Marketing Mix of Amazon tells the 4ps (Product, Price, Place, and Promotion) of one of the successful e-commerce giants- Amazon
Amazon is one of the largest online retailers in the world, providing a wide range of products including books, games, clothing, music, and movies. The organization uses a marketing mix as a strong approach to attract more consumers to its e-commerce website.
Amazon has outpaced various competitors in its area since its inception in 1995, and has risen to become the market leader with about 240 million consumer accounts globally.
The organization has stayed ahead of the competition by carefully investing in businesses and acquiring smaller firms. So it continues to grow its product assortment while offering customers discounted prices and faster deliveries if they join its various types of subscription plans.
Let’s start with the Marketing Mix of Amazon to learn more about their product, price, promotion, and distribution approaches.
Product in the Marketing Mix of Amazon
Amazon is a global e-commerce corporation that allows users to explore and buy things right away utilizing internet connections from various devices such as phones and tablets. These items are subsequently delivered to the consumer by third-party delivery services. Amazon has acquired a massive product catalog and now sells practically anything, including:
- Clothes for men/women and children
- Gaming consoles and games
- Mobile phones/tablets
- Gardening equipment and many more!
Amazon began by selling simple books, and it is the world’s largest bookseller to this day. As a result, Amazon launched the Kindle. Kindly is an Amazon Ebook reader, and it is the reason that the publishing industry is undergoing such a major transformation from hard paper to digital ebooks due to the convenience of reading on the Kindle.
In terms of product portfolio, Amazon has a significant offering in its Marketing Mix of Amazon. The ‘end result’ Amazon is a website and mobile app that sells a variety of things to customers. Toys to electronic gadgets, home décor to health/beauty utilities,
Apparel to vehicle parts is all part of its retail sector.
These items are sold not just by Amazon, but also by Amazon-listed third-party merchants. Amazon is making a lot of money because of its marketplace business strategy. Amazon’s digital services, such as on-demand video, music, and e-books, are also a major source of revenue.
To emerging start-ups and other companies, Amazon also offers a variety of online services, such as cloud storage and database services. Amazon’s other services such as Amazon Prime Pantry and Amazon Fresh provide groceries to customers.
It also offers commercial and individual clients publishing services. AWS, Amazon’s web hosting service for customers and clients, is also a prominent product in the company’s portfolio. The corporation has enhanced its position by acquiring companies such as Twitch, Ring, Whole Foods Market, IMDb, and others.
Price in the Marketing Mix of Amazon
Amazon’s pricing strategies vary due to the many types of services it provides. When it comes to pricing, it makes use of technology to its advantage. The majority of the time, product prices are established using a competitive pricing approach. The efficiency of Amazon’s operations, as well as its web-based business strategy, allow it to provide the lowest cost possible. It also modifies pricing regularly depending on the product type, time of day, and season.
Amazon uses differential pricing as well, charging various prices for the same product based on the location of the customer because it has many websites in each nation. AWS is also a global leader when it comes to providing high-quality, low-cost web hosting services.
Place in the Marketing Mix of Amazon
Amazon is a multinational brand and has a presence all across the world. All customers purchase items and services through the Amazon.com website and apps. When a consumer places an order, Amazon’s distribution channel kicks in, and items are procured and kept at Amazon’s fulfillment centers. These are gigantic Amazon warehouses that have been erected in strategic places to reach even the most distant parts of the world.
Packages are also transported by Amazon via local postal and courier services. However, a few analysts have lately claimed that Amazon is planning its distribution network for package delivery. This will reduce the company’s costs even further.
Promotion in the Marketing Mix of Amazon
Amazon promotes its brand through aggressive marketing strategies. The marketing mix of Amazon’s promotional approach leaves no stone abandoned when it comes to promotion. Its primary focus is on advertising, which has exploded in recent years due to newspaper print ads.
Amazon employs SEO to target customers based on their browsing tendencies, as well as smart television advertisements and social media marketing. Amazon also offers affiliate programs via which website and blog owners can promote Amazon product links on their sites.
The launch of ‘Amazon Smile, which gives to charitable organizations, is an example of public relations exercises to boost company image. The next crucial factor is sales marketing, the organization has mastered this skill, offering efficient sales promotions and discounts throughout holiday seasons and festivals, resulting in increased website traffic. Amazon also does direct marketing to businesses in order to sell its web services.
In India, Amazon appears to rely on the most effective kind of advertising available known as ‘Word Of Mouth’. It’s a definite approach to get a new potential customer if they tell others about the site or mention it positively. Print media advertisements, on the other hand, are used to make their existence known to the general public. However, Amazon in India has to do a lot more in terms of deals, as Flipkart is quickly absorbing Amazon’s traffic.
I hope you have gathered all the crucial information about the Marketing Mix of Amazon and the 4 P’s of Amazon. Stay tuned for more Marketing Mix Articles.