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.
Everything You Need To Know About E-commerce Marketing
Ecommerce refers to any form of business transaction made online. One famous example is online shopping, defined as buying and selling of goods via the internet on any device. For many people, it has been their preferred way to shop because you won’t have to go to the store instead just get your mobile device and browse your social media sites for the things you want and have it delivered right at your door. Here are the things you need to know when you’re planning to start an ecommerce business.
Marketing is Vital
Marketing is one of the core aspects of any business that shouldn’t be overlooked. There are plenty of e-commerce businesses which have great products and beautiful websites that fail because they do not know how to market their product and they can’t attract people to the store. To prevent this, you should choose the right marketing campaigns and produce the perfect ecommerce copywriting. It is essential that you devise marketing campaigns on different channels which you can use to grow your store which will generate traffic and potential customers to your online store.
Integrate Social Media Sites
With over a million daily active users, Facebook, Instagram, Twitter and other social applications around can help you connect with consumers, influencers, and brands. These social media applications remain a viable platform for social media and e-commerce marketing. Engage with your audience and followers by trying to run a contest or going behind the scenes to showcase your product development process. Add or upload photos of your products to give your followers a direct path to purchase, which is vital for increasing your online sales. When posting products online, try to provide the pieces of information like the cost and availability, and for clothes the available sizes, colors, and designs. Providing this info make it easy for your customer to get what they want.
Providing Customer Service Is High Priority
Look after your customers by providing a high level of customer service. By doing this, you’re setting your business up for success. Be fair and sincere with your customers to leave a lasting impression on them, and they will be more inclined to buy from your store again. Not all e-commerce entrepreneurs provide excellent customer service, but it’s as critical the way you treat your customers as you do with the way you handle your business. Personalize customer service interactions that will make your customers feel valued; tailor your responses to your customer’s issue so that they’ll know that you care about them and that you’re working to solve their problem.
Be Open to Mistakes
Mistakes always happen, and it’s still best to be transparent with your customers when you made a mistake instead of lying or sugar-coating it. Being honest and open with your customers lets them know that you’re a genuine business person and they’ll appreciate it when you keep them informed of any issues regarding their orders. One main problem which you’ll encounter when shipping your products to customers is late or lost deliveries. There are many reasons why a delivery could arrive later than expected, and the best way to reconcile for this is always to keep your customers in the loop.
Pick the Right Audience
Target your message to the right people to ensure that your marketing campaigns will be successful. It may take some time before you truly understand who your audience is, but you’ll likely have an idea from the products which you are selling. When you’ve gained more knowledge about your audience, you can refine your campaigns to be more effective for your specific audience. Once someone becomes your customer, you should continue to engage them and nurture them. By doing this, you’ll have successful customers that you can use for testimonials and case studies, you’ll receive glowing reviews about your product, and you’ll have the power of word-of-mouth marketing behind you as you turn your customers into fans.
Aim For Good Reviews
Customer reviews are an honest review of your product and how it worked out for your customers. Reviews serve as a marketing tool for you because they include mentions of your product and frequently do the selling for you because people will think that when your product worked for your customers, then it might work for them too. Encourage your customers to leave reviews whenever you can on their experience from ordering to shipping, receiving and upon the usage of the product. You could also use customer testimonials to get the word out on how great your product is. Testimonials are primarily tailored review because they are typically produced from interviews where you can ask specific questions like the ease of the buying process, the level of customer support, and frictionless delivery and setup methods.
Pick Your Products Wisely
E-commerce business thrives when you sell high-quality products at an affordable price. Before you start, decide on the types of products you are going to sell and where you’ll be sourcing them from. Take some time to brainstorm some of your ideas and decide which product you believe is best for your ecommerce store. In choosing your product, check out potential competitors and see if they’re selling the product you would want. If they are, you know that your product will be marketable and what you will do next is to think about how to make your product inventory better than theirs. Lastly, decide which countries produce the most sense for you to source your products from. Some countries offer a relatively cheap product but the delivery time may take a little while, and some products will arrive faster, but the price tag will also be higher.
Global Market and Around-the-clock availability
A geographical area will always limit a physical store; it can serve, but an online store or any other type of e-commerce business has the whole world as its market. Another great benefit of trading online is that it is always open. Unrestricted by the working hours, the e-commerce business is a convenient and immediately available option that can serve customers 24/7/365.
Alex Lopez is a content writer who concentrates on SEO, content marketing, and travel tips. She mostly writes for Creative Working Playground SEO Copy writing. She likes to relax most of the day while reading her favorite books or she usually plays around with her dog. She also loves to explore the outdoors like the beach, falls, or forests.
Is Now The Time For A Business Rebrand?
Is it time to rebrand your business? You might think that a rebrand is going to be expensive and largely unnecessary. It’s possible that you also suspect it will hurt your sales. However, if you rebrand at the right time it can have startling benefits. So, let’s look at some of the signs that you need to think about rebranding and the factors that you must consider.
Your Current Brand Isn’t Working
This is probably the most typical reason for a rebrand. Your current brand profile isn’t working for you and this can be for a variety reasons. For instance, it’s possible that your brand is not sending a clear message about what your services are or what you can offer to customers.
If you’re confused with what you do, and that’s emulated in your marketing, imagine how your customers and targeted audience feel. The time is now, to find out if you’ve got it wrong.
Seek To Understand
Ask the hard questions from your customers, and supporters, to get replies that help you change direction with your products or service or tweak your brand. It’s tough going through this process of essentially ‘letting down the guard’ i.e. showing a bit of vulnerability, but while some response, will be just critical and unhelpful, you only need a few replies that provide real insight into the perception of your current business and brand, to get you on the right track to success. 🙂
Or, you might find that your reputation has been damaged. A brand could be damaged due to an online cyber attack, scandal, low-quality products or service or any number of issues.
Anything that has impacted sales and causes a dip in your business profits may lead to a need for rebranding. With a rebranding, you can address what went wrong and hopefully correct the situation.
Wrong Marketing Strategy
Perhaps you have been struggling to connect with your customers? If you see a low level of engagement, particularly online with depleting website visitors to your blog, and in social media, it’s probable that there is an issue with the marketing content, and it’s relevance with the audience in the channel you’re using but it’s not always the reason.
Logo Brand Ugly
Often, though it really just is your current brand and the fact that it’s failing to resonate with your targeted audience. Therefore, there’s not a lot to lose by adding a fresh lick of paint to it. This is the fun part, as you get to start over with a logo that’s more you. Act quickly too, to stop customers from forgetting your business completely.
It’s also possible that you need to rebrand to compensate for a change in your business model. This could be a change in the leadership or management of your business. It might also be a fundamental change in what you will be offering customers and clients.
Obviously, if the products or services you are selling are changing your images needs to evolve as well. Some businesses and companies choose to wipe the slate clean when they reveal a new product line. Others will make simple, small changes that will still show clients the key ways the brand is moving forward.
Perhaps your company has been known for one particular product or service which is now overshadowing everything else. The issue here is that all your other services and solutions are forgotten completely. Even if sales for that first product are through the roof, a rebrand will still be necessary.
Factors To Consider
You do need to make sure that there is a plan in place for how you are going to complete your rebrand. This is not something that you can do without careful thought and consideration. Look at what areas of marketing will be impacted and how it will reshape your business model as a whole.
Furthermore, be aware that customers and clients will want to communicate with your business during the rebranding. They will be eager to learn about the direction that your business is now heading in and essentially, what it means for them. Keep things simple, straightforward and make sure your business is completely accessible during this time.
We hope you find this advice helpful when determining whether your business needs a rebrand.
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.
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