Amazon亚马逊营销策略分析——工商管理硕士英文论文

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 On the Successful Promotional Strategy of Amazon

  亚马逊的成功推销策略分析

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 天津市高等教育自学考试 英语(本)毕业论文

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 I

 Contents Abstract(in Chinese) ……....……………………………………….I Abstract(in English) ……………………………………………….II Chapter I.Introduction …… ...……………………………...............1 1.1. General background........................................................1

  1.2. Need for the study...........................................................1

 1.3.Purpose of the study.........................................................1 1.4.

 Case Study - “gift” of Amazon

 ...................................1

  1.5.Organization of the thesis.................................................1

  Chapter II. Literature Review.............................................................2 2.1. Analysis of Amazon"s sales strategy .............. ..............2 2.2.Theoretical framework to be adopted...............................2 Chapter III. Reasons for Amazon"s sales success...............................3 3.1. Reasonable ad position ...................................................3

 3.2. Constantly updated dynamic ads ....................................3 3.3. Constantly seeking partners

  Chapter IV. Conclusion....................................................................4 4.1. Summary of the study...................................................4

 4.2. Suggestions for further research...................................5

 Works Cited.....................................................................................6

 II

  摘要

 本文通过案例分析了亚马逊的成功推销销售策略,通过有效合理的广告策略,经常更新的动态广告以及与合作伙伴和中间商的不断合作达成了成功为用户推销的目的。首先,作者对本文的中心思想,讨论的重要性以及其结构框架做了简要的介绍。在经济全球化、电子商务和物流业蓬勃发展的背景下,我们将以案例分析亚马逊成功的四大原因和五大竞争优势。然后,我们将分析亚马逊的八大竞争优势以及亚马逊销售成功的原因。文章通过对亚马逊的成功推销销售策略的案例进行分析,从而对亚马逊推销的成功因素完成了深度的探讨。

 关键词:推销策略;广告;合作伙伴

 III

  Abstract

 This paper analyses Amazon"s successful marketing strategy through a case study. Through effective and reasonable advertising strategy, frequent updates of dynamic advertising and continuous cooperation with partners and middlemen, it achieves the goal of successful marketing for users. Firstly, the author gives a brief introduction to the main idea of this paper, the importance of discussion and its structural framework. In the context of economic globalization, e-commerce and the flourishing development of logistics industry, we will analyze four reasons for Amazon"s success and five competitive advantages with case studies. Then we will analyze Amazon"s eight competitive advantages. Next, we will analyze the reasons for Amazon"s success in sales. Through the case analysis of Amazon"s successful marketing strategy, this article has made a deep discussion on the successful factors of Amazon"s marketing. Key Words: marketing strategy; advertising; partner

 1 Chapter I.

 Introduction

 1.1. General background Economic globalization, according to the definition given in the May 1997 report of the International Monetary Fund is: "Economic globalization refers to the increase in the scale and form of transnational trade in goods and services and international capital flows, as well as the widespread and rapid dissemination of technology and the increasing interdependence of the economies of all countries in the world." (An 4) In this context, the most traditional trade of one country has been transformed into a system framework in which domestic trade and world multilateral trade are interrelated, which is of great significance to the international trade.

 Since the 1990s,

 the e-commerce has developed prosperously and rapidly. The logistics industry also had developed more and more mature. 1.2. Need for the Study Promotional strategy is the core guarantee link for the normal operation of an enterprise, and directly affects the future development of the enterprise. When formulating promotional strategies, enterprises are supposed to take full account of the interests of customers and combine the specific circumstances of enterprises to formulate corresponding strategies in order to achieve

 2 better development.

 The research and analysis of Amazon Successful Promotional Strategy will be helpful for enterprises to develop their own promotional strategies. 1.3. Purpose of the Study There are four main reasons for Amazon"s success. The first is that Amazon is positioned in high-tech enterprises and engaged in online retail business.

 The second reason is to create a convenient shopping environment and inherit the charm of traditional retail.

 The third reason is to build a perfect service system to improve the efficiency of online transactions.

 The fourth reason is the use of price discounts for customers to enjoy the price concessions, which is achieved by strong focus on efficiency and cost to continue offering lower prices than its competitors. 1.4. Case Study - “gift” of Amazon

 As one of the earliest companies to start E-commerce, Amazon has many strong competitive advantages: The first is to maintain fair and true customer evaluation. With more and more high-end brands in Amazon, customers will refer to other customers" comments before buying, so they all hope that these comments are fair and true.

 Since 2016, Amazon has been cracking down on false ratings, especially incentives to upgrade

 3 store ratings since false ingredients in customer evaluation will decrease purchase intention of other customers. The second is to avoid transport differences.

 Amazon prides itself on the rapid delivery of FBA (Fulfillment by Amazon), but not every vendor uses the service for delivery.

 This has led some customers to feel very disappointed, especially when they associate Amazon with speed and reliability. Therefore, even if the seller can not support the delivery speed within two days, please keep the delivery promise, so as not to challenge the patience of customers. The third is to keep product information comprehensive and accurate.

 When customers trade online, they need to have a comprehensive understanding of the product information. It is most difficult for customers to accept that the product does not match the description. However, according to the result of the questionnaire, when this happens, 86% of customers say they are unlikely to return the goods voluntarily. The fourth is simple return policies.

 Although accurate product information can reduce returns, online transaction returns are inevitable. Amazon has a simple return policy for its own products, but does not force third-party sellers to follow the same rules. Sellers can improve customer satisfaction through simple return policies and the provision of purchase and freight charges, so

 4 that customers will respect the brand even if they are not satisfied with the physical products they receive. The fifth is to focus on shopping experience and customer service.

 The same product is sold on many platforms.

 The reason for customers to buy it on Amazon is the providing of the perfect purchase experience.

 In order to better solve customer problems, Amazon combines all customer service linkages strategies, such as instant conversation, quick email and FAQ presentation, to increase customer trust. 1.5. Organization of the thesis The paper studies on the successful promotional strategy of Amazon.

 Under the background of economic globalization and prosperously developed e-commerce and logistics industry, we will analyse four main reasons for Amazon"s success and five strong competitive advantages using case study. Then, we will analyse eight strong competitive advantages of Amazon. Next, we will analyse the reasons for Amazon"s sales success, which are reasons for site-map - reasonable ad position(The interface layout of web pages is very reasonable and helpful for Amazon to the promotion of a variety of products), constantly updated dynamic ads and constantly seeking partners.

 5

 Chapter II.

 Literature Review 2.1. Analysis of Amazon"s sales strategy

  The first sales strategy is that the Amazon"s Google-launched PPC (pay-per-click advertising) strives to enhance "advertising relevance.".

 In order to outperform competitors on AdWords, dynamic keyword insertion, unique selling points and landing pages matching each keyword to set up targeted advertising can be utilized. Amazon uses templated titles and descriptions and dynamic keyword insertion as well as dynamically generated landing pages to guide users to product pages sorted by the degree of relevance of keywords. The second sales strategy is fore-end "

 Promoting products at a loss" and generated more than four times the return from the back-end.

 By 2016, Kindle Stores had more than 4.6 million bestsellers, becoming the world"s largest e-book retailer and growing. As early as 2011, Amazon"s fastest-growing product was the Kindle and related digital content, and in the second year it accounted for more than 10% of the company"s profits. Today, Amazon dominates the international e-book market with the Kindle and the large number of e-books available in its ecosystem. (Kons 57)

 6 Amazon has designed future purchasing plans as a natural process, and selling loss-making promotional products at the front end may generate substantial sustainable revenue at the back end. Sell a product with one-time loss and design a simple and effective plan to enable users to purchase continuously in the future, so as to make more profits. Amazon is estimated to have lost more than $500 million on Kindle devices, but has made more than $2 billion in profits on e-books, music, film/television programs, advertising and applications. The third sales strategy is to use charitable programs to reward society and make profits.

 Work with branches that are highly relevant to the audience you want to attract to build a two-way collaboration: they promote you through the pre-made marketing materials you provide; you promote them to customers on your website. For Amazon, charities promoted their products through pre-made Banner ads and social posts; Amazon promoted the charity program by popping up dialogues on its product pages. ( Chen 9) Amazon Smile Foundation, founded by Amazon, aims at allowing customers to do charity while shopping. Such philanthropic activities have other benefits, such as making customers feel more meaningful to buy on Amazon, encouraging more people to buy products from Amazon, and positive attitudes towards Amazon.

 7 The fourth sales strategy is to effectively increase the order rate with the help of five transforming elements on the commodity page.

 On Amazon"s product page, there are five marketing strategies to increase the order rate, including community certification, cognitive value pricing, sense of scarcity and urgency, direct purchase buttons, additional sales and cross-selling: Community certification means that: when customers browse a product, they first look at the yellow stars (ratings) - indicating how many people like (or dislike) the products. Amazon places this community Certificate in the front and center. Cognitive value pricing means that: Amazon always seems to be "selling at a low price" by deleting "original" prices, displaying "discount prices", emphasizing free delivery of orders over $25, reminding customers how much dollars and percentages it has saved. In addition, Amazon has a complex dynamic pricing strategy, and its prices fluctuate frequently. This is to ensure that customers see Amazon as the most affordable platform to buy. Scarcity and urgency means that: Amazon tells buyers that if they want to arrive on a certain date, they must order within a certain time. This increases people"s chances of buying in Amazon, rather than choosing other places to buy, because if they buy quickly, they can be guaranteed to arrive tomorrow.

 8 One-click buy button means that: to avoid the abandonment of goods in the shopping cart, Amazon has built a shopping system that allows people to shop with just one click (after entering and saving the checkout, only one payment and filling in the shipping information). This makes it so convenient and fast to buy things that customers don"t have time to rethink their buying behavior. Additional sales and cross-selling means that: Amazon makes additional sales and cross-selling through the following four ways: personalized search (allowing customers to search for related products based on what they buy, bundled preferences and "often buy together", "related products", "customers who bought this also bought it", "product comparison chart", "users who browsed this product also browsed"); "Goods and Key Recommendations you have recently browsed" and so on. The fifth sales strategy is to complete viral marketing with the help of "product video advertisement in 14 seconds".

 Amazon uses comments, forums and social media exchanges to study customer talk and come up with ways to transform super-high marketing campaigns. Amazon has created more than 100 video clips in less than 30 seconds using real Echo reviews as part of their video advertising campaigns which is named as “Just Ask” on television and YouTube.

 9 The sixth sales strategy is to use a portable Flash Store to sell accurately according to the customer"s location. This approach is to try to apply a new marketing channel to your e-commerce business so that your product can be presented to your target customers. Amazon did it through flash stores and other attempts to sell Amazon trucks.

 Amazon opened some flash stores a few years ago as a pilot. By the end of 2017, they had expanded more than 100 flash stores across the United States. These stores are an important reason for the tremendous success of Amazon devices (Echo, Fire TV, Fire Tablets, etc.).

 A single Amazon product, Echo smart audio with Alexa voice assistant, could bring Amazon an estimated $10 billion in revenue by 2020. People can use Alexa to place orders and developers can use Amazon Web Services (AWS) to support applications on Alexa. Flash stores can improve Amazon"s awareness of new products, guide customers, increase product sales, and support free product refund channels (a small number of customers will be dissatisfied with the product). The seventh is the

 successful strategies for Amazon Prime members to increase sustained revenue.

 In order to make the e-commerce revenue more predictable, create a sustainable revenue product that combines the benefits of all

 10 your other products. Start by focusing on a key selling point that runs through all your products. Amazon"s Price membership includes free access to a variety of services; otherwise people pay more than 10 times per month. For marketing, they focus on free two-day service, which is one of their key selling points. Amazon Prime is a popular service that provides subscribers with various privileges. It also provides Amazon users with unlimited access to streaming media services (including video and music), borrowing Kindle books, storing photos and other privileges. Amazon Prime has become a profitable tool not only because it has a large number of registered users, but also because Prime users generate three times more consumption per year than non-Prime users. Amazon Prime"s success can be attributed to three factors: Focusing on a key selling point, Amazon has long been aware of the two-day free delivery and focused on it. 2. Placing the registration option in an eye-catching position and attaching a 30-day free trial to the new product launch is a key point for the rapid growth of Prime membership and for users to start registering. 3. Use an effective "pay before you pay" approach. When the free trial expires, Amazon uses four ways to let these users pay

 11 instead of continuing using it. One is to offer free extra benefits, dedicate to attracting people"s attention through free two-day delivery and free trial. Second, in canceling the page to appeal to the interests, and ultimately retain the sale at reduced prices, users uninstall carefully designed inquiries to let customers think again and again. The third is limited member discount, and the fourth is to establish the minimum consumption level of free transportation for ordinary customers. The eighth sales strategy is to use five types of e-mails to further increase sales after customer purchasing behavior occurs.

 Amazon"s five types of e-mail are used to optimize the transformation of consumer power after shopping and promote more sales. Amazon will send e-mails when you first purchase, confirm an order, order distribution, comment on the products you buy and the sales activities. There are e-mails concerning congratulations on your first purchase of e-mail. The purpose is to build your trust, remove some of the doubts that will arise after you purchase, and start contacting you. Let you know what you can do next, such as telling you the discount to encourage users to buy again.

 12 The e-mails of order confirmation is designed to bring users back to Amazon"s website again by "View or Manage Order" CTA on the confirmation email. E-mails of order delivery confirm that the emails contain the main information of the product in transit, the delivery address and the total number of shipments. Then, with CTA "tracking packages", customers are brought back to a tracking page to promote other products. Evaluate the purchase of merchandise email, get comments, and return shoppers to Amazon"s website. If the customer clicks on a star in the e-mail, the customer will be taken to the product page and asked to write a text comment. E-mail for sales activities, do time-limited activities with clear deadlines, send "sales announcement" e-mail on the first day, and send a "last chance" e-mail several hours before the deadline. 2.2. Theoretical framework to be adopted

 We analyze the sales strategies of Amazon through several cases: the Amazon"s Google-launched PPC (pay-per-click advertising) is used to enhance "advertising relevance; fore-end "Promoting products at a loss" generated more than four times the return from the back-end; charitable programs are used to reward society and make profits, to effectively increase the order rate with

 13 the help of five transforming elements on the commodity page, to complete viral marketing with the help of "product video advertisement in 14 seconds", to use a portable Flash Store to sell accurately according to the customers’ locations; the

 successful strategies are used for Amazon Prime members to increase sustained revenue; five types of e-mails are adopted to further increase sales after customer purchasing behavior occurs.

 Chapter III .

 Reasons for Amazon"s sales success 3.1. Site-map - Reasonable ad position

 Books of best books, bestsellers, website recommended books, book clubs and famous authors are provided in the ads. The company"s page layout is very reasonable. For example, in its book sales page, the whole page is divided into three columns. The left column is the gift introduction of the day and some hyperlinks to other pages. The middle column is a series of advertisements with distinct themes, the best book introduction and shopping guide. The right column is the best of the other two homepages (music and film and television). There are new trends and product rankings. This menu and page layout makes the product classification clear and easy for users to query and purchase.

 14 3.2. Constantly updated dynamic ads

 Another feature of advertising is its dynamic real-time. The ad layout that is changed every day allows customers to get the latest publications and the most authoritative reviews. This is achieved by Amazon"s advertising system.

 Amazon now has three forms of advertising: Sponsored products, headline search ads and product display ads. Sponsored products advertising is based on keywords, using competitive bidding, the highest bidder in the same category will be charged according to click. Amazon will combine "bid" and "performance" indicators to determine the ranking of advertising booths, "performance" weighs more than "bid", "performance" refers to the "transformation" of goods, which is the first determinant of advertising search ranking. If the conversion effect is not good, even if the bid is high, the advertising space will not be in the first place, and Amazon always prefers the products that bring the most sales.(Gao 9)

  3.3. Constantly seeking partners Because of Amazon"s huge traffic, many third-party sellers or manufacturers want to use this platform to sell their products. Amazon has worked with third-party sellers to create a huge platform for visitors to visit seamlessly.

 15 Many Amazon customers do not know that half of the items sold on Amazon"s website come from third-party sellers, and Amazon is only responsible for distribution. Amazon Logistics Distribution (FBA) is one of its three main businesses (the other two are Amazon Web Services and Prime Membership Services). Amazon Logistics Distribution Service can transfer the seller"s inventory to its warehouse and then distribute the goods to consumers. Correspondingly, the seller will be charged a certain fee. This logistics distribution service is also the main driving force behind Amazon"s expansion of its warehouse. With more and more sellers in Amazon, more and more consumers can buy the products they want at the ideal price. As a result, more vendors can join the platform because it is a place for buyers to visit. With this virtuous circle, even Wal-Mart and Target have a large customer base, and Amazon"s sales are still growing faster than they are. Analysts at R.W. Baird, an American asset management company, say that 20 cents of Amazon"s North American earnings per dollar come from Amazon"s logistics distributors. As the number of third-party sellers continues to increase, the number will continue to increase.

 16 Although large retailers such as Wal-Mart will also provide a platform for third-party sellers on their own websites, none of them can offer services comparable to Amazon. It is more difficult to maintain a growing customer base than to build infrastructure such as warehousing centers and distribute goods to customers. This makes Amazon logistics service one of its most competitive advantages, which is the most obvious, but also the most easily ignored.

 Chapter IV.

 Conclusion 4.1. Summary of the Study

 Since the 1990s,

 there has been an economic globalization trend.

 Since then, e-commerce has boomed, and the logistics industry is also developing more and more mature. Using case study, there are four main reasons for Amazon"s success and five strong competitive advantages being analysed. Then, we analyzed eight strong competitive advantages of Amazon, which are: the Amazon"s Google-launched PPC (pay-per-click advertising) to enhance "AD relevance”; the front-end "loss-making promotions" which have generated returns more than four times those of the back-end; the using of charitable projects for social and profitable purposes; the effective increase of the order rate with the help of five transforming

 17 elements on the commodity page; the viral marketing with the help of "product video advertisement in 14 seconds" on television and YouTube; the using of portable Flash Store to present the product to the target customers and sell accurately according to the customer"s location; the

 successful strategies for Amazon Prime members to increase sustained revenue; five type of e-mails to further increase sales after customer purchasing behavior occurs. Then, the reasons for Amazon"s sales success are analysed, which are site-map - reasonable ad position and constantly updated dynamic ads as well as constantly seeking partners. 4.2. Suggestions for further market expanse

  It may be advised that more innovations and more reasonable advertising strategies should be studied for China peer industry company. Firstly, we can try to use the techniques of dynamic keyword insertion, setting up unique selling points, landing pages matching each keyword to set up targeted advertisements. For example, Amazon uses templated titles and descriptions, dynamic keyword insertion, and dynamically generated landing pages to guide users to product pages sorted by the degree of relevance of keywords. Secondly, we can sell promotion products at a loss in the early stage and returned at a later stage, which strategy applies to

 18 these two situations: Loss promotion products need to be renewed more in the future to work properly (for example, razors need to buy razor blades when using razors); or aim to attract new customers into stores and be confident that they will buy more after experiencing the product (for example, Black Friday sales attract many new buyers, milk and eggs attract people into stores, prompting them to buy high-profit goods on your platform or store).

 Amazon has estimated losses of more than $500 million on Kindle devices (front-end), it has made more than $2 billion in profits on e-books, music, film/television programs, advertising and applications (back-end). Thirdly, we can work with branches that are highly relevant to the audience you want to attract to build a two-way collaboration: they promote through the pre-made marketing materials provided; and we promote them to customers on the website. For Amazon, charities promoted their products through pre-made Banner ads and social posts; Amazon promoted the charity program by popping up dialogs on its product pages.

 This can make customers feel that their buying behavior is more meaningful, encourage more people to buy products from here, and grunt that customers treat us positively. Foruthly, we can come up with a marketing campaign that transforms super-high levels through reviews, forums and social

 19 media exchanges, research customer talk (such as Amazon"s viral marketing with 14 seconds of product video advertising). Fifthly, we can try to apply a new marketing channel to your e-commerce business so that your products are presented to your target customers. (Amazon, for example, did it through flash stores and other attempts to sell Amazon trucks.) Sixthly, to make e-commerce revenue more predictable, we can create a sustainable revenue product that combines the benefits of all other products. Start by focusing on a key selling point that runs through all your products. Amazon"s Price membership includes free access to a variety of services, otherwise people pay more than 10 times more per month. For marketing, they focus on free two-day service, which is a key selling point for Amazon. Seventhly,

 we can use Amazon"s five types of e-mail to optimize the transformation of consumer power after shopping and promote more sales. We should ensure that we add our own unique content to each e-mail to match the brand. Eighthly, we should speed up the introduction and innovation of logistics information technology. Amazon"s efficient logistics management is absolutely inseparable from its advanced technical support. Although the amount of this investment is huge at present, it will be of great benefit to the long-term cost reduction and

 20 efficiency improvement in the future. The transformation from scale to profitability is the key to the development of China"s logistics industry. Ninth, we should realize the scientific management of enterprise logistics. Strengthen the external socialized management of logistics enterprises, actively form logistics alliances with multiple logistics entities, and promote the promotion of Logistics comprehensive strength and resource sharing. Tenth, we are supposed to effectively increase the order rate with the help of five transforming elements on the commodity page. For example,

 on Amazon"s product page, there are five marketing strategies to increase the order rate, including community certification, cognitive value pricing, sense of scarcity and urgency, direct purchase buttons, additional sales and cross-selling.

 21

 Works Cited An, Haiyan. “Modern International Trade under the Background of World Economic Globalization” Li Ren: Teachers, 2015 (6): 296-296. Kons. "What will Amazon"s supermarkets make money on?" Ningbo Economy (Financial Perspective) (2018): 56-59. Chen, Min. "Can Amazon get out of the trough?--Look at Amazon"s investment and marketing strategy again." Publishing and Distribution Research 4 (2001): 56-59. Gao, Peng. "Innovation of Amazon"s Marketing Model Strategy." Business Story 5 (2015): 94-95.

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