Company Name– Amazon
Founder– Jeff Bezos
Jeffrey Preston Bezos is an American technology entrepreneur, philanthropist and investor. He is the founder, CEO, Chairman and the president of Amazon. He established Amazon in 1994 on a cross-country road trip from New York City to Seattle. The company began as an online bookstore and afterwards, it expanded to a variety of products. Today, it caters to almost everything including video and audio streaming.
How It All Started
Amazon was first launched in 1995 and sold books under the company name “Cadabra”. Jeff Bezos had a vision for the company’s growth and e-commerce domination. He wanted Amazon to be “an everything store”. A year later, Jeff finally chooses the name Amazon because he wanted the company to be named after largest river in the world, hence the company’s original logo so that it can be the largest store having every product. Amazon initially started from Bezos’s garage by Bezos and his wife.
In the first month of its launch, Amazon had already sold books to people in 45 different countries and 50 states. Book distributors required retailers to order ten books at a time but Amazon did not have that much of money and did not need that much books. So, the Amazon team has discovered a loophole, so that company can purchase number of books they want.
Amazon was mainly as online bookstore but Bezos have always planned to expand to other products. After three years, he took it public with an initial public offering. He knew that the growth of internet would overtake competition from larger book retailers. By the end of 1998, Bezos expanded the company products to include a variety of consumer goods.
Amazon Marketing Strategy and Interesting Reasons Behind Its Success
- It offers a widest range of products. It segmentation is based on actual purchase behaviour. It targets each customer individually and allowing the company to fulfil the requirement of visitors for long term with valuable services.
- They use a customer friendly interface by offering more than 480 million products. The marketing of Amazon mainly focus on product and place elements of the marketing mix. Its product range is widest among online and offline retailers. It offers products for competitive prices due to massive cost savings based online business operations.
- They scale their product easily from small to large, so that customer can purchase their budget. The segmentation targeting and positioning practices are associated with widest customer segment. The retailer does this with the application of multi-segment, adaptive and anticipating position techniques.
- Amazon have unique selling preposition that integrates the widest choice of products and services offered in competitive prices with fast delivery and exceptional customer services. They place these unique selling prepositions at the core of its marketing communication messages.
- The marketing communication involves print and media advertising, sale promotions, public relations, events and experiences and direct marketing. It pays an attention in print and media advertising and sales promotion elements of marketing communication channels.
- They utilize universal behaviours and mentalities of customers so that they can meet with their needs.
- They always sell affiliate products and resources for maintaining the relationship between them and customer.
- Amazon marketing strategy integrates a number of targeted online market channels such as Associates program, television advertising, social and online advertising and other initiatives.
- Movies on demand, E-books and Amazon Prime are the sources of income, giving maximum margins to Amazon.
- Amazon’s extensive distribution system is focusing on quick delivery of products to for the customers.
- It has more than 55 fulfilment centres exceeding 43 million square feet.
- Some brand ambassadors of Amazon are associated with sports and fitness. They are Mahesh Bhupathi, Yuvraj Singh, Lara Dutta and Dipika Pallikal.
- Amazon also roped in superstar Amitabh Bachchan, Salman Khan, Rani Mukherji, Varun Dhawan and Alia Bhatt to promote the concept of Amazon Prime Video and also Prime Day.
Provides a Platform to Sellers
The sponsored products are the recommended way to get started advertising with Amazon advertising. You can create customized multi page to display your brand and product catalogue. The simple self-service store builder allows creating a store even if you have no experience of creating websites. You can promote your products through marketing activities off Amazon .com.
Product display ads appear on product detail pages, reaching shoppers as they consider adding an item to their shopping cart. These ads target the individual products, shopper interests or product categories. Track your advertising cost of sale, which has calculated by dividing your total ad spend by total sale from advertising. Set strong cost-per-click and focus on impressions or number of times your ad is shown.
Choose sponsored products to accomplish your advertising goals and always make sure that your products are in stock. The product detail pages must have these criteria; high quality images, at least 5 bullet points related to product, relevant and useful information and hidden keywords.
Check your items each week as it will help you to know what works best with your time and resources. By investing time on these strategic steps of campaign, you can gain knowledge of advertisement and grow your skills. It will help you to position yourself in the market for long-term success.
Start the campaign with broad match and review your campaign performance to know which specific terms are performing best. The more campaigns you run, the more opportunity you have to learn which help you drive the most sales.
Amazon is the largest Internet Company in the world and second largest employer in the United States. It is the most valuable public company and has largest e-commerce market place and cloud computing platform in the world measured by revenue and market capitalisation.
Amazon acquired whole foods market, which vastly increased Amazon’s presence as a brick-and-mortar retailer. This company also has publishing arms Amazon Publishing. It is the world’s largest provider of cloud infrastructure services through AWS subsidiary. It has separate retail websites for some countries that offers international shipping of some of its products to other countries.