Instructor Manual For Principles of Marketing, 19th edition Kotler Chapter 1-20 Chapter 1 MARKETING STARTER: CHAPTER 1 AMAZON: Obsessed with Creating Customer Value, Engagement, and Relationships Synopsis Amazon, which was founded in 1995 as a book store, has experienced explosive growth by moving beyond online selling to physical stores, video and music streaming, cloud services, and the Internet of Things, which allowed it to grow revenue to $233 billion. Its CEO, Jeff Bezos, said that Amazon’s success is due to its obsession with customers. It is driven to create genuine value and special experiences for customers. Selection, convenience, and value are the foundation stones of the Amazon experience, and Amazon has introduced innovations that make shopping easier (e.g. 1-Click ordering; Alexa; fast delivery; Dash Cart).
Discussion Objective An active 10-minute discussion of the Amazon story will help link students to key foundational marketing concepts. Amazon provides an excellent vehicle for introducing the overall marketing framework presented in Chapter 1 and throughout the text: Good marketing is all about creating value for customers and building strong customer relationships in order to capture value from customers in return.
Starting the Discussion To start the discussion, ask the class to share their experiences with Amazon. What attracts them to Amazon? What is it about the customer experience that is so enticing? Next, pull up Amazon’s Facebook page. Click on articles and links to further explore. Together, note the variety of approaches Amazon takes and the focus on customers. Investigate Amazon’s other media, including the company’s website, Twitter, Snapchat, and YouTube. In what ways does Amazon’s focus on customer service show through? You should be familiar with these websites in advance so that you can move purposefully to keep the discussion moving. But let the class discussion interactively guide the sites that you explore, taking you deeper into each page. Start with the first question below, and then ask other questions as the discussion allows. Throughout the discussion, keep your objective firmly in mind: to emphasize that good marketing is all about creating value for customers and managing customer relationships in order to capture value from customers in return. The final question leads the class into Chapter 1 and the discussion for the day. Have fun with this one!
Discussion Questions 1.
The first marketing story in the text is about Amazon. Let’s go to Amazon’s Facebook page. What stands out about Amazon? Go to Amazon’s other media channels to find examples of how Amazon connects the company and the customers.
2.
How does the Amazon shopping experience affect performance? The company has grown astronomically in market share and strength of customer relationships, due largely to its customer satisfaction and customer experience.
3. Why did the authors choose Amazon as the very first company to highlight in the first chapter of the text? How does this opening story relate to the major points made in the rest of the chapter? (This question should lead naturally into major Chapter 1 concepts: What is marketing and what is the marketing process?
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