Research Report Amazon Marketing Strategies

This is used to cross sell products efficiently terry

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search inside the book feature, 1-click shopping, and wish list. This is used to cross-sell products efficiently (Terry-Armstrong, March 2013). Pay Per Click Advertising (PPC): Amazon continues to purchase pay per click ads on Google to direct potential customers to their website. They buy space on the left side of Google’s search results and pay a fee for each person who clicks the sponsored link (Marketing Plan, 2011). Website Improvements: Amazon always takes lots of time analyzing its website to a high degree and makes adjustments to the website on what they see. One of their top priorities is that they must have a navigable website to make the customer’s experience go as smooth as possible (Marketing Plan, 2011). Affiliate Marketing: The company found out that when there is more involvement with the brand, customers will act as brand ambassadors. It reaches its target market significantly through advertising “affiliate programs”. These relationships let sub-retailers link through to Amazon’s website and receive percentage commissions for any sales that result. Affiliated programs have been so successful that 40 percent of Amazon’s sales come from these third-party sellers (Terry-Armstrong, May 2013). Email Marketing Campaigns: Amazon mostly engages in permission marketing. It means that customers give Amazon permission to send them promotions by e-mail. Since customers are volunteering for this, they are
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more likely to pay more attention to the marketing message. They don’t send out irrelevant e-mails, every single one is based on the customer’s previous purchases (Marketing Plan, 2011). Promotional Offers: Free Shipping over $25 (Marketing Plan, 2011). Competition Due to Amazon’s presence over many e-commerce categories, the company has gained many competitors over time. The Seattle-based online company started as a book supplier and now it has every product imaginable (Richter, 2013). In a recent interview, Jeff Bezos explained how focusing on customers’ needs beats worrying about competitors. He stated “Let’s say you’re the leader in a particular arena, if you’re competitor-focused and you’re already the leader, then where does your energy come from? Whereas, if you’re customer focused, and you’re already the leader, customers are never satisfied” (Bishop, 2013). So, although Amazon is locked in a very competitive market, it always finds a way to have a competitive advantage by focusing on consumers.
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