Comprehensive Report: Amazon's Digital Marketing Strategy in Detail

This report provides a comprehensive analysis of Amazon's digital marketing strategy, detailing various aspects of their approach. It begins with an introduction to digital marketing and its significance for Amazon, followed by an overview of their digital marketing campaign, including customer review strategies, free shipping methods, and customer communication. The report then delves into the stages of their digital marketing campaign, starting with a situational analysis that includes SWOT and PESTEL analyses to understand the company's internal and external factors, as well as an examination of their objectives. The report further explores linking digital business with digital marketing strategies, formulating objectives, and outlining the marketing plan stages, including promotion, budgeting, and campaign measurement. The study emphasizes Amazon's customer-centric approach, including the importance of understanding customer needs, maximizing data, providing excellent customer service, and fostering innovation. The report concludes by highlighting the key elements of Amazon's digital marketing plan and its impact on the company's success.

DIGITAL MARKETING STRATEGY

Table of Contents
DIGITAL MARKETING STRATEGY..........................................................................................1
INTRODUCTION...........................................................................................................................3
DIGITAL MARKETING CAMPAIGN..........................................................................................3
STAGES OF THE DIGITAL MARKETING CAMPAIGN.......................................................3
STEP 1: SITUATIONAL ANALYSIS...........................................................................................4
Objectives of Amazon.................................................................................................................5
STEP 2: LINK DIGITAL BUSINESS WITH DIGITAL MARKETING STRATEGY.................6
STEP 3: FORMULATE OBJECTIVES..........................................................................................6
STEP 4: MARKETING PLAN STAGES.......................................................................................7
STEP 5: BUDGETING....................................................................................................................8
STEP 6: MEASURE THE CAMPAIGN.........................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Digital Marketing Plan is a document which is used to share all the details of planning or
business goals. Through this all the goals or objectives of the business can be achieved. The
digital marketing plan is important because it acts as a base to take the right decisions to make
the online marketing company successful. Digital Marketing is the key element for Amazon
company’s success. The marketing strategy or plan of Amazon Company is so good that it was
ranked as one of the top 10 companies by Forbes (Chaffey and Ellis-Chadwick, 2019). The
company uses higher runner strategy for its products, that is, it will use data to know which
product is in highest demand and increases the price and advertises product by using an
algorithm and captures more sales. The company even used ‘communication with customer’ plan
that will notify customer about the product’s delivery date, shipment and conformation resulting
in building a bond with customer Amazon, the multinational electronic commerce company of
America situated at Seattle, Washington. It was founded by Jeff Bezos in July 5, 1994.
DIGITAL MARKETING CAMPAIGN
Digital marketing is related to creating sensation about the establishment of the products through
all the social media platforms, where there comes a deep evolution about the certainties that
adhere the responsibilities of depicting the product and the strategy that is required by the
organisation. For an instance, people will only understand the depth of an idea by the depiction
of the policy (Kannan, 2017). The digital marketing strategy of Amazon is as follows:
Customer review: The major digital marketing strategy of the amazon is in regards with the
customers review. The company provides access to the customers where the product review is
collected and therefore the reviews are made available to the users.
Free shipping method: In order to focus upon increasing the customer purchase limit, the
company has introduced free shipping which is one of the digital marketing preview.
Communication with the customer: The e-commerce has initiated a method to communicate
directly with the customers and get to know the customer problems and the feedback.
Digital marketing campaigns: The digital marketing campaigns which will serve to be the
promotional aspects of the company. The amazon company uses the advertisements techniques
that will circulate over websites and social media.
The following digital marketing plan is a six stage one and it comprises of the following criteria.

STEP 1: SITUATIONAL ANALYSIS
The Situational Analysis will give information about the customers and competitors which will
be helpful in taking further steps to expand the business. The company reported that there is
33.3% increase in world-wide revenue growth, this happened because the company has analysed
that the customers’ needs more unlimited options, good quality of products, pricing and delivery.
For all these aspects the company launched a plan called as Amazon Prime Community. In this
community the customers will have accessibility to a lot of facilities. The faster shipping is one
reason why people love Amazon Prime and are even ready to take the membership. Because of
the discounts the prime is providing on almost everything, it is drawing the customer to buy the
products. The prime program was not confined to only the online marketing but can be in the
Whole Foods Supermarket Chain. The prime scheme is not only meant for shopping but can also
be used for entertainment purpose. This entire scheme helped the customers in many ways and
also for the company to understand customers
Businesses will analyse its internal and external factors through situational analysis.
SWOT ANALYSIS
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The decision making part
of a business while choosing a path uses this SWOT Analysis. This analysis will organize the
SWOT list and presents it in a two-by-two grid (decision support technique).
In the similar manner Amazon Company uses this SWOT analysis to become the leading player
in the industry (retail industry).
Strengths: Low- Cost System and Large number of Purchases are the strengths of the company.
Weaknesses: As the Amazon is an e-commerce company it is difficult to setup Offline or
Physical Stores. The company must solely depend on the Distributors which is quite a bane.
Opportunities: As the company is rising day-by-day, slowly it can release the products as
Amazon Branded Products
Threats: Imitation is a threat for the company because the well-established industrial brand will
be imitated by the private retailers which result in Fake Products. Slowly the customers loses
their hope on the company.
PESTEL ANALYSIS
PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal
condition. PESTEL is a fact finding activity that is, it will analyze the external factors that will

show an impact on the organization. The results from this analysis will allow to know about the
weaknesses and the threats in SWOT analysis. For Amazon Company, in case of
Political: Trade and Tax laws are generally not considered as regulation for the company but the
retailers must pay a high cooperate tax to the government.
Technological: As the company is not an offline store based one there is Rate of Increase in
Cybercrime. It has become a threat to the company mainly during the transaction process.
Social: The Company has actually introduced fast food chain process because of this there is a
change in Health Conditions and Food Habits leading to obesity in adults and in children also.
Economic: If the economic condition of the market is good then it will result in better sales. For
instance, the increasing disposable incomes in the developing markets will help the company to
boost its financial performance.
Environmental: Apart from the business the company is doing in order to obtain profits, it is
doing something good to the environment by raising awareness and rising the interest among the
customers about environment.
Legal: The change of policy and regulations is showing impact on the company both in a positive
and negative way. If the laws are not updated it is causing a negative impact and at the same time
it is also giving new commercial opportunities for the company.
Market and competitors analysis: Being multinational brand there is a much greater scope for the
competitive analysis of Amazon. the main competitors for Amazon include Flipkart and other
retailing services that deliver products online. Amazon focus is on online retailing it operates on
different kinds of physical stores especially in USA. Amazon being one of the largest online
retailer is with 40% are Amazon Prime users and the other E-Commerce retailer with 30.1%
market share as of 2019.
Objectives of Amazon
Optimized Amazon SEO: This optimization will help the customers to find the relevant products
when they search. For this the Amazon used Search Engine so that the products in demand well
in be top recommendation
Affiliate Marketing or Associate Program: Through this program the owner of a particular
website can advertise the products from amazon. This will result in some commission to the
owner when they monetize the traffic.

Amazon Advertising: It is an advertising solution to the amazon vendors. This advertising
program of Amazon will put vendors’ products in front of the customers when customers are
unable to find it on their own.
Third Party Advertising: Third party advertising platforms such as Google and Facebook Ads
will allow more new customers to the amazon website and resulting in the more purchases
Customer Review: The Amazon company was able to compel with the other competitors because
of the its customer review program. In this program the customer who has already bought a
product will give or write a review and that will be helpful for the customers to buy that product
STEP 2: LINK DIGITAL BUSINESS WITH DIGITAL MARKETING
STRATEGY
The digital is more often pronounced and more often used one in this modernised world.
Everything is happening digital and for the retailers the most beneficial point of consideration is
associated with the terms of digitalised works and norms (Kingsnorth, 2019). The digital
marketing tools that are accessed by amazon include the Facebook through advertising methods
and the you tube channel that carries the advertisements. Amazon is nothing but the online
shopping that is actually done on the website that is specially allocated for shopping needs which
is the amazon.com that is in charge of making the transactions done world-wide based on the
purchases. When it come to digital marketing strategy which involves paid ads and promotions,
e-mail marketing where lots of the data related to marketing is made available to the user in
order to make people aware of the offers and transactions. The process of linking a digital
business to a digital marketing strategy is something that involves a live link in the marketing
sector that will redirect the user to the main business channel. When the link that is available for
a particular website where the shopping is carried, then that link must be added to the
advertisement that is scrolled digitally over social media which will help the user to directly go
to the portal and purchase the item or keep it in a wish list.
STEP 3: FORMULATE OBJECTIVES
Objectives will allow the company to face the competition as well as invite more opportunities.
The following are the 5 formulation objectives of Amazon;

Know the Customer: Yes, it is important to know about what are the customer wants and needs
but apart from that the most important to know about is what is that thing which is compelling
the customer to go to other websites and shop there. If this secret is known then the company
will be able withstand in the competition. This also help employees to work smarter.
Maximize the Data: In order to make personalized customer experience the employees should
make advantage of every point that is available to them. Maximizing the customer data will help
to have an understanding about the behaviour of the customer. To maximize the data or to
understand the customer behaviour the employee can reach out to other departments of same
company for additional customer’s feedback.
Getting Obsessive with Customer Service: By starting the customer service culture a greater
bond or connection can be made with customer. Through this it will be easier to understand the
customer more through the feedbacks given by them and can even retail the products that are
more favourable to the customer. This will also make customer to believe in the company and
will also have positive opinion towards the company.
Being Innovative: during sometimes certain new ideas will fail but this shouldn’t lead to the path
of failure or disappointment. When ideas fails it will show the wrong step taken while reaching
the goal. For example, the Amazon company came out with a new idea that is ‘Amazon Prime’,
this new innovative idea slowly became boon for the company. When there are situations where
no matter what the customers wants a product within 2 or 3 days, the customer chooses this
option and is even ready to extra.
Creating a Comprehensive CRM Strategy: CRM stands for Customer Relationship Management.
This strategy is used to improve the revenue, reduce costs and increase the customer loyalty. The
main idea that Amazon used in this reducing costs. The strategy of reducing costs brought about
a large profit and ultimately increasing the company’s revenue. Reducing costs is an idea that
widely liked many of the customers and this method is implemented mainly on the high
purchasing products.
STEP 4: MARKETING PLAN STAGES
Promotion: The main strength of Amazon Company lies in its promotion of the products. The
company is capable of promoting any of its products by using the popular channels. The
company used its first marketing service portal for promoting the products.

Amazon DSP: Amazon Demand Side Platform that was launched as competitor to Google
Display Ads. The DSP is a platform that enables the customer who is on another site to buy the
products that are displayed or advertised on the pages. This will bring more customers to the
website and allowing them to purchase the products.
Social Media: Amazon’s Facebook page, Twitter page and Instagram pages are acting as the
main source for the company. The company uses these Medias to promote the products and
influence the customers
Segmentation, targeting and positioning:
The Amazon segmentation involves the activities that are related to determining the specific
groups and the customers for the products and services in order attract customers.
Segmentation: segmentation refers to the process of dividing the set of customers into certain
groups in order to determine their characteristics so that the customers can be provided with the
specific goods of their choice. Amazon segmentation is of the following type multi-segment
Positioning. Amazon produces and offers a wide range of products and services. being the
biggest retailer giant covering almost 120 million products it it segments the customers based on
their needs.
Positioning: Positioning is of the form of adaptive where the retailer monitors the different
changes that occur externally in the Marketplace and based on those occurrences the company
addresses the customer demand and their expectations according to which it serves the people
based on their segmentation.
Targeting: The Amazon target more than hundred countries and the density of Urban and rural
population to stop it also focuses upon the age group of 14 and older mainly female and male.
people of all categories are being provided with the goods and the segments like students
employees and professionals are being targeted by the company. Amazon benefits the poor and
the rich based upon their process the filters are applied in the good and then the customer can
purchase them.
Marketing mix:
Product mix: Amazon contains different product of all the brands where their inch and filter
according to their customer demand. based on the customer purchase the products are being
delivered to the customer using the delivery service companies mainly Amazon focuses upon the
E-cart services that is available in all the places.

Place mix: Amazon operates globally on the online services where the customer is allowed to
purchase and select the items online. The Amazon employees are friendly and relaxed and our
present everywhere. The delivery is considered to be one of the feasible measures that is added
as a benefit to the company.
Promotion mix: Amazon uses the television and broadcast channels in order to advise the
products that are present in the card. there are different advertising methods that are being
employed by Amazon one of which is a website and the social media marketing where the ads
are being displayed.
Price mix: the price of Amazon products are considered to be very feasible where the pricing
strategy depends upon the category of customers that purchase the product.
STEP 5: BUDGETING
When it comes to a field where the profits are of major concern, the budgeting to be made
available to meet the needs. Budgeting is the major and the most prioritised aspects of any kind
of organisation in the field of marketing. Digital marketing is made available to all the sectors
that which will help to meet the people that are in remote areas to enhance through the policy.
The best tool in the marketing field is the digital marketing (Goldfarb and Tucker, 2019). The
virtual enhancement of any marketing strategy is essential in order to maintain the better
perception in the field of marketing. Few factors that are to be considered in the field of
budgeting are as follows:
Goal setting: first the company must prepare a plan of all the essentials of the digital marketing.
The company amazon being the largest retailer will contain information related to the products.
In products there will again be sub categories and everything must be planned with regards to
budget.
Past perception: keeping a record of the budget that is allocated in the past actions will somehow
help in analysing the present budget. The past budgeting will probably cover almost all the areas
of the requirements and any loopholes and voids will be altered properly in the coming
budgeting.
Future analysis: after identifying the past budgeting, the immediate step is to create a future
vision that is required to overcome the atrocities of the future. Budgeting is a very important task
that is to be performed and which cannot be simply made with a careless vision.

STEP 6: MEASURE THE CAMPAIGN
Amazon’s White Paper Techniques: When it is the time to motivate the employees of the
company, the leaders will take the responsibility. They will talk about the importance of the
company’s missions and visions so that the employees can work a bit harder and smarter and will
also bring a sense of connection towards the work or project. To make it more reliable when
someone comes up with a new idea they can write it on a white paper
Google OKRs Technique: To focus more on the employee-goal-setting, the company used OKRs
method. Here “O” stands for Objectives that is the goals that an employee want to accomplish
and “KR” stands for Key Results that is explaining how to get there. This OKR works as
following, firstly the company as a whole will be setting up some goals every quarter and then
each team and employee will be setting up their own goals to reach the task
Feedback Software: This feedback software is not for customers but for employees. It is a year-
round feedback method. The employees will be giving their feedback regarding. Through this
feedback the employees will feel that their problems are heard. The Amazon company's
employee performance is such that every initiative that is employed is carried out in a very
soothing and a perfect manner. The delivery partner are said to assist the company with the free
delivery to the remote Areas where the customer satisfaction is prioritised. There is a systematic
culture in the company and every employee is motivated towards the goals that are to be
achieved in the marketing race. The website traffic is considered to be huge with regards to
Amazon because of the strategies that are being employed by the company. Because of the
minimum prices and the cost-effective measures that are employed by the company there is a
heavy traffic over the websites in search of a product. But company uses technology in such a
way that was never a drawback in the server and the system when the customer is purchasing the
product.
CONCLUSION
Digital marketing is an enormous and an immense sector of the marketing world. The branch of
marketing that makes things easier with the virtual business strategies is the one that is adopted
by many people around. There are many industries that are excelling in the marketing world. The

retailing industry is one such industry that has not seen a drawback as of now. The entire report
brings forth the campaign stages that are required in digital marketing. The digital marketing
strategy main component is the marketing campaign which consists of enormous stages and the
six different stages are put forth in the above context. The retailer amazon started as one of the
smallest online book-store and ended up being one of the largest retailers. the marketing strategy
must be such that there will not be a loophole and that is what is depicted in the report. The
sales of any company are the major priority and that is achieved through the digital marketing
strategies.

REFERENCES
Books and journals
Chaffey and Ellis-Chadwick, 2019. Digital marketing. Pearson UK.
Chaffey and Smith, 2017. Digital marketing excellence: planning, optimizing and integrating
online marketing. Taylor & Francis.
Goldfarb and Tucker, 2019. Digital marketing. In Handbook of the Economics of Marketing
(Vol. 1, pp. 259-290). North-Holland.
Kannan, 2017. Digital marketing: A framework, review and research agenda. International
Journal of Research in Marketing .34(1). pp.22-45.
Kingsnorth, 2019. Digital marketing strategy: an integrated approach to online marketing. Kogan
Page Publishers.
Piñeiro-Otero. and Martínez-Rolán, 2016. Understanding digital marketing—basics and actions.
In MBA (pp. 37-74). Springer, Cham.
Todor, 2016. Blending traditional and digital marketing. Bulletin of the Transilvania University
of Brasov. Economic Sciences. Series V. 9(1). p.51.
Online
Digital marketing: [ONLINE] Available through: < https://www.smartinsights.com/digital-
marketing-strategy/online-business-revenue-models/amazon-case-study/>
Digital marketing strategy: [ONLINE] Available through: <
https://www.smartinsights.com/digital-marketing-strategy/>
PESTEL Analysis of amazon: [ONLINE] Available through:
https://freepestelanalysis.com/pestel-analysis-of-amazon/#:~:text=%20PESTEL%20Analysis
%20of%20Amazon%20%201%20Political,technological%20advancements.%20It%20is
%20important%20for...%20More
SWOT analysis of Amazon: [ONLINE] Available through: https://www.marketing91.com/swot-
analysis-of-amazon/#:~:text=%20SWOT%20analysis%20of%20Amazon
%20%E2%80%93%20Brand%20Amazon,industry:%20Low%20entry%20barriers%20affect
%20the...%20More
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