Melissa is a mother of 2, lives in Utah, and writes for a multitude of sites. She is currently the EIC of HarcourtHealth.com and writes about health, wellness, and business topics.

In the U.S., 60% of employees Amazon’s employees are white, while 5% are black. Additionally, 13% are Asian, and 9% are Hispanic. Similar statistics define their management team. The online retail giant is making strides to increase its diversity so that its workforce matches the demographics of current and targeted future customers. One way it’s doing this is by investing in market segmentation.

Getting to Know All the Customers

Segmentation and market positioning incorporate a retailer’s efforts to get to know all its customers. This includes specific groups and the products and services that attract them.

Segmentation divides local, national and international clients or prospective clients into groups based on characteristics. It differs from targeting, which involves choosing specific groups to sell products to. Positioning refers to the marketing mix that appeals to a target customer segment.

These tools help retailers better understand their client base for more successful sales performance.

Amazon’s Segmentation

Amazon mainly uses the following two types of segmentation:

Multi-segment positioning. Amazon offers a variety of products designed to appeal to as many segments as possible. Offering millions of products also makes the online giant the go-to choice for most customers.

Adaptive positioning. The online retail giant studies and analyzes the external marketplace to stay in tune with customer expectations. Occasionally, it repositions services and products to respond to changes in particular segments.

Here are a few examples of how Amazon slices and dices its target markets.

Geographic

Amazon targets ads for customers in more than 100 countries and adapts its marketing for urban versus rural shoppers.

Demographic

Marketing is targeted to meet the age range of the target market, such as over 50, under 30 or 18 and older. Products that are gender-specific may be handled differently.

Psychographic

Psychographic factors include social class, lifestyle and even level of education. Products should be marketed to appeal to the widest audience possible. However, it’s important to know what each identified group values. Lower and middle-class families, for example, will have different priorities than upper-class ones with more disposable income.

Lifestyle considerations include the prospects life perspective. This is how customers see themselves. Are your customers mainstreamers, reformers, explorers or more resigned?

Reaching and Accessing Emerging Markets

Asia is one of the emerging markets for Amazon buyers and sellers. However, creating innovative marketing campaigns can make it easier for those markets to connect products with new markets. One way to do this with to create a summary page that promotes symbiotic products that are not in direct competition with one another. Aligning with top sellers on Amazon makes this approach even more effective.

Make sure to familiarize yourself with the laws and customs in the market where you want to sell your products.