Amazon is one country with multinational technology companies that emphasize e-commerce, digital streaming, cloud computing, and artificial intelligence. Amazon was founded on July 5, 1994, by Jeff Bezos as a result of the “regret minimization framework .”He did this to ensure that he has not regretted not having tried to participate in the upcoming internet with his startup. It started due to technological marketing education( Williamson et al.,2022). It is one of the largest dealers worldwide, revolutionizing wholesale factories by inventing online shopping. Its primary product includes an e-commerce platform, which permits customers to hire products of different sorts, such as electronics, fashion, books, and grocery, and others. In this report, we will analyze Amazon’s digital marketing tactics by using the 4Ps Marketing Mix template, examining two challenges and opportunities of the company by SWOT analysis, and making recommendations of how Amazon can use digital marketing to improve its marketing performance.
Digital Marketing Tactics of Amazon
a) Product:
Amazon’s production policy aims to provide its consumers with wide-ranging products at competitive prices. It focuses on the e-commerce platform as its primary product, which offers customers a vast range of products. It also offers a donation provision called Amazon Prime, with many customer benefits ( Kotler et al., 2020). Marketing strategy in the digital age: Applying Kotler’s strategies to digital marketing.customers, such as free shipping, access to streaming services, and discounts on select products. The country publicizes its products on social media, which helps them take advantage of those who use those sites by sending them to its product pages to help them sell more…
b) Price:
Amazon’s charging strategy is economical and aims to offer the best value to its customers for their money. It offers competitive charges on its products, discounts, and deals regularly (Petruska, 2018). Amazon also offers its Prime subscription service, which accesses streaming services at a fixed monthly fee and free shipping.
c) Place:
In this strategy of place, Amazon focuses on providing its customers with convenient and easy access to its products. For example, the company’s e-commerce platform is available from everywhere in the world, and consumers can hire products using their desktops, laptops, or mobile devices. The company also works in physical stores under the Amazon Go and Amazon Books brands, which offer customers a distinctive shopping experience.
d) Promotion:
Amazon’s promotion strategy focuses on providing its customers by using a variety of traditional marketing strategies, such as print and digital advertising and personalized targeted marketing messages when promoting their products by using customer data, whereby its recommendations engine provides customers with browsing and purchase history recommendations. It also permits sales promotions, product placement, and pay-per-click (PPC) campaigns. Marketing channels, including email marketing, social media marketing, and influencer marketing, are used to reach the target audience on Amazon.
Situation Analysis
The situation analysis of Amazon includes examining the company’s interior and exterior environment, including its strengths, weaknesses, opportunities, and threats. The analysis helps to identify the key factors that influence the company’s enactment and develop guidelines to improve its marketing performance( Ratnasingham, 2006)… Moreover, Amazon has to reconsider its business model of operating, and the fact that the company has not returned a clad profit in the last five years it encourages it to make more improvements.
SWOT Analysis of Amazon
a) Strengths:
Amazon is the world’s leading online retailer whereby it has the the largest e-commerce retailer in the world, with a massive customer base and a broad range of products. Its brand acknowledgment and status strongly increase customer trust and loyalty. This helps to provide a positive customer experience that enhances retention and satisfaction. One of its strengths is that it recalls from customers worldwide, and this recognition has helped it start new markets. The company also uses grander logistics and supply systems; this helps the company actualize better customer fulfillment, resulting in a competitive advantage over Amazon deriving rivals.
b) Weaknesses:
Criticism has been one of the challenges among Amazon employees and poor working conditions in its warehouses and delivery centers. The company’s heavy necessity of its e-commerce platform for revenue generation makes it vulnerable to cyber-attacks and system failures. Amazon’s business model is heavily dependent on their customers and sellers, which can lead to low-quality control issues and increased competition. This is why they offer their customers free shipping, which is very dangerous to lose its margins and hence, optimize costs because of this strategy.
c) Opportunities:
In Amazon, this strategy of opportunities increases the implementation of e-commerce and online shopping presents, expanding its customer base and revenue. The growing approval of home devices and practical supporters allows Amazon to expand its hardware product line( Alshmrani,2021). The expansion of cloud computing services, Web Services (AWS), presents an opportunity for the company to diversify its revenue streams in Amazon.
d) Threats:
One of the threats to Amazon’s success is the growing anxiety over online shopping, which results from theft and hacking, which exposes the consumer’s data. Therefore to avoid this, Amazon has to move quickly to alleviate consumers to ensure that online privacy and security are guaranteed. Due to these pricing strategies, the company has to face complaints from publishers and rivals to retail the industry. Amazon has also faced stiff competition from local online sellers who are more agile and sprightly when compared to them.
Challenges and Opportunities
SWOT analysis identifies several challenges and opportunities for Amazon in the e-commerce and digital marketing space. Here are two challenges and two opportunities:
Challenges:
Stiff competition: Amazon faces intense competition from established players like Walmart and new competitors like Shopify and Instacart. This competition makes Amazon to maintain its market share, offer competitive charges, and revolutionize to meet customers’ demands.
Supervisory challenges: Amazon faces regulatory trials and legal issues in several countries, including the US, the EU, and India. These challenges relate to issues like, data privacy and labor practices and can impact the operations and reputation of Amazon.
Opportunities:
Amalgamation with other digital platforms and services: Amazon can integrate with other digital platforms and services, including social media and mobile apps, to expand its customer’s engagement. This integration can also provide Amazon with valued customer data and intuitions to enhance its marketing strategies.
Improvement of new technology and innovation: Amazon, being a technology leader in the e-commerce and digital marketing space, continues to invest in new technology and innovation, which led to the enhancement of its customer experience, which streamlines its operations and stay ahead of the competition. Amazon, one of the world’s largest online retailers, has successfully implemented a strong digital marketing strategy. However, organizations may face some challenges and issues when adopting a digital business model.
Some challenge faced by the organization in adopting a digital business model is the need for skilled personnel; therefore, digital marketing requires a dedicated skill set and qualified professionals, which can be challenging. In addition to this, the cost of purchasing and recollecting these experts can be high, which can be an important barrier to entry for some businesses.
The need for an important investment in technology and infrastructure is another challenge affecting companies in Amazon. There is digital marketing which requires access to the latest technology and platforms, which are costly to implement and keep. In addition to this, organizations must have vigorous cyber security measures that has to guard their records and their customers’ information.
There is intense competition in the e-commerce industry with Amazon which makes it to compete with other online retailers and marketplaces. For this competition to continue a constantly innovative and improved digital marketing strategy is needed to stay up with the competition. Disaster to do so, losing market share and revenue can occur.
There is a need to adapt to any changing consumer behavior and preferences. As consumers progressively depend on digital services to shop and interact with brands, organizations must be able to notice quickly any change in the market. This can only be achieved through flexibility, agility in their digital marketing strategies, and willingness to research and take all the risks.
The challenge of measuring the effectiveness of digital marketing efforts is also facing companies. Metrics can be used to track the success of a digital marketing campaign. However, determining which metrics are significant and how to measure them accurately is challenging. Also, it isn’t easy to feature specific outcomes of specific marketing efforts, which brings challenges to optimizing marketing strategies over time. In addition to this, digital marketing can be a highly effective way for organizations to engage and reach their customers. However, there are still challenges and issues that need to be solved. Some of the strategies that can lead to succession and overcome these challenges are; investing in the right people, technology, strategies and staying agile and adaptable to the organization.
Recommendations
Based on the situation analysis and SWOT analysis, here are two recommendations on how Amazon can use digital marketing to enhance its marketing performance:
Social Media Marketing: Amazon increases its existence by using social media platforms like Facebook, Instagram, and Twitter to develop and increase appointments to its customers to reach wider traders and promote its goods( De Pelsmacker et al.,2018). Digital marketing strategies, online reviews, and hotel performance. International Journal of Hospitality Management, 72, 47-55.They use social media because it is relatively low-cost, and they can use data analytics to board specific customer segments, promote their goods and services and generate a call.
Mobile Marketing: Mobile marketing helps Amazon to reach wider customers, which is more prevalent. The country uses mobile marketing tactics like SMS marketing, mobile apps, and mobile-friendly websites to reach its customers and increase sales by advertising them.
Conclusion
E-commerce and digital business marketing at Amazon has been facing challenges and opportunities in their company. Amazon can improve its marketing performance and continue growing its market shares by embracing digital marketing tactics like social media and mobile marketing. To improve this, Amazon should address data privacy and security to maintain customer trust and avoid legal consequences such as theft. The e-commerce and digital business marketing landscape is also continually evolving, and companies must persist vigilantly and adjustable to remain competitive. Additionally, Amazon has become a leading player in the e-commerce and digital business marketing landscape by ensuring that its products are sold in the large amount. This can only be achieved if the company produces evitable goods that are accessible to their customers. Apart from this, the company also faces challenges in terms of extreme competition and concerns about customer data privacy and security. To solve this problem, Amazon can influence digital marketing tactics such as social media marketing and mobile marketing to improve its marketing performance.
Amazon has been using social media marketing, allowing the company to reach more customers and promote its products. This can be achieved through the use of data analytics to target complete demographics by creating personalized campaigns that reverberate with their customers. Amazon can also use mobile marketing tactics like SMS marketing, mobile apps, and mobile-friendly websites, which helps the company engage with customers and increase sales. These tactics have helped Amazon reach customers on the go, making it more convenient for them to make hires of their products. Amazon can use digital marketing to advance its marketing presentation and continue to improve its market share. In order to be successful in this, the company should also report concerns about data privacy and security to maintain customer trust and avoid legal costs by implementing digital marketing tactics, which can help the company to be competitive and adapt to the evolving e-commerce and digital business marketing landscape.
References
Kotler, M., Cao, T., Wang, S., & Qiao, C. (2020). Marketing strategy in the digital age: Applying Kotler’s strategies to digital marketing.
Petruska, K. (2018). Amazon Prime Video: Where information is entertainment. In From Networks to Netflix (pp. 355-364).
Ratnasingham, P. (2006). A SWOT analysis for B2C e-commerce: The case of Amazon. com. International Journal of Cases on Electronic Commerce (IJCEC), 2(1), 1-22. Alshmrani, H. M. (2021). An analytical view of amazon’s success in the worldwide. Life Science Journal, 18(6).
Routledge. De Pelsmacker, P., Van Tilburg, S., & Holthof, C. (2018). Digital marketing strategies, online reviews and hotel performance. International Journal of Hospitality Management, 72, 47-55.
Williamson, B., Gulson, K. N., Perrotta, C., & Witzenberger, K. (2022). Amazon and the new global connective architectures of education governance. Harvard Educational Review, 92(2), 231-256.
write