Manage Marketing | Wednesday, April 12, 2023
Amazon is the world's largest online retailer, with numerous customers. Amazon uses various digital marketing strategies to gain popularity, including its YouTube channel, Facebook page, and Instagram account.
FREMONT, CA: Based on sales and market value, Amazon is the largest online retailer in the world. Globally, this online business has changed the way people do business. Jeff Bezos established the company on July 05, 1994, in Washington, USA, and served as its CEO until July 2021. In July 2021, Andy Jassy became Amazon's President and CEO.
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Amazon gained success very quickly. Initially, it was a simple online bookstore, but it developed into so much more. In 1997, the company became public and is now listed on the NASDAQ. Without taking help from the press, the company sold books in 45 countries barely less than two months. Presently Amazon is functioning in more than 200 countries, and it sells almost everything on its website. Some of its subsidiaries are Audible, Twitch, IMDb, and Amazon Web Services.
Amazon's Marketing Strategy is being studied as a case study by the top MBA colleges, and as a result of it, the company achieved a valuation of 1.7 trillion dollars in 2021. Thus this article discusses Amazon's marketing strategy and how it helps the company stand out from its competitors.
The 4Ps of Amazon's Marketing Strategy include:
According to Amazon, a company's "marketing mix" is comprised of the 4Ps:
The product
Price
The location
Promotion
And the function of each factor is explained in detail below:
The Product: Earlier, Amazon used to sell books online, but now it sells millions of products across many categories. Some of the most popular products are shoes, jewelry, clothes, toys, home and kitchen appliances, electronics, books, outdoors, sports, car accessories, and works of art. Despite selling goods from small businesses and shops, Amazon promotes its brand, Amazon Basics.
Price: There are numerous ways in which a company can price its products. Some of the following points to keep in mind are:
Pricing is based on cost plus
Value pricing
Pricing of competitors
Discrimination in pricing
Often, competitive pricing, which is a pricing strategy, is being used by Amazon, in which it bases its prices on those of its competitors. Customers have a lot of options, and costs are kept low.
Prices are also set by Amazon using the following methods:
Discounts and promotions
Pricing based on behavior
Depending on the way Amazon runs its business, it can change its products on a daily basis. Consequently, this is the best feature of Amazon that makes it difficult for other companies to compete with it.
The location:Over the past few years, Amazon's online store has grown throughout the world. Globally, customers can get access to millions of products now. No matter where people live, Amazon can deliver packages in a swift manner. Shipping fast and having fulfillment centers are key factors in the company's success.
Promotion: Amazon understands the importance of communication when it comes to marketing. To reach people who might buy or use its products, it uses a variety of advertising methods. In order to build its brand, Amazon offers a lot of sales and discounts. Among other places, it advertises on websites, newspapers, TV, billboards, and social media. Amazon also has affiliate sites.
Digital Marketing Strategy at Amazon: Through digital marketing, Amazon reaches its customers. Social media is used by everyone today. In order to increase sales, Amazon advertises its products on social media, taking advantage of the users of those sites to drive them to their product pages. In order to reach its audience more effectively, it has partnered with several big and small influencers in the country. Twitter, Instagram, YouTube, Pinterest, and Facebook are all used.
Instagram account of Amazon: Amazon's Instagram marketing plan includes interviews with artists from different backgrounds and key advertising. There are more than 2.8 million followers on Instagram. Instagram and Facebook strategies are very similar, except that company news is not posted on either platform. There are very similar posts from the company on both platforms.
Facebook page for Amazon: Amazon India has 10 million Facebook fans. Facebook is primarily used to share company news and advertising. In order to promote its sales days, it uses strong advertising. Additionally, it publishes posts on a variety of topics to keep up with current events.
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