Pest Analysis for Amazon.Co.Uk Essay Example

in the right track as they will know what to produce, whom to produce for and how to produce the product so that the needs of the customers are met and satisfied. The Target customer Market segmentation: “A segment is a set of buyers who share common needs or characteristics”(Marketing by Tony Gray (2000)) This approach would be more preferable for Goldsport because, “it will help target customers” (Marketing by Tony Gray (2000)) unlike mass marketing, which promotes the same product to the whole market and treat every consumer the same in terms of needs and wants.Segmenting the market will allow the company to focus more clearly on targeting the right customers with the right product that better satisfy their needs. There are a range of segmentations that allows a company to target potential customers effectively.

These include targeting customers Geographically, Demographically, a psychographic approach or taking a behaviouristic approach. Segmenting the market geographically will allow the company to split the market into desired areas. For example, splitting the market by country, region or target sales.The target geographic area for Goldsport is the UK. If the company could split the country into regions where it focuses on specific segments of that area, it would be easier for studying the buying behaviour, their values, life styles and taste and prefernces, hence making discussion of how to produce the product and what price to charge it, as this will reflect the buying behaviour of this region.

Another approach that can be taken to segmenting the market, is by taking demographic measures. This is segmenting the market through age, gender, occupation, income religion or culture.Goldsport has three product

ranges (Track running shoes, a general cross-trainer and a walking shoe) each produced to target different needs. Unlike the walking shoes, Goldsport should aim to target the track running and the G-cross trainer to a variety of customers with common needs.

People wanting to purchase these shoes, ages should rage from as young as five and plus. This is because the people most wanting to purchase these items, would be professional to retired atheletes or those involved in keeping fit through atheletics and want to improve their performance. Behaviouristic segmentation.The area analysis’s the reason why the targeted consumers will buy the product. “These variables include: ‘purchases’ occasion such as birthdays or wedding, the use the product is put to(Marketing by Tony Gray (2000)) Goldsport should aim to target these customers to win customer loyalty and increase the brand image.

The product Consumers needs: After gathering enough information about the consumers requirements, Goldsport will find it easy to discuss and analyse what needs the product will satisfy. This will reduce time wastage and the company will be working to produce the product with the customer in mind which means less mistakes.Product design: Goldsport has already tough competition in the market, ‘Nikeplus’, this is an already established company in the UK. It is therefore very important that Goldsport emerges in the market with a product that has a unique selling point, otherwise, consumers will be tempted to think, “why should I buy Goldsport when I can buy Nike”, even if Goldspport is cheaper than Nikeplus. There needs to be some product differentiation that will make The SmartTrainer stand out.

It is only through analysing the needs of

consumers that Goldsport will be able to use the information to its advantage.The company should also test its products before launching it. “Unilever experienced a setback in 1994, when it failed to test the new launch of Persil Power and found that, when used it tended to rot some clothes” (Tony Gray 2000, Marketing). Goldsport should aim to test the function of the wrist controller and the Chip in the shoe to avoide disappointment, as this can hinder the company’s reputation. The SmartTrainer does have some unique qualities compared to its rival.

It provides three different rages of shoes; however, this can be easily copied by Nike if it finds that their sales are being threatened. Branding:Branding is also a key area to discuss as it is considred sometimes as a “emotional selling proposition”(Tony Gray 2000, Marketin) as well as a unique selling point. In order for The SmartTrainer to be successful as its rival at branding its product, “The name must communicate the products benefits and quality and be easy to recognize, pronounced and rememembered. Good promotional advertisement on TV, images on bill-boards could increase awareness for The SmartTrainer. Although the approach will be expensive in the position of Goldsport, it is still worth taking up on as it will determine the future position of Goldsports, SmartTrainer.