MGT201 Marketing: Target Marketing Strategy, Segments & Amazon Case

This report delves into the selection of target-marketing strategies and the identification of attractive market segments, using Amazon as a case study. It examines undifferentiated, differentiated, and concentrated strategies, highlighting Amazon's approach in providing a wide range of products, a customer-friendly interface, and leveraging communication systems. The report also discusses Amazon's 7 P's, segmentation, targeting, positioning strategies, unique selling proposition, and marketing communication mix. It further analyzes how Amazon manages its products and services through outsourcing, focusing on inventory cost reduction and efficiency in distribution. The report concludes with the importance of market research, product image, and listing in successful product launches, emphasizing post-launch analysis for customer satisfaction. This comprehensive analysis provides insights into Amazon's marketing strategies and product management processes.

Marketing Strategy and Plan

Discuss how companies choose target-marketing strategy and identify
attractive market segments. Improve your answer with examples.
There is a proper segmentation process where a market has been segmented into different groups
and then target market must be selected. Every market segment depends upon some factors like
availability of resources and how that segment will respond upon marketing efforts. There are
three main strategies that help in selecting the target market: differentiated, concentrated and
undifferentiated. Undifferentiated strategy explains mass- marketing approach that says a
decision can be taken as per the marketing mix. This approach does not consider different market
segments and try to focus on all of them. This approach is used by public sector. Differentiated
strategy recognizes the market segment and creates different strategies for them. Concentrated
strategy identifies a target market and keeps focus only on its resources and marketing mix. This
strategy is used by mostly commercial and non- profit sectors.
Amazon is an e- commerce company and world’s largest online retailer. It was found in 1994 by
Jeff Bezos and launched the same in 1995. Amazon has six websites for different countries like
China, Canada, UK, Germany, France and Japan. It also enables customer to get international
shipping of some products in some specific countries. Amazon is involved into retail marketing
of electronics, fashion, games, baby products, health, personal care and many more. Amazon’s
target marketing strategy depends upon these factors-
1. Providing a wide range of products
2. Using an interface that is very customer- friendly
3. Using current communication systems
4. Utilization of universal mentalities and behavior
5. Exploitation of affiliate resources and products.
Target- marketing strategy of Amazon depends on number of targeted online marketing channel
like online and social advertising, sponsored search and advertisement on television. There are
some principles on which target-marketing strategy of Amazon relies-
 7 P’s of Amazon basically focus on the product and place element. It is offering
approximately 480 million in the USA. If compare to other market players, Amazon is

the one that provides widest product range. Nature of business of Amazon is very
different as it deals online as there is a lot cost saving. Due to this, company is able to
offer all the products on highly competitive pricing (Shi, Gu, Chhajed & Petruzzi, 2016).
 Amazon’s segmentation, targeting and positioning strategies are connected with the
targeting the biggest consumer segment. Amazon does this with the help of multi-
segment, anticipatory and adaptive positioning strategies.
 Amazon’s unique selling proposition helps in the integration of choice of different
products and services that are offered at good prices, amazing customer service and on
time delivery.
 Marketing communication mix of Amazon helps in the integration of print and media
advertising, events and experiences, sales promotions, direct marketing and public
relations. Amazon mainly focuses on the sales promotion and media advertisement
(Gloor et al., 2015).
There are different attractive market segments of Amazon like it used to sell electronic products
that attract young people and households (Lindgreen & Anthony Di Benedetto, 2018). Fashion
products always attract young as well as middle aged people. There are different items for small
children so they can buy from Amazon for their kids like there are mothers who cannot able to
make shopping from market so it is very easy for them to order from Amazon. There are proper
return and exchange policies that helps a lot in shopping.
How do firms manage all of their products and services? What are the steps in the best
development process for new products/services?
Amazon has different strategies of managing all of the products and services. Amazon is
involved into E- business and it has the opportunity to minimize cost of carrying the products.
Amazon took the decision to outsource its inventory so that it can reduce inventory cost. This
decision has been taken so that it can easily increase the profit margin of the organization.
Amazon has partnered with some distributors like Cell Star and Micro so that they can handle the
shipping process. Amazon has increased its efficiency in distribution by outsourcing. Sometimes
it creates risk because there is a confusion, complexity or ambiguity in decision making but it

can be corrected by reformation of the process and bringing improvements in Information
Technologies (Patil & Divekar, 2014). There is a mindset that only small companies can get
advantage of outsourcing because the need experience as well as support in technological aspect.
Although outsourcing result in bringing complexities in supply chains. Outsourcing helps in
maintaining competitive advantage that ultimately contributes in profits by providing methods
and strategies to employees It also assists in adding value to the goods and enhances customer
experience in creating new markets (Berman, Krass & Mahdi Tajbakhsh, 2011).
Amazon also sells products of other competitor’s on its own websites and it is very profitable
because there is awareness about the prices of other products. This also increases the profits of
the company without investing in advertisement. It is declared as a win- win situation for both
amazon and other retailers as both of them getting benefit out of this strategy (Hitt, 2011).
A product launch should be with a good product. The product which you are introducing in the
market must have the ability to attract customers. That is, do proper market research of the
product. If you are of the opinion that the product will not do well, do not go for it. Market
research should incorporate analysis of, for example, the daily sales of products, price and
customer interest (Alessandro, Federica & Dario, 2012).
People, while shopping on amazon are greatly influenced by the image it used to display the
product. Many customers don’t even stop at the product; they will just scroll down, disregarding
the product. The image amazon will use should be very attractive to customers, as if it was made
for the respective customer. The image is the imprint of the launch. It directly affects the future
prospects of Amazon’s product.
Product listing is also an important aspect of successful product launch. Just think of your
product coming on 15th or 16th page of the search results of amongst the same genre of
products. Very few people visit even 3 page amongst the search results, so, it is need to be taken
care of that your product listing is good, for which you have to do various efforts (Lefebvre,
2004). After launch of the product, organization should make an analysis of the product launch,
to provide customers more satisfaction.

References
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