Amazon 7 P's of marketing mix

 Amazon 7 P's of marketing mix



Amazon was founded in the garage of Bezos' rented home in Bellevue, Washington. Bezos' parents invested almost $250,000 in the start-up. On July 16, 1995, Amazon opened as an online bookseller, selling the world's largest collection of books to anyone with World Wide Web access. Now is one of the top online sellers in the world and beyond.


Product






1. Amazon websites enable hundreds of millions of products to be sold by Amazon and by third parties across dozen of products categories. Additionally, there are more than 200 million paid prime members.

2. Production of innovative devices, not just selling products on the site. Electronics devices such as kindle, fire Tvs and Echo. Aim: semplify people’s lives.

3. Media content: an entensive range of products and service. The ecommerce giant is planning to increase the range and variety of its media content products.

4. Amazon web services (AWS) offers a wide range of global compute, storage, database, and other services. AWS serves developers and enterprise of all sizes, including start-ups, government agencies and academic institutions.

Price



Amazon’s pricing model is based around keeping prices as low as possible for the buyer. This means the prices of products can change numerous times, even during a single day. Keeping prices low drives loyalty within their customer ranks.

Amazon’s pricing model also takes things one step further using convenience. We all see the convenience of buying online. But when you have so many merchants competing to be a top seller for just one product, you always have a depth of easy choice for customers, that almost never runs out of stock. This drives loyalty too.

Third-part stores that sell products on Amazon compete to keep prices lower. To help with the competitive nature of pricing, repricing tools like Xsellco, can be used to automatically undercut competitors on the same listing.

Place




Amazon has an omnichannel sales strategy and customers access its offerings through its websites, mobile apps, Alexa, and physically visiting Amazon stores.
The “Place” play one of the most important role for a company because represent the touchpoint with their customer. In Amazon all started with the e-commerce website and now it is the main sales channel again with monthly visitors from 200 to 500 millions.

Amazon websites are present in many countries around the world and are easy recognizable by the similar layout that unites them. Not only graphics but to manage a large amount of orders per minute, the platform is also built on a solid basis IT. Developers don’t work only on the functional of the machine but above all to make it user friendly as possible for the customer, for example you can reorder a product or return it in a few clicks, you can read products reviews directly on the site from those who bought it, you can save the data of your credit card so that you can reorder with just one click next time. 

Moreover, Amazon has created on the website the possibility to become a fidelity consumer, which by paying a fee offers different advantages. This program is Amazon Prime which has more than 150 million subscribers today.
Managing an ecommerce platform of this size allows the company to collect an infinite amount of data about costumers. Data analysis are important to know better the consumers than other smaller companies.

Amazon.com is b2c and b2b, with FBA (fulfillment by Amazon) and FBM (fulfillment by merchants) programs.
This programs fot third part sellers are available thank to the enormous warehouse property of the company. The logistic is absolutely as a fundamental part of the success of the ecommerce and the strategies. The distribution centers are 1137 with announced plan to open 331 more.

In 2016 Amazon launched his first brick-and-mortar location. Now the online retail giants runs different type of physical stores from booksellers to grocery pick-up location to cashierless convenience stores.
Most important like Amazon go, Amazon Fresh, Amazon 4-stars, Amazon books are very beautiful structures that offers an innovative shopping experience to the consumers.

Promotion




Finding a product on Amazon is very simple if you are searching from Google. Seo, PPC strategy with prices comparison sites and collaboration with blogger in exchange oa a fee (affiliate advertise) are activities very promoted by the company.

As continue of digital marketing advertising tools, Amazon also pioneered «highly personalised product recommendations emails».

In the last few years Amazon has increased radio and TV commercials with both nice spot and spot focused on respect for the environment. 

Physical Evidence



At the end of 2019 Amazon was the best online retailers. Now the gap should still be increased.
Amazon is considered as the number one go-to site for most items needed. Amazon lovers can become prime members (Amazon prime) qualify for free shipping and other terms. Amazon prime program also increased the loyalty of Amazon customers to the detriment of competitors.
Amazon has an online website that is user friendly for everyone. This is another factor generate sales because lot of people are able to use it. The orange arrow represents the smile than customers have when experiencing on Amazon. Amazon’s box are always around us and make you want to be opened.


Process



Amazon process to order is fast and simple for the consumers considerate the wide range of product offering by the website. If you are registered and saved you payment details, you can buy in only one click. The customer service after purchase is also essential for customer satisfaction therefore to the success of the company.

The Amazon supply chain is responsible to gettings customer orders from point A to point B as quickly and efficiently as possible. Between these two points is a lot of moving parts such as receveing inventory, sorting inventory, warehouses, product picking robots, truck drivers, Amazon prime air, etc.

People




Amazon organizational structure can be classified as hierarchical. Senior management team include three CEOs and three senior vice presidents responsible for various vital aspects of the business reporting directly to CEO Andy Jassy.
The number of employees over the years follow the pace of growth of the company and it seems there are happy employees who have stayed for a long time. Amazon, as the big companies, is a Mix of people who work in operational fields and artist. Recruiters say “ we seek top talent from all industries”.


Conclusion


Everything, after 25 years, is in line with the philosophy of Amazon, Jeff Bezos called “the phylosofy of day 1”.

1. “focus on the customer”
2. “thinks new way to evolve as a start-up mentality”
3. “Make quick decision without the fear of failure”


Thank you.



Reference List



5 tactics your Amazon marketing strategy should steal from Amazon: https://www.webfx.com/blog/marketing/amazon-marketing-strategy/

How Amazon’s annual AD spending rocketed from $30,000 to $16,9 billion: https://adage.com/article/datacenter/how-amazon-ad-spending-went-30000-169-billion/2398356



About Amazon, workplace employees: https://www.aboutamazon.com/workplace/our-employees


Amazon warehouses: https://www.digitalcommerce360.com/article/amazon-warehouses/#:~:text=Amazon%20has%201%2C137%20distribution%20centers&text=Amazon%20operates%201%2C137%20fulfillment%20centers,consulting%20firm%20MWPVL%20International%20Inc

5 reasons why Amazon go is already the greatest retail innovation of the next 30 years: https://www.forbes.com/sites/christopherwalton/2022/03/01/5-reasons-why-amazon-go-is-already-the-greatest-retail-innovation-of-the-next-30-years/?sh=3d9c21f61abc

Adopting Amazon’s day 1 mentality: https://www.customerexperience.com.au/post/adopting-amazons-day-1-mentality#:~:text=In%20a%202016%20letter%20to,an%20obsession%20with%20its%20customer


Video


Amazon website time-lapse 1998-2017: https://www.youtube.com/watch?v=QH4uRco-zOs

The history of Amazon, how Amazon came to dominate retail: https://www.youtube.com/watch?v=StaMb1iwPNE

Inside Amazon smart warehouses: https://www.youtube.com/watch?v=IMPbKVb8y8s

Amazon AWS in 5 minutes: https://www.youtube.com/watch?v=3XFODda6YXo

Amazon FBA in 3 minutes: https://www.youtube.com/watch?v=IAi4fPb_kp4


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