UNIVERSITI TEKNOLOGI MARA

FACULTY OF BUSINESS MANAGEMENT

BBA(HONS) MARKETING

SALES FORCE MANAGEMENT

(MKT623)

GROUP ASSIGNMENT
(WRITTEN REPORT)

(AMAZON COMPANY)

PREPARED BY:

DAYANGKU ROSHAFIZA ROSMADIN 2019231098

MOHD KHAIRIL EKHSAN BIN ABD RAHMAN 2019207736

NUR RAIHANAH MOHD RALI 2019468486

REFFLEY BIN JAIMI 2019468508

SUBMITTED TO:

SIR MOHAMMAD FIRDAUS MOHAMAD

SUBMISSION DATE:

10/01/2022
ACKNOWLEDGEMENT
We would like to express our deepest appreciation to those who help us a lot in completing our
assignment project. We would like to acknowledge with much appreciation to Universiti
Teknologi MARA (UiTM) for allowing us to do such an assignment for Salesforce
Management (MKT623) subject. A special gratitude we give to our MKT623 lecturer, Sir
Mohammad Firdaus Bin Mohamad for the guidance and encouragement in other to help us in
completing our case study within the period given.
Apart from that, we would like to express gratitude to all the parties involved in the
success of our project especially both our parents and teamwork, Dayangku Roshafiza, Nur
Raihanah, Mohd Khairil Ekhsan and Reffley as well as to those who provide support either
directly or indirectly. Without help from various parties, it may be quite difficult for us to
complete this task perfectly.

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 TABLE OF CONTENTS
Executive Summary......................................................................................................................... ii
1.0 Company Profile ........................................................................................................................ 1
2.0 Timeline Of Amazon Company .............................................................................................. 2-4
3.0 Company’s Product ................................................................................................................... 4
4.0 Company’s Segmentation, Target Marketing, And Positioning............................................... 5
4.1 Segmentation Strategy ........................................................................................................ 5-7
4.2 Target Marketing ................................................................................................................ 7-8
4.3 Positioning Strategy ............................................................................................................... 8
5.0 Stages In The Selling Process Of Amazon................................................................................. 9
5.1 Prospecting The Customer .................................................................................................... 9
5.2 Opening The Relationship ................................................................................................ 9-10
5.3 Qualifying The Prospect ...................................................................................................... 10
5.4 Presenting The Sales Message ............................................................................................. 11
5.5 Closing The Sale ................................................................................................................... 11
5.6 Servicing The Account ......................................................................................................... 12
6.0 Challenges Faced By Amazon Company ........................................................................... 12-13
Conclusion ..................................................................................................................................... 14
References ...................................................................................................................................... 15
EXECUTIVE SUMMARY
This paper required students to choose a company that conducts business to business and then
explained details about the business conducted by that company. Therefore, we have chosen
Amazon company which is one of the well-known companies in the world that run Business-
to-Business online or better known as an e-commerce company, which provides a variety of
product categories for their customers. This paper contains several sections where our first
section will be explained about the company profile, followed by the timeline involving
Amazon’s business activities since its inception until now based on innovations or innovations
made to advance their businesses. The next part will discuss the segmentation performed by
this company in terms of identifying their customer, target marketing as well as positioning
strategies (STP) to market their product or services.
After that, the six stages of the selling process are an important part in which we will
explain how Amazon company identifies their potential customers to become their real
customers until the post-purchase activities are done to influence the customers' loyalty to
repeat purchase products or services with this company. Nevertheless, behind every success of
the business, some challenges need to be faced to ensure their business last long especially for
e-commerce businesses like Amazon. Therefore, we will explain the challenges faced by
Amazon throughout running their business online and being able to survive to become the
leading e-commerce around the world.

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1.0 COMPANY PROFILE

The Company was founded in Seattle, WA. by Jeffrey P. Bezos in July 1994. History began
when Jeffrey P. Bezos resigned from his job as a vice-president of D. E. Shaw & Co., a Wall
Street firm before moved to Seattle and make a business plan which then makes who the
Amazon.com today. This company is one of the popular Business to Business (B2B) in the
world as an e-commerce platform in which it provides a variety of products from various brands.
In this case, Bezos has listed 20 products that have the potential to be sold online and
then he listed the five most promising products after reading a report about what an internet
will be in the future. After all, he decided to sell books online due to the large global demand
for literature at cheaper prices, and the large number of titles available in print. Bezos also
engage with software developers to build the company's website, which quickly rose to the top
of the web's book-related sites, claiming to be "the world's largest bookstore." Amazon.com, a
pioneer in the relatively new business of internet commerce, offers customers conveniences
like a 1-Click ordering, secure credit card payment, and direct shipping.
As a result of positive response to an online bookstore, a company made another
significant change in 1998 when it announced its intention to run the online music business.
Before launching its music site, Amazon.com enlisted the help of its bookstore customers and
music industries’ team to design the new site. The music store first opened in June 1998, with
over 125,000 titles to choose from. The new site, which debuted at the same time as
Amazon.com redesigned a book site, featured many of the same useful features as the
companies’ book site.

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2.0 TIMELINE OF AMAZON COMPANY

1994 - 1997
 The Amazon company developed in a garage. Jeff Bezos and his first few employees
used to pack books and drive them to the post office himself. Jeff Bezos and his wife
MacKenzie open an online bookstore in Seattle. Bezos puts $10,000 of his personal
money into the company. He and his tiny team started out working from Home Depot
in his garage.

1998 - 1999
 Amazon launches a second distribution hub in New Castle, Delaware, to serve
consumers on the East Coast as sales grow. The 200,000-square-foot facility is the start
of a nationwide network that will eventually reach practically every state. Amazon
expands its product line and now sells CDs and DVDs. The music area debuted with
125,000 titles, significantly more than the average physical music store, and let
customers to listen to song snippets.

2002 - 2003
 Time Magazine names Bezos Person of the year, calling him “the king of
cybercommerce.” Bezos, who is 35 years old, is the fourth-youngest winner of the
honour. Amazon has announced a deal with a number of large clothing firms, allowing
it to sell 400 different fashion brands in its online store. Amazon now sells everything
from electronics to toys to kitchenware to magazine subscriptions, in addition to books.

2004 - 2007
 Amazon started to generate more income by licensing its platform to other e-commerce
sites like Borders.com and Target.com. Amazon pays $75 million to buy Joyo Company,
the largest online seller of books and electronics in the growing Chinese market. Bezos
unveils a $79-a-year membership programme that includes free two-day shipping on
any item during an earnings call. Prime is now one of Amazon's most valuable assets,
with more than 100 million members worldwide.

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2008 - 2009
 Amazon reaches a deal with the city and a developer to consolidate its scattered staff
into 1.6 million square feet in a gritty industrial neighbourhood north of downtown, a
decision that would change Seattle's real estate market. Amazon buys $300 million for
Audible, which has an 80,000-programme collection in the United States and Europe.
The move comes barely two months after Amazon released its e-book reader, the
Kindle.

2012 - 2013
 In an all-stock deal worth roughly $900 million, Amazon buys online shoe retailer
Zappos. Despite attempts to break into the shoe business, Amazon has yet to catch up
to Zappos.com, which offers free returns and same-day shipping. Amazon buys $775
million for Kiva Systems, a warehouse robotics manufacturer based in Massachusetts.
Amazon will be able to boost automation at its fulfilment centres, allowing it to deliver
items faster and with fewer human employees.

2014 - 2015
 Amazon will begin delivering packages via the US Postal Service seven days a week
in Los Angeles and New York. It intends to spread the service to the rest of the country
in the future. Amazon buys Twitch Interactive, the three-year-old video game streaming
company, for $970 million.

2017 - 2019
 Amazon has released the Echo in 3,000 locations across the country just in time for the
holiday season, after releasing its first smart speaker to a restricted group of consumers
in 2014. Amazon sets off a race between scores of cities across the US and Canada to
host its second headquarters. After more than a year of searching for a location for its
second headquarters, Amazon has decided to split the duties between Long Island City,
New York, and Arlington, Virginia.

2021 - Present
 Amazon employs 647,500 people and has a real estate footprint of 288.4 million square
feet, accounting for roughly half of all online shopping in the United States. Amazon's

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 sales and earnings increased in the third quarter as panicked shoppers raced to the online
retailer to have things delivered to their homes. In comparison to the same period last
year, Amazon reported a 37% increase in sales to $96.1 billion and a 197 percent gain
in profit to $6.3 billion.

3.0 COMPANY’S PRODUCT

The main product that became the focus of this website at first was the books and music store.
However, along with the development of increasingly sophisticated technology where e-
Commerce is a digital platform that is preferred by customers, this brand decides to sell a range
of products to meet customer needs and wants in order to help grow their online market.
Therefore, here are some product categories listed provided by Amazon on their website:

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4.0 COMPANY’S SEGMENTATION, TARGET MARKETING, AND POSITIONING

Amazon has effectively positioned itself as a Glocal (Go global, Act local) e-commerce
behemoth, allowing customers to purchase virtually anything and have it delivered to any
remote area. Amazon is a global brand with a presence throughout every country. Customers
purchase things from Amazon through their website; customers can create user accounts in
order to make purchases. Customers receive products via Amazon's many distribution channels.
The objective is not simply to increase sales volume but to become ingrained in people's daily
life. Amazon stays competitive with changing trends, cultivates a customer-centric culture, and
utilizes existing and interpret data. In order to target the biggest consumer segment, Amazon
uses a variety of techniques to identify and develop products and services that appeal to various
demographics. In general, Amazon segmentation involves categorising the population, whereas
targeting involves targeting specific segments determined through segmentation. Thus,
positioning requires selecting the best marketing mix for the targeted customer category.

4.1 SEGMENTATION STRATEGY

Market segmentation is the process of discovering market segments and subdividing a large
customer base into subgroups of present and prospective customers. Segmentation is a
consumer-driven approach that may be used in practically any type of market. Amazon
segmented its customers into four categories: demographic, behavioral, psychographic, and
geographic. Amazon's segmentation is based on actual purchase activity, not on what consumers
expressed an interest in.

Furthermore, Amazon’s micro-level segmentation allows it to turn visitors into long-

term, high-value clientele. Segmenting e-commerce frequently entails establishing characters
that will purchase in a specific manner and with a particular product. Similarly, Amazon attracts
middle- and upper-class individuals who have feasible familiarity with basic technology but
lack the time or prefer convenience over buying at brick-and-mortar stores. Amazon's market
segmentation approach is represented in Table 1.

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 Table 1: Amazon’s Market Segmentation

Based on table 1, depicts Amazon's market segmentation. Amazon delivers globally in terms
of geography. Geographic segmentation is the process of identifying potential markets based
on their location. This segmentation technique may take into account elements such as
environment, geography, natural resources, and population density, among others. Markets can
be segmented into regions because one or more of these criteria may distinguish customers
between regions (Camilleri, 2018).

Meanwhile, demographic segmentation is the process of categorizing a market based

on physical and statistical data. Population characteristics include race, religion, and age. These
segmentation techniques are widely used to segment user markets, owing to the relative ease

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with which demographic factors can be measured. Amazon's demographics are as follows:
individuals who have access to the internet and are between the ages of 18 and 25, of all genders
and occupations.

Besides that, the term "behavioral segmentation" refers to the process of segmenting a
market according to an individual's purchasing behaviors. Segmentation based on behavior is
clearly associated with the benefits sought from the product, with the identification of distinct
purchasing behaviors in terms of shopping frequency and volume of purchase, and so on. For
instance, Amazon categorizes its target demographic as easygoing, determined, and ambitious.
Loyalty can range from gentle to hard depending on the level of convenience.

Afterward, in terms of psychographics, Amazon classified their customers into all social
classes and sectors of society, particularly reformers. Markets can be segmented based on the
characteristics, values, motivations, interests, and lifestyles of individual consumers using
psychographic segmentation. It is possible to employ a psychographic dimension alone or in
conjunction with other segmentation variables to segment a market. Psychographic factors are
used to determine whether purchase actions coincide with the consumer's personality or
lifestyle. Hence, diverse consumers may respond differently to marketing efforts by companies.

4.2 TARGET MARKETING

As soon as the market is segmented, the business should be aware of the demands and needs
of the various groups it has targeted. It is in a company's best interest to discover any unmet
market needs, as customers may not be sufficiently fulfilled by competitors. The next step is to
determine which markets will be served and which will yield the greatest returns. Customers
are traditionally divided into segments in traditional marketing. As a matter of fact, customers
have different needs and desires. This is the essence of marketing that is based on customer
preferences. Many firms may now use digital and mobile applications to reach their potential
clients' thanks to technological advancements. Some businesses have already rethought how
they approach digital customers in order to get the most bang for their buck from each one.
Ultimately, as a leader in digital marketing, Amazon is well-positioned to take
advantage of customers' shifting purchasing habits in the digital age. Amazon's primary market
is the billions of people across the world who have access to the internet. The internet is an
excellent avenue to reach out to many consumers. Mobile technologies, such as smartphones
and tablets could boost the productivity and efficiencies of businesses. Individuals' movements
in the real and virtual worlds, for example, generate a "digital footprint" of data. "Data exhaust"

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is the term used to describe these phenomena. For a long time, the phrase "digital footprint"
was used to characterize the way Amazon.com used predictive analytics in order to suggest
products to its customers. People tend to repeat their routines, but predictive analytics cannot
predict when or why they may change their preferences in the future (Camilleri, 2016).

4.3 POSITIONING STRATEGY

According to Camilleri (2018), he asserts that the final stage of marketing strategy is product
positioning. Organizations build "positioning statements" that define the mental space they
intend to occupy in relation to their competitors' products or services in the minds of their target
customers. As a result, consumers regularly evaluate the items and services they use.
Consequently, marketing positioning tactics are required in order to enhance customer
perceptions and expectations of a product. Effective product positioning involves four critical
elements. For starters, they are intended to benefit prospective customers. Second, they
separate the firm's products or services from those of major competitors. Third, the firms must
have the skills, resources, and credibility to deliver on their implied claims. Finally, a
defendable posture means an aggressive opponent cannot quickly neutralise or foresee another
positional plan. Amazon uses three types of positioning: multi-segment, adaptive, and
anticipatory.

Moreover, this allows Amazon to provide a wide variety of items and services while
simultaneously exploiting numerous segments. Over 562 million products are sold by Amazon,
meeting the demands and preferences of a wide range of customers. According to the New
York Times, the company uses an adaptive positioning strategy to keep up with market
developments and adjust its products and services to meet the needs of its customers. AWS
services like Amazon Sage Maker, Amazon Comprehend, and Amazon Recognition are
currently in low-turnover markets as a result of anticipatory positioning. Amazon, on the other
hand, built these services in anticipation of future demand.

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5.0 STAGES IN THE SELLING PROCESS OF AMAZON

In attracting potential customers, the salesperson must know how to win their hearts so that
they are influenced to buy the product or services sold. However, face-to-face sales and online
sales have differences in approaching their customer, but the selling process for both channels
is just the same. Therefore, there are 6 stages of the selling process in which we will relate how
the seller in an Amazon uses it to reach the potential customer.

5.1 Prospecting the customer

This stage is the process of identifying or searching for a potential customer who likely needs
the product or service offered by the company that they can meet. Various ways can be done
to reach this potential customer, including by using telemarketing, namely inbound and
outbound, internet and so forth. Anyhow, since this company is e-commerce, therefore they
use one method to understand the customer need, namely by using the “Big Data”. A big data
is a collection of structured, semi-structured, and instructed data collected by a company that
has three main characteristics, which are a large volume, a wide variety and a high rate at which
data is generated, collected, and processed.
To combat this, the Amazon companies builds and fine-tunes its recommendation
engine using Big Data gathered from customers while they browse. In this case, Amazon
collects data from each potential customer as soon as they visit the site, and from there, they
will track what the potential customer is looking at, including their shipping address and
income level, to make it easier for them to filter products based on their affordability. This big
data allows Amazon sellers to learn more about their customers, particularly their needs and
wants, making it easier for them to recommend an appropriate product rather than the entire
catalogue. Apart from that, the recommendation technology is based on collaborative filtering,
which means it determines what the potential customer want by looking at their profile and
then recommending products that people with similar profiles have bought (Marr, B.,2021).

5.2 Opening the relationship

This stage requires the salesperson to decide who will influence the prospective customer, in
which they need to take into account the key decision-makers, desires and their relative
influence. Salesperson plays an important role in building a good relationship with the potential
customer to influence them buy the product or service offered by a firm.
As for e-commerce like an Amazon, they have strong customer relationship
management (CRM) to ensure their potential customers can easily navigate and explore their

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website whenever they want to make a purchase. Before qualifying their actual customer,
Amazon sellers use a variety of methods to build a relationship with their prospects. The first
and most important step is to create an Easy-to-Understand User Interface that includes high-
quality images with accurate descriptions, clearly visible prices and ratings, well-organized
categories, and a simple checkout process. Then, in a process known as Mayday for the Fire,
they provide human support to engage with the prospect who wants to buy the product or
service they want. A live support agent was also important for the customer in order to help
them to fix any problem that might occur when using this e-commerce. It was almost as good
as in-person assistance and this company promised to respond to support calls in 15 seconds or
less, and managed to do so on average in less than 10 seconds. However, Mayday was shut
down in June 2018, but it remains a memorable example of an Amazon's support capabilities
in the minds of many users. (Channel Reply, 2016b).

5.3 Qualifying the prospect

This stage will determine the prospects who are really interested in the product/services that
are offered by a company and they will qualify those who want to take action to purchase a
product or service. The qualifications should be met the questions like, either the prospect have
needs for the salesperson product or service, make the people responsible for buying so aware
of that need that they a make sale and the capability of the sale to benefit the company.
As for Amazon, the first element should be considered is a Problem. The single most
important qualifying question to ask is whether or not your solution is needed. Prospects
frequently try things out without having a need for them, especially for more technically
oriented solutions. This is acceptable for a self-service solution.
The second approach is Risk, which is the most difficult challenge for most because
many prospects will express interest but unable to purchase. The company will list of questions
that are specific to their solution so they can quickly qualify bad customer fits to avoid wasting
time. Getting answers upfront also saves the prospect's time and builds trust, allowing them to
reengage later when they can better serve the prospect's needs and situation.
The Impact is the third approach, whereby multiple things will compete for
prioritization because time and resources are finite in a company. As a result, unless a problem
has a significant impact on costs, productivity, or revenue, it may not be worth the time of a
prospect to solve. When it comes to cost, this causes founders to hedge or deflect. Even if the
pricing is not fully established, it is much better to be upfront. The reason for this is that they

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need paying customers, pricing validation, and assurance that a potential customer is both
willing and able to pay for their solution (Patel, N., 2021).

5.4 Presenting the Sales Message

The fourth stage in the selling process is presenting the sales message to the qualified customer,
which in this process, it requires high skills and knowledge about a product or service that we
want to make a people buy it. In this process as well, the salesperson needs to explain the
benefits of the product or service and why they need to buy it compared to competitors'
products.
Amazon companies have an intelligent way of presenting a seller's product or service
to a potential customer. One of them is by sending relevant messages and suggesting relevant
items that may or may not be from the same online retailer that works in tandem with the
product. Inspiring action without a hard sell, as well as presenting a closely related product.
They were also creating scarcity and specifying the available quantity, like how many items
were left, so that the targeted customer would act quickly. They also use colour psychology,
which is hyperlinked that provide in the item description. The item description is light blue, a
colour of trust that gives shoppers/buyers confidence in an online retailer, and the price is a
deep red (maroon).

5.5 Closing the sale

Obtaining a final agreement to purchase referred to as closing the sale. Unless the client "signs
on the dotted line," the salesperson's efforts are meaningless and this is where many salespeople
fail. It is natural for buyers to postpone purchasing decisions.
When it comes to e-commerce, an Amazon uses the "Add to Cart" CTA on buttons,
particularly on upsells. It is worth noting that adding the entire bundle to the cart is simple -
subtle, but effective. Then, as previously mentioned, they guide leads to a sale via Amazon
Prime, which is an important part of Amazon's upsell strategy. A customer who joins Amazon
Prime receives free two-day shipping, 30-minute access to member-only deals, and access to
500,000 free books, among other benefits. Amazon members are encouraged to look for the
Prime logo when shopping so that they can take advantage of all of the benefits. Aside from
that, they instil a sense of urgency in online shoppers, encouraging them to act. The item they
want can be delivered the next day, but only if they were act quickly. (Amazon Web Services,
2021).

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5.6 Servicing the Account
The last stage of the selling process is to follow up with the customer that purchases the product
or service that we offer to them. This includes getting their feedback as well as creating loyalty
incentives as an appreciation to those who have chosen products from us instead of from
competitors.
In this case, Amazon Prime is one of the most common loyalty programmes in the world.
It comes with a slew of perks, including expedited shipping, exclusive and highly sought-after
content, early access to deals, and even photo storage. Here, the customers must pay about
$120 per year for Amazon Prime in order to make it worth, which encourages them to buy
more from Amazon and less from competitors. Amazon will be able to recoup some of the
money it lost on discounts and free shipping as a result of the increased purchase volume
(Channel Reply, 2016b).

6.0 CHALLENGES FACED BY AMAZON COMPANY

Each company, especially mega companies and multi-national companies, are facing and
struggling with constant challenges either it comes from the internal nor the external
environment. Amazon is a mega-scaled retail, business to business (B2B) type of company,
therefore, they will be facing a whole lot more challenges be it internally or externally.

One of the challenges that Amazon currently facing is from their internal management.
Highlighted from Jefferey Dastin’s article on Reuters.com, it stated that as Amazon is shifting
their management from Jeff Bezos to their newly appointed Chief Executive Officer (CEO)
whom is Andy Jassy (Dastin, 2021). This makes Andy Jassy is now the current leader of
Amazon and this means that he will be handling the current internal challenges as the CEO,
which is the unionization interest among warehouses. The original ideals shared between the
warehouses has managed to be shaken by multiple instances and influences, especially during
the current COVID-19 pandemical issue has offered new opportunities to the warehouses to be
as a separate entity. This also applicable not to the warehouses alone, but also affecting the
workers’ opinions as well. Amazon has to think of a way to reunify the ideals between
warehouses and Amazon themselves.

Speaking about workers, Amazon is also facing with another type of worker’s issues,
which is related to the office workers’ work hours flexibility. Jefferey Dastin highlights that
more and more start-up companies offering flexible working hours and working environments
especially to the workers that are on the technology related departments (Dastin, 2021). This

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has been a contrary with Amazon’s original motto of ‘Office-Centric Working Culture’.
Therefore, this has proved to be a huge challenge for Amazon as it will bring a huge change to
the company itself.
In terms of external environment challenges, Amazon has to face with the Antitrust
lawsuits and investigations. As the United States Government introduce the Antitrust law,
several mega companies like Facebook and Google have faced this lawsuit and cost them tons
of money to settle the lawsuits. Amazon themselves, has become the next target of the US
Government for the investigation of this Antitrust law. They are facing federal, state, and the
latest accusation from the European United for unethical third-party data usage for their own
gains (Pisani, 2021).

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CONCLUSION

In conclusion, it is not easy to manage an online business if we do not have the skills especially
in terms of digital skills. With the increasingly sophisticated world with technological advances,
it has helped businesses to continue to grow rapidly to innovate on the products and services
offered, in order to improve its quality to remain strong in the market.

Amazon has a high potential to be even a bigger online shopping platform due to the
current pandemic situation and their marketing strategy that always prioritize the customers.
Even though there are some challenges that they have to face on a bigger scale, Amazon still
could lead the online shopping industry nevertheless thanks to their amazing supports,
customer services, and the keep-up-to-date user interface which includes constant security
updates to make their customers feel save when doing online shopping.

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