Amazon: The Hidden Empire

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A few nuggets about Amazon:
We work to earn repeat purchases by providing easy-to-use functionality, fast and reliable fulfillment, timely customer service, feature rich content, and a trusted transaction environment.

“Relentlessly focus on customer experience by offering our customers low prices, convenience, and a wide selection of merchandise.”

Amazon does not reveal much about its marketing approach in its annual reports, but there seems to be a focus on online marketing channels. Amazon (2011) states “we direct customers to our websites primarily through a number of targeted online marketing channels, such as our Associates program, sponsored search, portal advertising, email marketing campaigns, and other initiatives”. These other initiatives may include outdoor and TV advertising, but they are not mentioned specifically. In this statement they also highlight the importance of customer loyalty tools. They say: “while costs associated with free shipping are not included in marketing expense, we view free shipping offers and Amazon Prime as effective worldwide marketing tools, and intend to continue offering them indefinitely”.

In their SEC filings Amazon state that the aims of their communications strategy are to:

Increase customer traffic to our websites
Create awareness of our products and services
Promote repeat purchases
Develop incremental product and service revenue opportunities
Strengthen and broaden the brand name.

Amazon also believe that their most effective marketing communications are a consequence of their focus on continuously improving the customer experience. This then creates word-of-mouth promotion which is effective in acquiring new customers and may also encourage repeat customer visits.

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