Amazon's Digital Marketing Strategy Assignment Sample

Amazon's Digital Marketing Strategy: AI, ML, and AR Integration

Introduction

Digital marketing analytics include the different tools and Technology which the companies use and order to implement their marketing initiative effectively. While working in a highly competitive environment, companies must use effective marketing strategies to distinguish them from competitors. The current study is based on Amazon which is an American multinational company founded in the year 1994. The current report will outline the digital marketing strategy used by Amazon to provide services to the customer. Further, the study will also outline the digital marketing analytic tool which is being implemented by the company to implement the new digital marketing strategy. The new marketing strategy includes the implementation of AI and ml along with augmented and virtual reality. The report will also outline the performance management parameters and tools like use of ROI, KPI and others. At last, the recommendations will be provided to the company for improvement and successful implementation of the new marketing Technology.

Main Body

Overview of the company

The current report is based on Amazon, an American multinational company founded by Jeff Bezos in 1994. The company is an e-commerce business which focuses on providing diversified services to the consumer like cloud computing, AI, digital streaming, online advertising and many other services. The company is considered one of the companies from Big Five American technology companies. The company is one of the largest online retailer and technology companies which continuously works on improving its performance to keep the consumers happy and satisfied. Regarding marketing, the company is working effectively to promote the business and its services (Vollrath and Villegas, 2022). There are different types of marketing strategies which Amazon uses to promote its product and services within the highly competitive market. The mission of the company is to be the most customer-centric company working in the external environment. The vision of the company states that it must build a place wherein the person can discover anything they wish to buy. The mission and vision of the company are very clear and this provides a base for the company to grow and formulate effective strategies for the business to grow. The company is currently focusing on a digital marketing strategy to manage and improve its services so that consumers can be attracted towards the company and its services.

A digital marketing analytics tool

Digital marketing is referred to as the strategy which assists the company to connect with potential consumers with the help of the internet and promote the product and services of the company. The competition within the market is intense and it is very necessary for companies to effectively market their product and services so that they can secure a good position within the market (Moncey and Baskaran, 2020). For being competitive it is very necessary for Amazon that they effectively use digital marketing tools to attain a secured position within the highly competitive market. Digital marketing analytics is defined as the process which includes using technology for taking marketing initiatives to promote the product and services within the company. There are different types of tools which are used for digital marketing analytics. For Amazon, effective digital marketing analytics tools must be used to promote new services and products in a better and more effective manner.

In this highly competitive environment, it is very important to use digital marketing analytics to promote the product and services of the company. The use of data analytics is important for Amazon as it assists the company in using the data for developing marketing strategies effectively. In addition to this marketing analytics is used to identify the trends and patterns prevailing within the environment and try to implement them within the business. The use of analytics is important for getting a good position within the market so that the work can be accomplished and consumers also get attracted towards it. Also, this data assist Amazon in developing good and relevant marketing strategies for the effective working of the business.

New digital marketing strategy

For the effective marketing of the company and its services, amazon will be making use of artificial intelligence and machine language to provide customised services to the consumer. In addition to this, the strategy of virtual and augmented reality will also be used to undertake the use of digital marketing analytics. The combination of AI and ML with virtual and augmented reality will be providing a better base for the company and will assist in promoting the services in a better and more effective way (Bist and et.al., 2022). It is very important for the company that they effectively work on the marketing strategies so that the work can be managed and the objectives of the business can be attained well. In the current competitive environment, the use of AI and ML is very trending and in case Amazon will not be undertaking the use of this technology then consumers will not like it. This is very necessary for the reason that when the latest trends are followed then it is liked by the consumers well and they buy the product and services of the company large in number.

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For the implementation of the new digital marketing tool, clear objectives must be set (Sheth, 2021). The setting up of a clear objective is required for the reason that it provides a base for the company to direct its work for the attainment of the business objectives and to grow and develop. Thus, for the implementation of AI and ML, the objectives are as follows-

To increase the conversion rate by 5% by the end of October 2023 through the implementation of AI and ML.

To increase sales by 12 % by implementing augmented and virtual reality till the end of 2023.

To increase SEO traffic by 3 % by the end of September 2023.

Business position and plan

In the current competitive environment, the competition is very high. Thus, it is very necessary for the company that they comply with all the latest things in the correct manner. This is about the fact that when all the latest needs are undertaken by the business then it attracts the majority of the consumer and as a result of this the sales increase. Thus, to the need and requirements of the external environment, the use of AI and ML along with virtual and augmented reality will be beneficial for Amazon in attracting the consumers large in number. Along with this the external environment is currently changing and shifting much towards the use of technology and as a result of this the working capability of the company increases and there is a high potential of growth for the company. In addition to this, business position needs to be evaluated with respect to competitors and consumer need as well. This is pertaining to the fact that when the company exist in external environment then in that case competition is very high. Thus this will be affecting the efficiency of the business to a great extent. Along with this taking into account the consumer need is very important as the success of the company is dependent on that only. For the effective working of the company it is very crucial that both competition and consumer need must be evaluated (Langan, Cowley and Nguyen, 2019).

Hence, for the effective implementation of AI and ML along with augmented and virtual reality it is necessary that proper planning is done. This is very crucial because of the reason that when effective planning is done then in such a case the work can be improved well and it will be implemented accurately. For this implementation, first of all, effective market research is done to identify the trends within the market so that it can be analysed and then implementation takes place (Krishen and et.al., 2021). Here, the company gathers both online and offline data so that the strategies can be prepared. For the implementation of AI and ML, different strategies need to be prepared like, data strategy, media strategy, business strategy and others. Thereafter, the company has to decide which media to be used for the promotion of the business. Three different forms of media are earned media, paid and owned media. Amazon has to ensure which media source they need to use for promoting the business services.

There are different types of marketing technology solutions which can be used by companies for effectively marketing products and services. Hence, for this, Amazon will undertake the help of Google Analytics and Eloqua. These are the software which will be assisting Amazon in effectively market its product and services in a better manner. This is very crucial because it will be providing a better base for the company to market its product and services. This software will assist the company to grow and develop good marketing strategies so that the work can be managed easily. These analytics tools assist the company in analysing the social media landscape, search and owned analysis and media analysis. All these three aspect needs to be evaluated so that the social media strategy can be formulated well and implemented in an intended manner only. Hence, with help of this software the company will be able to manage the work and will be in position to increase the sales to a great extent.

Performance management parameters

With the effective implementation of the new marketing strategy, Amazon must ensure that the planned performance is exactly taking place. This is very necessary for Amazon that they effectively accomplish the objectives of the business so that the work can be managed properly and correctly. Hence, for this, Amazon needs to set some of the performance management parameters through which the performance of the company can be measured and evaluated that whether the planned performance has been attained or not. This is necessary to evaluate because when the performance will be measured then only it can be evaluated whether the objective of the study has been attained or not (Ghorbani and et.al., 2021). Thus, for measuring the performance of the company while implementing the new AI and ML as the new marketing strategy the use of KPI will be undertaken. This KPI which is Key Performance Indicator is a tool which assists the company in setting up some indicators for measuring the performance of the company. The KPI set for the company is to increase conversion rates by 5 % and sales by 10 % along with SEO traffic by 3 %. Hence, for this, KPIs must be set so that the performance can be measured by the company.

Tools and metrics for measurement

There are different tools and techniques to evaluate the work of the company and measure its performance. Also, for Amazon, effective tools and metrics must be used for measuring the performance of the company. The most important tool for measuring performance after the implementation of the new marketing strategy is ROI (Aljumah, Nuseir and Alam, 2021). The ROI is the return on investment which is earned by the company. When the ROI is increasing then it assists the company in stating the fact that how much the company has earned from the investment they had made. Along with ROI, Amazon also undertakes the use of ROE which is the return on engagement and this tool assist in measuring the effect of digital marketing on the engagement of consumer towards the company and its services. For analysing the effectiveness of the marketing strategy of Amazon ROI must be calculated effectively so that the work can be managed properly and effectively. Thus, for measuring it Amazon subtracts the total cost from the gain. For calculating the percentage the answer is again divided by the cost and it outlines how much gain the company has earned after the implementation of the new marketing strategy being implemented.

In addition to this another tool used for measuring the performance of the marketing strategy is to conduct social media analytics. This is very helpful for Amazon as currently the social media is trending and marketing through it will help the company in improving its performance. Thus, as a tool for measuring performance, social media analysis includes the evaluation of different features. These different features include conversion analytics, content analysis, social media reporting, user experience feedback and many other aspects. The social media analytic includes different aspect like traffic on website, conversion rate, PPC that it pay per click and many other different aspects (Iacobucci and et.al., 2019). Thus, for this it is very necessary for Amazon that they effectively use this performance measurement tool so that the work can be managed properly and objectives of the business can be attained well.

Recommendation for improvement

• The above discussion stated that the use of AI and ML along with virtual and augmented reality will assist the business in improving the marketing strategy. With the above analysis it is clear that implementation of the new marketing strategy is effective. But then also some of the recommendation for improvement is as follows-
• It is recommended to Amazon that they must undertake effective market research so that company can research the latest trends prevailing within the market. This is very necessary as there are frequent changes presently need and requirement of customers. Thus, effective research will help the company in identifying the latest trend and try to implement within the practice.
• In addition to this, another recommendation for Amazon is to have a sound training and development department. This is particularly necessary because training and development department will help Amazon to educate employees to use the latest technology. This training and development will health in improving the efficiency of the business and try to adapt all the new and latest changes.
• Moreover another recommendation for Amazon is to create multi channel campaign. This multi channel campaign includes under taking use of different methods which in turn will help to improve the marketing effectively (8 Steps to Improve Digital Marketing Results, 2023). When the marketing channels used will be more than it will reach to large segment of consumers. As a result of this marketing will improve and ultimately the sales will increase.

Conclusion

In the end, it is concluded that visited marketing is essential for the company to be effective. This is particularly necessary because digital marketing analytic tools help the company in improving the efficiency of the business. The above report inferred that Amazon is planning to implement AI and ML as a new marketing strategy. Thus, the whole plan outlines the implementation of AI and virtual and augmented reality within the business. It was also analysed that use of ROI and KPI helped analyse the performance and the measurement of the performance. In the end it was recommended to the company that they must have strong training and development department and also they must focus on creating multi-channel campaign.

References

Books and Journals

• Aljumah, A.I., Nuseir, M.T. and Alam, M.M., 2021. Traditional marketing analytics, big data analytics and big data system quality and the success of new product development. Business Process Management Journal, 27(4), pp.1108-1125.
• Bist, A. S. and et.al., 2022. Managing Digital Transformation in Marketing:" Fusion of Traditional Marketing and Digital Marketing". International Transactions on Artificial Intelligence, 1(1), pp.18-27.
• Ghorbani, Z. and et.al., 2021. Trends and patterns in digital marketing research: bibliometric analysis. Journal of Marketing Analytics, pp.1-15.
• Iacobucci, D. and et.al., 2019. The state of marketing analytics in research and practice. Journal of Marketing Analytics, 7, pp.152-181.
• Krishen, A. S. and et.al., 2021. A broad overview of interactive digital marketing: A bibliometric network analysis. Journal of Business Research, 131, pp.183-195.
• Langan, R., Cowley, S. and Nguyen, C., 2019. The state of digital marketing in academia: An examination of marketing curriculum's response to digital disruption. Journal of Marketing Education, 41(1), pp.32-46.
• Moncey, A.A. and Baskaran, K., 2020, November. Digital marketing analytics: Building brand awareness and loyalty in UAE. In 2020 IEEE International Conference on Technology Management, Operations and Decisions (ICTMOD) (pp. 1-8). IEEE.
• Sheth, J., 2021. New areas of research in marketing strategy, consumer behavior, and marketing analytics: the future is bright. Journal of Marketing Theory and Practice, 29(1), pp.3-12.
• Vollrath, M.D. and Villegas, S.G., 2022. Avoiding digital marketing analytics myopia: revisiting the customer decision journey as a strategic marketing framework. Journal of Marketing Analytics, pp.1-8.

Online

• 8 Steps to Improve Digital Marketing Results. 2023. [Online]. Available through: <https://profitbooks.net/improve-digital-marketing-results/>