Marketing and Target Marketing
Marketing is a crucial section in any corporate process. Target marketing has been pivotal to appeal to the needs of a particular group of people. Therefore, different firms are looking for effective ways to market their products to their consumers by being innovative and advancing in technology (Ward). Notably, target marketing involves breaking up the market into segments and concentration on the primary sections that have consumers whose needs and desire match the company's products and services (Ward). As a result, it makes promotion, pricing, and distribution of the firm's goods and services more comfortable, since the company concentrates its marketing effort on a specific group of people (Ward). Noteworthy, with the advent of internet technology, target marketing has brought about new corporate models such as business to the consumer who employs different marketing approaches and tools to entice and retain customers (Ward). Most firms such as Amazon have embarked on the business to business model to attract and retain its consumers.
Amazon's Success and Business Model
Amazon is an e-commerce company started in 1994 and had been using its business model effectively, thus, achieving remarkable success in the global market (Krishnamurthy 1). Most importantly, it was the pioneer firm to market its goods on the internet, hence, becoming the largest retailer on the global web (Krishnamurthy 1). The e-commerce business is evolving rapidly, thus intensifying competition among various firms. However, Amazon maintains its competitive advantage through its selection, price, convenience, the reliability of their services and tool among others (Krishnamurthy 7). Moreover, the company has been successful over the years, due to its ability to read the market trends and diversifying its operations (Krishnamurthy 7). The firm has embarked on the business to business model to maintain its competitiveness over its rival firms; thus, enabling the firm to attract and retain their customers globally. This paper discusses the company's activities and products supporting its model, the bases for segmentation of the corporation and achievement of the segmentation as well as factors influencing the firm's promotional strategy.
Activities and Products Supporting the Company's Business Model
Amazon Company majorly deals with books, electronics, toys and games that impact significantly to its competitiveness in the global market (Chaffey). The firm has embarked on various activities that support its business model. First, the company provides business with a platform to sell directly to Amazon by setting up a page, where they list the items alongside a nominal fee per transaction (Rossi). Secondly, the firm's payment services provide means for businesses to accept disbursement on their website from consumers who have Amazon accounts (Rossi). Lastly, Amazon supply services is a way for companies to procure industrial supplies such as office materials (Rossi). The activities and products have enabled the firm to maintain its competitive advantage in the global market.
Bases of Segmenting Consumer Market
Segmentation of the consumer market encompasses the creation of a sub-group from a significant population to target them through marketing efforts (Hassan, Craft and Kortam 447). There are four significant bases of segmenting the consumer market which includes; demographic, behavioral, geographic and psychographic (Richards).
Demographic
The segmentation partitions the market into groups based on certain variables such as age, gender, family size, revenue, profession, education, religion, race, and nationality (Richards). Businesses tend to use demographic segmentation to target specific groups that are interested in their products and services. For instance, the cosmetic business primarily focuses on women, while the luxurious car industry targets groups based on their income.
Geographic
The segmentation involves dividing the market into different geographic units such as states, neighborhoods, cities, towns among others (Richards). Therefore, companies tend to partition the market into regions since different geographic variables tend to cause the consumers' needs and wants to vary (Richards).
Psychographic
The segmentation encompasses divides the market on lifestyle and personality traits (Richards). Regarding certain products, the purchase behavior depends on the lifestyle and personality traits of the consumers (Richards).
Behavioral
It encompasses segmenting the market based on knowledge, attitude, and response towards a particular product (Richards). Therefore, most companies keep records of the purchases of various customers to allow marketers to identify them and target them with similar offers (Richards).
Amazon's Bases of Segmentation and Achievement of the Options
The company uses demographic and behavioral bases of segmentation to target its consumers individually, thus converting visitors into long-time customers (Bhasin). Moreover, Amazon targets the middle and upper-class individuals who have the basics to technology but do not shop on their physical stores (Bhasin). According to Bhasin, the company achieves its goals through the two bases of segmentation, which allows them to keep their prices low, thus benefiting its consumers. Moreover, the firm has a robust customer-centric tactic that analysis the buying behavior of its clients, hence, maintaining its competitiveness over rival firms (Bhasin).
Amazon's Bases of Segmentation Impact on the Promotional Strategies
The firm uses the factors through digital marketing to influence its competitiveness in the global market. For instance, through behavioral segmentation, the firm has focused on each consumer; thus, they can target the customers in similar offers. Research shows that the firm has utilized its bases of segmentation effectively since more than 50 percent of its consumers are repetitive buyers of the company (Bhasin). Following the demographic segmentation, the firm has reduced its prices on its items, therefore, impacting significantly to retaining its customers. As a result, the firm's promotional tactics booms, influencing its competitiveness over other e-commerce companies.
Conclusion
Conclusively, target marketing has been fundamental to allow firms to meet the need and wants of a particular group of people. Further, it integrates corporate models such as business to business, with various firms such as Amazon using the tactic to attract and retain its consumers. Moreover, the firm has embarked on the demographic and behavioral bases of segmentation to target its consumers. As a result, the strategies have enabled the firm to lower its prices of products and focus on repetitive buyers, hence, contributing to its competitive advantage in the global market.
Works Cited
Bhasin, Hitesh. The marketing strategy of Amazon – Amazon marketing strategy. 2018. Web. 28 10 2018. .
Chaffey, Dave. Amazon.com case study – 2018 update. 2018. Web. 28 10 2018. .
Hassan, Salah, Stephen H. Craft and Wael Kortam. "Understanding the new bases for global market segmentation." Journal of Consumer Marketing 20.5 (2003): 446-462. Document.
Krishnamurthy, Sandeep. "Amazon.com - A Comprehensive Case History." E-Commerce Management (2005): 1-46. Document.
Richards, Leigh. What Are the Basis of Segmenting Consumer Markets? 2018. Web. 28 10 2018. .
Rossi, Ben. How Amazon is taking over the B2B commerce industry. 2015. Web. 28 10 2018. .
Ward, Susan. Target Marketing. 23 10 2018. Web. 28 10 2018. .
