Amazon Segmentation, Targeting and Positioning: Widest Range of Target Customer Segment

Amazon Segmentation, Targeting and PositioningAmazon segmentation, targeting and positioning involves a set of activities aimed at determining specific groups of people as customers and developing products and services attractive to this group.

Segmentation involves dividing population into groups according to certain characteristics, whereas targeting implies choosing specific groups identified as a result of segmentation to sell products to. Positioning refers to the selection of the marketing mix the most suitable for the target customer segment.

Amazon mainly uses the following two types of positioning:

 

Multi-segment positioning. Amazon offers a wide range of products and services, successfully exploiting more than one segment at the same time. Specifically, the online retail giant sells more than 562 million products, appealing to the needs and wants of a wide range of customer segments.[1]

 

Adaptive positioning. The online retail giant closely monitors changes in external marketplace and addresses increasing customer expectations by periodically repositioning of products and services according to changes in the segment.

 

Anticipatory positioning. Certain services within AWS such as Amazon Sage Maker, Amazon Comprehend and Amazon Rekognition are in market segments that currently have low turnover. However, the e-commerce giant has developed these services with the anticipation that the demand for them will increase in the future.

The following table illustrates Amazon segmentation, targeting and positioning:

Type of segmentation Segmentation criteria Amazon target customer segment
 

Geographic

Region More than 100 countries
Density Urban and rural
 

Demographic

Age 18 and older
Gender Males & Females
Life-cycle stage Bachelor Stage young, single people not living at home

Newly Married Couples young, no children

Full Nest I youngest child under six

Full Nest II youngest child six or over

Full Nest III older married couples with dependent children

Empty Nest I older married couples, no children living with them

Empty Nest II older married couples, retired, no children living at home

Solitary Survivor I in labour force

Solitary Survivor II retired

Occupation Students, employees and professionals
Behavioural Degree of loyalty ‘Hard core loyals’

‘Soft core loyals’

‘Switchers’

Benefits sought Widest range of products

Convenience of online purchasing

Competitive prices

Personality Easygoing, determined and ambitious
User status non-users, potential users, first-time users, regular users, or ex-users of a product
Psychographic Social class All social classes: lower class, working class, middle class and upper class
Lifestyle[2] Resigned, Struggler, Mainstreamer, Aspirer, Succeeder, Explorer

Reformer

Amazon segmentation, targeting and positioning

Amazon Inc. Report 2018 contains a full analysis of Amazon segmentation, targeting and positioning and Amazon marketing strategy in general. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Amazon. Moreover, the report contains analyses of Amazon leadership, organizational structure and organizational culture. The report also comprises discussions of Amazon business strategy, ecosystem and addresses issues of corporate social responsibility.

 

[1] How Many Products Does Amazon Sell? – January 2018 (2018) Scraphero, Available at: https://www.scrapehero.com/many-products-amazon-sell-january-2018/

[2]According to Cross Cultural Consumer Characterization by Young & Rubican

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