B2B

ASSIGNMENT:1

Submitted By
Name: J Priyanka
Roll No:191226
Section: B

Submitted To
MR. Venkatesh Akella
SR.ASST. Professor

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Table of Content:

S.No Topics Page No

1  Introduction  3

2  FAB Analysis  5

3  Marketing and Sales Functions of Amazon  6

4  Organization buying process for Amazon  7

5 Organization buying situation  8

6 Organization Buying centre influence Matrix  9

7  Buy Grid Model  11

8 Organization Departments 12

9 Organization buying behaviour 13

10  Buying Centre Participants 14

11  Bibliography  15

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 AMAZON (B2B COMPANY)
INTORDUCTION
Amazon.com, Inc. is an American multinational technology company based in Seattle,
Washington. Amazon focuses on e-commerce, cloud computing, digital streaming,
and artificial intelligence. It is considered one of the Big Four technology companies, along
with Google, Apple, and Facebook. It has been referred to as "one of the most influential
economic and cultural forces in the world" as well as the world's most valuable brand.

Amazon is known for its disruption of well-established industries through technological

innovation and mass scale. It is the world's largest online marketplace, AI
assistant provider, live-streaming platform and cloud computing platform as measured
by revenue and market capitalization. Amazon is the largest Internet company by revenue in
the world. 

Amazon was founded by Jeff Bezos in Bellevue, Washington, on July 5, 1994. The company
started as an online marketplace for books but expanded to sell electronics, software, video
games, apparel, furniture, food, toys, and jewellery. In 2015, Amazon surpassed Walmart as
the most valuable retailer in the United States by market capitalization. In 2017, Amazon
acquired Whole Foods Market for US$13.4 billion, substantially increasing Amazon's
footprint as a physical retailer. In 2018, Bezos announced that its two-day delivery
service, Amazon Prime, had surpassed 100 million subscribers worldwide.

Amazon distributes downloads and streaming of video, music, and audiobooks through

its Prime Video, Amazon Music, Twitch, and Audible subsidiaries. Amazon also has a
publishing arm, Amazon Publishing, a film and television studio, Amazon Studios, and a
cloud computing subsidiary, Amazon Web Services. It produces consumer
electronics including Kindle e-readers, Fire tablets, Fire TV, and Echo devices. In addition,
Amazon acquisitions include Ring, Twitch, Whole Foods Market, and IMDb. Among various
controversies, the company has been criticized for technological surveillance overreach, a
hyper-competitive and demanding work culture, tax, and anti-competitive practices. Amazon
owns over 40 subsidiaries, including Audible, Diapers.com, Goodreads, IMDb, Kiva Systems
(now Amazon Robotics), Shopbop, Teachstreet, Twitch and Zappos.

PRODUCT: MOBILES

Today smart phones are the devices which provide all the facilities what a user need in his
daily life, such as e-mail, notebook, Bluetooth, gaming panel, high resolution camera

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applications, Microsoft office suite, television and many other computerized applications that
a human being can just think of. There is also a lot of perceptions about that smart phones
will take over the other digital computerized devices like laptops, personal computers, and
notebooks. The technology used in smart phones is getting advance day by day. Technicians
are committing their time to explore new technologies and putting them into one simple
device called smart phone for the beneficial future of human being.

Smart phone are the best digital devices of present which provides what a human need.
Everyone try to have a smart phone instead of having a simple phone because by a simple
mobile he can only do call or text to other numbers but having a smart phone is beneficial by
this we can do our office work on MS Office, can check our mails any time anywhere and
there are a lot of more things that we can do with smart phones.
As we can see the success of smart phones in the existing time, it is not that difficult to see
that these smart phones will take over other digital devices, not necessary in few years, but
definitely in some years in the future. These smart phones have everything that suits the user
requirements. If a person wants to access the emails and the World Wide Web, he/she can
easily do this by using the smart phone without using a PC, notebook, or a laptop. If a person
wants to schedule his/her appointments and necessary dates, he/she can do this simply by
using the smart phone, without the use of any kind of computers.

FAB (Features, Advantages, Benefits)

FEATURES

1. A long-lasting battery
2. Warp-speed processing. ...
3. Crystal-clear display. ...
4. A great camera. ...
5. NFC. ...
6. Multiple windows. ...
7. Plenty of storage space. ...
8. Infrared remote control.
ADVANTAGES
 Communication
 Small and Convenient
 Photos and Video
 Texting
 Fashion and Self-Expression
 Entertainment
 Notes and Reminders

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  Video in Real Time
 Calendars and Organization
 Maps, Navigation, and Travel
 Online Banking and Finance
 Address Book and Contacts
 Remote Working
 Emergencies
 Watches and Alarm Clocks
 Calculator
 Flashlight/Torch
 News, Sports, and Live Events
 Crime Prevention and Evidence Gathering
 Learning and Research

BENEFITS

 Keep in touch
 Browse the internet whenever
 Access many applications
 Save money
 Smart Phones are not only used for communication, but for organizing, schedules,
jotting down notes, playing music, games, checking the weather and other
applications

SALES AND MARKETING FUNCTIONS OF AMAZON

“The Amazon B2B marketplace merges the experience and convenience of shopping on
Amazon.in, our B2C (Business to Consumer) marketplace, with features required specifically
by businesses including business only pricing, quantity discounts on bulk orders and business
invoices to claim GSTIN credit and tax deductions,” he said. GE, Qualcomm, Swiggy and
Chumbak are some of Amazon Business’ customers.

Launched in the US in 2015, Amazon Business is now available in eight geographies

including Spain, France, Italy, US, UK, Germany, Japan, and India. It allows sellers who
have a GST number to sell on the marketplace and allows any business with a GST number
to register itself as a buyer. All products sold on the platform will come with GST complaint
business invoices, allowing customers to save up to 5 per cent – 28 per cent on business
purchases by claiming GST input tax credit.

Top Sellers and business customers get business analytics from Amazon, which provides
insights into business spends with customised reports. They also get access to fast and
reliable shipping with doorstep delivery via Amazon’s network of over 50 fulfilment centres.

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Stating that sales on the B2B marketplace has been growing 200 per cent YoY, George said,
the top categories in terms of demand and sales are PCs, followed by Electronics, Mobile
phones, Kitchen and Home

Amazon is a competitive marketplace. As of this writing, there are more than 2.5 million
sellers selling on Amazon.com. With this competition, the 300 million1 Amazon customers
can browse between similar products to compare value, price, and product features. This
makes it crucially important to merchandise products by explaining the key product features
and how the product is better than similar products. With this level of competition marketing
a product can be expensive due to the nature of cost per click (CPC) advertising. The more
crowded the sales category, the more expensive it is to market a product. Even though it may
be expensive to compete, the reward is often worth the cost. If a product is positioned well in
the market and presents significant value, Amazon can be a remarkably lucrative sales
channel for businesses. Marketing is involved in all aspects of selling on Amazon, from
merchandising to advertising. From designing a product’s listing to promotion, it is important
to keep in mind how an Amazon customer shops to understand how the Amazon marketplace
operates. Most customers shop on Amazon by inputting the keyword to what they are
searching for. The Amazon Search Bar, customer’s starting point for shopping on Amazon
The purpose of nearly all marketing is directing customers to consider your product or brand
and then sell them on its value resulting in a purchase. Marketing on Amazon.com is no
different. The purpose of marketing functions on Amazon.com is to drive customers to visit a
product listing and then sell them on its value compared to alternative products, resulting in a
purchase.

This divides Amazon Marketing Functions into two groups:

• Functions that drive customers to visit your listing

• Functions that sell the product’s value.

The marketing functions that sell the value of a product to customers can all be found on the
product detail page or “product listing.” The listing’s bullet points, title, product description,
images/media, product reviews and backend search terms all influence an Amazon
customer’s purchase decision. Pricing and shipping options also play a role in this decision.
Additional services Amazon provides to enhance your product detail page include A+

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Product Detail Page Content and the Amazon Vine review program. Product listings need to
convey the product’s value to the customer clearly and quickly because their exposure to your
product listing will be brief and there is limited amount of characters and images allowed.

The marketing functions that drive customers to product listings are largely found in AMS or
Amazon Marketing Services. These marketing services include sponsored product
campaigns, product display ads and headline search. These functions are all about driving
interested customers that are ready to purchase to a listing. For maximum efficiency of
marketing spending, sellers need to be specific regarding who is targeted.

8 STEPS BUYING PROCESS WITH RESPECT TO PRODUCT

Problem Recognition

The process begins when someone in the organization recognizes a problem or need that can
be met by acquiring a good or service(mobile). Problem recognition can occur because of
internal or external stimuli. Internal stimuli can be a business problem or need that surfaces
through internal operations or the actions of managers or employees. External stimuli can be
a presentation by a salesperson, an ad, information picked up at a trade show, or a new
competitive development.

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General Need Description

Once they recognize that a need exists, the buyers must describe it thoroughly to make sure
that everyone understands both the need and the nature of solution the organization should
seek. The buyer identifies and prioritizes important product(mobile) characteristics. Armed
with knowledge, this buyer understands virtually all the product-related(mobile) concerns.

Product Specification

Technical specifications come next in the process. Engineers design several alternatives, with
detailed specifications about what the organization requires. These specifications of mobile
align with the priority list established earlier.

Supplier Search

The buyer now tries to identify the most appropriate supplier (also called the vendor). The
buyer conducts a standard search to identify which providers offer what they need, and which
ones have a reputation for good quality, good partnership, and good value for the money.

Proposal Solicitation

During the next stage of the process, qualified suppliers are invited to submit proposals.
Depending on the nature of the purchase, some suppliers send only a catalogue of mobile or a
sales representative.

Supplier Selection

At this stage, the buyer screens the proposals and makes a choice. A significant part of this
selection involves evaluating the vendors under consideration. The selection process involves
thorough review of the proposals submitted, as well as consideration of vendor capabilities,
reputation, customer references, warranties, and so on. Proposals may be scored by different
decision makers using a common set of criteria for mobiles

Order-Routine Specification

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The buyer now writes the final order with the chosen mobile supplier, listing the technical
specifications, the quantity needed, the warranty, and so on. At this stage, the supplier
typically works closely with the buyer to manage inventories and deliver on agreement terms.

Performance Review

In this final stage, the buyer reviews the supplier’s performance of mobiles and provides
feedback. This may be a very simple or a very complex process, and it may be initiated by
either party, or both. The performance review may lead to changes in how the organizations
work together to improve efficiency, quality, customer satisfaction, or other aspects of the
relationship.

Procurement Processes for Routine Purchases

As noted above, the complete eight-stage buying process describe here applies to new tasks,
which typically require more complex, involved purchasing decisions

B2B buying situation

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In this situation, one can refer the buyer behaviour as process of decision-making through
which establishes the need for purchased products amid the clients for identifying, evaluating,
and choosing from the alternatives. Organizations buying mobiles or accessories products go
through seven stages of decision-making process.

A buying situation relates to the circumstances surrounding a purchase that can be defined by
the quality of information and experience that the buyer has concerning the products and
vendors available, as well as the effort it will take to make the purchase decision.

Straight rebuy is the situation under which the buyers are engaging in the routine purchase of
standard products from a familiar supplier where you do not make any modifications from the
most recent order.

A perfect example is ordering some boxes of copier paper, pens, and pencils from your office
supplier. It does not take much effort except to confirm the sales order has been satisfied.

Modified rebuy is the situation where the purchaser is going to buy a similar product but
there is a significant difference in the purchase from the previous purchase. The difference
may include a change in the product specifications or a new supplier. An example may be
switching to a different type of software provided by a different vendor. This buying situation

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involves more effort because you are going to have to research product specifications and
evaluate vendors, as well as possibly negotiate new contracts.

The environmental factor of a products(mobiles) demand affects the organizational buying

behaviour. Organizational factors in terms of zero-based pricing, longstanding contracts,
seller’s performance assessment and centralization or decentralization of purchasing
department affects the organizations buying behaviour.

ORGANIZATION BUYING GRID MODEL

1. New Tasks:

The first-time buyer seeks a wide variety of information to explore alternative purchasing
solutions to his organizational problem. The greater the cost or perceived risks related to the
purchase, the greater the need for information and the larger the number of participants in the
buying centre.

2. Modified Rebuy:

The buyer wants to replace a product the organisation uses. The decision making may involve
plans to modify the product specifications, prices, terms, or suppliers as when managers of
the company believe that such a change will enhance quality or reduce cost.

In such circumstances, the buying centre proved to require fewer participants and allow for a
quicker decision process than in a new task buy class.

3. Straight Rebuy:

The buyer routinely reorders a product with no modifications. The buyer retains the supplier
if the level of satisfaction with the delivery, quality and price is maintained. New suppliers
are considered only when these conditions change. The challenge for the new supplier is to
offer better conditions or draw the buyer’s attention to greater benefits than in the current
offering.

The buy phases are:

(i) Recognition of the organizational problem or need.

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(ii) Determination of the characteristics of the item and the quantity needed.

(iii) Description of the characteristics of the item and the quantity needed.

(iv) Search for and qualification of potential sources.

(v) Acquisition and analysis of proposals.

(vi) Evaluation of the proposals and selection of suppliers.

(vii) Selection of an order routine.

(viii) Performance feedback and evaluation.

The most complex buying situations occur in the upper left quadrant of the buy grid matrix
where the largest number of decision makers and buying influences are involved. A new task
that occurs in the problem recognition phase (1) is generally the most difficult for
management. The buying process can vary from highly formalized to an approximation
depending on the nature of the buying organisation, the size of the deal and the buying
situation. The relationship between the buyer and seller is initiated in phases 1 and 2.
Assessing the buyer’s needs and determining gaps between the current and desired situation
is important.

The relationship needs to be developed during phases 3 to 7. A salesperson must be aware

that a buyer not only has functional needs, but psychological, social, knowledge and
situational needs as well. These components should be addressed in meetings to obtain
commitment. The purchase can be a one-time transaction of a repetitive nature. As buy
phases are completed, the process of ‘creeping commitment’ occurs and reduces the
likelihood of new suppliers gaining access to the buying situation.

During the performance feedback and evaluation phase, the relationship between the seller
and buyer can develop into a longer-term engagement. Buyer loyalty and customer
satisfaction are primarily determined by the sales activities during this last phase.

Buy Phase Buy Classes

New Task Modified Straight task
Task
1 Need Recognition 
2 Need definition 
3 Solution Specification   
4 Supplier Search  
5 Proposal Solicitation 

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6 Proposal Evaluation  
and Vendor Selection
7 Order Routine  
Selection
8 Performance Review   

Organization Buying centre influence Matrix:

Phase New Buy Modified Buy Straight Buy
Problem R&D R&D
Recognition Sales and Marketing Sales and Marketing
Purchasing
Need Description Purchasing Purchasing Purchasing
R&D
Product R&D R&D
Specification
Supplier Search R&D R&D
Purchasing Purchasing
Sales and Marketing
Proposal Analysis Purchasing Purchasing
Supplier Selection R&D Purchasing
Purchasing Quality Control
Quality Control
Order Purchasing Purchasing Purchasing
Implementation
Performance Quality Control Quality Control Quality Control
Review Sales and Marketing Sales and marketing Sales and Marketing

ORGANIZATION DEPARMENTS

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DEPARTMENTS OF AMAZON ARE:

1. Retail goods.
2. Amazon Prime.
3. Consumer electronics.
4. Digital content.
5. Amazon Video.
6. Delivery.
7. Amazon Business.
8. Amazon Drive.
9. Sports & Outdoors.
10. Clothing, Shoes & Jewellery.
11. Health, Household & Baby Care.
12. Industrial & Scientific.
13. Home & Kitchen.
14. Tools & Home Improvement.
15. Toys & Games.
16. Automotive Parts & Accessories

ORGANIZATION BEHAVIOUR

Buying behaviour differs greatly dependent on the product; explain how consumers’ purchase
of the Amazon Fire smart phone might differ to that of another product.

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Consumer buying behaviour is highly influenced with the nature of the product. In taking the
example of purchasing the Amazon Fire phone with that of a tube of toothpaste is being
shown in the following chart: (Chand, 2015)
Buying Behaviour
Complex Buying Behaviour
Dissonance-reducing Buying behaviour
Habitual Buying behaviour
Variety seeking Buying behaviour
ORGANAZATION CENTRE PARTICIPANTS
Explanation
Here, the consumers are highly involved with
their purchase as the product is expensive,
risky, infrequent purchase which requires
buyers to search for the information,
screening of the alternatives and then
purchase considerations comes. In this case
the buyer must go through with some process
which starts with the establishment of the
beliefs regarding the product, after that an
attitude with a thoughtful choice for the
purchase. In this behaviour, Amazon Fire
phone can be putted due to its nature that
matches with the complex buying behaviour.
Here also the product is expensive,
infrequently purchase and requires certain
consideration before the purchase. But after
the purchase, the consumers want to see the
favourable hearings of that product he/she has
purchased which justifies his/her purchase
decision. The buyer of the Amazon Fire
phone can also possess this buying behaviour.
Here the customers used to purchase the
product without seeking any information or
other considerations. The product is relatively
cheap and frequently purchase which makes
the habit of the consumer to purchase only
that product. In this case, the toothpaste can
be the example where the buyer possesses this
buying behaviour.
Here the consumer has a lower brand loyalty.
They want to switch to another brand very
often.
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A buying centre is comprised of all those individuals and groups who participate in the
buying decision-making process, who share some common goals and the risks arising from
these decisions.
When a buying centre includes many participants, the industrial/ business marketer will not
have the time or resources to reach all of them. Small sellers could concentrate on reaching
the key buying influences. Large sellers on the other hand go for multi-level in-depth selling
to reach as many buying participants as possible.
It is important to note, that functional responsibilities and job titles are often not true
indicators of the relative influence of buying centre members in a purchase decision task.
The buying centre is defined as members of the organization having face-to-face contact with
others with respect to the purchase decision and who realize or perceive both an influence
and a responsibility to a purchase decision.
In the tradition of formal organizational theory, the responsibility and authority of the
member’s organizational position creates a formal stake for him/her in purchase decisions
involving his domain. Also, an individual can become a buying centre member by possessing
information critical to the decision. The main role participants are purchasing agents,
scientists, and managers.
Key Members of Buying Centre:
Within any organization, the buying centre will vary in the number and type of participants
for different classes of products.
But on an average a buying centre of an organization has the following seven members or a
group of members who play these roles:
1. Initiators:
sually the need for a product/item and in turn a supplier arises from the users. But
there can be occasions when the top management, maintenance, or the engineering
department or any such recognize or feel the need. These people who “initiate” or
start the buying process are called initiators.

2. Users:
Under this category come users of various products. If they are technically sound like the
R&D, engineering who can also communicate well. They play a vital role in the buying
process. They also act as initiators.

3. Buyers
They are people who have formal authority to select the supplier and arrange the purchase
terms. They play a very important role in selecting vendors and negotiating and sometimes
help to shape the product specifications.

4. Influencers
Technical personnel, experts and consultants and qualified engineers play the role of
influencers by drawing specifications of products. They are, simply put, people in the
organisation who influence the buying decision.

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5. Deciders:
Among the members, the marketing person must be aware of the deciders in the organisation
and try to reach them and maintain contacts with them. The organisational formal structure
might be deceptive, and the decision might not even be taken in the purchasing department.

6. Approvers:
People who authorize the proposed actions of deciders or buyers are approvers. They could
also be personnel from top management or finance department or the users.

7. Gate Keeper:
A gatekeeper is like a filter of information. He is the one the marketer must pass through
before he reaches the decision makers. Understanding the role of the gatekeeper is critical in
the development of industrial marketing strategies and the salesperson’s approach. They
allow only that information favourable to their opinion to flow to the decision makers.

BIBILOOGRAPY:

1)https://www.sourceapproach.com/amazon-b2b-everything-sellers-need-to-know-about-amazon-
business/
2)https://www.amazon.in/b?ie=UTF8&node=21102587031
3)https://www.orcapac.com/blog/amazon-b2b/
4) https://www.digitalcommerce360.com/2019/08/09/amazon-tests-the-market-for-private-label-b2b-
products/
5) https://www.applicoinc.com/blog/amazon-business-b2b-distributor/
6) https://www.businessmanagementideas.com/buyer-seller-relationship/buyer-seller-relationship-in-
business-markets/17634#:~:text=For%20example%2C%20a%20new%20supplier,market
%20information%20is%20also%20reduced.
7) https://tinuiti.com/blog/amazon/amazon-b2b/

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