Vacalie Ionut Gabriel
Amazon Company – Marketing Report
1. Company Overview
Amazon is a cloud computing giant and the largest e-commerce company in the United States.
Jeff Bezos founded it in 1994under the name Cadabra, but changed its name to Amazon when it
launched the site in 1995. It is said that Bezos scanned the letter position values of words starting
with "A" in the dictionary. He chose Amazon because it is "exotic and distinctive" and has
referenced his company size plan to reflect the plans of the Amazon River (one of the largest
rivers in the world).
Amazon was initially known for selling books through its website (later selling digital versions
through Kindle e-readers), and Amazon has built a customer service, inventory, and
transportation empire so that the website can provide everything from clothes to lawn furniture to
cleaning supplies. Various things. It also sells digital content such as movies, music and apps. Its
Amazon Web Services division is a multi-billion dollar cloud service provider, providing cloud
services to millions of corporate customers (including government agencies and universities)
worldwide. It is a major player in consumer electronics-not only by providing devices such as
Fire tablets and TV boxes, but also through its Alexa AI assistant service (through LG
refrigerators, refrigerators, Ford cars. 1
The company was founded as a result of what Jeff Bezos called the "Regret Minimization
Framework", which describes his efforts to resist those who regretted not participating in the
Internet business boom during that period.
On July 5, 1994, Bezos initially established a company in Washington State under the name
Cadabra, Inc. . A few months later, he changed the name to Amazon.com, Inc because a lawyer
misunderstood the original name "corpse." In the early days, the company operated outside the
garage of the Bezos House on 28th Street Northeast of Bellevue, Washington. In September
1994, Bezos purchased the domain name relentless.com and briefly considered naming his online
store Relentless, but a friend told him that the name sounded a little sinister. The domain is still
owned by Bezos and is still redirected to the retailer. 2
1
Company, F. (2000, January 1). Amazon: Most Innovative Company. Fast Company.
https://www.fastcompany.com/company/amazon
Vacalie Ionut Gabriel
I chose this company as a result of its commitment to world-class customer service. Amazon has
a series of useful tools that bring simplicity to their online shopping experience. Amazon's
customer service team has won multiple awards for its commitment to preventing and quickly
solving customer problems. One of Amazon's first tasks is to become the most customer-centric
company on the planet, and the brand's dedication to this goal has greatly benefited the company.
Social media is another powerful tool Amazon uses to interact with shoppers and improve the
quality of its customer service. When done correctly, social media channels can help your e-
commerce business address customer concerns and build a solid foundation for loyal and
enthusiastic followers who champion your brand. This is why many e-commerce companies
work with Snap's social media team to improve and develop their social influence.
2. Marketing Campaign Overview
Amazon's marketing strategy:
Provide the widest range of products. In terms of revenue, the world's largest Internet retailer
offers hundreds of millions of products. Most of the products provided on the Amazon platform,
58% come from third-party sellers. Use a customer-friendly interface. Scale easily from small to
large. This e-commerce and cloud computing company has experience and capabilities from
small to large scale. This factor has played an important role in exploring new business areas.
Develop member products and resources. So far, the technology giant has made full use of
member products and resources to contribute to the company's profitability.
A customer-centric world view and a high emphasis on efficiency have contributed greatly to
Amazon's success. Although in some cases these two characteristics seem to be almost
completely different, in Jeff Bezos' world, they are basically the same person.
At every step of the customer journey, no time is wasted, and shoppers will get what they want
immediately. In his words: "The most important thing is to focus on the customer. Our goal is to
become the most customer-centric company on the planet." This worldview also guides
Amazon's marketing plan. They strive to make things seamless, easy and instant satisfying.
2
Wikipedia contributors. (2021, January 12). History of Amazon. Wikipedia.
https://en.wikipedia.org/wiki/History_of_Amazon#Founding
Vacalie Ionut Gabriel
Amazon has developed an extremely sophisticated email strategy. Vero's Jimmy Daily pointed
out that every marketing opportunity in transactional emails was used. There are 9 different types
of transaction and marketing emails that will guide users through the onboarding process,
transaction purchase emails, different types of upsells, and review invitations.
Another important point about Amazon is the review strategy. They solicit reviews for each
product separately. Although many companies send emails requesting comments, most
companies bundle their requests together. At the same time, even if you buy all the products at
the same time, Amazon will send different emails for different products. In this way, Amazon
email marketers can create messages with very specific subject lines.
When customers browse emails, they are more likely to notice a specific product name than a
subject whose subject line only asks them to "evaluate a purchase." If someone particularly likes
or dislikes a product, they are more likely to click on a specific email request mentioning that
product, rather than a general and vague solicitation email. The following examples from
Amazon and Gap illustrate this.
In terms of its value proposition, Amazon's marketing is driven by its main customer loyalty
program. Not surprisingly, Amazon's success on Prime is almost legendary. Last year, its
membership base increased by more than 50%. Macquarie Capital estimates that approximately
25% of American households have Prime accounts, and that 51% of US e-commerce growth in
2015 is attributed to Amazon.
In addition, the consumption of loyalty program members is 5% to 20% higher than that of non-
members, and the purchase frequency of our loyal customers tends to increase by 5% to 20%.
If customer loyalty software is added through a referral marketing program (Amazon has not yet
fully explored this), the growth will be better. After one of our customers switched from a simple
traditional loyalty platform to a customer who used the enhanced features of a brand advocacy
solution, revenue increased by 300%.
Prime is not common because shoppers actually have to pay extra for members. Psychologically
speaking, this aspect may produce a certain prestige and additional value. In any case, many
Amazon customers think that the convenience they get is worth it. After all, they can quickly
Vacalie Ionut Gabriel
ship millions of products for free, cloud storage, a variety of free streaming movies and TV
shows, streaming music, and a library for Kindle owners to borrow.
The key point of all these privileges is that they are continuous. That is to say, Amazon does not
give shoppers a reward for a purchase, but circulates its loyal members to the entire ecosystem
and lasts for one year of benefits (if the membership is renewed, it will take longer). The
motivation to purchase again is practical, and customers can use all the functions of the program
at any time. There are no points during the purchase process. Essentially, Prime is seamless.3
Amazon is seen as an online retail giant that has its own strength when it comes to competing
with platforms such as eBay and Walmart. Amazon has developed a robust and reliable
marketing strategy to ensure they get the best results from the online market
Take Amazon as an example. They focus on catering to upper-middle class customers who have
a basic understanding of technology but lack time and don't like physical shopping.
The Amazon team has proven itself to be an online retail giant, which allows people to order any
product of their choice and deliver the product from any location, no matter how far or far away.
Amazon has been in the field of online retail for many years. Since then, it has expanded to
foreign markets such as Asia and Europe, and has become a leader in the United States. Their
marketing strategy has indeed helped them consolidate their position, thus surpassing other
global markets.4
3. Recommendations
There is no better strategic choice than expanding and diversifying the cloud business. With the
development of cloud technology, cloud computing will become the hottest trend in the past
decade. Coupled with other trends in the use of big data by marketers, Amazon can clearly gain a
foothold in these market segments and gain market leadership. It has established a leading
position in the global market, so now it must turn its attention to the next step of development.
Indeed, its success may be its failure in seeking market dominance. It is too diverse without a
clear strategy and is expanding. However, this strategy also has some drawbacks, including
3
Four Keys to Amazon’s Marketing Success (and How to Improve Them). (n.d.). Anex Cloud.
https://www.annexcloud.com/blog/four-keys-to-amazons-marketing-success/
4
https://www.businessarticleshub.com/what-you-can-learn-from-amazons-marketing-strategy/
Vacalie Ionut Gabriel
access to untested and untested markets, a strategy based on technology trends with shorter
lifespans, and maintaining returns on high capital investment plans.
In order to grow rapidly and achieve economies of scale and play synergy, Amazon needs to
expand globally. Although it can indeed cater to a global audience in its current business model,
it must also establish a local portal in the country/region where it wants to enter. For example,
Amazon now has dedicated portals in many countries, including India, and other countries can
also adopt this model. In addition, it needs to adopt a Glocal approach, in which its core global
delivery model is adapted to local conditions, thereby achieving global and local or Glocal
mergers.
The specific region it can locate and expand to is Scandinavian countries, where people are
closely connected and have high incomes. The dual combination of high Internet penetration and
high disposable income is a sure way to get more business.
Based on the points raised, Amazon needs to diversify into areas with higher profit margins. One
possible strategy is to increase the cloud-based products offered by AWS. Of course, as
suggested earlier in this article, this diversification must not lead to strategic errors, such as the
launch of the Kindle Fire. Therefore, it must realize the diversification of growth and
profitability without losing its focus on core competitiveness. Amazon can also take advantage of
the ever-increasing sales brought by mobile commerce and put more energy in the field of
Kindle e-books. Taking into account the fact that sales of the Kindle division were higher than
other divisions for the first time in recent quarters, this helps to formulate a reasonable business
strategy. Complementing mobile commerce will drive its profitability in the future.
4. Conclusion
Concluding, Amazon is a dstinctive and full of diversification Company that tries to increase
itself day by day, by its products and services, paying attention to the customer needs and
desires. When executing customer orders, everything is normal for Amazon. Amazon has a series
of useful tools to simplify its online shopping experience. Amazon's customer service team has
won multiple awards for its commitment to preventing and quickly solving customer problems.
One of Amazon's first tasks is to become the most customer-centric company on the planet, and
the brand's dedication to this goal has greatly benefited the company. Social media is another
Vacalie Ionut Gabriel
powerful tool Amazon uses to interact with shoppers and improve the quality of its customer
service. They select the products and services that customers need and need, and use distribution
centers around the world to make them ship quickly. Amazon has also established good
relationships with suppliers and can provide customers with discounted prices. Their mission is
to help consumers discover and buy anything by using the Internet and technology, and to
continuously enhance the capabilities of enterprises and content creators, thereby continuously
improving the level of customer experience. Their goal is to become the most customer-centric
company on the planet and with their ambition and strategies this can be possible improved.
5. Bibliography
Company, F. (2000, January 1). Amazon: Most Innovative Company. Fast Company.
https://www.fastcompany.com/company/amazon
Four Keys to Amazon’s Marketing Success (and How to Improve Them). (n.d.). Anex
Cloud. https://www.annexcloud.com/blog/four-keys-to-amazons-marketing-success/
https://www.businessarticleshub.com/what-you-can-learn-from-amazons-marketing-
strategy/
Wikipedia contributors. (2021, January 12). History of Amazon. Wikipedia.
https://en.wikipedia.org/wiki/History_of_Amazon#Founding
