Amazon Reverse Marketing Strategy
“The best marketing strategies aren’t top down, they’re outside in, starting with the customers’ needs and wants.”
Critically analyse this statement using Amazon as your case study organisation. You should aim to show whether customer voice drives strategic marketing decisions in this organisation making reference to relevant academic literature in the process.
Amazon Reverse Marketing Strategy
Amazon business model has navigated against all odds since debuting in online bookstore operations in 1995. Its success story is defined by the implementation of unusual business philosophies against the predicted odds of what it has evolved today. The company has overcome its humble foundation to sell almost everything on offer to humankind. In doing so, Amazon bosses global leadership in online retailing to sell an estimated $67.8 billion against the second placed Apple at only $18.3 billion in 2013 (Hutchinson, 2014). The fuel powering its engine of success is its customer oriented focus matched by prioritized customer services. This extrapolates to its reverse marketing strategy attained by committing huge resources to enhance the customers’ interaction and derived value. Such has involved paying authors and merchants monthly to secure price cuts that would optimize value derived by customers both in the short and long-term. Amazon strategic marketing features reverse engineering that operating backwards from customers instead of prioritizing the product or idea offered and attempting to bolt target customers to its purchase.
Marketing Longest-Living Online Platform
The Amazon marketing strategy focuses on making its future a glorious moment for the e-commerce giant to sell everything, whether groceries, digital or electronic offerings to everybody. This embraces a simplified approach requiring the task managers to start internal press releases while announcing finished offers. The new initiatives aim to create and win target audience for its updated or new offerings for its retail customers or internal clientele using its current technology (Boonstra, 2013). The press releases center on solving the customer challenge by identifying how the existing solutions fails to satisfy the customer quest. The press release emphasizes the capabilities of new offerings in blowing away the current solutions. Not only does this devotion target alluring customers’ interest in the product, but align with the actual sought requirements of consumers visiting and purchasing its portfolio (Jackson, 2015).
E-commerce sectors mandate the operators to align their marketing strategies to either demographic or psychographic segmentation. Uniquely, the reverse marketing at Amazon applies the actual purchase behavior exhibited by its customers. It seeks to capture not what the individuals likely expressed their interest in, instead what they practically did (Jones et al., 2011, p.147). This orients the e-commerce giant to micro-level segmentation seeking the preference and behavior of visitors. In this approach, it seeks to convert them into long-term and high-value customers for its offerings. The e-commerce segmentation prioritizes accomplishing persons capable of purchasing in a certain manner and particular products (Peshawaria, 2011, p.163).
Amazon finds relevance in its marketing strategy by targeting the upper and middle class provided they have access to basic technology but experiencing inadequate time to shop. Consequently, such prefer convenience rather than shopping from onsite outlets. This strategy enables Amazon to position itself to appear Glocal in its operations. This involves going global and acting locally to allow the customers to purchase anything they require and getting such delivered within their remote locations (Stillerman, 2015). This helps the company carve out a unique place in the customer shopping mentality. Besides, this roots to the organization’s mission, of becoming the most customer-centric e-commerce platform where customers are capable of finding and discovering the sought low priced products (Roy, 2012, p.215).
The differentiation of Amazon marketing strategy is realized through the chain of information technology firms, including Junglee.com, Zappos.com, pets.com and audible.com. This helps the e-commerce giant derive high value to its target customers through acquired partners at the lowest cost (DePamphilis, 2011). The economies of scale enables the company have extensive offerings across diverse products. The offerings enable it to sustain lower pricing philosophy, then passing on price cut benefits to consumers. This works to enhancing customer-centric foundation it uses in analyzing the customer purchasing behavior based upon their preferences. The strategy aims at nurturing the competitive edge over rival e-commerce giants with over half of its customers being repeat buyers (Schulze, 2013). These are acquired through its marketing strategy aligned to converting visitors into loyal customers.
Amazon aligns its distribution approach to augment its marketing strategy. From its big data analytics, it realizes that customer see quick deliveries for their orders placed online. This awareness has stimulated the creation of an extensive distribution system comprising over fifty-five fulfillment units that exceed forty-three million square feet. This approach is tied to the under-the-tent approach, allowing Amazon to utilize the vendor warehouses as extra space allocated for consumer-packaged products (Hill & Jones, 2012, p.278). This allows the company to serve its customers more quickly through aggressive and infiltrative distribution networks. It gives Amazon extra geographical coverage in new territories, hence attracting new customers within their remote locations. This approach yields deep and well structured network that makes their product reach the remote areas. This shortens the distance covered by the delivery trucks alongside decreasing the dependency on them to cover long distance deliveries. Besides, it frees the cost incurred as delivery charges up to affordable limits (Lei & Slocum, 2013, p.144). This allows the company to sustains extensive distribution networks that it has devoted growing at frenzied rates.
Amazon strategic marketing identifies with the company culture of metrics targeting to analyze and understand the customer behavior. Its development of new initiatives emphasizes applying the measured approach as an amazing platform to learn and understand the human behavior. The company overlooks the conventional marketing approaches that emphasized approximating the focus groups, fudging and snowballing in the wild market (Lei & Slocum, 2013, p.144). Unlike its rivals, Amazon had and does record moves made visitors to its online platforms and monitors each last click and mouse twitch. It utilizes its advanced technology channels to pile the collected data into virtual heaps it uses in drawing conclusions on issues the company seeks on consumer shopping trends. The metrics culture has transformed Amazon from mere online store to create a gigantic repository of facts (Grant & Jordan, 2015, p.6). This tasks the marketing team to derive the appropriate equations plugged into the reverse engineered marketing strategy.
The culture of metrics seeks deriving index whose primary findings are customer satisfaction as the king of Amazon marketing strategy. The company acknowledges, though online retail sales post record-breaking digits, customer satisfaction may become stagnant when reliant on conventional marketing approaches (Sayyed, 2017). This mandates the company to differentiate its strategy to optimize on improved customer experiences. This compels measuring and understanding the wants, needs and expectations of customers and working backwards to align their product offerings. This emphasis commits to providing superior customer-oriented digital marketing to win over the expanding demands of consumer bases (Constantine Politis, 2017). This creates a sensible takeaway from Amazon marketing strategy built upon delivering the defined customer satisfaction-related with the measured approach.
The company orients its digital marketing approach understand and master its target audience. Although diversified, it obvious objective remains knowing the maximum information about every segment of its target customers and basing the alignment of its specific elements to better its customer satisfaction impact. The knowledge of discrepancies arising in its quest for improved customer satisfaction allows it to guarantee progressive improvement in its deficient areas (Maxwell, 2016). This signal element that the company requires repeat collection and analysis of user data. The specificity is routed to the culture of metrics to provide more conclusive insights on the customer expectations and needs. Such would, however, oblige allocating finite resources to digital marketing. The e-commerce giant rather uses its simplified culture of metrics blend into all business initiatives to facilitate defining and refining user experiences (Hill & Jones, 2012). This yields increased expertise at tracking the behavioral tendencies expressed by shoppers refined through emphasis on understanding them within their granular levels. This is made possible through the deployment of automated marketing software. This replicates a uniform approach to understand what offerings shoppers are or not buying, web pages and content they click on, their expenditure allocated to certain products. This approach allows Amazon get easy access to the target audience, monitoring to understand their experiences and impressions that would best improves its website elements to facilitate optimum conversion of visitors behavior to loyal customers (Hill, 2013). This is possible by using the refined user data to align the internal operations towards the desired customer satisfaction levels and analyzed expectations.
The dimensional elements of Amazon marketing processes prioritize producing accurate, relevant and transparent content on target audience behavior, needs and wants. The marketing units are tasked with producing prolific content uniformly emphasized through the creation of detailed product descriptions and user-generated reviews. Although prioritizing easy-to-use functionalities, the Amazon marketing approach seeks reliable fulfillment and feature-rich content (Maxwell, 2016). This explains the reasons for including editorial platforms, customer-based reviews and web pages customized to match individual preferences of target audience. For instance, the search-inside and look-inside features yield more opportunities to derive feature-rich content on the visitors to its web pages (Jackson, 2015).
The digital marketing approach matches the Amazon definition for its target audience as either set, seller or developer customer. This compels the company to implement a differentiated marketing approach strengthened through refined developer customer platforms hosted across its web services. This is pegged to its global commitment to enhance its market segments through convenience, brand recognition, customized services, accessibility, easy functionalities and speedy fulfillments (Jones et al., 2011). The company uses the aforementioned yardsticks to assess the improvement realized in the overall customer experiences and satisfaction. It nurtures the belief of wining the increasingly-demanding consumer population through the provision of superior user experiences through highly-integrated and customer-centric marketing strategy (Schulze, 2013). The development and widespread implementation of this philosophy across its business operations allows Amazon yield direct interactive operations with its target audiences.
The marketing approach emphasizes auditing its business model for viability for discovering emergent opportunities. This shapes the initial step of the Amazon marketing strategy as understanding how the customers use its ecosystem. This extends beyond monitoring what the users purchase but also their actions when on its ecosystem. Doing this, enables the company discover beyond the obvious market approximations over the consumer wants and expectations (Boonstra, 2013). The accomplishment of the outside-inward marketing stimulates Amazon into planning for collecting and heaping the virtual data on its users. It attains this by deploying two data sources capable of providing in-depth insights into the viable brands. These include the Amazon retail analytics and marketing services. The generated reports help the company to reveal the content preferences of its customers alongside their purchase categories and lifestyle information. In particular, Amazon retail analytics target the discovery of specific information on hobbies and activities. The analysis of such virtual data helps unearth orthogonal interests of such consumers later used to refine its target strategies and help formulate forums that necessitate partnership opportunities. Implementing the fully-fledged approach on visitors actions enable it see and analyze the broader implications that its new initiatives will have on the digital world.
The widespread connection to internet and mass adoption of mobile technologies and social networks shifts the power balance away from the producer to the target consumers. This makes knowledge of consumers important to accomplishing improved customer satisfaction. It mandates the modern markets for any organization to learn using strategic thinking alongside the implementation of digital media. Equally, such should aim to deliver measurable outcomes in converting the visitors into consumers. This orients the digital marketing to analyze the social media, user experiences and desired customization, content rather than emphasizing the one-size-fits-all approximation model (Hill, 2013). This yields a devotion of winning the ad space and customer loyalty by monitoring the viewers’ experiences and shopping behavior instead of emphasizing invasive strategies that unfortunately bolt customers away from improved shopping experiences.
Amazon headway in the competitive e-commerce platforms arises from its leadership in user data battlegrounds. Amazon aligns its operations at the base level of the purchase funnel unlike other companies basing their business model on digital technologies. This makes it possible to have easier access to huge first-party consumer purchase data. The resulting awareness leaves its operations attractive to reputable brand partners (Schulze, 2013). This makes its search intent more valuable than Google search would-be customers prefer searching for desired products at the onset of their shopping journeys. This blends favorably with its integrated ecosystem featuring online and offline units.
Having integrated ecosystem gives Amazon a superior potential to deliver its target audiences within its single-lane platforms before rapidly extending to its other initiatives. This creates a consolidated platform delivering superior user experiences, therefore trapping them into an ecosystem they rarely want to leave. This enables the company examine the user data and understand their expectations relative to their prevailing wants (Hill & Jones, 2012). It is this awareness that has facilitated it to engineer Alexa artificial intelligence platform and progressively capture an increasing slice of the voice search market from the dominant market leader, Google. This achievement shows how it would be difficult for the organization to develop a product capable of challenging Google position. It replicated this strategy in developing its Amazon Advertising platform for understanding customer needs and later developing the sought functionalities. This initiative has already overtaken the DoubleClick Bid Manager from Google in becoming the sought after demand-side platform.
Accomplishing the best opportunity to gain market leadership amidst rapid changes witnessed in sectors dependent on digital technology links to improved capability of effective target on users’ expectations. Amazon bosses best abilities in doing such. The e-commerce giants optimizes on the massive data it possesses on the consumers, thereby, have superior abilities to leverage their brands by improving on the deficient elements (Lei & Slocum, 2013). This is sustained by striking a strong chord with target consumers by emphasizing on capturing the consumer power of making purchase choices. The viability of this course utilizes its extensive knowledge of users of its horizontal and vertical offering, thereby making informed conclusions about their future shopping patterns. The conveyance of this insight to the development teams nurtures opportunities to release products that leave consumers literally spoilt for choices, thus retaining their loyalty within the Amazon ecosystem (Stillerman, 2015).
The significant lesson of using innovative digital campaigns is their focus on intelligently customer acquisitions. These engagements are extrapolated from initial site visits gradually converted into a regular viewing through appealing updates. With Amazon model aligned to online retail, fitting advertising functionalities provides the primary means it uses while communicating with target audiences (Schulze, 2013). Although it uses the Amazon.com website as the primary platform, it relies upon its affiliate programs to link users to its offering hosted in the former. This approach provides a wider reach to more user population, it desire understanding their needs before deploying a reverse approach to develop products targeted at improved satisfaction of their requirements. For instance, the implementation of Amazon Wish List feature allows existing customers and site visitors convey the list of products they desire to purchase during their subsequent shopping (Hill & Jones, 2012). Capturing such information allows Amazon to assess the viability of having additions to accommodate the sought products. This works to improve its abilities in themed psroducts matched to the customer requirements. This philosophy places each customer at the locus of improving its business universe.
Amazon marketing processes seek to tap into reputation potential conveyed by creating interactive platforms for customers. It acknowledges easy switching to rival online platforms, thus increasing the risk of witnessed declining base of loyal customers. This places customer loyalty a key goal that would enable Amazon yield higher revenues and guaranteed long-term profitability (DePamphilis, 2011). This fits to Amazon quest for nurturing customer loyalty by forecasting the willingness of online users to make more purchases across its platforms. The data obtained is contrasted to the customer and editorial reviews and deployed backwards towards developing elements that would increase the consumers’ willingness to purchase across its platforms (Hutchinson, 2014). The journey to its current status shows increased comfort levels for its customers accomplished through creation of superior feedback features. They act as a source of user data channeled to expanding its potential for optimizing value creations. They constitute the pillars of its contextual retailing success and continuous innovation that transitions Amazon beyond the status quo and further ahead of the chasing pack imitating its business model (Jones et al., 2011).
The reverse engineered marketing strategy yields in-depth knowledge of consumers alongside their future shopping patterns. The awareness enables Amazon leap further from the forecasted levels by rival operators, thereby according its constant groundbreaking initiatives across the online retail sector. Nurturing this expertise has become the critical factor powering its global success (Stillerman, 2015). The resulting expertise is not only limited to satisfying the identified customer requirements but also pushing them further through provision of advanced technologies unmatched by competitors. This gives it enhanced abilities to shape and lead the target market rather than devoting to adapt operations that fit the ensuing consumer needs (Constantine Politis, 2017). The strategy works best for its value creation emphasis tied to exceptional consumer satisfaction attributed to shaping their future preferences. This enables the company deploy its value-based pricing approach realized by setting prices relative to the value of its offerings as perceived by the target audience. Additionally, detailed knowledge of the customer requirements gives Amazon an edge in dictating its market-oriented pricing (Lei & Slocum, 2013). This makes its products more competitive and attractive to its targeted customers.
The landscape of digital media features paced changes with the production of superior technologies requiring new approaches while using them. They advent not only transform the access of information, but how consumers and businesses communicate amongst themselves. Understanding the digital technologies and the emerging utilization trends makes it a practical requirement for the dependent business models (DePamphilis, 2011). Having a clear awareness of the impending disruptions to the online retail market is compulsory to channel a successful course for the e-commerce businesses. The collection of the user data as they interact with the evolving technologies helps Amazon discover the unfolding opportunities (Hutchinson, 2014). Equally, it helps the online retailer override disruptions that would arise from over relying on technologies soon becoming obsolete. Failure to gain detailed content on the effect of evolving technologies would leave the entire business operations lagging, thereby losing on the users embracing the recent technologies. Failure to know and embrace such technologies would see the business ceding its market leadership to innovative rivals(Grant & Jordan, 2015). Amazon has sustained its competitive edge by orienting its marketing strategy to ease the discovery of the unfolding opportunities and gaining first-move edge in their adoption. This feature widely on the release of future-oriented business initiatives that has allowed Amazon leap ahead of the competitive pack. Thanks to its digital marketing strategy, it provides input data regarding the user expectations relative to their adjustment to evolving technology (Jackson, 2015). This constitutes the power, giving Amazon power to take its operations to its desired limits.
The Amazon business model is realized upon wrestling market leadership from one dominant giant. The key winning the competitive battles despite being a novice in some of the niches has been exploiting the rivals’ inability to satisfy customers evolving requirements (DePamphilis, 2011). Gaining advantage over rival weaknesses mandates having a superior understanding of consumers’ expectations and retracing to develop products that eliminate the dissatisfaction. It makes no surprise that Amazon applies its marketing strategy to sustain its reverse engineered deliveries (Jackson, 2015). It seeks to identify s the emerging business opportunities through better knowledge of consumers by analyzing its huge virtual data. This provides a solid basis to provide superior alternatives. Otherwise, it would experience difficulties when deploying a test-and-learn strategy that has so far failed most digital-based firms at their startup stage. Consequently, the critical factor to realizing serious inroads for its newly-created offering has understood the consumer purchasing patterns (Schulze, 2013). This gives it impetus to scale up its operations in sectors dominated by established global companies. While Amazon has overexposed itself by expanding into varying sectors, the e-commerce giant has won more than it has lost (Roy, 2012). As such is its transverse of the domination of online advertising niche enjoyed by Google and Facebook. Besides the allocation of financial resources, the superior knowledge of the sought products by users has given Amazon more competitive edge destined to eradicate stranglehold associated with the duopoly of Google and Facebook in online advertisements (Constantine Politis, 2017).
The Amazon business model is characterized by target and positional segmentation linked by exploiting the user-generated data from its larger customer base. The online retail giant achieves this by applying adaptive positioning techniques (Constantine Politis, 2017). This approach defines its historic journey as a proven pathway to making huge investments. However, the organization barely alters its philosophy from pampering customers to with superior satisfaction by analyzing their expectations (Sayyed, 2017). The close interaction with consumers emerges of its customer-first policy in developing new products. This has enabled the company conquer the online retail sector globally and continually redefining it with other rivals playing catch up. The rapid changes in the business environment leave most convectional brands struggling to put up against upstart competitors (Hill & Jones, 2012). Their survival abilities depend on the provision more agile offerings easily overcoming the resistance borne by digitally-native challengers. The understanding of the market trends allows Amazon stay ahead of the rivals, majorly of its focus on future operations. The application of the digitized marketing approach allows the company derives supportive inroads through improved product offers accomplished through user-generated information (Constantine Politis, 2017). This helps the company offer products characterized by originality and value creation obtain quick market admittance as consumers become incentivized by their participation in the product development. As such involves the success of Amazon Prime built upon scaling the user data for viable opportunities and fitting pieces that make up a superior product (Sayyed, 2017).
Amazon greatest strength lies in its innovative approach extrapolated from giving customers a stronger sense of participating in creating value. This arises not from applying classical advertising, but blending customer-centric marketing strategy. Amazon approach centers on obtaining extensive information on the consumer trends and bounding them with their unmet expectations as the basis of initiating a superior product offering (Jones et al., 2011). This presents a personalized playbook that targets matching the customer-defined product traits with a target to satisfy their requirements. This yields an opportunity to retarget the defined consumers with personalized offers providing intuitive attachment in its development. This emphasizes reconnecting with sought requirements by consumers derived from exercising the culture of analyzing metrics (Sayyed, 2017). This gives a strong connecting bond when the product offered meets the needs of the individual customers.
The extensive growth of the Amazon business model is built upon the provision of speedy shopping solutions sustained across multiple initiatives. The success accomplished trickles to the improved knowledge of consumers wants. This stimulates the company into sealing such gaps through value creating products that emphasize faster and convenient shopping (DePamphilis, 2011). The focus remains boldly trying out new initiatives provided they are scaled from user-generated reviews and analyzing its virtual data. The appetite for low-priced retail offerings capped by assured security of the buyer-seller transactions motivates Amazon into continual innovation to fill such voids. The company marketing strategy appreciates the changing shopping trends should not hinder its future growth, but rather enhances it preparedness into providing meaningful solutions to customers (Lei & Slocum, 2013). This focus makes the most of its offerings indispensable elements in the daily lives of consumers.
The utilization of reverse engineer for its marketing strategy aims at providing value-oriented choices upon its convenient platforms that others cannot easily imitate or substitute. It identifies its new things as a source of superior meaning to the millions of its user’s lives as they engage in online retail (Hill & Jones, 2012). This rationalizes its customer-centric approach that ensures its ecosystem grows stronger and likely sustains the philosophy identifying with customer requirements. This forms the basis of the Amazon innovative approach to tighten its grip on the competitive e-commerce marketplace (Boonstra, 2013). Working from the customer perspectives towards product development eases its reinvention of online and offline retail operations. This principle allows the ecommerce giant prioritize tapping into the consumer power over purchasing decisions to avoid becoming a victim of digital disruptions (Constantine Politis, 2017). This involves eliminating the use of catch-up strategies in the occurrence of disruptions from new entrants providing better value propositions in their offerings. This is impossible to avoid when using the learn-to-try approach a reason for reversing its marketing strategy to prioritize knowing customers wants, needs and unmet expectations (Jackson, 2015).
The transition of Amazon business model from commodities based to an ecosystem featuring services, seeks providing offers that yield value for customers money. Embracing an inclusive platform for consumers becomes mandatory to Amazon rather than resort to bolting them into products that barely satisfy their requirements. Additionally, moving the business model beyond basic online retail requires aligning an integrated marketing strategy that prioritizes capturing the consumer perspectives to avoid product rejection (DePamphilis, 2011). This has enabled the company to identify and overcome the greatest source of failed ecommerce retail operations as disrupted deliveries leading to no fulfillment. The focus of reversal marketing strategy makes fulfillment a core tenet of the Amazon business model. This is supported through diversification of initiatives scaled up to satisfy the dynamic needs of consumers (Constantine Politis, 2017).
Securing a long-term lead over the chasing competitors mandates making huge investments in value-creation products. While fast and free deliveries gave Amazon the market leadership than rivals, competitors are fast catching up forcing it into initiating differentiated internet retailing. Having huge investments for its distribution system is barely enough when it disregards the input of customers and understanding their wants and how to strike their power over purchasing choices. The adoption of the outward focus on customers’ requirements over internal capabilities provides unparalleled insight and control over realizing value creation offers. Although it could leverage the expertise of its human resources and advanced technologies, Amazon would likely face rejection of its products in the market. This would become challenging to meet the best shopping experiences, particularly when transitioning from previous product offering. The customer-oriented culture allows Amazon to mine potential ideas that would differentiate its approaches from competing sellers. Imitation of rival ideas would erode the unique aspect that has enabled Amazon leap ahead of other ecommerce retailers.
inclusive mechanisms such as user-generated reviews and feedback features
enable Amazon increase the comfort levels as consumers feel valued and core
element of its business model. Applying the digital marketing strategy tied to
the ecosystem supports Amazon reverse engineered approach in developing new
initiatives. This prioritizes customer-centric philosophy allowing the
organization capture customers wants, needs and expectations and incorporates
such in developing new things. Consumers occupy a central point in the typical
retail and e-commerce operations given their accumulated power of making
purchase choices. The inward marketing strategy facilitates the accommodation
of their desired elements that increase the admissibility of the offering. The
customer oriented philosophy allows Amazon to differentiate itself and leap
ahead of the chasing competitors, through value-based innovative offers rather
than bolt the target audience to embracing its products.
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