Amazon is a leader in the field of sales of mass-demand goods through the system of Internet services. Established in 1994, it remains a leader in its market and influences the behavior of hundreds of companies at a lower level. The creator of this great company was Joseph Bezos, who started small in 1994 (Sadiq et al., 2018).
He opened an online marketplace for trading books and comics. The store expanded its services three years later and sold music records and video products. To date, Amazon service providers have 34 product categories. It starts with Kindle e-books and household appliances and ends with children’s toys, food, and clothing (Sadq et al., 2018).
There is a solid demographic focus on middle-aged families across all socioeconomic strata with an average annual income of about $85,000, while Amazon’s customers also are young married, single, retired, or married with children. (Start.io, 2022). Although Amazon’s geographical segmentation reflects a truly global company operating in more than 100 countries, more than 60% of its website traffic is in the United States. However, it was followed by Germany, the UK, and Japan in 2021. Amazon’s market segmentation includes new and regular customers who shop frequently (Start.io, 2022). While 37% of casual (non-Prime) Amazon customers make purchases several times a year, 48% of those with Prime membership but at least once a week, and 74% do every few weeks (Start.io, 2022).
The company divides consumers based on their common interests and preferences. Amazon employs a multi-segment positioning strategy to provide customers with a list of products and services. Adaptive positioning is used later to track changes in the market and adjust the marketing strategy. Amazon uses proactive positioning to predict the buying behavior of its customers.
Amazon’s low prices, fast delivery, and online portal are convenient for middle and upper-class working consumers who feel they need more time to shop in person because of work.
In addition, the younger generation aged 18 to 30 also prefers Amazon because of the company’s presence on the Internet. Most Amazon customers are Prime subscribers (Start.io, 2022).
References
Sadq, Z. M., Sabir, H. N., & Saeed, V. S. H. (2018). Analyzing the Amazon success strategies. Journal of process management and new technologies, 6(4). Start.io. (2022). Amazon Target Market & Customer Segmentation.
Start.io. (2022). A Mobile Marketing and Audience Platform. Web.
