C) E-marketing Strategic Planning 1) Market Segmentation, Positioning and Targeting Segmentation of Amazon.comWith its numerous brands, Amazon segments its market; each brand symbolize a single imageand caters to a distinctive demographic. Friendly, low cost are meant at the average to highlevel earnings market. Consequently, Amazon.com markets its goods to individuals that wantto do their shopping online, and they want to purchase products at an reasonable price. Itwould be people that are comfortable with technology, with huge levels of income. For itssegmentation strategy the company uses mass marketing, as for its market segmentation ituses demographics and behaviour. In which it tries to catch the attention of consumers of arange of ages, diverse culture, average income level, man as well as women, with high schoolor higher level of education. These customers have interests in online shopping and it hasbeen observed that some of them shown a high level of brand loyalty to Amazon.com.Their target market profile is mostly people with a personal computer and home onlineconsumers. Since the target market is young, they will be likely to be single or with newfamilies.Amazon.com has even position in leading Internet retailers that are improving thelives of customers by making shopping easier and more convenient.Amazon.com proceeds as the only shop selling all you want. This differentiates Amazon.comfrom Internet portals, a preliminary point where the customers bounce in and out of diversestores all with their individual look and feel, safety way, and privacy statement. WithAmazon.com the purchaser simply deals with one proprietor of the products, one paymentsystem, one secured web site, and confidentiality concern. When Jeffrey Bezos says he wantsa buyer to be capable to purchase anything from one place, it is necessary to utilize a virtualshop such as Amazon.com since a real world shop could never warehouse everlastingmerchandise for millions of individuals. The target market of Amazon.com is accurately anyperson who can notice the pages and this means individuals with access to the Internet.
2) ObjectivesTo gives the customer an immediate feeling of being serviced and helped in practical andtrustworthy way that goes towards creating a social bond, primary element in developingcommitted customers because it means that they are more likely to feel that the brand meetstheir needs and values.To gives the customer and experience of being part of a larger group; in a very modest way itcontributes to a sense of belonging, that vital need described by Abraham Maslow and againcontributing to social bonding. SuccessfulCRM is fundamentally based on the principle oftreating each customer as an individual. When we know the kind of customer we are dealingwith we can treat them even better as individuals.To significantly helps to develop customer sales and share of wallet. To the extent thatAmazon is market leader; it sets the share of wallet target for the rest of the category. Soeffective has this been that Amazon.com has not only been growing at a phenomenal rate inwhat had been a dead market, but it has actually led to growth in the market. 3) New E-marketing Strategies (4P’s)ProductsThere are several aspects that Amazon.com should take into consideration for the productsand services they offer. Amazon.com offers a verity of products of anything from food toclothes or car accessories; put differently, Amazon offers any product that comes to mind andthese products are thoroughly researched, in terms of how it will benefit the consumer orcustomer if they do purchase their products. And Amazon have to think about creating anoutstanding package that will help them win the competition with other competitors of otherauction websites like, EBay and ioffer.com. Amazon may also have to consider warranty useand proper privacy to make the consumers comfortable when buying their products. Amazonis till up to date, providing the most exclusive, unique products that have a guaranteed goodquality, aiming to satisfy their customer’s wants and needs.
PriceThe next P on the list is the pricing strategy, when a company is setting the price for a certainproduct high, the customer will be facing great resistance in pursing to purchase the product,and if the price is set too low, it will give the customer’s the perception that the product is oflow quality. Amazon.com has team that are working to find the proper and most appropriateprice for each product to convince the customer to buy it. Another point that Amazon shouldput into consideration, is “competition” which is a very important aspect for any company andspecially for Amazon.com, cause Amazon are not facing with other auction sites in case ofcompetition, Amazon are dealing with competition with the companies that sell their productson Amazon.com as well, so, Amazon must set a price for products that are similar buydifferent companies sell it on their website.PromotionThe fourth point in the marketing mix is Promotion. Amazon.com thought of a way topromote their products that are provided to generate a high sales rate. Promotions are used toinfluence the customers to make the decision of buying product. Promotions are offered inpublic holidays and events, like Christmas, Halloween, or even big events like the annualfootball World Cup. Sometimes Amazon offered random promotions to their customers withno occasion like now they are offering a promotion for Kindle and this will encourage thecustomers to buy their products.(Sources from: Advertising Banner- New Promotion Strategy, available from:www.amazon.com )Place (Distribution)
The last element of the marketing mix is the place strategy. The world place indicates thelocation where the company will sell their customers. Since Amazon.com do their auctionbusiness online through a website, place is not determines as where the product originated butit is determined as in where it will be delivered and how to deliver it. Amazon.com offer a lotof option in case of delivery, similar to, domestic standard, domestic expedited, two daydomestic, one day domestic, standard international and so on. 4) E-marketing TacticsEnhancement FeaturesThe first thing that Amazon.com can enhance is the payment procedures, instead of onlyallowing customers of using credit cards, they can add an option of using debit card as well tomake it easier to customers to consume the products they need. Another thing that they canenhance is the searching engine where they can make it easier for the consumers to browseinto the website to find the products they wish to purchase. And in case of shipping theproducts, they can enhance their shipping options and instead of only shipping by sea, theycan improve their delivery system and deliver by using air CARGO.D) Implementation and Evaluation:A discussion of how the analysis will be implemented, and evaluated to help the marketing todo the decision makers including the limitation of the theories that would be applied.Potential Strategic ImplementationIn order to gain market share and sustain its competitive advantages to be the low cost carrierin the high demanding environment, Amazon must develop new ways manage both customerrelationships and suppliers or partners to optimize customers loyalty, suppliers relationships,and revenue. The following diagram shows the strategic forces of value proposition of theAmazon industry, showing that the focus i=on supplier and Alliances and Customers will
drive positive values to Amazon can achieve Customers Relationship Management (CRM)application will be one of the areas of strategic. IT an implementation that Amazon can focusto achieve high values to both shareholders and customers.With the above implementations, it is clear that the business strategy and the IT strategy arealigned to for Amazon to operate on a low-cost model. There are four models to StrategiesAlignment Perspective (Henderson and Venkatraman, 1993). Namely, Strategies Execution,Technology Transformation, Competitive Potential and delivery Service, all the systemimplemented act as enablers in achieving the business strategy Amazon by reducing the costof operation and maximizing revenue. (Sources from: Henderson and Venkatraman, IBMSystem Journal 1993)With expansion as one of the main future direction as well as increased competition, APSsystem is recommended as a new way to improve processes and therefore achieving costreductions along the value chain. APS system focuses on internal operational processesperspective. While other systems such as YMS and CRS more focus on customer’sperspective. All systems provide, APS like other previous systems fits smoothly in technologytransformation perspective. Reduced costs in inbound logistics and operation activities will bethe direct of implementation APS (IT strategy) enabling Amazon in a achieving its low costbusiness strategy (Venkatraman, N., Henderson, J., &Oldach S., 1993).
1) Action planActivity Time to Grant Percentage of SuccessTo enhance A month by the use of some IT If the plan is studied wellpayment professions to update the website and and then the plan preformedprocedure some bankers and finance efficiently that the success of professions to plan the new payment the plan will be huge and strategy. they Amazon will benefit a lot from this change.Searching This will only take a couple of weeks This step will make it easierengine to perform if the company uses a for the customers to find theenhancement good set of IT professionals. products they need with the specific requirements in less and more convenient time which will benefit Amazon as they will have more customers.Shipping Shipping enhancement will take This will benefit bothenhancement more time than the other amazon.com and the enhancement since it will require customers that are using the some arrangements between delivery service so this will amazon.com and the shipping be successful. company that are willing to offer the shipping service. 2) Evaluation planPerformance MetricsThe success of the e-marketing strategy and the implementation plan in achieving the strategicobjectives will be measured using the following performance metrics.First of all, Amazon.com can use the method of Sales Conversion Rate. Sales Conversion israte the number of sales made in a given time period divided by the total number of visitors to
the website, or lead generated (Gold , 2004). This is a useful KPI (key performance indicator)to measure the outcomes of new strategies and implementation and is an indicator of howsuccessful the E-marketing plan is (McCullum, 2010).Secondly, Amazon.com can also consider about the tool namely Cost per Customer which itis the cost per visitor, time the number of unique visitors required to make a sale. This can beused to measure the cost of implementing new strategies to get a completed sale of Amazonproducts (Gold, 2004).This KPI (key performance indicator) will be used to show how wellthe new website strategies perform relative to the company’s investment.Third way is Website Traffic whereby it could be a key website performance metric whichcan identify how many visitors the Amazon Malaysia website is getting, both unique visitorsand repeat traffic. This applies with the number of page Views per user can show repeattraffic to the website. Also, it indicates when there is a rise or fall in the website traffic formone period to the next. This is a good measure of the effectiveness of strategy implementation.Arise or decline in traffic, after implanting a new strategy means that further steps can betaken to improve and fine-tune the online strategy to increase the effectiveness and increasevisitors numbers (McCullum, 2010)E) CONCLUSIONA company’s website is very important because it creates an impression of the company forusers and also affects the perceptions of a customer and sales of the product. Improvement inAmazon Malaysia’s online presence, through e-marketing and e-CRM is an important part ofacquiring and delivery service to customers.Amazon prides itself on delivering and selling products online and providing customers withan entirely unique experience. Therefore, its web presence should also provide the sameunique experience for uses. The objectives and strategies proposed in the above e-marketingplan can provide key improvements for Amazon Malaysia website which can help make theweb presence of Amazon as high impact as the brand itself.