Middlesex University: Digital Marketing Report on Amazon

This report offers a comprehensive evaluation of Amazon's digital marketing strategies. It begins with an introduction to digital marketing and its significance, followed by an analysis of Amazon's external environment using the PESTLE framework. The report then examines Amazon's digital marketing mix, including product, price, place, and promotion strategies. A SWOT analysis is conducted to assess the company's strengths, weaknesses, opportunities, and threats. Furthermore, the report delves into Amazon's social media marketing and SEO efforts. The evaluation section assesses the effectiveness of these strategies. Finally, the report suggests potential improvements and concludes with a summary of the findings. References are provided to support the analysis.

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DIGITAL MARKETING
[Type the document subtitle]
7/5/2019
Student name

DIGITAL MARKETING 1
Contents
Section 1 – Introduction...................................................................................................................2
Section 2 – External environment....................................................................................................3
PESTLE analysis of amazon.......................................................................................................3
Political factors........................................................................................................................3
Economic factors.....................................................................................................................3
Social factors...........................................................................................................................4
Technological factors...............................................................................................................4
Legal factors............................................................................................................................5
Environmental factors..............................................................................................................5
Section 3 – Digital Mix of amazon..................................................................................................5
The digital marketing mix (4P’s).................................................................................................5
Product.....................................................................................................................................5
Price.........................................................................................................................................6
Place.........................................................................................................................................7
Promotion................................................................................................................................7
SWOT analysis............................................................................................................................9
Strengths..................................................................................................................................9
Weaknesses............................................................................................................................10
Opportunities.........................................................................................................................10
Threats...................................................................................................................................10
Section 4 - Evaluation....................................................................................................................11
Social media marketing.............................................................................................................11
SEO............................................................................................................................................12
Section 5 - Improvements..............................................................................................................12
Section 6 – Conclusion..................................................................................................................14
References......................................................................................................................................15

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Section 1 – Introduction
Digital marketing is the implementation of marketing activities by the companies through the
mood of digitalisation that is the use of technology and online mode to sell, promote, and market
the products of the company (Hudson & Roth, 2016). The purpose of the report is to evaluate the
digital marketing strategy after evaluating the external environment of business, for which an
organisational case will be considered. Amazon is one of the largest online retail Company,
which is providing every imaginable consumer goods at one store through online mode. Amazon
has gained first mover advantage in digital marketing by starting with the selling of books online
and now the company has been able to sell most of the things to the consumers globally. For this
purpose, the report will include analysis of external environment through PESTLE analysis and
the digital marketing mix of Amazon will be evaluated while considering its key strength,
weakness and the major opportunities and threats that the company may face while
implementing digital marketing strategies (amazon, 2018).

DIGITAL MARKETING 3
Section 2 – External environment
PESTLE analysis of amazon
A business conducted in an external environment which impacts majorly over the strategic
decisions of the company. The PESTLE analysis tool is helpful in analysing the key factors
across the globe that either will affect in the form of opportunity or could be a threat for Amazon
to conduct business.
Political factors
Amazon is a global business there for political involvement of various nations may influence
adversely or maybe an opportunity for the company. The key political factors may include
political stability of the nation, this reflects how the nation is being politically stable and there is
no fast change in the political system of the company that must be abided by Amazon (Adam &
Kotler, 2014). The online retail market of Amazon is largely dependent on the government
alliance and permission from the government to conduct business using digital mode in the
nation. Therefore, it can be said that the political factors may be a threat to the company and can
also affect the profit margin of the company in a particular nation. The profit margin may be
impacted by the corporate tax of the nation for example corporate tax of Australia is 30% and it
is found to be constant for many years (theglobaleconomy, 2019).
Economic factors
Economic factors are another major element that may influence Amazon business. As already
known the major products that Amazon is selling in the recent scenario is Entertainment related
products for example fire TV stick, prime music, prime video and other entertainment related

DIGITAL MARKETING 4
products. One of the economic elements includes the GDP of the nation, which may be different
for every nation as the company is serving globally. The GDP will depict the purchasing power
of customers in the nation and will influence the entertainment products offered by Amazon. The
demand for the products by the company will largely depend on this factor. Therefore, it can be
said that the economic factors of countries like the USA, France and various developed nations
may be active as an opportunity for Amazon. For example GDP of USA, Australia are found to
be increasing with years which reflect an increase in purchasing power of the potential customers
and become one of the opportunity to offer goods in such nations (theglobaleconomy, 2019).
Social factors
Social factors include the cultural, religious, ethical factors that a country have adopted and must
be considered by the company. The key social factors that may affect Amazon business would be
increasing obesity rates in developing and developed nations like western culture. The reason
being Amazon is providing services that will make products reach to the customer without going
anywhere physically, this may influence more increase in the obesity rate in such nations, which
may have adverse results over the business as well (Craig & Douglas, 2015).
Technological factors
Since Amazon is conducting business through digital mode, technological factors are the most
relevant factors that may affect majorly over the business. This factor may include the
infrastructure of the nation that is the availability of Internet and electronic devices in the nation
that is the necessity to use Amazon and this may be a major factor to become opportunity or
threat for the company. For example in developed nations like Australia, USA the Internet
facilities and other infrastructure are quite developed which may act as an opportunity for
Amazon while conducting business in such nations. On the contrary, some nations that are

DIGITAL MARKETING 5
underdeveloped may not have such good infrastructure and Internet of things available in the
nation that also reflects in technological adoption by the customers in such nations, which can
be, a measured threat to the company (Chari & Feng, 2018).
Legal factors
Legal rules and norms are another factors that may adversely affect Amazon business. The major
legal rules and norms that are related to Amazon business for privacy and security, labour laws,
anti-trust legislation are that the company must abide by. Therefore, it can be said that legal rules
and norms may act as a threat to the company while conducting business in various nations in the
near future (Read, 2013).
Environmental factors
The factories, business and industries have adversely influenced the environment as they are
using and disrupting the environmental factors of Nations. The Amazon in order to work to
words the environmental sustainability has conducted various call corporate social responsibility
is and sustainability practices like the use of non-renewable, resources anti plastic norms and
many more (aboutamazon, 2019).
Section 3 – Digital Mix of amazon
The digital marketing mix (4P’s)
Product
First P’s of the digital marketing mix is a product that the company will market through digital
mode. The major products that the company is dealing with our books, kindle, phones, tablets,
jewellery, clothing, gardening, DVDs and various other Amazon entertainment products that

DIGITAL MARKETING 6
have been considered by the company to market digitally. The product in the digital marketing
mix of Amazon will be the content that the Amazon is being provided to the customer in order to
reach out to the customer and make the information regarding the company and products
available to the customer. In addition to this, the company is using various videos, blogs, content
in order to make the Amazon website and digital marketing reach out to the customer. The
company major product strategy includes the product differentiation strategy that will
acknowledge the customer needs and desires, the company has been working to words increasing
the product line and making an available large number of products to the customers across the
globe (aboutamazon, 2018).
Price
The company has been investing a huge amount into digital marketing as the company is
meeting me using digital mode to reach out to customer instead of the traditional mode. The
pricing strategy that the company has been adopted is cost leadership strategy as the company is
willing to reach out to the customer and making the product available in the least possible cost to
the customer and decreasing the manufacturing and retailing cost that adds up to the products
while reaching out to the final customer. The pricing strategy of the company may include the
discounting that the company is being offered which the company is willing to reach out to
people through digital marketing for example one of the discounting ways that a single digital
marketing of the company is lightning deal of the company. This deal includes the discounted
price for a minimum time of particular time so as to gain the attention of the customers through
digital mode for which the company has been using various digital channels to reach out to the
customer (Tiago, 2014).

DIGITAL MARKETING 7
Place
Placing strategy includes the channels or more of a channel through which the company will
reach out to the customer (Zahay, 2015). As already discussed, the Company has used various
online modes in order to sell its products but for the advertising purpose which is part of
marketing the company has used online as well as the traditional mode in order to reach out to
the customer in various nations. For example in developing nations the company has also used a
traditional mode like newspapers and radio in order to reach out to the customer. Therefore, it
can be said that for the selling purpose the company is using the website and mobile applications
in order to sell its products to the customer however for the promotional purpose the placing
strategy of the company has included both online and off-line mode. Considering the digital
marketing mix it will only include the placing strategy through online or through the use of
electronics (Kim & Edelson, 2015).
Promotion
Promotion is one of the major element of the marketing mix in the digital marketing of Amazon
as the key relevance is to attract maximum customers and retain maximum customers through
online mode. Some of the promotional tools that the company has been using in the digital
marketing mix are
 Social media
It can be said that for targeting youth, businesspersons and most of the people social media
would be the best option as people are spending most of the time at social media and the
company has gained their attention to such platform. Major social media platforms that the
company has been using are Facebook, Instagram, Twitter and YouTube. Through this, the

DIGITAL MARKETING 8
company has been able to interact with the customer and able to understand the customer needs
and desires which is the major objective of the company that is to increase customer satisfaction
(Doole & Lowe, 2008).
 Search engines
The company has used a search engine as the major tool to reach out to the customer, this has
increased the customer loyalty of the customer due to the ease of searching products through a
search engine is on Amazon. The search engine has also able to provide relevant information
regarding the Amazon, products to be offered, reduced by the existing customers that will be
helpful to the company to retain maximum customers (Rialp & Rialp, 2007).
 Video marketing
The company has used video marketing that is the use of attractive videos that will be gaining
the attention of the customers, through various channels like YouTube, social media platforms,
and television.
 Email marketing
In order to maintain customer relationship, the company has use email marketing that is to
interact with the customers through email, which will also influence customisation of the
products and understanding the customer needs by the company (Hu et al., 2016).

DIGITAL MARKETING 9
SWOT analysis
Strengths
Global presence
One of the key strength of Amazon is that the company has a global presence and has been able
to attract customers across the globe through digital marketing strategy of the company
(blog.aboutamazon, 2019).
Customer loyalty
Due to increased global presence, availability of products across the globe, excellent service
strategy of the company, then Amazon has been able to increase the customer satisfaction and
therefore increase the customer retention (statista, 2019). Moreover, the customer loyalty
programs through digital marketing strategy of the company have also increased customer
retention and due to customer loyalty, the company has a gain competitive advantage in the
industry (amazon, 2018).
Lower price strategy
Amazon has been marketing their products at various channels through digitalisation while
attracting the customer through lower pricing strategy that is the discounted prices offered by the
company and the excellence of services provided by the company like one day delivery for prime
customers (aboutamazon., 2018).

DIGITAL MARKETING 10
Weaknesses
Increased competition
Due to the increasing use of technology various other companies have come into competition
while offering the products through digital mode and use of digital marketing mix. For example
eBay, Flipkart and many other similar retail websites that are providing products online.
The decrease in profit margins
The company has been focusing on the cost leadership strategy for which the company provides
customers with minimum prices of the products that has impacted the profit margin for the
company.
Opportunities
Product line expansion
The company can expand its business through product differentiation that is to increase the
investment in various product lines that haven’t touched up by Amazon yet. This may include
service to offer to the customer like food delivery services and other industry that the company
has not entered it (Jaworski, 2018).
Threats
Technical failure
Since the company is largely dependent on the technology and Internet of things, one of the
major threats for the company is the failure of technology in any nation that Amazon is
conducting business. This may affect the sales figure of the company at a greater extent
(Amazon, 2018).

DIGITAL MARKETING 11
Section 4 - Evaluation
Two major digital marketing tool that Amazon have adapted our social media marketing and
Search Engine optimisation.
Social media marketing
Social media marketing is one of the major marketing tools that the company has been using
because most of the people spend the maximum time of the day at social media platforms. This
tool has increase the sale of Amazon through reminding them of the products that we were
looking for that is not only providing the advertisement of the company on social media
marketing but also making them available to purchase the product through social media at the
Amazon page. Moreover, the company has provided the facility to directly reach the Amazon
website through the social media page (Reid, 2015). Through the social media, marketing the
company has been able to reach to the customer for the reminder that we have added the product
to the shopping list that may be on the discounted prices at a particular day and may make that be
more suitable for the customer to purchase that product. Moreover, the company has use video
marketing as already discussed in the previous section that is to advertise and market the
products using Videos, which may include customer feedback and the experience of the existing
customers in order to attract new customers and increase the customer trust among the website.
Therefore it can be said that this digital marketing tool has found to be useful for the company
strategy that is customer orientation and customer centric strategy. The key platforms that the
company has been using To attract and remind the customer regarding the purchase of
Instagram, Facebook (Thomson, 2016).