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The approach to the marketing mix theory is changing dramatically due to the transformation of business processes and customer behavior, as well as the evolution of the digital age. Researchers state that the rapid development of the digital environment and related products have redefined the routine lives of individuals and changed the way people relate to information, brands, other people and even themselves (Jackson & Ahuja, 2016, p. 170). Amazon is one of the few giants in the digital entrepreneurial industry that has become a significant competitor to Apple and Google in the past decade. This paper analyzes the elements of the marketing mix regarding Amazon and examines their interaction that contributed to the companys business success.
Elements of the Marketing Mix
Product
Amazon provides an incredibly diverse range of products and services distributed through online retail. The company initially started as a bookseller and is now a world leader in this area (Majed et al., 2018). Currently, Amazon also offers music, video, consumer electronics, various digital content, and even food products. Differentiation of the company is achieved not through a specific product, but through creating additional opportunities for the development of electronic distribution channels (Pogorelova et al., 2016, p. 6746). Amazon is constantly expanding the range of available products and services, enhancing the potential of its digital services.
Price
It should be noted that pricing in the digital market is rather dynamic. Researchers note that Amazon was able to attract such a broad audience due to the low prices it could offer (Majed et al., 2018). At the same time, the company is flexible in its approach, offering different prices for one product, depending, for example, on the national market conditions or product variant. The companys marketing strategy includes extremely high price volatility compared to its competitors. The price of some products may change several times a day within a 20% range, depending on market conditions (Pogorelova et al., 2016). This allows the company to adapt its marketing strategy more accurately to the specific market situation.
Promotion
In the digital age of information redundancy, promotion becomes paramount for market participants. At the moment, promotion and advertising are integrated by the term communication, although it also includes the purpose of attracting customers (Jackson & Ahuja, 2016, p. 171). Amazon has developed a recognizable brand image that is constantly present in business media. In addition, it actively uses contextual and social networks advertising. The company also performs sales promotion using the digital platforms and establishes public relations with potential customers included in the target audience.
Place
This element of the marketing mix is key to e-commerce as it represents its main benefit to customers. Amazon, along with other market participants, has digital marketplaces, including official distribution sites. The convenience of these services and the transactional process is one of the primary reasons for its success. According to Pogorelova et al. (2016), for information products the period of time and costs to fulfill the orders are small, which results in a vast number of transactions on the platforms (p. 6748). In this way, the digital space serves as an easily accessible and user-friendly marketplace.
Business Success Analysis
It should be emphasized that the combination of all marketing mix elements ensures Amazons leading position on the market. The foundation for the success of this business is the place, that is, the digital market platform available to any customer with a smartphone or computer. This effect would not have been achieved if this element of the marketing mix had been detached from others. The digital marketplace offers the opportunity to distribute any product, especially information ones, and therefore Amazon is expanding its product range. The global nature of the distribution of the products and services requires flexibility and a dynamic influence on pricing in view of market conditions. Amazon implements a wide range of promotion and advertising measures on social networks and other Internet platforms. Thus, although the place is the key element of the marketing mix in this regard, the product, price, and promotion ensure the performance of business operations that would not be possible in their absence.
Conclusion
Amazon has successfully applied innovative digital space trends to establish an effective marketing strategy. Each of the marketing mix elements harmoniously complements the others, offering the customer a convenient online service to purchase a wide range of products and services. With a combination of the digital marketplace, flexible and dynamic pricing, broad product coverage, and innovative online promotion methods, Amazon has become a leading market player.
References
Jackson, G., & Ahuja, V. (2016). Dawn of the digital age and the evolution of the marketing mix. Journal of Direct, Data and Digital Marketing Practice, 17(3), 170-186.
Majed, S. Z., Nuraddin, S. H., & Hama, S. V. S. (2018). Analyzing the Amazon success strategies. Journal of Process Management New Technologies, 6(4), 65-69.
Pogorelova, E., Yakhneeva, I., Agafonova, A., & Prokubovskaya, A. (2016). Marketing mix for e-commerce. International Journal of Environmental & Science Education, 11(14), 6744-6759.
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