Impact of Social Media Marketing on Business Performance: A Case Study on Amazon

This report investigates the impact of social media marketing on business performance of Amazon. It evaluates the importance of different social media platforms that Amazon can adopt to enhance business performance, determines the challenges that can be faced by Amazon while adopting social media marketing along with strategies to overcome them.

How can social media marketing impact
on business performance
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INTRODUCTION...........................................................................................................................3
Literature Review.............................................................................................................................4
Research Methods............................................................................................................................6
Main Findings..................................................................................................................................8
Conclusions, Evaluations and Recommendations.........................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Background of the project
Social media marketing defines as use of social media as well as social media networks
to promote organisation services and products. In today's business for all social media marketing
is becoming most influential as well as important virtual space through which companies can
gain incredible benefits in terms of reaching millions of consumers worldwide, increasing brand
awareness, significant boost in sales and regular with consumers (Baud and Durand, 2021).
Present report is conducted on Amazon which is conducting its business operation as a
multinational organisation in number of industries. Company was founded in the year 1994 and
offer wide range of high-quality products and services to consumers around the world. Present
research report is conducted on the impact of social media marketing on business performance of
Amazon.
Aim:
“To investigate the impact of social media marketing on business performance”. A case
study on Amazon
Objectives
 To evaluate the importance of different social media platforms that Amazon can adopt to
enhance business performance
 To determine the challenges that can be faced by Amazon while adopting social media
marketing along with strategies to overcome them
Literature Review
Literature review is defined as a comprehensive study of already conducted research which
includes scholarly articles, review of works, survey and other sources. Mentioned below
literature review on the present research objectives is done:
Importance of different social media platforms that Amazon can adopt to enhance business
performance
As per the viewpoint of Dahl, (2021) social media platform is essential for all the
organisations whether it is small, local or big national company. Social media platforms benefits
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companies to connect with consumers and enhance brand awareness which significantly assist in
enhancing overall sales. More than 3 billion people around the globe are using social media
every month. This engagement is keeping on increasing which enhance its importance for
business organisation to reach consumers on instant basis. Social media offers a potential
opportunity to business organisations, as with the help of this company can develop strong
consumer base and can further reach more level of audience while taking use of different social
media platforms (Vollero, Sardanelli and Siano, 2021). There are different types of social media
platforms such as LinkedIn, Facebook, YouTube, Twitter, Instagram which is widely being used
by individuals around the world. These platforms provides an opportunity to company through
which they can promote their brand with the help of images, articles survey, videos etc in order
to engage consumers. Social media platform is also important for organisations through which
they can increase consumer engagement with the help of different techniques such as Facebook
live video streaming session etc. Social media platforms provide affordable marketing and
advertisement opportunity through which organisation can significantly grow their audience and
can fulfil organisational objectives in effective manner (8 Best Social Media Platforms for
Business: Your Ultimate Guide. 2021). Along with this with the help of social media platforms
like Facebook and Twitter organisation can solve issue of consumers and can create a system of
tracking consumer comments, complaints and questions on social media as quickly as possible in
order to resolve consumers concerns in a positive and helpful manner. Thus, from the above
analysis it has been identified that social media is playing a crucial element for business
marketing through which companies can conduct cost effective marketing while engaging with
consumers on continuous manner. It will significantly help in increasing conversion rate through
which organisation can assure higher growth profitability and maximum consumer reach.
Challenges that can be faced by Amazon while adopting social media marketing along with
strategies to overcome them
As per the view point of Elfström and Tam, (2021) in order to adopt social media
platforms in the marketing process organisation can face number of challenges. These challenges
are required to be overcome in order to improve marketing effectiveness of company. Challenges
that can be faced by Amazon in terms of adopting various social media platforms is mentioned
below:
Developing a social media strategy:
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In today's business world social media is growing as a powerful tool, as number of
organisations in business environment undertake use of different social media strategies which is
increasing competition (Yadav and Sabhavat, 2021). In this the major challenge that Amazon can
face is developing an effective social media strategy in order to increase competitiveness against
other rivals. This challenge can be overcome with the help of strategy like creating a list of social
media objective as well as goals and further implement them with the help of aligning marketing
strategy with business goals. Along with this with the help of matrix Amazon can monitor the
social media presence.
Tracking results
It is the other challenge that Amazon can face difficulties in terms of tracking results. It
has been evaluated that social media marketing is a long game which involve effective
investments of organisation in consumer relationship. This can be overcome with the help of
taking advantage of strategy like building relationship with humans on social media for long-
term success. It is important for Amazon to transparently introduce themselves (Jabr, 2021).
Along with this, Amazon is can undertake use of tracking metrics and tools in order to regularly
track social media results. This will assist company to further implement strategies to enhance
consumer engagement on social media platforms in time effective manner.
Answering all consumer’s questions:
The major challenge that an organisation can face by implementation of social media
marketing is answering all of their consumer questions. Social media is basically a platform
which facilitate two-way communication channel. But for large scale organisation like Amazon,
it is difficult to answer all the consumer question (Moriuchi, 2021). However, negligence of this
may affect company social media presence and can negatively impact upon consumers. This
challenge can be overcome by Amazon with the help of taking advantage of social media
management tool like sprout social. With the help of this Amazon can ensure that message can
never go unnoticed through which they can provide crossed end support to consumers in order to
enhance their satisfaction level.
According to the above literature review it has been identified that to overcome the
challenges of implementing social media platforms Amazon is required to emphasize upon all
the above-mentioned strategies, as this will help them to satisfy customers in a well-define and
effective manner and enhance overall social media presence.
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Research Methods
Research method is basically termed as a systematic plan in order to evaluate research
objectives. Quantitative and qualitative are mainly two forms of research method which help
investigator to acquire efficient data and information to conduct research. In terms with
quantitative method researcher can get data as well as information in numerical form, in order to
monitor behaviour of respondents (Kongar and Adebayo, 2021). While qualitative method
allows researcher to evaluate data in relation of theoretical information analysis. To fulfil present
research objectives investigator undertaken quantitative research method in which 20
respondents out of the whole population (workers) of Amazon is selected. These respondents are
employees of company as they possess efficient information of the selected research topic and
these respondents can provide adequate answer to the questionnaire that helps in conducting
research in more effective manner.
Questionnaire
Q1) Did you agree, that social media marketing is important for
business growth and performance in modern business world?
Frequency
a) Agreed 12
b) Disagreed 6
c) Neutral 2
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Q2) What are the key essential reasons that made use of social
media marketing important for Amazon?
Frequency
a) Cost efficient marketing 5
b) Wider base of consumers 4
c) Increase in revenue and sales 4
d) Increase in brand awareness 4
e) Flexible and accessible 3
Q3) According to you, what is the most effective social media
platform that can be use of Amazon?
Frequency
a) Facebook 7
b) Instagram 4
c) Twitter 3
d) YouTube 4
e) All the above 2
Q4) What are the possible challenges that Amazon case face while
adopting social media marketing strategies?
Frequency
a) Tracking results 16
b) Answering all consumer’s questions 2
c) All the above 2
Q5) What is the most effective strategy through which Amazon can
overcome the challenges and implement social media marketing to
enhance business performance in effective manner?
Frequency
a) social media management tools 7
b) Strong relationship with consumers 7
c) Measuring social media ROI 6
Q6) Any further recommendations for Amazon to implement
various social media marketing platforms to increase overall
performance
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Main Findings
Data interpretation
Theme 1: Online digital platforms play important role for organisation
Q1) Did you agree, that social media marketing is important for
business growth and performance in modern business world?
Frequency
a) Agreed 12
b) Disagreed 6
c) Neutral 2
a) Agreed b) Disagreed c) Neutral
0
2
4
6
8
10
12
12
6
2
Chart Title
Interpretation:
From the above-mentioned graph, it has been stated that 12 out of 20 respondents are
agree with the fact that social media marketing is important for organisation performance and
growth and modern world. While others 6 respondents were disagreed with this fact, as per their
view point traditional methods are more effective comparatively to social media marketing.
While remaining 2 respondents were neutral as they did not have understanding about the social
media marketing concept.
Theme 2: Key essential reasons that made use of social media marketing important for
Amazon
Q2) What are the key essential reasons that made use of social Frequency
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media marketing important for Amazon?
a) Cost efficient marketing 5
b) Wider base of consumers 4
c) Increase in revenue and sales 4
d) Increase in brand awareness 4
e) Flexible and accessible 3
a) Cost efficient
marketing b) Wider base of
consumers c) Increase in
revenue and
sales
d) Increase in
brand awareness e) Flexible and
accessible
0
1
2
3
4
5
6
5
4 4 4
3
Chart Title
Interpretation:
From the above graph it has been identified that 5 out of 20 respondents said that social
media marketing is important for Amazon in order to have cost efficient marketing. While
remaining 4 respondents goes wider base of consumers. Along with this other 4 respondents said
it is essential for Amazon to have social media marketing in order to increase overall revenue
and sales. While other 4 respondents said that with the help of social media marketing Amazon
can increase its brand awareness, thus it is the main reason for using this marketing. At last
remaining 3 respondents said that flexible as well as accessible marketing is the main reason of
social media marketing important for Amazon.
Theme 3: Most effective social media platform that can be use of Amazon
Q3) According to you, what is the most effective social media
platform that can be use of Amazon?
Frequency
a) Facebook 7
b) Instagram 4
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c) Twitter 3
d) YouTube 4
e) All the above 2
a) Facebook b) Instagram c) Twitter d) YouTube e) All the above
0
1
2
3
4
5
6
7
8
7
4
3
4
2
Chart Title
Interpretation:
From the above graph it has been identified that 7 out of 20 respondents said that the
most effective social media platform that Amazon can use is Facebook. While remaining 4
respondents goes with Instagram. 3 respondents out of 20 said that twitter is the most efficient
social media platform that Amazon can use for social media marketing. While other 2
respondents go with YouTube. At last, 2 respondents out of 20 said that all the above-mentioned
platforms are effective.
Theme 4: Challenges that Amazon case face while adopting social media marketing
strategies
Q4) What are the possible challenges that Amazon case face while
adopting social media marketing strategies?
Frequency
a) Tracking results 16
b) Answering all consumer’s questions 2
c) All the above 2
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a) Tracking results b) Answering all
consumer’s questions c) All the above
0
2
4
6
8
10
12
14
16
16
2 2
Chart Title
Interpretation:
From the above graph it has been identified that 3 out of 20 respondents said that the
major challenges that Amazon can face in implementing social media marketing techniques
strategies is tracking result, from their view point in order to track social media marketing results
company is required to invest lot of time which create challenges. While other 2 respondents said
that answering all the consumer question is a major challenge, as for a large-scale organisation it
is difficult to provide answers to all the questions of consumers on different social media
platform. At last, 2 respondents said that all the above challenges can be faced by Amazon while
implementing social media marketing strategy.
Theme 5: Strategy through which Amazon can overcome the challenges and implement
social media marketing to enhance business performance in effective manner
Q5) What is the most effective strategy through which Amazon can
overcome the challenges and implement social media marketing to
enhance business performance in effective manner?
Frequency
a) Social media management tools 7
b) Strong relationship with consumers 7
c) Measuring social media ROI 6
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a) social media
management tools b) Strong relationship
with consumers c) Measuring social
media ROI
5.4
5.6
5.8
6
6.2
6.4
6.6
6.8
7
7 7
6
Chart Title
Interpretation:
According to the above-mentioned graph that has been stated that 7 out of 20 respondents
said that most effective strategy that will help Amazon to overcome the challenges to seamlessly
implement social media marketing is taking advantage of social media marketing tool. While
remaining 7 respondents out of 20 said that with the help of maintaining strong relationship with
consumers Amazon can overcome the challenges and can enhance business performance. At last
six respondents out of 20 said that measuring social media is an effective strategy that will allow
Amazon to enhance its social media marketing presence and effectiveness.
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Conclusions, Evaluations and Recommendations
Conclusion
As per the above-mentioned report it has been identified that in modern business world
social media is having tremendous impact upon the performance and productivity of business
organisations. Different type of social media platforms like Twitter, Facebook, Instagram,
YouTube have duly transformed the manner in which company interact with consumers. Social
media have deeper influence upon consumer engagement. With the help of different type of
social media platforms organisation different departments like product department, sales
department, human resource department, marketing department can successfully launch their
campaigns and can enhance attention of consumers towards business offerings. This will
significantly impact on business in terms of higher sales and growth. There are different types of
challenges such as tracking social media ROI, answering all the question of consumers etc.
These can be overcome with the help of effective strategy that allow company to enhance social
media presence.
Evaluation
From the evaluation of above research, it has been identified that social media is having
greater significance on business as it helps company to increase brand awareness, sales and
profitability in an effective manner. Different types of social media platforms like Twitter,
Facebook, Instagram is offering opportunity to business organisation through which they can
develop stronger relationship with consumers. These platforms facilitate company to influence
wider consumer segment. Along with this has been evaluated from this report that with the help
of taking advantage of different types of social media platforms organisation can conduct cost-
effective marketing and can influence consumer attention to increase organisational growth and
profitability in industry.
Recommendation
In today's business world social media marketing is emerging as a significant and most
important way to acquire attention of large base of consumers. Social media platforms allow
company to conduct cost effective marketing and advertisement in order to reach wider base of
consumers. In this it is recommended to Amazon to take advantage of all the social media
marketing platforms such as Facebook, Twitter, Instagram, LinkedIn, YouTube as these
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platforms are widely used social media platforms by individuals around the world. Along with
this Amazon is recommended to measure social media ROI on regular basis and under take
advantage of various tools to answer all the consumer question. This will help company to
develop stronger relationship with audience through which Amazon can allow consumers to stick
around for a longer period of time.
REFERENCES
Books and Journals
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Baud, C. and Durand, C., 2021. Making profits by leading retailers in the digital transition: A
comparative analysis of Carrefour, Amazon and Wal-Mart (1996-2019).
Dahl, S., 2021. Social media marketing: Theories and applications. Sage.
Elfström, O. and Tam, H., 2021. " All eCommerce actors will be slaves under Amazon...":-A
study on how Amazon has affected Swedish eCommerce and their defensive marketing
strategies.
Jabr, W., 2021. Review credibility as a safeguard against fakery: the case of Amazon. European
Journal of Information Systems, pp.1-21.
Kongar, E. and Adebayo, O., 2021. Impact of Social Media Marketing on Business Performance:
A Hybrid Performance Measurement Approach Using Data Analytics and Machine
Learning. IEEE Engineering Management Review, 49(1), pp.133-147.
Moriuchi, E., 2021. Social Media as Communication Channels. In Cross-Cultural Social Media
Marketing: Bridging Across Cultural Differences. Emerald Publishing Limited.
Vollero, A., Sardanelli, D. and Siano, A., 2021. Exploring the role of the Amazon effect on
customer expectations: An analysis of user‐generated content in consumer electronics
retailing. Journal of Consumer Behaviour.
Yadav, R.A. and Sabhavat, S., 2021. SOCIAL MEDIA MARKETING AND CUSTOMER
ENGAGEMENT. PalArch's Journal of Archaeology of Egypt/Egyptology, 18(4),
pp.6971-6984.
Online
8 Best Social Media Platforms for Business: Your Ultimate Guide. 2021. [Online]. Available
throughhttps://optinmonster.com/best-social-media-platforms-for-business/
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