Marketing Mix Strategies of Amazon: A Case Study

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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
STP.........................................................................................................................................1
Marketing Mix strategies........................................................................................................4
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing is described as an action which different companies implement so that they
could promote and sell their products or services among potential customer base. Marketing
activities require a lot of market research in order to understand trends and needs along with
promotional strategies to reach large customers. These activities help organisations in increasing
profitability and growth as well provide them competitive advantage over others in the market
(Lit, Kim and Sy, 2021). For implementing effective marketing strategies companies are
requiring to execute plans and tactics. The following blog contains market positioning of
Amazon which was founded by Jeff Bezos on July 5 in the year 1994 (A Brief History Of Amazon,
2019.). The company operates its business operations across the world through its online e-
commerce websites. The blog mainly focuses on explanation about marketing-mix of the
respective firm which describes how it has achieved competitive advantage in the market
through offering range of goods at affordable prices. Furthermore, it has also been evaluated in
this blog report that how firm has segmented its customers base through segregating them
according to preferences and what position it holds within the market.
MAIN BODY
STP
Market segmentation of Amazon
This is a marketing framework which helps companies in segmenting, targeting and positioning
themselves in the market in order to enhance their growth as well as reach maximum number of
people. The three basic steps of this analysis dictate about how organisations could identify their
right customer base, serve them effectively and provide them information they require for
successful targeting (Longo and et. al., 2020). This approach helps firms in determining their
most valuable market segment and then trade them efficiently with carefully targeted goods and
marketing. This assist companies in developing products according to the preferences of their
potential customer base which could enhance their market position. This framework allows them
to engage with each segment, personalize their message and trade more products or services. In
context to Amazon, the segmentation, targeting and positioning includes various activities that
aim at finding certain group of people as consumers and developing goods or services that could
attract these segmented audiences.
1

Segmentation strategies of Amazon
This component of the STP framework helps companies in dividing their market into distinct and
identifiable groups. Each of these groups possess similar interest, requirements and represent
similar response to marketing actions. Segmentation criteria could be used to divide market
which include demographic, geographic, psycho-graphic and behavioural. In case of Amazon,
is has divided its market segment according to components of segmentation factors. Under
demographic segmentation, the respective company divide group of people who have internet
access, various countries and age group of 25 to 50 years (Blut, Teller and Floh, 2018).
Figure 1. Market segmentation. 2021.
In situational segmentation those people are categorised who mainly focus on online purchasing,
have interest in new products, new deals every day or every hour and low pricing factor for
buying online. Furthermore, under psycho-graphic segmentation, consumers are segmented by
their loyalty, customers who like innovation, those who value client care and people who click
on suggested and recommended goods. Lastly, under geographic segmentation, the company has
included international appeal, developed areas, digital sales, rural areas where smartphone is
required.
Targeting approaches of Amazon
This is the second component of STP framework which explains which segment of the audience
companies should target so that they could focus on providing best services to them. In case of
Amazon, the company targets a large customer base and tries to offer goods or services
2