Name of The University:: Amazon Company

AMAZON COMPANY 1 | P A G E
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Amazon.
This is a business to customer company. The products of the company are traded directly to
the customers who are the end users of the said products. The customers also do their
transactions directly with the Amazon company. Amazon is an American company that deals in
electronic commerce and cloud computing. The company was founded in 1994 by Jeff Bezos
with its headquarters in Washington.
The main reason for the creation of the company was to help solve the market inequality
that existed in the market.
Activities and products of Amazon that supports its business model.
The company has ensured that it’s products and the activities that it engages in are in line with
the business to customer model.
Direct email addresses to the company. The customers of the company are allowed to send
direct mails to the company in case they want to inquire for anything that concerns the services
and the products that they receive from the company. This platform enhances the relationship
between the customer and the company hence a good working relationship. In addition to that,
“the company has ensured that the messages sent by the customers are replied to promptly thus
creating the customer’s loyalty and satisfaction”. (Osterwalder, A., & Pigneur, Y. (2010 p76).
Shipping services. The company after an order is made ensures that the product is shipped to
the location of the buyer within two working days. Items stocked by Amazon such as books,
DVD products, video and music are ferried to the customers within the shortest time possible.
This is done to ensure that the customers are not inconvenienced in their quests to use the
products.
The company came up with the customer relation management. The customer relation
management is a department within the company that ensures that the feedbacks received from
the customers as complaints and complements are well taken care of. This ensures that the
relationship between the company and its customers is good and the working relationship
maintains the required ethical practices. “The customer relations management is charged with the
responsibility of ensuring that the customer satisfaction and loyalty by doing all that it can to
achieve its goals”. (Gefen, D., Karahanna, E., & Straub, D. W. (2003 p234)
The company has been working day and night to improve their products and services. They
did this by investing more on technology and an innovative team that works on new products
innovation. This ensures that the company offers its customers better quality products which
meets their expectations and better services unlike other companies that maybe providing similar
products.
The company has invested in serious advertisements on social media which has a wide
coverage and other media outlets to create awareness of their products and services. This is one
of the best strategies and activities that the company has invested in. They do this to ensure that
they create awareness on the potential customers, to make them know the changes they have
made on the products in terms of quality, quantity and the prices being changed on the products.
The essence of the adverts is meant to make more loyal customers who are already loyal to the
company and also to get more customers from the market that is flooded with many products.
(Amazon, E. C. (2015 p145).

THE BASES FOR CUSTOMER SEGMENTATION IN A MARKET.
The following are the customer segmentation strategies that are always being used in the market
for different class of people.
1. Demographic segmentation.
This is the type of segmentation that divides a given market into given groups based of factors
such as age, gender, family size, the amount of income they get, the type jobs they do, the level
of education an individual has and the religion one subscribes to. These segmentations are very
important to a seller. (Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015 p97).
Age of the customers. This is the most important variable that is used in segmenting the
customers. A product that is being sold to the youth may not be sold at the same price to the old
people who have retired from active employment. Equally goods that are mostly consumed by
the old cannot be expected to be sold to the youth. The children, teens, adults and the senior
members of the society all have different taste and preferences hence should be segmented.
The gender of the customers. In a market, we have people of different gender. The male has
their own taste and preference hence cannot be treated as the female. (Armstrong, G., Kotler, P.,
Harker, M., & Brennan, R. (2015 p102).
Income of the customers. Those who earn higher salary may be ready to part away with
large sum of money unlike low income earners. It is therefore justified to segregate the two
classes.
2. Geographic segmentation.
This is segregation of customers in a market in terms of where they leave. Those of stays in the
city are more likely to be able to pay higher prices for a product unlike those who stays in the
rural areas. Tentatively, those who stay in slums or low profile estates may not be able to pay the
same prices for a given product like those who stay in leafy suburbs can do. It is therefore one of
the most appropriate segmentation tool for customers. It also attempts to bridge the gap between
those who have and those who don’t have. ( Armstrong, G., Kotler, P., Harker, M., & Brennan,
R. (2015).
3. Psychographic segmentation.
This is the segmentation of customers based on the lifestyle that one leads and the personal
attributed of such individuals. Some products are just a preserve for a given class of people since
their lifestyle matches such goods and services. “Therefore, it is important to sell goods to
customers while considering their lifestyle and the personal attributes of the customers”.
(Hollensen, S. (2015p256).
4. Behavioral segmentation.
In this type of segmentation, the customers can be divided into groups in terms of their
knowledge of the product, the attitude they exhibit towards the given product or manufacture, the
frequency at which they use the product, and many other factors that concerns the behavior of
the customer. (Hollensen, S. (2015).
Segmentation used by Amazon.
Amazon mostly uses geographical segmentation.

The company uses this type of segmentation because its customers are spread in different areas
which cannot be treated equally in terms of wealth endowment.
The segmentation option is achieved by selling the products of the company differently to the
customers and explaining to the reason for that. These are always due to transportation and
shipping costs that the company has to incur before the goods reach them.
However, the factors influence the promotional strategies in many ways since the company has
to go an extra mile to give explanations for the segmentation, advertise in local dailies which is a
bit expensive and many other factors that affects their promotional strategies.
References.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Gefen, D., Karahanna, E., & Straub, D. W. (2003). Trust and TAM in online shopping: An
integrated model. MIS quarterly, 27(1), 51-90.
Amazon, E. C. (2015). Amazon web services. Available in: http://aws. amazon.

com/es/ec2/(November 2012).
Nepstad, D., McGrath, D., Stickler, C., Alencar, A., Azevedo, A., Swette, B., ... & Armijo, E.
(2014). Slowing Amazon deforestation through public policy and interventions in beef and soy
supply chains. science, 344(6188), 1118-1123.
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction.
Pearson Education.
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.

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AMAZON COMPANY 1 | P A G E

Name of the university:

Student’s reg. no:

with its headquarters in Washington.

that existed in the market.

Activities and products of Amazon that supports its business model.

the business to customer model.

(Amazon, E. C. (2015 p145).

THE BASES FOR CUSTOMER SEGMENTATION IN A MARKET.

for different class of people.

Harker, M., & Brennan, R. (2015 p102).

the customer. (Hollensen, S. (2015).

Segmentation used by Amazon.

Amazon mostly uses geographical segmentation.

which cannot be treated equally in terms of wealth endowment.

Amazon, E. C. (2015). Amazon web services. Available in: http://aws. amazon.

Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.

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