Amazon was founded in 1994 and is considered the largest e-commerce retailer in America. In 20 years this organization has become a fortune 500 company that has dominated the e-commerce market and displayed unique growth and understanding of the market and client needs. Although Amazon is a very successful organization, they experience many threats from competitors, market fluctuations, and basic uncertainties within the market.
However, the firm intends to handle these issues by looking toward their future and addressing the initiatives and long-term goals of the organization. Understanding and controlling the variables in the marketing mix allows this organization to overcome many of these objectives so they may be successful in their future. The marketing mix has four basic areas also known as the four Ps that consist of the; product, place, promotion, and price.
These four areas can be researched, evaluated, and controlled to the point of creating that ideal environment for the consumer because this effort is done to target the customer. The Product Variable The product section of the marketing mix helps the organization determine what customers want out of the product or service being offered and what specific needs of these customers will be satisfied.
Other areas will be addressed such as, how this product is different from competitors, how the customers will use the product, the price rang customers would be willing to spend on the product, the color size or specific features offered, and what the product looks like. Amazon is unique in the products they offer to the public because it is so broad of a category. They provide their customers with the ability to choice from a wide variety of products, brand names, and designs.
Amazon can be looked at as a one stop website because it allows the customer to compare all the statistics or features of a product with others that are offered. The Place Variable The place section of the marketing mix will help the organization determine how customers will access the products or services from the company, or understand where they initially will look. Knowing where customers will look gives the company the advantage of choosing the proper distribution channels, and staying ahead or on par with competitors with their advertising methods.
The location to find the products and services Amazon offers is online, or at the convenience and comfort of the consumers home, office, coffee shop, library or any other location you can access the Internet from. All of the information on Amazons website is categorized by group, brand, features, color, and other selections, depending on the category that is being searched. Merchandise is ordered online and then shipped to the customers chosen location, normally their home or business.
Many of Amazons customers are small business owners so this set up is ideal for these individuals because there is less shopping around to do, and the merchandise can be sent to them directly. However, a disadvantage of developing just an online e-store is that customers cannot view items or products in person that may be necessary for specific things such as clothes, makeup or furniture. Also consumers may not want to wait for an item to be shipped to them, they may need to get a product immediately and at that point customers will have to go to Amazons competitors.