Proposal for Amazon: Business & Marketing Essay

Proposal for Amazon
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October 26, 2020
Overview
Understanding the relationship between purchasing decisions and marketing strategies is essential for any marketer. It allows him to create a strategic proposal that would benefit the company and increase its profitability. In this article, the author would like to propose a strategic marketing activity for the company Amazon. Amazon is considered to be the largest eCommerce platform in the world. In fact, in just the first quarter of 2020, the company has reported a $75.5 billion revenue evidencing its robust growth and profitability CITATION Moh20 \l 1033 (Mohsin, 2020). However, despite most consumers saying that they are buying in Amazon, it seems that Baby Boomers are part of the consumer segment that is least to 'repurchase' and 'convert.' This is true even if this market segment is the largest among all consumer segments in the eCommerce market CITATION IOTnd \l 1033 (IOTechnologies.com, n.d.). Thus, in this proposal, the author would like to provide some strategic points concerning how to target this consumer segment.
Proposed Plan
To segment the consumers effectively, the author recommends that the company utilize a modified reward system for retaining its current segmentation and providing additional rewards for new consumers from the least paying segments.
* Reward New Customers depending on Consumer Value and Shopping Flexibility
To provide an effective reward system for each consumer segment, it would be best for the company to consider factors such as Consumer value and shopping flexibility when rewarding consumers. According to Shin and Sudhir (2013), although rewarding new consumers is one of the best retention methods, current customers with high customer value and shopping flexibility should be given priority. Given that Baby Boomers prefer the 'in-store' experience compared to online stores, then the company must provide its current consumers from this generation the highest reward in terms of cashback and loyalty awards, among others.
* Provide incentives for Converted consumers
Another effe...