How Amazon Communicates Their Core Proposition and Promotional Offers - Coursework Example

Marketing: The Amazon How Amazon communicate their core proposition and promotional offers Chffey elaborates that the core propositions of the Amazon are price, selection and convenience. These propositions are geared towards satisfaction of the clients. The clients of Amazon are categorized into three facets. These facets are consumers, sellers, and developers. Consumers are customers who purchase products through Amazon while sellers are customers who sell or want to sell their products through Amazon platform. Mirow (2005) argues that the customer developers on the other hand, are clients who either develop or want to develop their services using the Amazon platform or development services. Since the inception of Amazon, its vision has always been consistent. The vision has been to provide the biggest selection in the world, as well as being the most customer centered (centric) company. These core proposition are communicated both online and offline. The pricing proposition entails the strategy of daily low pricing technique by not offering discounts to a small number of products within a particular period of time. The offer is on low prices and it is applied to all the ranges of products offered. Gregg (2012) illuminates that one of the communication avenues that have contributed to the success of Amazon is the use of Bing. Bing is a default search engine embedded in the Amazon browser especially in the kindle tablets. The other browsers that serve as alternatives to the Bing are Dolphin, Opera, and Maxthon. Majority installed the Bing as a silk browser. The Bing browser allows online shopping of a wide and wild selection of magazines, books, DVDs, Music, Video, computers, electronics, apparels, and jewelry among many other products. Mark (2010) explains that the Amazon also utilizes the Yahoo browsers just like Bing in the communication and promotion of products. On the other hand, the use of Google is majorly for the retail of books, home items, as well as garden in general. Yahoo and Bing sometimes appear to be similar in the communication technique. However, for Google, it is slightly different on how it communicates the core proposition despite the fact that the three communicate the basic propositions highlighted earlier. In addition to the above discussed avenues, core propositions are also communicated in the Amazon website called Amazon.com (Chaffey, 2005). In this website, they are not presented in the sentence list format but are listed in form of departments. Clients are usually directed to the websites through various online targeted marketing avenues such as sponsored search, programs that are associated, advertisements through portal, and email marketing. The offline technique of communication tends to be different since it encompasses the use of advertisements through commercial breaks in TV channels (for example the Super bowl). The other conventional methods of offline communication channels employed are the use of magazines and newspapers (Chaffey, 2005). The promotional offers are also communicated not only effectively but efficiently, as well. When an item has been searched, Amazon offers free shipping although the amount spent to be a minimum amount. That is, the offer for free shipment is aimed at increasing customer and income funnel since the clients must spend specific minimum amount of money to receive that free service. The technique is vital for the profitability (Gao, 2005). Amazons approach to marketing communications The 21st century has been characterized by explosions of immense use of media that marketers incorporate with the aim of reaching clients. Amazon marketing approach is focuses on channels related to online marketing. According to Chaffey (2014), the strategies in the marketing communication are aimed at increasing traffic (especially customers) into their websites; creation of awareness of the services and products; promoting and increasing repeated purchases; development of increased revenue opportunities for the products and services; and strengthening of the Amazon brand. Amazons uses personalized enabled technology to out to markets that prove to be difficult to infiltrate. In addition, it also utilizes the online advertising method such as paid search; SEO, and cooperative advertising arrangements (contra-deals) with either vendors or other parties. As mentioned earlier, customers are usually directed to the Amazon website (Chaffey, 2005). This is achieved through various targeted online targeted marketing avenues which can be emails marketing oriented campaigns, associate programs et cetera. The company embraces the customer loyalty tool in its marketing communication techniques. To comprehend it market, the customers have been grouped into three: the consumers, sellers, and developers (Hulsmann & Pfeffermann, 2011). These enables the company to provide consistent information and messages to the specific group in a manner that not only commensurate with their needs but also resonates with their demands. In addition, the company is conscious to its existing competitors and employs its marketing strategies with the aim of gaining leverage in the competitive climate. One of the major groups of competitors is retail in physical form, publishers, catalogue retailers, and vendors. Majority has significantly created brand awareness, a basket of customers, and has significant volume of sales. In addition, some sell the products through online techniques where clients have the leverage of making orders and delivery being made at the comfort of their home. The second group of competitors is online sites that have the provisions for e commerce. The third entails competitors include media corporations or companies, websites that enable comparison shopping and search engines. There are also companies that provide services such as e commerce, web development and customer service. Sometime, the products offered by the Amazon Company are marketed through adverts on search that are paid for by the company. Moreover, search systems are automated have had significant impact on Amazon. These programs that are automated are vital in the generation of keywords or write adverts that are creative so as to appeal to prospective customers (Chaffey, 2014). Explain what distinguishes Amazon in its uses of technology for competitive advantage Amazon has rapidly developed into a gorilla in the e commerce climate. One of the contributing factors to its success as well as gaining leverage in the competitive field is that it focuses on its page speed power. It has been one of the greatest focuses for Amazon.com. Amazon leadership is conscious to the fact that time taken to load into a webpage has the potential of impacting on user experience (Paczokwoski, 2012). Consequently, this may have an impact on sales. The company had analyzed the ratio of the performance of the webpage to that of sales and realized that the longer time it take to load into a page, the lower the volume of sales. User are usually irritated when it takes time to load into a page hence it tends to decrease the chances of concluding business online. The other strategy in the use of Amazon tools is the personalization of experience in terms of shopping. In the homepage of the company, there are different sections such as those related to items clients have viewed among others. It uses the notion that if a product is relevant to the client/user, the probability of the client/user purchasing the product tends to be high. Other companies use a different strategy though similar to the functionality described above. For an instant, they use the third party platform add-ons. Moreover, the personalization technique usually elevates the value of the averages orders. The third strategy is the accessibility and how easy the searching options of the Amazon.com is relative to its competitors. The user experience can be influenced by the search bar. This is common for retailers that offer variety of products. Amazon users are usually able to find their desired products relatively faster. Finding products faster increases the chances of users to purchase the desired products. This provision has been made easier since the company has a provision that automatically suggests products that are popular, as well as, the categories of products. This strategy drives the users directly into the pages with the products hence increasing the likelihood of conversion rates. The forth tactic in the use of technology that distinguishes the company from the rest is making reviews to the users. Reviews on products help in ascertaining for the customers that they are making firm decisions that are well informed. Amazon does this by not only providing but also visualizing reviews to the customers with the aim of luring potential customers into becoming clients by purchasing the products (Hulsmann & Pfeffermann, 2011). The display reviews on the products vividly and this usually increases the conversion rate of the page of the product review. In addition, the Amazon also incorporates the use of emails with the intention of soliciting the reviews from clients. It plays a significant role in the creation and construction of social proof for the goods/products thus improving sales. The fifth technique is the recommendation of products that are similar to what the client is looking for in their webpage. Amazon employs this so as to influence the decision of clients while making purchase since the client may be lured into purchasing more than one product. Products are grouped together inclusive of a section of those that are related has been vital in Amazon online retailing services since it increases the value of the average order (Paczokwoski, 2012). The final tactic that is employed by the Amazon Company that separates it from other companies is repeated testing technique. The success of the company is largely attributed to the culture that it has inculcated of testing ideas that are new before they are incorporated into their system. Its CEO once expressed that doubling the number of experiments annually is likely to double the inventiveness. The kind of tests that the company conduct entail pricing of the products, the channels in marketing methods, and shipping among others (Hulsmann & Pfeffermann, 2011). How the Amazon Culture of Metrics differ from that in other organizations One of the differences is that Amazon is resilient on focusing on customers. It is accomplished by the provision of a variety of selection of products at lower prices and they are made to be convenience. New technologies are highly leveraged in order to gain competitive age over other companies (Paczokwoski, J (2012). Amazon makes good use of systems that are analytical in the process of reviewing changes in reference to the customers’ experience. During the process, more emphasis is labeled on the profitability of the changes and satisfaction of the customers. These analytical systems are vital in the creation and maintenance of the loyalty of the users or customers besides encouraging repeated purchase of the product offered (Chaffey, 2014). There are few companies that communicate if they have fulfilled their promises. For an instant, Amazon does this through the presentation of the inventories that are available, estimating the dates of delivery, and notifying delivery in reference to shipping of products. Beside the above mentioned, Amazon on the media sales, has instilled the culture of displaying Google texts adverts that are relevant for its brands. In addition, it has a tool that internally holds the culture of metrics (Chaffey, 2014). The tools are used by creators to determine how effective and efficient the listing of the products, as well as the copy of the product in their performance. For the content that has been edited, every document posted is usually retrieved by the company after which the rate of conversion to sales, the number of views of pages and adverts, and the contents that are rejected are determined. On the culture of testing and experimentation, which is rarely incorporate in many other firms, is an approach that Amazon employs to improve results. For example, a test may encompass testing a system that is new to the previous existing system. If the system exhibits features that are statistically better then there are higher chances of incorporating the system (Hulsmann & Pfeffermann, 2011). Since there is a culture of testing and experimentation, the technological infrastructure of Amazon has to provide the support for the experiment. Amazon tends to leverage internal development of technology. This is a factor that many organizations do not incorporate. It also has a data driven approach in an automated manner such that the automation of the data driven technique incorporate channels for customer preferences, management of the displayed contents to users, and advertisement through search options that are paid (Gao, 2005). Reference List: Greg, S (2012). Confirmed: Amazon’s New Kindle Fire Tablets To Use Bing As Default Search Engine. Retrieved on 15th April 2015 from: http://searchengineland.com/kindle-tablets-default-search-engine-is-bing-132457 Mark, W. J (2010). Amazon’s Smart Innovation Strategy. Retrieved on 15th April 2015 from: http://www.businessweek.com/innovate/content/apr2010/id20100412_520351.htmc Paczokwoski, J (2012). Bing, Not Google, Will Power Search on Amazon’s New Kindle Fires. Retrieved on 15th April 2015 from: http://allthingsd.com/20120908/bing-not-google-will-power-search-on-amazons-new-kindle-fires/ Chaffey, D. (2014). Amazons business strategy and revenue model: A history and 2014 update. Retrieved on 15th April 2015 from: http://www.smartinsights.com/digital-marketing-strategy/online-business-revenue-models/amazon-case-study/ Mirow, M (2005). Strategies to Achieve Market Leadership: The Example of Amazon. Retrieved on 15th April 2015 from: http://preibusch.de/documents/PreibuschS_FleckensteinM_Amazon.pdf Gao, Y. (2005). Web systems design and online consumer behavior. Hershey PA: Idea Group Pub. Hulsmann, M., & Pfeffermann, N. (2011). Strategies and communications for innovations: An integrative management view for companies and networks. Berlin: Springer. Read More