Amazon's vision is, “Relentlessly focus on customer experience by offering our customers

low prices, convenience, and a wide selection of merchandise.”

Following this vision Amazon uses the strategies below-

Amazon's marketing strategy:

It relies on the following six pillars:

1. Offering the widest range of products

2. Using a customer-friendly interface.
3. Scaling easily from small to large.
4. Exploiting affiliate products and resources.
5. Using existing communication systems.
6. Utilizing universal behaviours and mentalities.
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.

Amazon’s marketing strategy is based on the following principles:

Amazon 7ps of marketing mainly focuses on product and place elements of the marketing
mix. Offering more than 480 million 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 and
adaptive positioning techniques.
Amazon marketing communication mix integrates print and media advertising, sales
promotions, events and experiences, public relations and direct marketing. The company
places the particular focus on print and media advertising and sales promotions elements of
the marketing communication channel.

Amazon's Marketing communication Strategies:

Increase customer traffic to our websites
Create awareness of our products and services
Promote repeat purchases
Develop incremental product and service revenue opportunities
Strengthen and broaden the Amazon.com a brand name.

Amazon.com’s Intensive Strategies

Market Development: Amazon uses market development as its current primary intensive
growth strategy. Entry and growth in new markets is the main objective in this intensive
strategy. Amazon.com Inc. adds new countries where it offers its services. For example, the
company initially provided its online retail services to consumers in the United States.
Amazon now operates e-commerce websites in more than 10 countries, including Canada, the
United Kingdom, China and India. Each new country is considered a new market that creates
growth opportunities for the firm.

Market Penetration: market penetration is a secondary intensive growth strategy in

Amazon’s online retail business. The objective of this intensive strategy is to generate more
revenues from the markets where the company currently operates. Amazon.com grows with
increasing consumerism. Market penetration is responsible for the initial rapid growth of
Amazon.com Inc. in the United States. The company’s generic strategy creates the
competitive advantage necessary to penetrate markets based on low costs and prices.

Product Development: Amazon.com Inc. applies product development as a supporting

intensive strategy for business growth. Developing and offering new products to gain higher
revenues is the goal of this intensive growth strategy.

Use of Value Chain Model:

In the context of value chain or cost chain model we may mainly focus on customer perceived
value and in case of a distinctive e-commerce business customers main perceived value point
is buying product which are lower in price and high in quality from a trusted seller.
Amazon.com is the leader of e-commerce business with their customer satisfying policies and
low cost products.

Amazon Value chain: -

Inbound Logistics: Amazon get their product by third party buyers.
Operations: Once the products is ordered, it is sent to the Amazon's warehouse, where its sent
for packaging.
Outbound Logistics: The product get ready and is all set to be sent towards the destination.
Sales and marketing: Amazon uses your cookies to market product to you. For example, if I
was viewing laptops in another websites. After a while, I will see an Amazon's add in the
sidebars with laptops.
Service: Amazon has an excellent customer service. They know how to keep their customers
happy. For example, if you are not entirely satisfied with your purchase , you can get a full
refund on your purchase. Amazon's weakness is the products that flopped. This could be
really negative for the company because it could decrease credibility. Example of products
that flopped: Fire phones,kindle.

1 Objectives:Not to provide discount on small number of products for a limited period

of time but to sell products on low price regularly

2 Value chain position:

1 price
2 Convenience
3 Selection

3 Strategy: For growing fast aggressively investing in new product categories and new
businesses. Spending money on brand awareness and getting new customers.