Amazon is the largest online store in the world based on sales and market value. This online business has changed how people all over the world do business. Jeff Bezos started the company on July 05, 1994, in Washington, USA. He was the CEO of the company till July 2021. Andy Jassy took over as the President and CEO of Amazon on July 05 2021.
Amazon’s first success came quickly when it started as an online bookstore and gradually expanded its offerings.
Firstly, in 1997, the company made its initial public offering and is currently listed on the NASDAQ in the United States. In the absence of assistance from the media, the company managed to sell books in 45 countries within a period of fewer than two months. Presently, Amazon operates in over 200 countries and offers a wide range of products on its website. Furthermore, the company has subsidiaries such as Audible, Twitch, IMDb, and Amazon Web Services.
The Amazon Marketing Strategy has become a subject of study in the leading MBA colleges, as it played a crucial role in the company’s attainment of a 1.7 trillion-dollar valuation in 2021. Thus, this discussion revolves around the Amazon Marketing strategy and its ability to distinguish the company from its rivals.
The 4Ps of amazon’s marketing strategy
Amazon examines the company or brand’s “marketing mix,” encompassing the 4Ps.
Product
Initially, Amazon was exclusively focused on online book sales, however, it has evolved to offer a vast selection of diverse products across numerous categories. These categories include shoes, jewelry, clothing, toys, home and kitchen appliances, electronics, books, outdoor equipment, sports gear, car accessories, and artworks. While Amazon sources products from small businesses and stores, it also emphasizes its own brand, Amazon Basics.
Price
There are several ways in which a company can determine the price of its products. Below are some methods to keep in mind:
- Cost-plus pricing
- Value pricing
- Competitor pricing
- Price discrimination
Amazon frequently employs a pricing strategy known as “competitive pricing,” wherein it assesses the prices offered by its competitors and determines its own prices accordingly. This approach aids in cost reduction and provides customers with a wide range of options.
In the process of setting prices, Amazon employs the following methods as well.
- Promotional pricing
- Behavioral pricing
Due to the operational model employed by Amazon, the company is able to modify its offerings on a daily basis, which serves as its greatest advantage by making it challenging for other companies to rival Amazon.
Place
Over the past few years, Amazon’s online store has experienced growth in various regions around the globe, expanding access to millions of products for customers worldwide. Regardless of residing in a distant location, individuals can now promptly receive packages from Amazon, thanks to the company’s efficient shipping and fulfillment hubs, which contribute to its prosperity.
Promotion
Amazon understands the significance of communication in the field of marketing and employs various advertising methods to connect with potential customers who may be interested in purchasing or utilizing its products.
Amazon utilizes various marketing strategies, such as sales, discounts, and advertising on websites, newspapers, TV, billboards, and social media, to enhance its brand presence. Additionally, Amazon collaborates with affiliate sites to further expand its reach.
Amazon’s digital marketing strategy
Amazon has an all-encompassing digital marketing strategy, which enables them to connect with customers through various digital marketing channels. In the present times, social media is utilized by everyone.
Amazon utilizes social media platforms such as Twitter, Instagram, YouTube, Pinterest, and Facebook to promote its products, effectively targeting users of those sites and directing them to their product pages in order to increase sales. Additionally, they have formed partnerships with both prominent and lesser-known influencers in the country to further enhance their reach to the audience.
Amazon on Facebook
Amazon India has a Facebook following of 10 million people. The main purpose of this following is to share updates and advertisements about the company. To promote their Sale Days, they utilize powerful advertising techniques. Additionally, they keep their audience engaged by regularly posting about a variety of topics.
Amazon on Instagram
Amazon’s Instagram marketing plan primarily focuses on conducting interviews with artists from diverse backgrounds and featuring prominent advertising. With over 2.8 million followers on Instagram, the company’s strategies for both Instagram and Facebook are quite similar, except for the exclusion of any updates regarding company news on either platform. Furthermore, the posts shared by Amazon on both platforms showcase a striking resemblance.
Amazon on Twitter
Amazon India has come up with a distinct strategy to attract new customers on Twitter. The approach involves staying connected with their followers by providing diverse content, organizing contests to acquire new customers, and actively participating in and initiating trends. With two million followers on Twitter, Amazon India stands as one of the leaders in its industry. Through their Twitter content, they aim to create an impression that is more akin to personal recommendations rather than mere advertising.
Amazon on YouTube
Amazon’s YouTube ads are great because they quickly capture people’s attention. Amazon ensures that its ads are consistently captivating and valuable by focusing on making the customer feel special.
Amazon on Pinterest
Amazon has a Pinterest following of over a million people, using the platform to promote their products in various themes and attract the attention of individuals.
Amazon’s utilization of digital marketing is unmatched. In order to remain competitive, they should continuously create captivating content and distribute it optimally. Amazon Marketing Strategy is regularly revised to keep up with emerging trends. Competing in the retail sector is intricate, and Amazon’s marketing approach has ensured that the company stays ahead of its rivals.
Amazon’s marketing strategies
Data-driven approach
Amazon dedicated significant resources to conducting customer research in order to gain insights into consumer shopping habits and enhance their audience targeting. By analyzing data, Amazon can provide reports on the purchasing patterns preferred by frequent buyers, such as the timing of their purchases and the amounts they have spent.
Research consumer habits
To emulate Amazon’s marketing strategy, conduct research on consumer habits within your industry.
Researching consumer behavior helps to uncover the reasons why your customers choose to purchase from your business and identifies any barriers that may exist. Additionally, it facilitates learning the most effective time and place to promote your products in order to reach your intended audience.
Here are some suggestions for carrying out consumer research effectively:
- Define Your Purpose
- Look At Case Studies
- Utilize Social Listening
- Leverage Polls And Surveys
- Analyze Your Data
Customer-centric attitude
Amazon has taken on a customer-focused approach in order to boost sales. They provide a customer service site that is user-friendly to assist customers with a range of queries.
Amazon’s mission is to become the most customer-centric, desirable employer, and safest workplace on Earth, as they acknowledge the advantages of catering to their customers.
The personalized recommendations given to each customer are based on their recent browsing history and past purchases, with the aim of increasing the likelihood of them returning to make additional purchases.
Improve customer experience
It is essential to consider customer experience in order to generate revenue. An increase in the likelihood of making future purchases is observed in 89% of consumers who have had a positive customer service experience. Here are some recommendations for enhancing customer experience:
- Understand what your customers want
- Analyze customer pain points
- Streamline communication
- Foster personal connections
- Personalize customer experiences
- Listen to customer feedback
Emphasizing technological growth
Jeffery Bezos’s aspiration to venture into new technological frontiers is well-known. Therefore, it comes as no surprise that this aspiration has been incorporated into the marketing strategy of Amazon. During the initial stages of Amazon’s business when books were the primary product, the company made a bold decision to embark on something novel. This led to the creation of Amazon’s tablet computer, Kindle e-reader, and Kindle Fire.
By gradually increasing their sales of eBooks, Amazon eventually surpassed print books, enabling them to expand the range of products they offer. Their success is attributed to their emphasis on technology’s possibilities and their strategic growth in that area.
Expand into a new niche
You can adopt Amazon’s marketing strategy by exploring new niches within your own business step by step. Similar to Amazon’s attempt to venture into ebooks, you can experiment with delving into specific areas of your business.
Developing niche products for niche audiences can help attract a more exclusive audience. Consider the following tips on how to achieve this:
- Identify Customer Needs
- Check Out Competitors
- Look At Market Gaps
- Prioritize Innovation
- Analyze Trends
Promoting user-generated content
Amazon’s marketing strategy includes giving customers the chance to post reviews, which is considered one of its greatest advantages. The effectiveness of this strategy is evident as 93% of individuals check online reviews prior to buying something.
Reviews on Amazon, which often contain pictures, are a common way for consumers to decide if they want to buy a product.
Highlight your best reviews
By allowing your products to showcase their own qualities, they become more trustworthy. The most effective way to achieve this is by showcasing user-generated content that features the highest levels of acclaim.
When individuals who genuinely love products provide testimonials, it has the potential to sway other prospective customers. This sort of content is perceived as more reliable since consumers are aware that the person is sincerely expressing their thoughts on the products.
Here are some tips to consider when gathering reviews and other user-generated content:
- Check out social media
- Monitor comments under the product listing
- Introduce incentives for positive reviews
- Send consumers surveys
- Create quality products
Utilizing digital channels
Amazon has heavily relied on digital channels for its marketing strategy in order to reach partners and customers. As part of its strategy, Amazon utilizes social media, associates programs, sponsored search, and email campaigns.
By utilizing digital channels, Amazon is able to place their advertisements right before their target audience, as part of their email marketing strategy, promoting recommended items, holiday sales, discounts, new arrivals, and more.
Go where your customers are
By analyzing where their audience is, Amazon is able to determine the appropriate placement of their content. Similarly, you can identify the location of your audience and choose the most effective channels for communication.
These channels may encompass:
- Social Media
- Print Marketing
- Email Marketing
- Referral Websites
- Word-Of-Mouth
- SEO
- Pay-Per-Click (PPC) Marketing
For now, identify the channels that will assist in showcasing your content to your target audience, keeping in mind that you can always revise your strategy by adding or removing channels based on their performance.
Fostering partnerships
Amazon has joined forces with numerous companies to widen the range of products available on their platform. In order to cater to customer needs, the company has collaborated with more than 550 distinct businesses. These collaborations can be referred to as business partnerships.
- Break up the workload
- Bring unique perspectives
- Give more collaborative visibility
- Defend against internal politics
In the early 2000s, Amazon collaborated with Living.com to introduce their furniture items on Amazon.com. Since then, the company has increased the number of partnerships they have to broaden their range of products.
Embrace collaborations
Amazon’s marketing strategy consists of collaborating with other businesses to increase sales and foster connections. In order to obtain similar advantages, you can establish partnerships with other companies. These collaborations should be mutually advantageous, and it is important to openly communicate your company goals to select the appropriate partnership.
