marketing mix of amazon

in this regard, amazon reaches out to its target online market through its marketing mix, which focuses on the place and price components as major selling points. in this component of the marketing mix, amazon’s products or product mix is considered. such expansion led to an improvement of the effectiveness of the company’s marketing mix in getting a bigger share of the e-commerce market. the venues used to reach target customers are identified in this component of the marketing mix.

this component of the marketing mix involves the strategies and tactics that a company uses to communicate with its target market. moreover, in using direct marketing, the company directly communicates with businesses to offer its online services, such as publishing and digital content distribution. this component of the marketing mix focuses on the price levels and pricing strategies a firm uses in selling its products. this strategy is advantageous because it enables the company to adjust its prices based on national market conditions, perceived value of products, and consumer preferences and expectations.

traditionally, amazon didn’t have physical stores and the company relied on online sales channel due to e-commerce nature of its business operations. starting from 2015, the online retail giant has been concentrating in physical retail “during which time it’s opened half-dozen bookstores that double as gadget emporia, a score of campus bookstores that don’t sell books and a convenience store without cashiers.”[4] moreover, amazon also has an alternative store format that operates in a cost-effective manner. the company is also testing a grocery pickup service at two locations in seattle. once it launches, prime members will be able to order groceries online and visit one of these stores for pickup, skipping the aisles.”[5] to summarise, amazon has an omnichannel sales strategy and customers access its offerings through its websites, mobile apps, alexa, and physically visiting amazon stores. the company generated 32%, 34%, and 31% of its annual revenue during the fourth quarter of 2016, 2017, and 2018 respectively.[6].

cost leadership is placed at the core of amazon pricing strategy. famously, the online retail giant changed the price of bible more than 100 times during the last five years. [8] at the same time, amazon uses premium pricing for its products and services, where the company possesses solid market share and competitive advantage. amazon.com inc. report contains a full analysis of amazon marketing mix (amazon 7ps of marketing) and amazon marketing strategy in general. moreover, the report contains analyses of amazon leadership, organizational structure and organizational culture. the report also comprises discussions of amazon business strategy, ecosystem and addresses issues of corporate social responsibility.

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