The document discusses Amazon's e-marketing strategic planning. It covers market segmentation, positioning, and targeting of Amazon's market. It notes that Amazon segments its market through different brands that appeal to distinct demographics. It then discusses Amazon's objectives, which include providing excellent customer service to build loyalty. The document outlines Amazon's 4P marketing strategies of product, price, place, and promotion. It proposes enhancements Amazon could make, such as adding debit card payments and improving the search engine. Finally, it discusses implementing and evaluating the analysis, including potential metrics like sales conversion rates and website traffic.
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1. C) E-marketing Strategic Planning
1) Market Segmentation, Positioning and Targeting Segmentation of Amazon.com
With its numerous brands, Amazon segments its market; each brand symbolize a single image
and caters to a distinctive demographic. Friendly, low cost are meant at the average to high
level earnings market. Consequently, Amazon.com markets its goods to individuals that want
to do their shopping online, and they want to purchase products at an reasonable price. It
would be people that are comfortable with technology, with huge levels of income. For its
segmentation strategy the company uses mass marketing, as for its market segmentation it
uses demographics and behaviour. In which it tries to catch the attention of consumers of a
range of ages, diverse culture, average income level, man as well as women, with high school
or higher level of education. These customers have interests in online shopping and it has
been observed that some of them shown a high level of brand loyalty to Amazon.com.
Their target market profile is mostly people with a personal computer and home online
consumers. Since the target market is young, they will be likely to be single or with new
families.Amazon.com has even position in leading Internet retailers that are improving the
lives of customers by making shopping easier and more convenient.
Amazon.com proceeds as the only shop selling all you want. This differentiates Amazon.com
from Internet portals, a preliminary point where the customers bounce in and out of diverse
stores all with their individual look and feel, safety way, and privacy statement. With
Amazon.com the purchaser simply deals with one proprietor of the products, one payment
system, one secured web site, and confidentiality concern. When Jeffrey Bezos says he wants
a buyer to be capable to purchase anything from one place, it is necessary to utilize a virtual
shop such as Amazon.com since a real world shop could never warehouse everlasting
merchandise for millions of individuals. The target market of Amazon.com is accurately any
person who can notice the pages and this means individuals with access to the Internet.
2. 2) Objectives
To gives the customer an immediate feeling of being serviced and helped in practical and
trustworthy way that goes towards creating a social bond, primary element in developing
committed customers because it means that they are more likely to feel that the brand meets
their needs and values.
To gives the customer and experience of being part of a larger group; in a very modest way it
contributes to a sense of belonging, that vital need described by Abraham Maslow and again
contributing to social bonding. SuccessfulCRM is fundamentally based on the principle of
treating each customer as an individual. When we know the kind of customer we are dealing
with we can treat them even better as individuals.
To significantly helps to develop customer sales and share of wallet. To the extent that
Amazon is market leader; it sets the share of wallet target for the rest of the category. So
effective has this been that Amazon.com has not only been growing at a phenomenal rate in
what had been a dead market, but it has actually led to growth in the market.
3) New E-marketing Strategies (4P’s)
Products
There are several aspects that Amazon.com should take into consideration for the products
and services they offer. Amazon.com offers a verity of products of anything from food to
clothes or car accessories; put differently, Amazon offers any product that comes to mind and
these products are thoroughly researched, in terms of how it will benefit the consumer or
customer if they do purchase their products. And Amazon have to think about creating an
outstanding package that will help them win the competition with other competitors of other
auction websites like, EBay and ioffer.com. Amazon may also have to consider warranty use
and proper privacy to make the consumers comfortable when buying their products. Amazon
is till up to date, providing the most exclusive, unique products that have a guaranteed good
quality, aiming to satisfy their customer’s wants and needs.
3. Price
The next P on the list is the pricing strategy, when a company is setting the price for a certain
product high, the customer will be facing great resistance in pursing to purchase the product,
and if the price is set too low, it will give the customer’s the perception that the product is of
low quality. Amazon.com has team that are working to find the proper and most appropriate
price for each product to convince the customer to buy it. Another point that Amazon should
put into consideration, is “competition” which is a very important aspect for any company and
specially for Amazon.com, cause Amazon are not facing with other auction sites in case of
competition, Amazon are dealing with competition with the companies that sell their products
on Amazon.com as well, so, Amazon must set a price for products that are similar buy
different companies sell it on their website.
Promotion
The fourth point in the marketing mix is Promotion. Amazon.com thought of a way to
promote their products that are provided to generate a high sales rate. Promotions are used to
influence the customers to make the decision of buying product. Promotions are offered in
public holidays and events, like Christmas, Halloween, or even big events like the annual
football World Cup. Sometimes Amazon offered random promotions to their customers with
no occasion like now they are offering a promotion for Kindle and this will encourage the
customers to buy their products.
(Sources from: Advertising Banner- New Promotion Strategy, available from:
www.amazon.com )
Place (Distribution)
4. The last element of the marketing mix is the place strategy. The world place indicates the
location where the company will sell their customers. Since Amazon.com do their auction
business online through a website, place is not determines as where the product originated but
it is determined as in where it will be delivered and how to deliver it. Amazon.com offer a lot
of option in case of delivery, similar to, domestic standard, domestic expedited, two day
domestic, one day domestic, standard international and so on.
4) E-marketing Tactics
Enhancement Features
The first thing that Amazon.com can enhance is the payment procedures, instead of only
allowing customers of using credit cards, they can add an option of using debit card as well to
make it easier to customers to consume the products they need. Another thing that they can
enhance is the searching engine where they can make it easier for the consumers to browse
into the website to find the products they wish to purchase. And in case of shipping the
products, they can enhance their shipping options and instead of only shipping by sea, they
can improve their delivery system and deliver by using air CARGO.
D) Implementation and Evaluation:
A discussion of how the analysis will be implemented, and evaluated to help the marketing to
do the decision makers including the limitation of the theories that would be applied.
Potential Strategic Implementation
In order to gain market share and sustain its competitive advantages to be the low cost carrier
in the high demanding environment, Amazon must develop new ways manage both customer
relationships and suppliers or partners to optimize customers loyalty, suppliers relationships,
and revenue. The following diagram shows the strategic forces of value proposition of the
Amazon industry, showing that the focus i=on supplier and Alliances and Customers will
5. drive positive values to Amazon can achieve Customers Relationship Management (CRM)
application will be one of the areas of strategic. IT an implementation that Amazon can focus
to achieve high values to both shareholders and customers.
With the above implementations, it is clear that the business strategy and the IT strategy are
aligned to for Amazon to operate on a low-cost model. There are four models to Strategies
Alignment Perspective (Henderson and Venkatraman, 1993). Namely, Strategies Execution,
Technology Transformation, Competitive Potential and delivery Service, all the system
implemented act as enablers in achieving the business strategy Amazon by reducing the cost
of operation and maximizing revenue. (Sources from: Henderson and Venkatraman, IBM
System Journal 1993)
With expansion as one of the main future direction as well as increased competition, APS
system is recommended as a new way to improve processes and therefore achieving cost
reductions along the value chain. APS system focuses on internal operational processes
perspective. While other systems such as YMS and CRS more focus on customer’s
perspective. All systems provide, APS like other previous systems fits smoothly in technology
transformation perspective. Reduced costs in inbound logistics and operation activities will be
the direct of implementation APS (IT strategy) enabling Amazon in a achieving its low cost
business strategy (Venkatraman, N., Henderson, J., &Oldach S., 1993).
6. 1) Action plan
Activity Time to Grant Percentage of Success
To enhance A month by the use of some IT If the plan is studied well
payment professions to update the website and and then the plan preformed
procedure some bankers and finance efficiently that the success of
professions to plan the new payment the plan will be huge and
strategy. they Amazon will benefit a
lot from this change.
Searching This will only take a couple of weeks This step will make it easier
engine to perform if the company uses a for the customers to find the
enhancement good set of IT professionals. products they need with the
specific requirements in less
and more convenient time
which will benefit Amazon
as they will have more
customers.
Shipping Shipping enhancement will take This will benefit both
enhancement more time than the other amazon.com and the
enhancement since it will require customers that are using the
some arrangements between delivery service so this will
amazon.com and the shipping be successful.
company that are willing to offer the
shipping service.
2) Evaluation plan
Performance Metrics
The success of the e-marketing strategy and the implementation plan in achieving the strategic
objectives will be measured using the following performance metrics.
First of all, Amazon.com can use the method of Sales Conversion Rate. Sales Conversion is
rate the number of sales made in a given time period divided by the total number of visitors to
7. the website, or lead generated (Gold , 2004). This is a useful KPI (key performance indicator)
to measure the outcomes of new strategies and implementation and is an indicator of how
successful the E-marketing plan is (McCullum, 2010).
Secondly, Amazon.com can also consider about the tool namely Cost per Customer which it
is the cost per visitor, time the number of unique visitors required to make a sale. This can be
used to measure the cost of implementing new strategies to get a completed sale of Amazon
products (Gold, 2004).This KPI (key performance indicator) will be used to show how well
the new website strategies perform relative to the company’s investment.
Third way is Website Traffic whereby it could be a key website performance metric which
can identify how many visitors the Amazon Malaysia website is getting, both unique visitors
and repeat traffic. This applies with the number of page Views per user can show repeat
traffic to the website. Also, it indicates when there is a rise or fall in the website traffic form
one period to the next. This is a good measure of the effectiveness of strategy implementation.
Arise or decline in traffic, after implanting a new strategy means that further steps can be
taken to improve and fine-tune the online strategy to increase the effectiveness and increase
visitors numbers (McCullum, 2010)
E) CONCLUSION
A company’s website is very important because it creates an impression of the company for
users and also affects the perceptions of a customer and sales of the product. Improvement in
Amazon Malaysia’s online presence, through e-marketing and e-CRM is an important part of
acquiring and delivery service to customers.
Amazon prides itself on delivering and selling products online and providing customers with
an entirely unique experience. Therefore, its web presence should also provide the same
unique experience for uses. The objectives and strategies proposed in the above e-marketing
plan can provide key improvements for Amazon Malaysia website which can help make the
web presence of Amazon as high impact as the brand itself.