Amazon is considered an online retailing powerhouse, holding its own when up against platforms such as eBay and Walmart. Amazon has developed a sturdy and reliable marketing strategy to ensure that they get the best results out of the online market.
Amazon, like many other ecommerce powerhouses, relies on both demographic and psychographic segmentation of the markets. They focus directly on the behavior of customers with regards to purchasing: this is not specifically what customers show interest in rather, what the customers did (buying or not buying).
This approach to segmentation (micro-level segmentation) is aimed at individual buyers, giving Amazon the opportunity to turn casual buyers into loyal, big money buyers.
To further explain segmentation in ecommerce: this is when online retailers invent profiles of people who purchase products in a certain manner and target specific products.
In the case of Amazon, they focus on catering to middle and upper-class customers who possess a basic understanding of technology but lack the time and are not fans of physical shopping.
The Amazon team has proved themselves as an online retail giant that allows people to order any goods of their choice and have it delivered from any location not matter how far or remote. The Amazon tracker app also allows customers to keep track on their purchase until it reaches them. In this article, we are going to break down Amazon’s marketing strategy in detail:
They possess a competitive edge
Amazon took care to set themselves apart from other online retail companies by investing in several IT and ecommerce start-up platforms such as Junglee.com, Zappos.com, IMDB.com, and audible.com. This has been useful in providing greater value to their buyers while relying on the technology of their start-ups at a much lower price.
In addition to this, Amazon has expanded the list of products they offer to include things like eBooks, electronics, DIY products, toys and many other products. Such additions are key to ensuring that Amazon maintains low costs while giving its customers added benefits.
Amazon has been around in the world of online retailing for many years, and it has since expanded to foreign markets such as Asia and Europe in addition to being a powerhouse in the USA. Their marketing strategy has really helped them cement themselves as a step above the rest in global markets.
Branching into entertainment and tech world
In recent years, Amazon has expanded its services, making their mark in the entertainment and tech world. With the introduction of Amazon Prime, movie streaming services and e-books, Amazon has been raking in millions of dollars in annual revenue creating bigger profit margins for the company.
They have even decided to reach out to freelance filmmakers to create profiles and upload scripts or film samples to be analyzed by award-winning producers, writers, and filmmakers. If they are interested, they can invest in the project, a perfect platform for struggling and upcoming filmmakers. In recent years, Amazon movies and series have even been nominated for Emmy, Oscar, and Golden Globe Awards. This has cemented Amazon as a force to be reckoned with in the entertainment industry.
Although some services such as Kindle and Amazon web have become fairly obsolete, there are still some other features like the e-book that are growing in popularity as time goes by. Products such as electronics and other related products are working in the online retail giant’s favor with their high rates of growth but, Amazon’s market share for said goods is also quite high.
Their strategy for distribution
If there’s one thing buyers are not a fan of, it’s waiting around on the delivery of an ordered product. Amazon recognizes this and has developed a platform for efficient distribution, creating over 55+ centers for delivery that cover over 43 million square feet.
They are quite determined in their approach, targeting warehouses and using them to store consumer-packed products to better their delivery process. This has brought Amazon to new locations and more buyers.
Amazon has developed an in-depth and carefully planned platform to ensure that products are delivered to remote areas, doing it free of charge up to certain product limits. Globally, their delivery network has grown quite rapidly as a result.
Amazon’s Brand Equity
Amazon was once a humble e-book platform, but today, it is the second largest online retail company in the world. Paying greater attention to advertisements and promoting its product has helped Amazon develop a bigger brand equity. In 2015, Amazon.com was estimated to be worth US $176 billion, complete with over 55% repeat customers. It is also counted as one of 13 of the “world’s most valuable brands” by the Forbes list.
A closer look at its competitors
Comparing Amazon to other online providers is not a one step process as the brand covers different sectors from books to retail products. It’s important to break the sectors out and analyze them individually:
- Books and related content: Apple is its biggest rival in this department, also delivering audio books and magazines. Amazon has had trouble shaking off the iTunes store due to its delivery of incredibly popular products such as the MacBook and iPhone.
- Web related services: Google has grown to be its biggest rival when it comes to web services with many preferring it as a reliable search engine.
- Retail market: With over $9 billion being made through internet sales, Walmart is slowly flexing its retail muscles as a contender to Amazon’s global dominance. So far Amazon has managed to beat its rival out, making over double the amount that Walmart makes annually.
Amazon keeps a close eye on its competitors and makes a note of adding in extra features that its rivals don’t offer like, personalized shopping experiences. They are constantly testing out new ideas in a bid to stay ahead of the competition, and it cannot be denied that for now, they are definitely a cut above their rivals. With solid, determined, marketing strategies and a finger on the consumer’s pulse, Amazon is only going to continue to grow as an online retailing company. Here’s a really cool infographic on their history over 20 years.
We wish to thank Mari Jasmine Smith a digital marketing writer for SEO consultants for this article.
Fail Safe Digital Marketing To Generate Leads
Are you achieving your digital marketing goals? If you are, well done but a word of warning – keep going. Success can be our enemy, insofar as it’s easy to fall into the trap of believing you’ve done enough.
With achievement, comes a boost in confidence which is welcomed however it can also let complacency in.
How often have you celebrated a job well-done only to experience a drop in results just a few weeks on?
As marketers, we have all been there, so rather than seeking out someone else to blame, we need to look at what we’re doing and change it.
Dropping the ball on the marketing activity, i.e. doing less of it or eliminately some strategies altogether, is a disaster waiting to happen. Before long, the business leads, in the pipeline, dry up and you’re left wondering why and how did it all go wrong so quickly?
Here are a couple fail safe marketing strategies that are the ‘must-dos’ to keep the business leads flowing.
‘Content is king’ for SEO, generating leads, and fostering advocacy for your business and brand.
Unique relevant articles that show your expertise and inspire readers to share with their followers in social media, should be your top marketing strategy. Read this article to get more insight: Content marketing must-dos in 2019.
There are many third party niche blogs that publish unique content from contributors. In the content is a backlink to a relevant page on a similar topic on the contributor’s site. It’s easy to see how this works for you – the contributor. Your site gets more traffic via the backlink. Commit to this ‘must-do’ strategy. Outreach agencies understand this strategy really well and as Wendy Piersall says:
Google only loves you when everyone else loves you first.
Content marketing steps
- Write unique content for your blog every week or more regularly.
- Share your content with your profiles on social media
- Write or engage a copywriter to write high quality articles for third party publishing blogs
- Make sure the 3rd party blog shares the article with their social followers
Take steps 1 – 4 and repeat year in, year out. There is never a time for letting up on content generation and sharing.
How many email newsletters have you sent to your email list so far this year? Many marketers and small business owners start out strong with the best intentions.
However the monthly newsletter turns into quarterly or maybe just one or two a year. This is okay if your business is doing another type of email marketing. Notifying your email subscribers of company updates, or new product or service releases is email marketing too.
There is no one size fits all so your business really has full scope to design an email marketing plan that works for all parties.
Back to the newsletter. If you’re struggling to know what to put in your newsletters, and that’s why you started out strong and then they dried up here is a tip.
The foundation of your newsletters can be your blog content. It is the perfect fit. So here is what you do to design your newsletters. In your email newsletter template:
- Add in the personalised salutation e.g. Hello (first name)
- Introduction – complete this section last, i.e. after you have all your content selected and in the template.
- Select blog posts that are on your blog.
- For each blog post; in your email template, add an image (one that is good for social sharing), title and a couple of unique sentences and a link to read more so your email subscribers can click to read the article in full on your website.
- Add in other information that your email subscribers will enjoy. It can be snippets of what you have found online. Be sure to also add in the links so your readers can visit those sites too.
- Now you’re ready to complete the introduction. Make it a quick summary of what’s in the newsletter.
It’s really that easy and with these two marketing initiatives you have the foundation from which to add more specific marketing like: Social Media advertising, and also offline marketing initiatives too.
Eric Dalius On the Best Marketing Strategies for Small Businesses
With a society highly saturated in marketing content and audiences with decreasing attention spans, it is becoming increasingly difficult for businesses to stand out from the crowd, especially when these businesses do not have the resources to compete with Fortune 500 empires.
For smaller businesses who do not have endless marketing resources, every dollar counts and needs to provide maximum ROI. Marketing professional and entrepreneur Eric Dalius shares his insight on the best marketing strategies small businesses can use to maximize their investment.
The Importance of Content Marketing
Content marketing is a form of inbound marketing, in which your business brings customers directly to you instead of reaching out via ads and cold outreach.
It consists of creating high-quality content that serves the following purposes:
- Gain the trust of your prospects
- Display your knowledge in your industry
- Improve your search engine optimization by making your website a useful, educational online destination
What is considered high-quality content? Dalius suggests following these guidelines for any content your business outputs:
- Unique and from your business’ unique point of view
- In-depth, educational, and actionable
- Solves a pain point for your prospects
- Optimized for the web (well-formatted
What types of content gets the most attention?
- Blog posts
- Video tutorials
- Live videos on social media
- Case studies
- White papers
Have a Powerful Social Media Presence
Social media platforms are still growing every month. Facebook alone has approximately one billion active users – Instagram has over 100 million monthly users. It is the perfect tool to reach a larger audience and use both organic and paid content to gain more customers.
However, do not make the mistake of spreading yourself too thin. With limited resources, Eric Dalius states that small businesses are better off concentrating on just a few social media platforms.
The key is in choosing the right platform for your target audience and the type of product or service your business provides.
For instance, many Pinterest users go to this platform when making a purchasing decision – this network tends to be popular for households with over 100k of yearly revenue. On the other hand, Instagram is the go-to platform for millennials and younger individuals.
Social Media Tips
- Optimize your profile to get your branding on point
- Post on a regular, consistent schedule so people expect your posts
- Encourage engagement from your audience by having a call to action with every post
Use Effective Paid Content Strategies
Online advertising through Google, Facebook, and Instagram can be very effective to grow brand awareness and generate more leads, but this strategy can be a hit and miss.
Instead of setting up a promotional campaign and forgetting about it, Eric Dalius instead advises you to target your ads to a very specific group of people. This way, every single dollar you are paying towards this ad is getting used adequately to promote brand awareness to an audience that has potential interest in your business.
Additionally, you’ll want to retarget your ads. What does this mean? If a prospect visits your website, do not show them the same ads as someone who knows nothing about your business. Furthermore, if a customer clicks away before making a purchase on your online website, use this data to retarget the appropriate ad to them.
Wrapping it Up
By having a strong online presence that essentially provides value to your audience, you will gain the respect and loyalty of your prospects. In time, Eric Dalius states that these loyal prospects will provide you the best return on investment for your small business.
How to use interactive marketing to win business
Digital marketing is always evolving and as a marketer your role for your clients is to use a mix of proven and innovative strategies. Clients insist on a more targeted approach. Long gone are the days of a splatter gun approach where throwing whatever you have at the wall, will work when just some of it sticks.
Users demand more than just the generic email or banner. Marketing campaigns, like email marketing, and remarketing now need to be highly targeted to the enduser. Your clients need customer data to achieve a more personalised interaction so Interactive Content Marketing has key role to play.
Interactive Content Marketing Explained
ICM or Interactive Content Marketing improves engagement and keeps users involved for longer. When they remain active and enjoy the interaction through fun, knowledge sharing or education studies show more repeat business and new customers are created through the fostering of stronger long term relationships.
Brand loyalty, and advocacy are also positive outcomes from an interactive content marketing strategy.
Types of Interactive Content
There are many types of ICM including video with quizzes. Video is a huge step up from articles but they work exceptionally well within content.
Educational or explainer videos are engaging and keep the user online for longer. Now add a quiz during or at the end of the video and you have an interactive marketing campaign.
Contests, games are also types of ICM that are ‘sticky’, enticing the user to have fun, participate and also provide their customer data that can be used in the usual digital marketing strategies like email marketing and Remarketing.
There’s no doubting the innovativeness of ICM and how needs to be utilised by the marketer to get a better outcome for clients.
Customer data is gold and it can be used in a myriad of marketing campaigns now and later on. There’s no telling what strategies will be available in the future using smartphone apps and automated marketing software. What we do know is customer data will be a prerequisite and ICM is a workable way to acquire it from online visitors.
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