Marketing Ideas Targeting consumers based on their preferences and behavior offers the promise of turning marketers into armchair psychologists. Get it right, can you can give people precisely what they want, precisely when they need it.
Amazon Amazon is an American based ecommerce company Amazon, The company provides an online retail platform that enable merchants to trade their wares online.
Apart from the online retail business, Amazon is also manufacturer of electronic goods such as the Kindle tablet and the Kindle e-book reader Amazon, The business of providing ecommerce retail services has become highly competitive. Amazon faces stiff competition from companies such as Yahoo, Magento and eBay.
The segmentation, targeting and positioning STP process is an effective strategy for assisting Amazon to sustain its competitiveness. Segmentation, Targeting and Positioning Segmentation Market segmentation is the first step in the process of segmentation, targeting and positioning STP Ries and Trout, This is a process in marketing that entails division of customers into different groups that have unique characteristics.
Customers with similar characteristics are placed in the same group. Marketing segmentation helps organizations to understand their clients. The process of market segmentation is founded on the argument that customers with the same characteristics exhibit similar response to marketing initiatives Varey, Thus, market segmentation presents various advantages to Amazon.
One advantage is that the firm will be able to identify the most effective marketing strategies for different markets. Market segmentation will enable Amazon to define and understand the characteristics of its customers. Thus, Amazon will know the market approaches that can best appeal to different market segments.
Marketing activities requires investment of resources. Amazon may end up spending a lot of resources on marketing activities that do not appeal to the market if the firm fails to understand consumers.
Firms can use different strategies when segmenting their markets McDonald, The five main strategies that a firm can use to segment there market include; psychographic segmentation, geographical, demographic and behavioral segmentation. Psychographic segmentation focuses on classifying customers according to their values and lifestyles.
Geographical segmentation entails the classification of customers according to the geographical locations. This strategy focuses of geographical factors such as climate and population. Geographical segmentation may classify customers according to cities; states, countries or regions.
Demographic segmentation entails the classification of customers according to their demographic characteristics. These characteristics include nationality, gender, age, religion, education, income, family size and many other characteristics.
Behavioral segmentation entails the classification of customers according to their behaviors.Mar 20, · The Portland Business Journal features local business news about Portland. We also provide tools to help business' grow, network and hire. Behavioral segmentation is about understanding customers not just by who they are, but by what they do, using insights derived from customers’ actions.
Behavioral Segmentation is a form of customer segmentation that is based on patterns of behavior displayed by customers as they interact with a company/brand or make a purchasing decision.
It allows businesses to divide customers into groups . Real-World Education for Modern Marketers Join Over , Marketing Professionals.
Start here! What Kind Of Segmentation Is Used By Amazon? Luca I think Amazon has taken the idea of Communities of Practise and turned it into a business model. Here's what you want, here's what people like you have bought and here's how you can join a.
In the last post on segmentation, we explored preferences and what subscribers tell you explicitly. about their interests.. In this post, I’ll cover another piece of the segmentation puzzle and review behavioral segmentation, or in other words, what your subscribers are telling you implicitly through their behavior.
Customer Segmentation with Amazon Pinpoint Amazon Pinpoint helps you understand your customers' actions through advanced analytics, and helps you create segments based on demographics, behaviors, or other key performance indicators (KPIs) that are important for your application.
Under each segmentation category you will find the criteria and the specific Amazon target segment. In general, this illustrates how a huge marketplace sees you .