Amazon is considered as one of the biggest leading online retailers, who sell a broad array of products like games, books, music, movies and clothes. It was reported that in 2013, Amazon had 117,300 employees and the net revenue was of $74.45. From its establishment in 1995, it has outgrown many competitors in the industry and became the market leader with over 24 million consumers across the globe. Amazon carefully used its acquisition strategies and investment for enabling itself in maintaining its position and continues for expanding the product range on most competitive prices and quick deliveries. Amazon uses all the marketing mix very well and consider it as the powerful approach for attracting customers and targeting new and potential consumers towards e-commerce or online retailing. Marketing mix or 4Ps are the combination of tactics and strategies for implementing the marketing plan. For this, Amazon try to reach out to the audience through this tool, and focuses on price and place components as the main selling point. For surviving in the competitive market and retaining its positions, Amazon ensure its strategies and marketing mix to be up-to-date according to the market trends. With the help of marketing mix, it enables the organizational resilience and support the innovation and technology for longer time period (Amazon, 2018).
The marketing mix of Amazon are designed for availing the advantages of online nature of retailing or e-commerce operations. These marketing mix components help in enabling the international growth and competitiveness while the Amazon innovates products and services.
Products in Marketing Mix of Amazon
Amazon is the largest international e-commerce retailing company, who use internet connection from different gadgets like tablets and phones, for allowing consumers to purchase and browse the products right at the moment. These goods are later delivered to customers by using the services of delivery companies. It has successfully built the massive product base and involve in trading in almost everything, which include;
• Smartphones and tablets
• Games and gaming consoles
• Clothes for men and women
• Gardening equipment
Amazon initially began with selling and dealing with books only and still it is famous as the leading brand of selling books across the globe. That is why, it introduced Kindle as its own product, which is an e-book reader, can be bought from Amazon. Amazon is considered as the major reason in bringing revolution in publishing market by converting papers to the digital e-books due to the comfort, convenience and ease consumer get from Kindle. Because of the Kindle success, Amazon also introduced Kindly Fire- own Tablet/pc (Ferguson, 2017).
Whatever the customer will enter in the search engine, particular product, there are high chances of Amazon, offering the product and has that in stock. As it expanded and grew rapidly, Amazon is working hard to add more new products in its inventory. Once it was established in the books, Amazon expanded towards other categories for maintaining its existence and position in market. Amazon is famous for the knowledgeable products, E-bay- the biggest competitor is famous for the techie products. It also introduced its own smartphone with the name Fire Phone, after launching its set top box system called Amazon Fire TV that allows the streaming from different channels (Bahadir, Bharadwaj, and Srivastava, 2015).
Place in Marketing Mix of Amazon
The venues, Amazon used for reaching to its target markets are identified and are selected with great care. Amazon is the business that deals in online retailing. Nevertheless, it uses multiple places for reaching and communicating to its target consumers;
• Amazon Books
• Official Amazon website
Its official website is used as the primary place for conducting a transaction with the customer. These websites are; Ausible.com, amazon.com, and other websites that target specific market. Furthermore, it also operates the physical bookstore called as Amazon Books in the Seattle. This place enables Amazon for reaching to the customers who want to evaluate the products physically before purchasing. In addition to this, the company also uses other venues for the temporary transactions. For instance, AWS- the Annual Web Services Summit conducted in different locations, and enable the firm to reaching the potential consumers and convince them for paying to the e-commerce services. For this, the marketing mix of Amazon greatly relies on strong online existence of the company (Bhasin, 2017).
Price in Marketing Mix of Amazon
Amazon uses the low pricing strategies for selling the products. It helps in attracting customers towards e-commerce product offerings and website. Nonetheless, provided with the variety and different products of the company, it use the following strategies for setting prices;
• Value-based strategy
• Price discrimination approach
• Market oriented pricing approach
Amazon uses the market oriented approach as the primary strategy. For instance, it evaluates the prices of competitors as basis and then set the prices. The main advantage of this strategy is to make the selling prices competitive, attractive and affordable for target customers. The price discrimination approach used different prices for same products, and this is applicable on Amazon’s different websites. This is more beneficial for adjusting the prices on the conditions of national market, consumer expectations and preferences. And value based pricing involves setting prices on the basis of product value and reflect to the market adjustments (Ferguson, 2017).
Promotion in Marketing Mix of Amazon
Amazon has made several commercials, and broadcast it on televisions to reach masses, but usually in the American market. It uses major web-based advertisements and also make use of billboards and other small methods for advertisements. It also use the advertising online networks to check anything on Amazon, consumer will see the ad on other website. Amazon effectively use the SEOs and SMEs techniques and strategies for making its name high up in the search engine results, which is the smart act for promoting an online business. It use sales promotion, direct marketing and public relations as the tools for promoting itself. However, sales promotions is its secondary strategy (Bhasin, 2017).
Amazon, 2018. About Amazon. [Online], Available at: https://www.aboutamazon.com/?utm_source=gateway&utm_medium=footer, [Accessed on: 19th June, 2018].
Bahadir, S.C., Bharadwaj, S.G. and Srivastava, R.K., 2015. Marketing mix and brand sales in global markets: Examining the contingent role of country-market characteristics. Journal of International Business Studies, 46(5), pp.596-619.
Bhasin, H. 2017. Marketing mix of Amazon. [Online], Available at: https://www.marketing91.com/marketing-mix-amazon/, [Accessed on: 19th June, 2018].
Ferguson, E. 2017. Amazon.com Inc.’s Marketing Mix (4Ps) Analysis. [Online], Available at: http://panmore.com/amazon-com-inc-marketing-mix-4ps-analysis, [Accessed on: 19th June, 2018].