Question

5-The evaluation of the current marketing strategy of the AMAZON for kindle e reader

a) Market segmentation

b) Target market/s and their characteristics

c) Differentiation and positioning strategy

Answer 1

5 (a) The marketing strategy of Amazon with regards to kindle e-reader is that it has selected the segment of persons who read the book, need to access books online, or are students. Segmentation means having the information that will help Amazon divide its customers into smaller groups based on their characteristics such as age, actions, personality, or activities. To access the segment that would purchase e-books, movies, content, and music, Amazon priced the e-reader at a little below cost. The segmentation strategy of Amazon was that those who purchased the e-reader would also purchase books, and content from Amazon.
(b) The target audience for the Kindle e-reader is the low-income customer. Specifically, it targeted young people and students. The Amazon e-reader enabled them to do a lot without costing too much.
Among the Amazon customers, Kindle e-reader was targeted at those who wanted easy access to their accounts, bookstore, app store, movies, and music store. It also targeted Amazon users who wanted to store their documents and photos on Amazon Cloud.
(c) The differentiation and positioning strategy of Amazon e-reader are that Amazon the content being offered by Amazon e-reader is unique and at the lowest price available. Amazon has struck direct deals with authors and publishers to get unique content. Moreover, e-reader differentiates itself by providing a plethora of books, videos, and music that other competitors cannot match.
The positioning of an e-reader concerning its competitors iPad, Nook, and Kobo is that Amazon e-reader is smaller and has less memory than iPad, but is far lower priced and provides access to a larger variety of content at low prices. In comparison with Nook and Kobo, Amazon e-reader provides access to more books, more content, and more movies at lower prices than what Nook and Kobo can provide.