Discuss about the Marketing Strategy And Promotions Of Amazon Company.
Amazon Prime is the second mover in the entire SVOD market which is after Netflix in the entire competitive market. The Amazon tried to include the different kinds of strategic decisions which has helped the company in trying to target different group or segment of the individuals that included the college students along with new mothers in the market. Furthermore, Amazon tried to include different kinds of individuals in the market, however it has been seen that the percentage of the college students and new mothers are the major target of Amazon Prime as they are the ones who prefer shopping and watching different series online as compared to the others in the other age groups (Amazon.in, 2018).
Furthermore, promotions done by the Amazon Company are basically on the respective market segment as this is the appropriate choice for the company in order to gain competitive advantage in the entire market. Furthermore, there have been different surveys and statistics which has helped in revealing that the percentage of the different college students along with the new mothers are the ones who are high-frequency purchasers in the entire market and this also includes that these customer segments are the ones who are keen in trying to purchase different new products or services which are being introduced in the entire market (Baker & Saren, 2016).
This kind of customer segment target is essential in nature and this has been beneficial for the company as well as there are different shipping benefits and the word of mouth application is being applied to the different products sold by the company in an effective manner (Cascio et al., 2018). Lastly, the main emphasis of Amazon Prime to target the respective customer segment is that they are the ones who stay at home and the greater emphasis on the different individuals who prefer watching different serials staying at home at lower cost than Netflix.
Furthermore, there are different other market segments which will help the company in managing the differences and this will increase their revenue and profitability in the entire organization as well that will result in improved customer satisfaction and the customer base will be strong in nature as well (Lidstone & MacLennan, 2017). Amazon Prime has to understand the different moves of Netflix and this can provide them with different alternatives which will help them in being more competitive in nature and gain more profitability in the future in a positive manner.
There are various categories of the adopters in the customer behaviour that is essential and required in nature in order to analyse the position of the company in comparison to the different other competitors in the market. The adopter categories are as follows:
These are the different major five categories of adopters with the concern of the consumer behaviour that has helped them in managing efficiently. Additionally, it has been seen and analysed that Amazon Prime has to include one such adopters which has helped the company in managing the differences in an efficient manner (Kotler, 2015). The marketing strategy will help in understanding the tastes and preferences of the customers effectively and this will increase the entire profitability of the organization as well.
Apart from the new mothers and the college students, there are different other customer segments which can prove to be beneficial in nature for Amazon prime in the entire market. The customers or the men who are in their retirement age whose age is around 50s can be the proper target market as this helps them in gaining competitive advantage in the entire competitive market. The main competitor of Amazon Prime is Netflix which has assisted the organization in completing a proper survey which will help them in gaining more sales and profit in the organization (Kavaratzis, Warnaby & Ashworth, 2014).
Furthermore, the Amazon Prime membership can be offered to the different customers in the market which will help Amazon in becoming more popular in nature. Furthermore, this was seen and noticed that the market share of the company can be increased in an effective manner and this has helped the individuals to refresh themselves by watching different series on Amazon Prime at a reasonable subscription fee. Amazon Prime can include different series of shows from the 1970s which will engage the viewers and this will be useful in managing the customer base in an efficient manner as well (Melewar & Skinner, 2018).
Amazon prime can utilize the Ansoff’s matrix which will assist the company in managing the tastes and preferences of the customers such as they can include the web series of the customers and this will include the different kinds of attractions which will help in inclusion of Ansoff’s matrix product penetration and market development strategies to gain more popularity in the entire market (McDonagh & Prothero, 2014). It has been analysed that proper development of the product is essential in nature which has helped the company in managing the differences effectively and this helps the company in attracting more customers effectively (McDaniel, 2014).
There are different other customer segments who are required to be adopted and attracted by the company in an effective manner. The different customers are the main target segments which will help the company in gaining more competitive advantage in the market and this helps the company in maintaining high profitability in the organization effectively as well (McDaniel, 2014).
The Amazon Prime fees along with the subscription fees is required to be introduced which will help them in managing the overall profitability of the organization efficiently. The customer segments are required to be addressed in an effective manner which will help the company in managing the differences effectively without much issues in an effective manner. The middle-aged customers can be targeted which will be useful and attractive in nature as to be more competitive in nature in comparison to the other competitors.
Furthermore, the respective company needs to categorize the different customer segments effectively as per their tastes and preferences. Amazon needs to include different kinds of packages for subscription fees which will assist them in offering the different kinds of shows to the customers at an affordable rate. This will furthermore help Amazon Prime in managing the viewership effectively without much difficulties. After Netflix, it is Amazon Prime which has helped the company in improvising the different kinds of innovations, however there is less difficulty in managing the complexities as Amazon tried to take different difficulties in an easy manner (McDaniel, 2014).
It is essential for Amazon to maintain their competitive position in the entire competitive market and they can be the early adopters stage or category. This is the respective stage wherein these try to include the different innovations effectively without much difficulty and this will help them in being more innovative in nature in comparison to the other competitors in the market. Netflix is the first innovator which were the ones who started streaming different videos for the various age groups and this will help the company in gaining more competitive advantage in the entire industry. Lastly, there are various other issues which can be addressed by the company effectively and this will improve the overall marketing strategy of the organization effectually (Kotler, 2015).
There are different reasons for changing the entire strategy of marketing which will help the company in attracting and capturing the users in an effective manner. The main reasons for changing the marketing strategy are as follows:
Firstly, Amazon Prime needs to adopt the respective strategy of marketing as the early adopters along with the strategy of word of mouth which is useful in nature. With the help of the different marketing strategy, this will assist various kinds of revenues and sales of the organization as this will help in attracting the customers effectively (McDaniel, 2014).
Secondly, the marketing strategy change will assist Amazon in becoming more competitive in nature against Netflix and this has become a major threat for the business of Amazon prime as well. Furthermore, Amazon needs to include the promotional strategies which will manage the differences effectively without much difficulties. This will attract more customers in the market that will increase the overall profitability of the organization.
Thirdly, the analysis of the tastes of the customers is essential as this will assist Amazon in distributing the various sections of individuals and this will help them in managing the differences effectually as well (McDaniel, 2014).
On the other hand, there are different reasons wherein the marketing strategy should not be changed as the reasons are as follows:
Firstly, it can be seen that the Amazon is not being able to increase the sales of the company in an efficient manner. As the organization is not being able to understand the new techniques of marketing, Amazon should continue with the marketing strategies which are being used by them in the present scenario effectively (McDaniel, 2014).
Secondly, Amazon Prime should require to analyse the feasibility which will help the company in targeting the young generation and the new mothers. It has been seen that this is beneficial in nature as this will help in managing the different activities efficiently. Furthermore, this has been noticed that there is no such feasibility that has been acquired by Amazon wherein this has affected their brand image and reputation in an ineffective manner.
Lastly, Amazon should not change the marketing strategy of the organization in comparison to the other competitors in the market. The employees are not being satisfied with the different changes which are being addressed by Amazon and this can affect the entire promotional strategy and brand image of the organization in a negative manner.
References
Amazon.in. (2018). Amazon.in: Amazon Prime. [online] Available at: https://www.amazon.in/gp/prime?tag=googinkenshoo-21&ascsubtag=af437d37-2fc1-41c3-9f10-7b9d6066aeef [Accessed 17 Jul. 2018].
Baker, M.J. & Saren, M. eds., (2016). Marketing theory: a student text. Sage.
Cascio, W., (2018). Managing human resources. McGraw-Hill Education.
Kavaratzis, M., (2017). The participatory place br&ing process for tourism: linking visitors & residents through the city br&. In Tourism in the City (pp. 93-107). Springer, Cham.
Kavaratzis, M., Warnaby, G. & Ashworth, G.J. eds., (2014). Rethinking place br&ing: Comprehensive br& development for cities & regions. Springer.
Keller, K.L., (2017). Managing the growth tradeoff: Challenges & opportunities in luxury br&ing. In Advances in Luxury Br& Management (pp. 179-198). Palgrave Macmillan, Cham.
Kotler, P., (2015). Framework for marketing management. Pearson Education India.
Lidstone, J. & MacLennan, J., (2017). Marketing planning for the pharmaceutical industry. Routledge.
McDaniel, B.A., (2014). Entrepreneurship & Innovation: An Economic Approach: An Economic Approach. Routledge.
McDonagh, P. & Prothero, A., (2014). Sustainability marketing research: Past, present & future. Journal of Marketing Management, 30(11-12), pp.1186-1219.
Melewar, T.C. & Skinner, H., (2018). Territorial br& management: Beer, authenticity, & sense of place. Journal of Business Research.
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