Amazon’s stakeholders include customers, the board of directors, investors, employees, partners, and suppliers. Its website (amazon.com) effectively meets the needs of stakeholders through constant communication regarding the company’s position on different issues. Recently, the chief executive officer and founder of Amazon, Jeff Bezos, wrote a letter to the stakeholders addressing the company’s progress. In the letter, the company highlighted its support for climate change action, COVID-19 response measures, focus on customers’ tastes and preferences, the employee benefits and compensation, investment in modern technologies including the cloud feature, and the strategy for growth (Bezos, 2020). On the website, it is evident that the company cherishes its stakeholders since each section of the letter addressed the strategies aimed at improving its relationship with them. Besides, Amazon publishes its annual earnings to enhance the transparency of its operations. This strategy fosters trust between the company and its stakeholders.
The Effectiveness of Direct Marketing Efforts
Furthermore, Amazon’s website has impressive direct marketing features. The company is aware that the majority of online shoppers are young people aged between 18 and 35 years. On the top of the webpage, a teen is listening to music on headphones, holding a smartphone on the hands, and seated next to a computer and camera (Amazon, n.d.). Admittedly, these devices are common among young people. A person browsing Amazon’s website may feel the urge to purchase any of the smart devices since they seem trendy. Amazon has conveniently placed these items on its site. Online shoppers can select from the category of items, including computers, video games, and toys (Amazon, n.d.). Besides, Amazon has listed the top-selling items to encourage shoppers to browse through the section. There is also a list of trending devices (Amazon, n.d.). The company understands the influence of social media and current trends on young people. Thus, it created this section to persuade them to be part of the latest styles. Amazon enlists items that cost under $20 on its website (Amazon, n.d.). The company’s officials understand that majority of its customers are young people who may not have adequate financial resources. Hence, its marketing strategy is customized to the needs of this population.
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Consumer Privacy Measures and Concerns
Although Amazon has provisions to protect consumer privacy, they do not reassure me. For example, Amazon shares customers’ information involving transactions with a third-party (Amazon, 2020). This approach poses a security risk to customers since it exposes their personal information to companies that may not have an adequate privacy policy. Besides, during business transfers, Amazon sells or buys the customers’ data (Amazon, 2020). In such instances, the customers may not have provided consent for this transfer. Hence, there is a violation of consumer privacy. Amazon also allows third-party advertisers to collect information from its customers (Amazon, 2020). These companies can then sell customers’ data. While Amazon promises that customers have the authority to control the information that they can share, there is no assurance of protection.
The Alignment of Marketing Mix
Notably, Amazon’s marketing mix fits well with its position in the e-commerce industry. For example, Amazon uses its website as a place or distribution strategy. This location is vital since it provides customers with an opportunity to assess the products before making a purchase. Its promotional method includes advertising, public relations, direct marketing, and sales promotions (Amazon, n.d.). Advertising strategy enables the company to reach out to the target market while sales promotion strategies such as discounts attract potential customers. Direct marketing allows Amazon to communicate with businesses that require online services. Besides, Amazon’s pricing strategy is value-based, market-oriented, and price discriminatory. The company evaluates the competitors’ pricing means and then adjusts the cost of its products to attract target customers. Also, Amazon adjusts its prices for different products. For example, the price of an iPhone Amazon website in the US is different from the one in the UK. This approach enables Amazon to remain profitable despite the changing market conditions. Amazon also adjusts its price based on the customers’ perception of the value of different products. Indeed, the price strategy ensures that Amazon’s products appeal to customers and remain flexible on the e-commerce platform.
References
Amazon. (n.d.). https://www.amazon.com/
Amazon. (2020, January 1). Amazon privacy notice . Amazon. https://www.amazon.com/gp/help/customer/display.html?nodeId=GX7NJQ4ZB8MHFRNJ
Bezos, J. (2020, April 16). 2019 letter to shareholders . Amazon. https://blog.aboutamazon.com/company-news/2019-letter-to-shareholders
