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Market Segementation Market Segmentation Is A Way Essay

Market Segementation Market segmentation is a way to differentiate a group so that the seller of goods or services does not concentrate on the entire universe, but on a group of high potential customers that are more likely to purchase the product. A market segment, of course, is a sub-set of the entire marketing unit that is made up of individuals or organizations with characteristics that allow them to be grouped together to provide a more appropriate marketing experience, a more individuated for of sales. Since different segments have different values, the homogeneity with in the segment defines the common goals and needs. This has been part of the more sophisticated manner of looking at specific demographics and psychographics to set pricing, packaging, and even types of service. In effect, while there may be a number of "ideal" market segments for a specific product or service, manufacturers must develop different ways of creating product different ion strategies to exploit different segments. (Baker and Saren, 2010, 336).

Company Analyzed

Seattle based Amazon.com is now the world's largest bookseller globally. The era of the brick and...

Amazon is able to switch its strategy with almost the touch of a button, and has such a sophisticated set of algorithms that it is almost as if one has a personal shopper at all times -- and not just for books. Obviously, this is succesful since the company posted revenues of almost $50 billion in 2011 (Rosenthal 2009, amazon.com, 2012).
One of the most interesting ways that Amazon uses market segmentation, aside from the obvious categorization of materials, is through its Kindle, a software and hardware platform that displays, stores and allows for manipulation of digital media. Before this release, Amazon put special efforts into converting and releasing a variety of materials compatible with the Kindle. There are Kindle applications for numerous phone and computer platforms as well, and almost any e-book or publication may be read and stored on the device. Indeed, there are even times when Kindle releases outsell printed copies (Ratcliffe, 2009).

Segmentation Theory

Not every book is on…

Sources used in this document:
REFERENCES

The Product Differentiation Curve. (2009, January). Retrieved August 2010, from Mind Tools: http://www.mindtools.com/pages/article/newTMC_93.htm.

Amazon.com (2012). Retrieved from: http://www.amazon.com

Baker, M. And M. Saren. (2010). Marketing Theory. Thousand Oaks, CA: Sage.

Ratcliffe, M 2009, Updating Kindles Sold Estimate: 1.49 Million, Retrieved from:
http://www.zdnet.com/blog/ratcliffe/updating-kindles-sold-estimate-149-
Rosenthal, M. (2010), Book Sales Statistics, Retrieved from: http://www.fonerbooks.com/booksale.htm
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