Amazon Marketing Mix (4Ps) and Marketing Strategy Analysis 2022

Amazon is one of the most popular e-commerce companies in the US and the company offers very unique products and services to its customers. It is also having a very good marketing strategy and well marketing mix.

Below is the analysis of Amazon’s marketing mix 2022. And it will help you to have a better understanding of the company from its 4Ps perspective.

The marketing mix is a collection of 4Ps that focus on different things to help a company grow and earn revenue.

Nowadays, Amazon has many competitors, so Amazon needs to ensure that its marketing mix is up to date to maintain its level and growth potential. Here I have discussed all these Ps in detail.

What are the 4Ps of Amazon Marketing Mix Analysis 2022?

Following are the 4 Ps of amazon marketing analysis

  1. Amazon.com Inc’s Product mix
  2. Place distribution in the marketing mix
  3. Amazon’s promotion
  4. Amazon prices and pricing strategies

Move on to know the detail of all these Ps and learn how amazon is progressing and generating a large amount of revenue.

1. Amazon.com Inc.’s Products (Product Mix)

In this marketing mix component, the product mix is given importance. As it is the top company in the online retail industry, you will have a wide range of selection of products.

The company is diversifying and expanding continually; that’s why the company not only does online retail, there are many other products for fulfilling the needs of the market.

  1. Retail service
  2. Retail goods
  3. Amazon Prime
  4. Consumer electronics
  5. Digital content distribution service
  6. Amazon Video
  7. Amazon Web Services (AWS)
  8. Amazon Publishing
  9. AmazonFresh
  10. Amazon Prime Pantry
  11. Amazon Dash
  12. Video Direct

The main product of amazon is retail service, and the company is giving its services through an online website. Most of the retail goods available on the website are also from different companies. That is sold under the name of Amazon.

Moreover, you also get amazon prime, a membership product that counts shipping service for purchases on amazon’s online retail website.

Besides this company also includes consumer electronics like kindle, fire tablet, and amazon kindle e-book readers. Due to this, the company’s marketing mix’s effectiveness has also increased.

Furthermore, the product mix includes digital content. For example, music and e-books are in demand. Similarly, they also provide the service of book publishing.

Moreover, they have a very innovative online shopping system, and it will improve further by adding more products.

In short, although amazon started from books, now it sells almost everything, including make-up products, household items, electronics, etc.

Still, it has the place for new products, and these are the characteristics that make amazon more competitive every other day.

2.  Place/Distribution in Amazon’s Marketing Mix

The venues used to react to customers are identified in this marketing matrix.

For example, Amazon is an online business retails, and it uses the following places to find out customers.

  1. Official e-commerce websites
  2. Amazon Books
  3. Others

Amazon mainly uses its official e-commerce website for transacting with customers. However, there are different websites, each having its target, for example, Amazon.com, Audible.com.

Moreover, the company is also running a physical book store in Seattle, and its name is Amazon books. It is the most extensive facility for people who want to check products physically before buying them.

Furthermore, the company also uses other venues to transact with customers temporarily. For example, the annual Amazon Web Services (AWS) Summit is organized in various locations to discover the potential company and compel them to pay for its e-commerce service.

 According to this reference, you can say that the Amazon marketing mix relies on the firm and strong online presence of the organization in helping to reach its target customers.

Amazon has many distribution centers; thus, its delivery is speedy. However, Amazon was accused of forcing their workers hard without any break, and they were assigned to deliver 200 parcels a day and pay very little.

3.  Amazon’s Promotion (Promotional Mix)

This marketing mix component deals with tactics and strategies used to communicate with its target market. For example, Amazon.com Inc. makes strategies for convincing its customers to visit its websites and pay for its online business.

Following are the tactics are used in the promotional mix, and all of them are listed below in order of their importance.

  1. Advertising (most important)
  2. Sales promotions
  3. Public relations
  4. Direct marketing

The primary source used by amazon to communicate with its market is the advertising function.

In addition, the company offers an affiliate program for website owners and online publishers to earn revenues by displaying advertisements and corresponding links to products sold on amazon.com.

This strategy is very impressive, and it has expanded the company’s market reach. In addition, Amazon.com Inc. has a secondary sales promotion method for attracting customers and convincing them to buy products.

For example, Amazon offers discounts on products, and after that tremendous increase in sale has been observed. Similarly, it has different public relations programs for further strengthening its firm.

Their most famous project is amazon smile, and it donates a percentage of its sale to charitable organizations. These things leave an excellent impression on the customers.

Moreover, it also uses direct marketing to remain in touch with businesses to offer online services, such as publishing digital content distribution. We mainly focus on the advertisement in this p of the marketing mix.

4.  Amazon’s Prices and Pricing Strategies

Pricing strategies and price levels are focused in this p of the amazon marketing mix. It uses low prices and offers to attract customers.

Following are the pricing strategies used by the amazon

  1. Market-oriented pricing strategy
  2. Price discrimination strategy
  3. Value-based pricing strategy

Market-oriented pricing is the primary strategy used by amazon. They analyze the competitors’ product pricing and use the data as a base for pricing their products.

The main benefit of this strategy is that your pricing is more competitive, affordable, and attractive. In short, you can attract more customers by such pricing.

There is another strategy known as the price discrimination strategy. It involves setting different prices for identical products. For applying the pricing strategy, amazon uses its website.

For example, Amazon has its websites in the United States and the United Kingdom, and the same products cost differently in both countries.

This strategy has many benefits as it allows vendors to set prices according to the national market conditions, the product’s perceived value, customer preferences, and expectations.

Further, amazon.com Inc uses a strategy known as a value-based pricing strategy in which products are priced based on the product value. And consumer’s perception is also considered for it.

Furthermore, the nature of the amazon business is such that you can change the price of all products at once.

It is one of the main strengths of amazon, and this is the fact that has made it very difficult for the competitors to beat amazon and take its place in the online retail market.

In a nutshell, these are the major strategies used by amazon. So, if you want to start an online business, you can take advantage of amazon’s strategies to grow your business and a large amount of revenue.

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