Amazon uses a five-step positioning plan to establish its online presence. It first identifies customer needs through research then determines an ideal product position. Amazon develops alternative strategies to achieve this ideal position, such as expanding product offerings. It selects and implements the most promising strategies, like growing from only books to various products. Amazon compares its actual position to the ideal to track success and further improve its positioning.

1. ANALYSING THE INTERNET MARKETING STRATEGY OF AMAZON THROUGH FIVE-STEP POSITIONING PLAN GROUP 1 Monday, 9 August 2010 1 MARK 901 Internet Application for Marketing

2. GROUP 1: Mochammad Larimba Mandrawata Gaurav Sukito Yen-Heng Kuo Naif Balabid MARK 901 Internet Application for Marketing 2

3. Outline General Concept Problem Definition and Independent Research Conclusion Learning Activities Questions 3 MARK 901 Internet Application for Marketing

4. General Concept Internet Marketing Segmentation Targeting Positioning: Five-Step Positioning Plan 4 MARK 901 Internet Application for Marketing

5. Internet Marketing (e-Marketing) It is the process of building and maintaining customer relationships through online activities to facilitate the exchange of ideas, products, and services that satisfy the goals of both parties (Mohammed, R.A. Et al, 2004) It is marketing in electronic environments, primarily on the Internet, on one or more of its services, or offline by enterprises that produce and sell Internet-related products.(Siegal, 2006) 5 MARK 901 Internet Application for Marketing

6. STP of Marketing 6 MARK 901 Internet Application for Marketing

7. Marketing Strategy Decision 7 MARK 901 Internet Application for Marketing

8. Pure Plays and BAM Pure plays- firms that only have an online business BAMs- firms that have offline operations 8 MARK 901 Internet Application for Marketing

9. Differences between marketing strategy of Pure plays and BAMs 9 MARK 901 Internet Application for Marketing

11. Geographic

12. Psychographic

13. Cognitive and behavourial10 MARK 901 Internet Application for Marketing

14. Effective Segmentation 11 MARK 901 Internet Application for Marketing

15. Targeting The target market is the segment (or segments) of the market most attractive to the firm based on profitability, cost to serve, accessibility and/or growth potential 12 MARK 901 Internet Application for Marketing

16. Targeting Mass Marketing This strategy markets to all customers, attempting to fill all their needs and wants of every segment in a market Differentiated strategy (e.g. P&G) Undifferentiated strategy (e.g. Coke-Cola) 13 MARK 901 Internet Application for Marketing

17. Targeting Niche Marketing To serve one or a few segment, and these segments are not the largest segments, but consist of enough customers to make it worthwhile (e.g. Super luxury car market) 14 MARK 901 Internet Application for Marketing

18. Targeting Growth Marketing Choosing one or more smaller but fast-growing segments that will turn into a niche or a larger segment ( e.g.?) 15 MARK 901 Internet Application for Marketing

19. Positioning Positioning is the act of designing the company offer and image so that it occupies a distinct and valued place in the target customers’ minds. Philip Kotler(2003) 16 MARK 901 Internet Application for Marketing

20. Five-Step Positioning Norton Paley has over 25 years of corporate experience has authored seven books Manage to Win Successful Business Planning Marketing for the Non-marketing Executive: An Integrated Management Resource Guide The Marketing Strategy Desktop Guide Pricing Strategies and Practices Marketing Principles and Tactics Everyone Must Know The Manager’s Guide to Competitive Strategies, 2nd Ed. 17 MARK 901 Internet Application for Marketing

21. Positioning: Five-Step Positioning Step One : Indentify actual product - Through some customer interviews or questionnaires, we are able to identify the variables important to consumers and the perceived position of a product 18 MARK 901 Internet Application for Marketing

22. Positioning: Five-Step Positioning Step Two : Determine ideal product position - This step determines how to position a product in a more favorable location on perpetual map 19 MARK 901 Internet Application for Marketing

23. Positioning: Five-Step Positioning Step Three : Develop alternative strategies for achieving ideal product position - In order to achieve an ideal position, a firm must to: - move your product to a new position - introduce a separate, new product, and leave current product untouched or withdraw 20 MARK 901 Internet Application for Marketing

24. Positioning: Five-Step Positioning Step Four : Select and implement the most promising alternative - This step depends on choosing the plan that is the most favorable and consistent with a company’s objectives, resources and strengths 21 MARK 901 Internet Application for Marketing

25. Positioning: Five-Step Positioning Step Five : Compare new actual position with ideal position - This step must also include measures to track the success of the positioning move 22 MARK 901 Internet Application for Marketing

26. Problem Definition and Independent Research Question: Select an online company and describe how it creates its five-step positioning plan. Observed website: Amazon.com 23 MARK 901 Internet Application for Marketing

28. Up to his date is

29. Stating that itself “strives to be Earth's most customer-centric company where people can find and discover virtually anything they want to buy online”

30. Offers a range of products and services, from books, movie, music, electronics, to web services and selling services24 MARK 901 Internet Application for Marketing

32. 1995: Launched on the web, limited to selling books

33. 1997: Went public

34. 1998: Expanded to music store, acquiring international offices

35. 1999: Expanded to toys, hardware, electronics, Opens its auction site

36. 2001: its first fourth-quarter profit

37. 2002: Expanded to web services

38. 2003: its second profit

39. 2004: its first-ever annual profit25 MARK 901 Internet Application for Marketing

40. Positioning at Amazon 26 MARK 901 Internet Application for Marketing

41. Conclusion 27 MARK 901 Internet Application for Marketing

42. Learning Activities: InterGrating (Interactive & Integrating) CS eBay versus Amazon: analysing internet marketing positioning strategies on both companies. 28 MARK 901 Internet Application for Marketing

43. Learning Activities Discussion Points: In your opinion, why and how does Amazon position (changing focus) itself in this online purchasing competition? In your opinion, why and how does eBay position (reaction) itself in this online purchasing competition? 29 MARK 901 Internet Application for Marketing

44. Question 30 MARK 901 Internet Application for Marketing

45. 31 MARK 901 Internet Application for Marketing