...How to Acquire Customers on the Web by Donna L. Hoffman and Thomas P. Novak Reprint r00305 M AY – JUNE 2000 Reprint Number RANJAY GULATI AND JASON GARINO The E-Business Frontier: Syndication: The Emerging Model for Business in the Internet Era E-Hubs: The New B2B Marketplaces Get the Right Mix of Bricks and Clicks NICHOLAS G. CARR On the Edge: An Interview with Akamai’s George Conrades R00303 MICHAEL BEER AND NITIN NOHRIA Cracking the Code of Change R00301 MODERATED BY DENNIS CAREY Lessons from Master Acquirers: A CEO Roundtable on Making Mergers Succeed R00312 ANDREW HARGADON AND ROBERT I. SUTTON Building an Innovation Factory R00304 WARREN BENNIS AND JAMES O’TOOLE Don’t Hire the Wrong CEO R00302 KEVIN WERBACH STEVEN KAPLAN AND MOHANBIR SAWHNEY R00311 R00306 R00313 FORETHOUGHT PAUL NUNES, DIANE WILSON, AND AJIT KAMBIL A CONVERSATION WITH ALAIN-MICHEL DIAMANT-BERGER RICHARD METTERS, MICHAEL KETZENBERG, AND GEORGE GILLEN YOUNGME MOON AND FRANCES X. FREI DAVID BOVET AND JOSEPH MARTHA REGINA FAZIO MARUCA The All-in-One Market E-Procurement at Schlumberger F 00301 F 00302 Welcome Back, Mom and Pop F00303 Exploding the Self-Service Myth Biogen Unchained Mapping the World of Customer Satisfaction F00304 F00305 F00306 WARREN D. MILLER HBR CASE STUDY The Ghost in the Family Business MONIQUE MADDY R00308 FIRST PERSON Dream Deferred: The Story of a High-Tech...
Words: 4862 - Pages: 20
...Table of Contents I. Introduction 2 II. Customer portfolio concept 3 2.1 Concept of customer portfolio and its application in company 3 2.1.1 Customer Lifetime Value (CLV) 3 2.1.2 Market segmentation 4 2.1.3 Sales forecasting methods 5 2.1.4 Activity based costing 6 2.2 Customer portfolio application of “CDNow” 6 2.3. Concept application for e-tailer companies 8 III. Conclusion 10 References 11 Introduction In business, customers are always considered as the basis of a company’s profitability (Gupta et al., 2004; Hogan et al., 2002; Rappaport, 1998; Wayland and Cole, 1994). It leads to a customer – centric view in practice in general as well as in marketing in particular. According to Rust et al., (2005), the limited resources allocated efficiently for maximizing value requires a relationship – oriented customers and strong, long – lasting customer retention. Focusing on current customers is the right strategy, especially offering a positive lifetime profitability relationship when acquiring new customers is more expensive than retaining existing ones (Morgan and Hunt, 1994; Reichheld and Teal, 1996; Bitran & Mondschein, 1997). However, there is not only lifetime profitability relationship, but also different treatments of customers in marketing tools are advisable. Determining the right strategic balance between acquisition...
Words: 3226 - Pages: 13
...EXECUTIVE SUMMARY This dissertation set out to explore how the Internet is changing the brand-building environment, in order to identify the new sources of value, the new brand-building tools and strategies, and to outline the key factors that contribute to the development of a successful online brand. With power shifting to customers, the success of an online brand is largely determined by customer choice. The repeated choice of a certain brand by customers and business partners generates the transactions and repeat business that counterbalances the costs of customer acquisition and infrastructure. Repeat transactions provide the basis for a relationship that, when properly cultivated, creates value for both the company and its customers. This relationship is the basis for the customer loyalty that creates a successful online brand. The companies that are successfully building relationships and fostering brand loyalty are those that recognise that their brand's perceived value hinges on the total end-to-end customer experience, from the promises made in the value proposition, to its delivery to the customer. It is about enticing customers, gaining their trust, and making the experience so satisfying that they are confident in their choice and will return again, and will tell others about it. It aims to create “apostles”, instead of “terrorists”. As such, brand-building on the Internet extends beyond the traditional focus of positioning, advertising, promotions, catchy logos and...
Words: 23987 - Pages: 96
...S U C C E S S F U L ON THE INTERNET A DISSERTATION SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS OF A MASTERS IN BUSINESS ADMINISTRATION (MBA) AT THE UNIVERSITY OF CAMBRIDGE ROBIN S. CLELAND SEPTEMBER 2000 BUILDING SUCCESSFUL BRANDS ON THE INTERNET CONTENTS SUBJECT PAGE CHAPTER 1 1.1 1.2 1.3 1.4 Overview Objectives Methodology Structure INTRODUCTION 6 7 9 9 11 CHAPTER 2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 THE NATURE OF BRANDS 12 13 13 14 15 16 18 19 20 22 22 23 2.9 Introduction What is a Brand? The Layers of a Brand Product and Service Brands Branding & the Buying Process The Importance of Customer Satisfaction and Loyalty Emotional Loyalty The Concept of Brand Equity 2.8.1 The Value of Brands to Customers 2.8.2 The Value of Brands to Companies Conclusion CHAPTER 3 3.1 3.2 3.3 BUILDING BRANDS 24 25 25 26 27 28 30 31 32 32 3.4 3.5 3.6 3.7 Introduction Overview of the Brand-Building Process The Value Proposition 3.3.1 Added Value 3.3.2 Distinctive Brand Identity Developing the Framework and Communicating the Value Proposition Building Customer Relationships Characteristics of Successful Brands Conclusion 1 BUILDING SUCCESSFUL BRANDS ON THE INTERNET CHAPTER 4 4.1 4.2 4.3 4.4 4.5 4.6 THE INTERNET 33 34 34 35 35 39 40 43 Introduction Overview of the Internet 4.2.1 The Defining Characteristics of the Internet The Growth of the Internet The Internet & e-Commerce The Impact of the Internet...
Words: 35648 - Pages: 143
...within. As CanGo enters into the online gaming industry, new and existing stakeholders will be anxious to review and understand the executive vision for the organization. Leadership should not under estimate the critical step of casting vision. Although Can Go does not clearly articulate its mission statement episodes, it appears to be to connect trendsetters to quality entertainment using the latest and most innovative technology . This becomes more evident as Can Go prepares to launch into the world of online gaming and as it seeks to adequately market to its primary and secondary audiences – Gen Hers and Gen Yers.The challenge, as Warren so adequately points out, Can Go does not have the capital to compete against competitors like Amazon, CDNow and Barnes & Noble who also boast distribution systems that can move five times the product that Can Go can. The Can Go team assumes the impending IPO will help them close the capital gap and fund its launch into online gaming. This is risky approach to business and a clear indication that Can Go has done no strategic planning since its original business...
Words: 775 - Pages: 4
...In 1994, a 29 yr old financial analyst and fund manager named Jeff Bezos became intrigued by the rapid growth of the internet. Looking for a way to capitalize on this hot new marketing tool, he made a list of 20 products that might sell well on the internet. After some intense analysis, he determined that books were at the top of that list. Although Bezos liked the name Abracadabra, he decided to call his online bookshop AMAZON.COM. Today, Amazon.com has more than 40 million customers and sells billions of dollars worth of all types of merchandises. When he started, Bezos had no experience in book selling business, but he realized that books had an ideal shipping profile for online sales. He believed that many customers would be willing to buy books without inspecting them in person and that books could be impulse purchase items if properly promoted on a website. By accepting orders on its website, Bezos believed that Amazon.com could reduce transaction cost in the sale to the customer. More than 4 million book titles are in print at any one time throughout the world, and more than one million of those are in English. However, the largest physical bookstore cannot stock more than 2, 00,000 books and carries even fewer titles because bookstores stock more than one copy of each title. Having a wide selection was important because Bezos believed it would help create a network economic effect. People would visit Amazon.com whenever they wanted to buy a book because it would be...
Words: 1015 - Pages: 5
...displaces the histories that constitute it, and sets up new structures of authority, new political initiatives, which are inadequately understood through received wisdom. The process of cultural hybridity gives rise to something different, something new and unrecognizable, a new area of meaning and representation. Bhangra Remix music, which is the popular music made by diasporic South Asians, mixes traditional sounds and contemporary electronic dance sounds and techniques. This music is far removed from the “world music” system constructed by the major labels. However, the discourses of hybridity play an important role in bhangra remix. The music industry’s treatments of bhangra music have been simplistic. For example, the web site of CDNow describes “Rising from the East” by Bally Sagoo, as “a collection of Indian film music made club-friendly by his remixes.” The musicians who create bhangra remix music and the listeners who listen to it use the term “hybridity” to describe both the music and their conceptions of their identity as diasporic South Asians. The racial or ethnic category that is most problematized, or obscured, by the discourses of hybridity is blackness. Sometimes, blackness is so fetishized as a mode of affiliation and resistance that hybridity is constructed as the combination of blackness and something else; or blackness is subsumed into a larger category of “western” or “modern,” thus obscuring the reasons for its presence in particular instances. In this...
Words: 1051 - Pages: 5
...Assignment #4: Capstone Project BUS 599, Fall Quarter Abstract and brief summary In a competitive market, a company needs to formulate policies and strategies to maintain above average profitability. Corporate management must create strategies and capitalize on evolving competitive markets (Lindgrin, 2012). Both the companies Yahoo and Amazon are constantly implementing such strategies to maintain a reputation that stays ahead of the market trends, information system and globalization. This study will evaluate the success of both companies’ corporate-level strategies in terms of horizontal integration, vertical integration, strategic outsourcing and diversification, and will determine the type of strategy that contributed most effectively to the creation of a successful and profitable multibusiness model. Additionally, this paper will recommend an appropriate new strategy for each company that may maximize profitability and improved competitiveness in the industry. Yahoo!, Inc. Competitive analysis To better understand Yahoo’s internal and external opportunities and threats, in order to better estimate Yahoo’s ability to capture value, our starting point would be a quick analysis of operating and financial performance of Yahoo comparing to its peers in the industry during the last four years. We already...
Words: 2071 - Pages: 9
...Header Logo HOMEBTFOUR PORTOFOLIOOUR SERVICESNEWSMEET THE TEAMCLIENTSCONTACTGAMIFICATIONΕλληνικά MARKETING STRATEGIES OF AMAZON.COM. amazon Marketing Strategies of Amazon.com Amazon.com is obsessed with a fervor to serve consumer and shareholder alike. Since its inception over fifteen years ago, Amazon.com has steadily grown from a burgeoning “dot-com” corporation into a multinational monster, a king in the domain of internet retail. It targets two goals: the satisfaction of a customer and efficient corporate growth. Its marketing strategies are near-legendary, and budding business should take a page – or several chapters – from Amazon.com’s proven marketing manual. AMAZON.COM HISTORY Jeff Bezos, Amazon.com founder and CEO, dreamed about books. In 1994, he created Amazon.com, Inc., which he labeled as “Earth’s Biggest Bookstore.” The ecommerce company went online in 1995 and soon expanded into other media, including DVDs, VHS, CDs, MP3s, and eventually a wide range of other products, including toys, electronics, furniture and apparel. As such, the tagline soon changed to “Earth’s Largest Selection.” But books were only the beginning of Bezo’s up-and-coming enterprise. Amazon.com went public in 1997. In the first shareholder letter, Bezos penned the fundamental foundation for Amazon.com’s success: “Start with customers, and work backwards … Listen to customers, but don’t just listen to customers – also invent on their behalf … Obsess over customers.” This policy...
Words: 2289 - Pages: 10
...the sheer number in print and the proximity of a major distribution hub nearby. Within four months of the website launch in July 1995, Amazon had become a very popular site. The key to their success was the fact they only stocked a small number of items in their warehouses, while using outside sources to provide the remaining products. This model is still in use to this day. Amazon went public in May of 1997 with an offering of 3,000,000 shares. The money was used to expand the distribution network to a facility in Delaware; with a goal of 95% same day shipping on orders (Funding Universe, 2013), which would provide faster delivery to all customers. Even after this, Amazon continued to focus on growth. Key acquisitions included CDNOW in 2003, MobiPocket and BookSurge in 2005, Audible.com in 2008, Zappos in 2009, Woot.com in 2010 and Avalon Books in 2012. Today, Amazon is quite literally the online stop to...
Words: 2674 - Pages: 11
...What Are Your Customers Worth? Not all customers are created equal. You need to know their lifetime value, then compare the cost of acquiring, serving, and keeping them. By Sunil Gupta and Donald R. Lehmann Most senior executives say their companies should be customer-focused. Yet in times like these, when budgets are tight, some of the first expenditures to be cut are for marketing and IT, both of which are supposed to help companies better understand and serve customers. Professors Elizabeth Demers of the University of Rochester and Baruch Lev of New York University confirmed these conclusions in a study last year. They found that while investors implicitly capitalize product-development and R&D expenditures, considering them assets that are potentially useful over a long period of time, they expense marketing and customer-acquisition costs. This apparent contradiction stems too often from the fact that business strategies in general and marketing in particular don't look at their customers in terms of quantifiable value, so they don't develop metrics to measure the return on investment in terms of the value of their customers. It's still typical for most companies to organize marketing plans around the 4Ps: product, price, promotion, and place--the traditional view espoused in most marketing textbooks. In addition to leaving out the customer, this focus makes it difficult to measure ROI for marketing activities, and therefore makes getting funding for them difficult. The...
Words: 3149 - Pages: 13
...An insight into the tablet war Business Strategy 2012 ESCP EUROPE Introduction In May 2010, Apple, one of the biggest competitors in the market of technological devices, launches the Ipad, the first tablet, creating a completely new market in this sector. The Ipad had an amazing success and Apple achieved to sell 1 million units in only 28 days (74 days and 360 days for the Iphone and the Ipod). All the other big electronic companies, like Samsung, Sony or Motorola, decided to immediately follow the wave launched by Apple by creating their own tablets. But among the entire followers one is completely different considering its strategy and its core business: Amazon.com. The biggest Internet retailer, which already decided to enter into the market of technological devices by launching an e-reader named “the kindle” in 2007, created in 2011 its own tablet named “the Kindle Fire”. In 2012, while Apple still holds more than the half of the market share in the tablet sector, Amazon.com decided to launch its second generation of Kindle Fire a few weeks before the launch of the third generation of Ipad. And even if amazon.com does not seemed to be, at first sight, a really serious competitor for Apple, like Samsung could be, its innovative strategy could make it the most disruptive concurrent of the Californian Company. That is why we decided to make a study about the strategy used by Amazon to sell its Kindles. The first part will be focused on the history and the culture of...
Words: 5329 - Pages: 22
...Amazon.com the Hidden Empire Three digital engines to reshape and dominate retail Amazon.com: a digital shop around the corner… … and a digital colossus. Did you know: all these companies belong to Amazon… Did you know: Amazon is also… AmazonBasics Amazon-branded electronic products AmazonFresh sells and delivers groceries in Seattle AmazonStudios online social movie studio Amazon WarehouseDeals offers discounts on refurbished products Did you know: Amazon has had one of the fastest growths in the Internet’s history… Revenues reached within first 5 years $2,8 bn $1,5 bn $0,4 bn eBay Google Amazon Amazon and eBay results from 1995 to 2000, Google from 1998 to 2003. Even though Zynga and Groupon appear to have an even quicker growth, they haven‟t been compared because 1- sales have not been officially disclosed 2- they haven‟t reach their fifth year Did you know: Amazon Web Services drives these companies… Did you know: Amazon.com is a giant… Y/Y growth for Q1 2011 +38% Market cap $90 bn Customers 137 m 3 × growth of 2 × market cap 2 × # customers E-commerce market Employees 33,700 Annual revenue $34 bn Internet traffic rank 16th Retail brand 1st Paid out $1.2 bn 15 × more than 16% more than before before to buy Source: Amazon.com, Alexa, Brandz. Market capitalization as of April 2011. Why? A vision… From 1994, Jeff Bezos knew he could create a retail website that would not have the limitations...
Words: 4729 - Pages: 19
...Amazon.com the Hidden Empire Three digital engines to reshape and dominate retail Amazon.com: a digital shop around the corner… … and a digital colossus. Did you know: all these companies belong to Amazon… Did you know: Amazon is also… AmazonBasics Amazon-branded electronic products AmazonFresh sells and delivers groceries in Seattle AmazonStudios online social movie studio Amazon WarehouseDeals offers discounts on refurbished products Did you know: Amazon has had one of the fastest growths in the Internet’s history… Revenues reached within first 5 years $2,8 bn $1,5 bn $0,4 bn eBay Google Amazon Amazon and eBay results from 1995 to 2000, Google from 1998 to 2003. Even though Zynga and Groupon appear to have an even quicker growth, they haven‟t been compared because 1- sales have not been officially disclosed 2- they haven‟t reach their fifth year Did you know: Amazon Web Services drives these companies… Did you know: Amazon.com is a giant… Y/Y growth for Q1 2011 +38% Market cap $90 bn Customers 137 m 3 × growth of 2 × market cap 2 × # customers E-commerce market Employees 33,700 Annual revenue $34 bn Internet traffic rank 16th Retail brand 1st Paid out $1.2 bn 15 × more than 16% more than before before to buy Source: Amazon.com, Alexa, Brandz. Market capitalization as of April 2011. Why? A vision… From 1994, Jeff Bezos knew he could create a retail website that would not have the limitations...
Words: 4731 - Pages: 19
...The current issue and full text archive of this journal is available at www.emeraldinsight.com/0263-4503.htm Brand equity for online companies Rosa E. Rios Australian College of Kuwait, Safat, Kuwait, and Brand equity for online companies 719 Received 1 May 2008 Revised 1 July 2008 Accepted 1 July 2008 Hernan E. Riquelme Kuwait-Maastricht Business School, Salmiya, Kuwait Abstract Purpose – The purpose of this paper is to determine if the traditional approach to measuring brand equity applies to online companies. Design/methodology/approach – This objective is pursued by: developing a measurement model of brand equity for online businesses; and testing the nomological validity of the model using structural equation modelling. Findings – This study finds partial support for the application of the offline brand equity theoretical framework based on brand awareness, brand associations and loyalty for online companies. Brand loyalty and brand value associations directly create brand equity. Research limitations/implications – The study is cross-sectional, the indicators or observable variables used in this study may not be deemed comprehensive enough, no interaction effects have been incorporated, and finally, the research study was based on a few online business retailers. Practical/implications – The results support the view that a consumer’s perceived sense of value resulting from a transaction with an online business develops loyalty. Also, brand-trust association...
Words: 11896 - Pages: 48
