Amazon.Com - Project Paper Essay Example for Free

amazon.Com Project Paper Essay amazon.com is obsessed with fervour to serve consumer and sh areholder a like. Since its outset over fifteen years ago, Amazon.com has steadily grown from a burgeoning dot-com corporation into a transnational monster, a king in the do of import of lucre retail. It takes two goals the satisfaction of a node and effective corporate growth. Its marketing strategies are near-legendary, and budding employment should take a page or several(prenominal) chapters from Amazon.coms proven marketing manual.Amazon.com HistoryJeff Bezos, Amazon.com founder and CEO, dreamed about books. In 1994, he created Amazon.com, Inc., which he labelled as Earths Biggest Bookstore. The ecommerce company went online in 1995 and soon expanded into other media, including DVDs, VHS, CDs, MP3s, and ultimately a wide range of other convergences, including toys, electronics, furniture and apparel. As such, the tagline soon changed to Earths Largest Selection. barely books were only the beginning of Bezos up-and-coming enterprise.Amazon.com went everyday in 1997. In the first shareholder letter, Bezos penned the fundamental frequency foundation for Amazon.coms success Start with customers and work backwards Listen to customers, but dont middling listen to customers also invent on their behalf Obsess over customers. This policy was backed by a startling business philosophy Bezos planned on operating at a bolshie for 4-5 years. It was non until 2001 that Amazon.com posted a net profit at a minuscule one-cent per share. Yet, despite its erratic business strategy, Amazon.com claimed over 1.4 one million million customers after only two years of being online.Now, 45 million satisfied customers shop at Amazon.com for everything from books (most popular) to fashion apparel to fine jewellery to Christmas toys. It has one of the most accepted brand names in the world and garners an estimated 50% of its gross sales from overseas consumers. Surviving the dot-com broke of the young 1990s and early 2000s, Amazon weathered the e-storms and now thrives in the retail marketplace, challenging peddling giants like Wal-Mart and Target. Foc utilise on technological innovation and entered on customer fulfilment, Amazon.com proceeds into the next ecstasy with a profit firmly in one hand, and the capacity to blow it out of the water in the other hand.Amazon.coms Business PhilosophyDespite its massive growth, Amazon.com remains unremittingly focused on the consumer. come in of 452 company goals in 2009, 360 directly affected customer experience. Amazon.coms self-proclaimed mission statement is We seek to be Earths most customer-centric company for three primary customer sets consumer customers, seller customers and developer customers.VisionAmazons vision is to be Earths most customer centric company to reach a place where people can come to find and discover anything they might want to secure online.MissionThe companys six core valu es customer obsession, ownership, bias for action, frugality, exalted hiring bar, and innovation. sloganThe company motto Work Hard, Have Fun, and Make History.Question 1Amazon soon operates in two markets the business-to-business ( passing playing Internet retailing services) and consumer markets (retailing consumer goods). Identify the characteristics of the two types of buyers and markets.Amazon is an online bookstore that trades books from numerous originators including Wrox, OReilly, Premier Press, and so on. In this case, the publishers have the option of either developing their own site or exhibiting their books on the Amazon site (www.amazon.com), or two. The publishers usually prefer to display their books on www.amazon.com at it gives them a astronomicr audience. Currently, to do this, the publishers want to deal with Amazon, involving seller and buyer, is the B2B model. Amazon derives about 40% of its sales from associate marketing called Amazon Associates and third- party sellers who sell harvestings on Amazon. Associates receive a commission for referring customers to Amazon by placing golf links on their websites to Amazon, if the referral results in a sale.Worldwide, Amazon has over 900,000 members in its affiliate programs. Amazon reported over 1.3 million sellers sold products through Amazons World Wide Web sites in 2007. Amazon sellers do not have to maintain separate payment accounts all payments are handled by Amazon. Associates can access the Amazon catalogue directly on their websites by using the Amazon Web Services (AWS) XML service. A impertinent affiliate product, aStore, allows Associates to embed a subset of Amazon products within another website, or linked to another website. In June 2010, Amazon Seller Product Suggestions was launched (rumoured to be internally called Project Genesis) to provide more transparency to sellers by recommending specific products to third-party sellers to sell on Amazon. Products recommended are b ased on customers browsing history.Characteristic of B2BAmazon uses B2B by providing the opportunity to purchase and sell all types of products via the internet. It allows for relationships to be established in order to complete sales and business transactions. Additionally, providing e-mail address and having personalized memberships are methods for dispensing sale ads and providing discount coupons is a use of the internet by Amazon. Rather than producing time-intensive and costly physical copies for each consumer, a central server or e-mail list can serve as an efficient method for distributing necessary information to the general public The characteristic of B2B is a long-term Usually involves negotiations and contractual commitments between long-term trading partners (E.g. Suppliers, manufacturers). Thus, also generates high sales revenue and volume.Significant characteristic is relationship driven not product driven. The BCB model get ups maximation of the value of the relat ionship and bonding. Buyers and sellers work more closely together and build long-term relationships. Thus sagacious buying decision is based on business value. The sales cycle in the B2B world is oft much longer and more complex. It mainly maximizes on the value of relationships. Amazon focuses on maintaining communication and create relationships. Marketing activities involving lead generation that can be nurtured during the sales cycle can be used to attain this goal. B2B features a multi-step buying process that needs more than one person to decide on the purchase olibanum B2B companies employ marketing to educate its target audience.Take for example in an email campaign, objective of Amazon is to drive prospects to the site to learn about their products and services. High expectations for service Customised services and goods auction pitch and managing inventory for business partners that extend the supply chain so companies can respond on minute-by-minute basis. lettered buyers Suppliers (Amazon associates) and buyers who understand and well-versed in trading in their industry. Involving more buyers, with extensive decision process, the process is more breezy and complex. The buying becoming is more formalised professional purchasing effort. Nevertheless, B2B models always emphasis in educational and awareness building activities to grasp repeat business.Characteristic of B2CThe above B2C model reflects an individual consumer transact with business organisation, consumer searches for a book on Amazon site and places an order, if required. The B2C category has expanded greatly in the late 1990s with the growth of public access to the Internet. It largely equates to electronic retailing and its main objective is to aggressively convince prospective buyers to shop. B2C companies, including Amazon employ different marketing campaigns for publicizing their goods and services. This would include coupons, vouchers, email blasts, banner ads, limited edi tion offers and the likes to entice their target market to buy. These campaigns are much shorter in duration thus the urgent need to secure the customers interest very quickly. The B2C model of e-commerce is more given over to security threats because individual consumers provide their credit card and personal information in the site of a business administration. In addition, the consumers might doubt that his/her information is secured and used effectively by the business organization.This is the main reason why the B2C model is not very widely accepted. Therefore, it becomes very essential for the business organization to provide robust security mechanisms that can be guarantee a consumer for securing his information. Consumer markets are the markets for products and services bought by individuals for their own or family use. B2C sales are more engrossed on a very large market segment market is the total sales market of consumers.There is very little diversity or qualification of potential customers. If the product appeals to them, then they are a customer to which Amazon whitethorn sell their product. And B2C or businesses that sell consumers more focussed on transactional relationship. However, the traffic volume is very circumstantial due to high volume, low unit value. This characteristic explains that number of customers is many or large target market but limited purchase unit or value. Similar to FMCG (fast moving consumer goods) are products that are sold quickly and at relatively low cost. Nevertheless there is fast repurchase derived or in another words frequent purchases. B2C sales are driven by highlighting the advantages of the product and its usefulness. Depending on how the product is presented to the end user, it may appeal to them based on novelty, ease of use, appearance or price. Usually the aspects of status, desire and price can lead to emotional buying decision.Besides that in B2C, since it is product driven, the product and its feat ures also able to influence customer during the point of sale. B2C characteristic is inclusive a undivided step buying process, shorter sales cycle. The path to purchase must be short and simple just a few clicks from email receipt to order confirmation. Any more than a couple of clicks and the customer are likely to abandon the shopping cart. The call to action must be obvious and the offer enticing. Besides that email campaigns often highlight special deals and discount that can be used both online and in store. They can also be informative especially if the aim is to build the brand and enhance customer loyalty. Loyalty is an important aspect in B2C marketing. This proved very true for company like Amazon. They combine good customer service and education on their product and services thus their customers victuals coming back. Amazons brand identity created through repetition and imagery.