Digital Marketing Report: Amazon's Strategies and Analysis

This report provides a comprehensive analysis of digital marketing, specifically focusing on the strategies employed by Amazon. It begins with an introduction to digital marketing, highlighting its significance in today's business environment and its impact on companies like Amazon. The report then delves into the opportunities and challenges presented by the digital landscape, followed by an examination of key digital tools, platforms, and channels, including a comparison between online and offline marketing approaches. A significant portion of the report is dedicated to Amazon's digital marketing plan, outlining its vision, mission, marketing objectives, and situational analysis. The report also discusses how to organize digital marketing activities and build multi-channel capabilities. Finally, it explores the ways of monitoring and measuring digital marketing effectiveness. The report concludes with a summary of key findings and insights into Amazon's digital marketing strategies.

Digital Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Understanding of the opportunities, challenges and impact of the digital environment.............1
TASK 2............................................................................................................................................4
Key digital tools, platforms and channels, comparing and contrasting bricks and mortar and
other physical channels...............................................................................................................4
TASK 3............................................................................................................................................5
Organise digital marketing activities and build multi-channel capabilities................................5
TASK 4 ...........................................................................................................................................7
Ways of monitoring and measuring digital marketing...............................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In today's scenario of industry, the aspect of digital marketing is highly familiarised in
majority of the organisation. This is because, it enable them to expand their market share or size
as well as help firm to improve its overall productivity ratio among competitors in an improved
and innovative manner. The concept of digital marketing is refer to those marketing technique in
which entire business function is handled and governed with the help of digital technologies,
internet, online sources (Armstrong and et.al., 2014). However, with the usage of such
technologies, it drive establishment to reach wider range of population across the globe and also
benefit them to enhance its potentiality in gaining competitive advantage in an amended mode.
In regard of this report, Amazon has been considered which is one of the American leading and
reputed technology company in e- commerce industry. It is founded in the year of 1994 and deals
in different service like Amazon, echo, Amazon Kindle, Amazon Prime, Amazon Appstore, and
many more. This study encompasses identification of various opportunities, challenges and
influence of digital environment. Moreover, comparing and contrasting of two organisations
digital platforms, tools. Finally, development of digital marketing plan as well as examining the
methods for monitoring and measuring digital marketing activities for achieving the objective in
an efficacious manner.
TASK 1
Understanding of the opportunities, challenges and impact of the digital environment
Overview of digital environment
The marketing activity which is processed and handled by digital techniques, advanced
tools or automation and internet is termed as digital marketing. In recent years, the concept of
globalisation and digitalisation, it empowered majority of the organisation to utilise and imply
digital marketing within its business function (Baker and Hart, eds., 2016). This is because, it
help establishment to explore their customer base and also to enhance overall productivity ratio.
In addition to this, with the application of digital marketing, it assist Amazon to grab enormous
opportunity in order to obtain profit maximisation in an amended way. In addition to this, the
concept of marketing is classified into two types i.e. online and offline through which company
expand their sales performance and also can enlarge customer base in an efficacious manner. In
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perspective of offline marketing, it is concern with the process of generating brand awareness,
reaching target audience and to increase sales volume in prescribed time duration. Moreover,
there is no involvement of internet in offline marketing. Some of the commonly used offline
marketing are television, radio, newspaper, banners, brochure, posters. On the other hand, online
marketing is known as internet or digital marketing where entire promotional activity carry out
with the usage of different internet tools or platforms. Some of the methods which online
marketing includes like website/blog, social media, email marketing, search engine marketing,
video blogging, online classifieds and so on. However, Amazon make use of both the marketing
strategies i.e. online and offline which lead them to gain cutting edge competitive advantage.
In today's scenario digital marketing is a favourite buzzword among people in last couple
of years. There are various benefits of e- commerce markets and people enjoy it. In context of
Amazon there are various advantages which mentioned below:
 Reach globally at low cost - It has the potential to reach the number of people globally
at a very minimum cost which is the biggest financial burden on many businesses.
Amazon is the best example of online trading where millions of customers attracts
(Boone and Kurtz, 2013).
 Improves brand image – a platform where many organisation build their brand
reputation in a small period of time. In context of Amazon, which is a digital platform
for many branded companies to trade at a minimum cost and increase goodwill in front of
customers.
 Saves time – the main benefit of digital marketing is that is saves the customers time
while shopping and offers a variety of things at one place. Amazon is the best in digital
marketing where consumers purchase goods at a one click which saves more time of
them.
Opportunities of digital marketing
For surviving within industry for longer time duration, highly satisfied and motivated
customer are regraded as important element as it aid establishment to accomplish its sales target
without any hindrances (Chaffey and Ellis, 2019). However, in relation to Amazon, proper
understanding of marketing competition or trend as well as recognition of customer insights help
organisation to improve its overall performance in an improved manner. Moreover, the concept
of consumer insight is link with a process of analysing and interpreting the customer taste or
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preference and their trends with an aim to make best decision for rendering increasing degree of
satisfaction and retaining them for long term basis. Hence, for processing customer insight in an
effective manner, the role of digital marketing plays a vital role because it aid Amazon to explore
its sales target and can reach large number of population in an innovative style. Therefore, it can
be ensure that with the collaboration of customer insight and digital marketing provide enormous
growth opportunity to Amazon in terms of enlarging the brand reputation among rivalries. Some
of the opportunities that company can acquire are as follows:
Market competition: The major possibility which Amazon can acquire with the usage of
online marketing is that it help them to be aware about all industrial threat and also empower
them to take corrective course of action in order to enrich proficiency ratio (Chaffey and Smith,
2017). This is because, day by day internet users has been rapidly growing through Amazon can
understand and interpret the customer insight in an amended way.
Enlarge customer base: With the implication of digital marketing, Amazon can easily
reach its targeted audience and also help them to cover wider range of area. Moreover, it also
motive them to adapt different promotional tool to advertise their product or service like social
media platforms, Google Ads, SEO, newspaper, website, blogging and so on. Due to which,
Amazon can attract the attention of population towards its brand also encourage them to be loyal
with company's product or service.
Challenges and impact of digital marketing
As per the discussed above, it has been determined that digital marketing impose several
benefits over Amazon in aspect of exploring sales volume, customer loyalty, productivity ratio,
technological improvement, brand image and etc. On the contrary, organisation are facing
various sort of challenges with the application of digital marketing that directly impact over
enterprise potentiality to maintain its sales growth (Charlesworth, 2014). Some of the challenges
that Amazon can undergoes with the management of digital marketing in its business function
are as follows:
Product design: IN context of any product, customers firstly looks at product design and
its attributes that influence their buying decision for obtaining satisfaction. Furthermore, if
Amazon fails to adhere to consumer ethics and moral values then it may create negative response
among targeted audience towards brand also there is a possibility of loosing consumer loyalty
with company.
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Market trends: In the era of competitive and globalised world, it is difficult for
establishment to track and be aware about frequently changing customer demand as well as
industrial trend. However, proper evaluation and analysis of marketplace challenges lead
Amazon to cope up with all sort of current and emerging market trend in an innovative or
productive style.
However, it can signified that proper management and allocation of digital marketing
strategies or platforms help Amazon to gain competitive advantage and also to enrich profit
maximisation in an expeditious manner (de Vicuña Ancín, 2018).
TASK 2
Key digital tools, platforms and channels, comparing and contrasting bricks and mortar and other
physical channels.
In an organisation, adoption of various digital tool or channel empower them to expand
its proficiency ratio and also can improve overall sales performance in an amended mode within
prescribed time duration. However, with the increase in customer demand and competition level
several companies face difficulty in managing managerial or operational activities through
traditional approaches. However, by the introduction of digital marketing inside industry, it
benefit establishment to explore its productivity ratio in an amended way. In relation to Amazon,
some of the digital tool or platforms which they apply within its marketing activities are as
follows:
Social media marketing: This technique is one of the most familiarised and highly
preferring strategies by majority of the organisation. This is because, present day generation are
increasing attached or attracted towards different social media sites such as Facebook, Instagram
Twitter, YouTube and so on. Due to this, it motive Amazon to make use of this marketing
tactics to enlarge its profitability and productivity ratio (Dodson, 2016). Moreover, it also lead
them to cover large number of population across the globe in an efficacious way.
E-mail marketing: Under this digital marketing tool, it is relate with those process in
which establishment communicate or interact with their selected consumers via mail. However,
in the context of Amazon, e-mail marketing tactics also benefit them to connect with preferred
population in an easier manner and also can generate awareness regarding market trends and
promotional offers in marketplace.
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Search Engine optimization: This is the best digital marketing practice in which
population can gather information regarding product or service price, feature, attribute, function.
In context of Amazon, SEO enable them to capture the interest of large number of population
and also can improve overall performance in an amended mode among competitors.
Role of digital marketing communications in relation to the marketing mix and consumer
life stages
With the implication of digital marketing, it assist Amazon to manage its marketing mix
i.e. product, price, place, promotion. However, through online marketing tactics, company can
examine customer demand or need and also can deliver best quality of product for obtaining
increased level of consumer satisfaction (Frick, 2013). Moreover, it also drive Amazon to place
its brand in an appropriate position through which targeted audience can easily consume the
product and feel comfortable towards the brand. In addition to this, digital marketing help
Amazon to put affordable pricing strategy that increase its customer base and profitability rate.
Henceforth, it can assure that in this current scenario of industry, online marketing is prevailing
over offline as it is saves, time, cost, energy and expand the market division in a productive style.
In addition to this, digital marketing enable Amazon to handle its customer base and help them to
explore the market share in an improved manner.
TASK 3
Organise digital marketing activities and build multi-channel capabilities
The concept of digital marketing plan is refer to those detailed or systematic plan that
help an organisation to accomplish its objective or goal in an trenchant and expeditious manner.
In order to enlarge the profit margin ratio, Amazon make an effort to develop a digital marketing
plan which is explained beneath:
Vision: The primal vision of Amazon is to become the leading player in e-commerce
industry in terms of delivering high customer satisfaction and quality product or service
(Fulgoni, 2014).
Mission: The main mission of Amazon is to enhance the customer base by offering
quality product or service at lower price.
Marketing objective: The foremost business objective of Amazon is to enhance the sales
performance by 25% in the upcoming 6 months of time period.
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Situational analysis: This component is link with the identification and understanding
the exact marketplace position in order to take corrective course of action for achieving the pre
determined goal or objective in a desired time limit.
Strength : Amazon is recognised as a leading and reputed player within e-Commerce
industry. The main strength of Amazon is that they produce high quality of product which help
them to capture the interest of wider range of population towards the brand (Carlson and Lee,
2015).
Weakness: With the intense degree of growth in delivery network and price wars it
impact negatively over Amazon as it shrink its margin rate that made them to face a loss of $359
crs in the year 2013-14. Due to which, it reduce its productivity ratio and also impose negative
influence over Amazon brand image.
Opportunity: With the increase in competition level, Amazon can make use of different
expansion strategies like acquisitions or opening physical stores and so on. Due to such
initiation, it enable Amazon to enrich its capability to gain aggressive and competent position
among rivalries in an innovative style without any hindrances.
Threat: The industry where Amazon operate its business operational activity is highly
competitive and challenging that effect organisation's overall profitability ratio. Some of its
competitors are snap deal, Flip-kart, Walmart and etc. However, by the optimal utilisation of
available resources it lead them to obtain profit maximisation in an amended manner.
Marketing strategy: Under this element, Amazon implies social media platforms to
promote its brand or service in a productive style. Some of the social media tools which
company adopts such as Facebook, Instagram, YouTube, Twitter that enlarge market share in an
prompt way (Järvinen and et.al., 2012).
Social media marketing: This is an advanced techniques which assist establishment to
explore its customer base and also to improve its potentiality to cutting edge competitive
advantage in an improved mode.
Target market: Under this, Amazon target income base customer be now a days
majority of population are active on online platforms in their various perceptive like entrainment,
professional and so on.
Online and offline merge: Such kind of omni channel i.e. merging of online and offline
benefits establishment to improve its sales volume as it help them to track consumer demand or
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need as well as motivate them to produce suitable product to survive inside marketplace for
longer time duration. Moreover, it also benefit Amazon to gain positive response from targeted
audience in an improved mode.
Alteration to omni channel marketing: However, by transforming the marketing
activity to omni channel, it aid organisation to acquire accurate experience or views of customer
towards brand (Kingsnorth, 2019). Along within this, it also drive Amazon to take corrective
course of action for fulfilling the dynamic requirements or demands of customer in an innovative
or creative style.
However, with the preparation of digital marketing plan it help Amazon to analyse or
identify its competitors ability as well as encourage them to implement best marketing strategies
with an intent to obtain best position in competent industry.
TASK 4
Ways of monitoring and measuring digital marketing
As the degree of opposition among companies has been rapidly increasing, it impose
huge difficulty over organisation in regard of attaining sustainable growth and development.
However, there is a need for monitoring and measuring the effectiveness of digital marketing
because it aid company to reach its sales target and can improve brand value among competitors.
Some of the methods which Amazon imply within its functional unit to examine the performance
of its digital marketing tactics are discussed below:
KPI ( Key Performance indicator): This component is one of the most familiarised
technique in an organisation for the use of measuring and evaluating the growth of company.
However, the KPI is concern with those quantifiable measuring technique which inform
organisation its performance in the area of sales, profits, customer satisfaction, return on
investment, human resource management, cost control. In relation to Amazon, KPI enable them
to gather accurate data from the right audience which assist its managers to make best strategic
decision in order to place the brand in an aggressive position (Kotler and et.al., 2017).
Measurable metrics: This method is link with those tactics which is utilised by company
to track and asses the current status or state of a business process. Moreover, the key audiences
that measurable metrics involves are investors, customers, employees. Hence, in regard of
Amazon, this metrics drive company to monitor its sales performance and also to analyse the
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results which they have acquired from online and offline marketing strategies. Additionally, it
also aid Amazon to obtain data regrading return on marketing investment and ascertain the
growth in customer ratio. However, with the help of this information, Amazon can anticipate its
competitors potentiality and can acquire competent position among rivalries in an effective
mode.
Analytics platforms: It is one of the effective solution for big corporate companies which
is mainly designed to address the aspects like consumer demand, industry competition,
competitors capability and sales revenue. Some of the analytics platforms are Microsoft, Qlik,
Tableau, SAS, SAP and many more that motive enterprise to streamline its data and also can
interpret the same in a better way. In context of Amazon, different analytics platform assist them
to collect accurate or reliable data from targeted respondents as well as lead them to achieve their
target sales in a stipulated time limit (Martínez, 2014).
Henceforth, from the above explained different measuring method, it has been stated that
with the help different measuring and monitoring techniques of digital marketing, Amazon can
grab various opportunity that is available within market and also can enhance the market share or
size in an improved mode.
CONCLUSION
This has been concluded from the above discussed report that to attain sustainable growth
and development in current marketplace competition, the adaption of digital marketing plays a
significant role. This is because, it assist establishment to cope up with all sort of challenges and
dynamic trends of customer in an innovative style that benefit company in exploring its
proficiency ratio. Moreover, by the proper analysis of industry, it enable organisation to
understand various opportunities and challenges for improving the overall performance in a
stipulated time duration. Furthermore, development of marketing plan help company to place its
brand in a better position and also application of appropriate methods aid firm to measure or
evaluate the effectiveness of digital marketing.
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REFERENCES
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integrating online marketing. Taylor & Francis.
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and measurable online campaigns. John Wiley & Sons.
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marketing. Routledge.
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