue and promote their online video store (Stone 2013). This compatible video streaming will also help cut back on operational costs. Amazon is one of the original “doctroms”...
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