Chapt. 7: Business Marketing

Brien S.

Samsung has never really had a service business, but is now attempting to create products for businesses, making them interactive, mobile, and integrated over a diverse spectrum of industries just like their products do for the people who enjoy Samsung technology in their everyday lives. These products include but are not limited to, mobile devices, hospitality displays, business monitors, system air conditioners, telecommunication systems, and even security systems.

Hospitals are major organizations that are examples of producers; Samsung provides them with hospital equipment (such as the ultrasound device to the right), that services customers along with enabling them to perform daily operations. Best Buy is the perfect example of a retail reseller; you can find a large amount of Samsung products like refrigerators, televisions, Samsung phones, and home theater systems that are sold to the final consumer. It is widely known that Samsung is the biggest smartphone seller to consumers, however the company has decided to try its hand at marketing to government and corporate clients. It has recently been working on Knox, a security system for mobile devices that the company has been developing over the past few months for the U.S. defense department. The Korean based company also produces printers, and monitors for institutions like schools.

Even though Samsung has made much progress with manufacturing devices that cater to the business world, they are still struggling. Samsung is still very new to business marketing; the company is now attempting to create a database of clientele that will build a customer service network and also establish a market with other enterprises.

Chap. 8: Segmenting and Targeting Markets

Brien S.

Samsung's target market for its Galaxy phones has always been towards newcomers of smartphones and existing cell phone users, whom they believe want a device that can be used in everyday life activities. When Samsung held its Galaxy S4 press conference in New York this year, its strategy was to create enough information that would get consumers interested and to get them talking about something worth remembering. With the release of the Galaxy S4, its age demographic was directed towards US teens and adults under the age of 25 with considerably less income than most iPhone users. As the competition increased however, its target has now broadened to all smartphone users as its niche market. This is supported by Samsung's statement of its Galaxy S4 phone as being a "life companion" that will help users achieve a richer, simpler, more full life.

Samsung's newly implemented multisegmented targeting strategy now focuses on consumers who not only want an affordable phone, but also want a device that offers new technology that makes practical daily activities easier. Samsung's psychographic segmentation now spans generations, lifestyles, and personalities that will continue to grow along with Samsung's innovative technology.

Chap. 11: Developing and Managing Products

Brien S.

Samsung is no stranger to innovation. It has created products with new features ranging from data sharing between two smartphones by simply touching them, to smart TVs that incorporate built in wifi and downloadable apps. Samsung's aim is to create new products that are relevant with today's culture with a commitment to consistently advance technology and promote sustainability. The following are just the tip of the iceberg when it comes to Samsung developing new products:

• Samsung’s Galaxy Gear™ is revolutionizing the way people interact with their mobile devices. This groundbreaking wearable keeps you connected like never before by expanding the Galaxy smartphone experience to your wrist and enhancing everyday moments with real-time updates for quick and convenient access.
• The Samsung Curved OLED TV takes an unprecedented leap forward in picture quality as well as the TV viewing experience. By enabling two people to watch two different programs at the same time on one TV - both in full screen and full HD, the KN55S9C may bring an end to fights over the remote.
• The Samsung T9000 Four-Door Refrigerator represents the next evolution in appliance innovation. Among the features of this 32 cu. ft. refrigerator is a modern and sleek design that brings a heightened level of sophistication to the kitchen such as a best-in-class 25.6 cu. ft. of fresh food storage with a 6.1 cu. ft. convertible freezer compartment.
• The Samsung Galaxy Note 10.1 – 2014 Edition redefines the tablet experience with a 10.1” Super Clear LCD display and an Exynos 5420 quad-core processor. Improving upon its innovative and immersive tablet experience, Samsung introduces enhanced S Pen and Multi-Window capabilities and a new Multi User Mode. 

Once Samsung has developed its product, it will normally showcase the device(s) at a convention or expo. Here the company can gain valuable feedback from consumers and then proceed to commercialize the product. Once Samsung feels it has put forth the best product possible, it will proceed to introduce it through heavy use of marketing. As stated in a prior blog, Samsung is well known for its marketing power and has already invested millions in advertising campaigns and marketing strategies, making it top its rival company Apple as the world's top selling manufacturer smart devices and technological advancements. Samsung appliances and devices are not only innovative but also eco-friendly, gaining the company more than 200 Consumer Electronics Show (CES) Best of Innovation awards over the span of ten years.

Chap. 18: Social Media and Marketing

Brien S.

As with all major companies this generation, Samsung uses social media as a platform to gather intel on consumer behavior and broaden product awareness. Internet services like Twitter, Facebook, etc.  provide companies with information needed to help develop public relations with the consumer and to use the feedback from this to further better their product. These social media sites give consumers the opportunity to leave comments, questions, and suggestions on various forums, and also give consumers the ability to connect to each other as well as the product on hand. Samsung in particular has its own blog (http://www.samsungvillage.com), which frequently updates with news and focuses on global campaigns for children's education, community activities, and various eco-friendly missions. Samsung also has a Youtube channel for its Galaxy product line filled with infomercials and updates of its phones and tablets. The site even includes commercials of how Galaxy products should be essential for everyday living.

Samsung relies heavily on user feedback and as such, has extended its reach into mobile marketing. By doing so a consumer can use smartphone technology and write posts of the things they like and share it with others. Samsung has various downloadable apps that link it with Facebook, Twitter, and Youtube, which gives the company multiple platforms to gather data on consumer behavior. Certain apps even allow consumers to use their smartphones to scan various Samsung products in stores and online, creating a convenient and highly marketable method of adding value to its products. Because Samsung has developed a highly engaging method of distributing content, customers have become more inclined to promote products on their own, through the use of their own blogs and and social media accounts. In a positive manner, customers have unknowingly contributed to the marketing process; shown in recent years where customers can inform themselves of products without the need for traditional marketing and advertising.

Chap. 10: Product Concepts

Brien S.

Samsung has a variety of products ranging from Android tablet and mobile devices, to household appliances and televisions. These products stand in a class of their own, as the technology invested into them helps distinguish them from all other generic products on the current market. One example of this is Samsung's NX300 digital camera. While other cameras flood the market featuring the same thing, this camera is the first in the world to feature a single lens, 3D system capable of taking 3D stills, as well as film 3D movies from virtually any angle with its AMOLED touch screen display that tilts to produce high and low angle shots.

The NX300 is a mirrorless, interchangeable lens digital camera, part of the NX series.

 With the creation of the Galaxy series, Samsung's goal is to create shopping products that continue to be bigger, better, and smarter than their predecessor. They have successfully accomplished this with the latest phablet (smart phone and tablet) Samsung Galaxy Note 3, an all-in-one device capable of multitasking hardware and applications within its software. It is also the only smartphone device to include support for USB 3.0 which now allows faster data transferring and charging. Coupled with the Galaxy Gear, Samsung has made a stand alone device with exclusive features no other company can replicate.

Samsung's product line consists of various electronics, most of which are specialty products. Samsung may price their products lower than their primary competition, though this is a branding strategy used to implement brand loyalty, getting new customers to buy their products and existing customers to return when new products come out. Samsung has established brand loyalty shown through the sheer amount of sales it has generated; most buyers of the Galaxy Note 3 were already consumers who've owned older versions of the model, resulting in the Note 3 selling well over 5 million units within the first month of its release.

Chap. 17: Personal Selling and Sales Management

Brien S.

Samsung is quite the powerhouse in terms of personal selling, due to the huge marketing advantage over their competition. Technology has also changed the approach of personal selling, making it easier for companies to target their consumers.

Samsung focuses on relationship selling, making products of high value that will appeal to the consumer over a long period of time. Examples of this are found in almost all of Samsung's products; they come packaged with surveys that customers can fill out asking various questions ranging from customer satisfaction to the performance of the product. This gives the buyer the feeling that the company is genuinely interested in customer feedback, and also provided the company with valuable data on how to further improve what they're selling. These questionnaires can also be done online through email or the company's website, making this form of relationship selling provide faster responses and a more time efficient way to gather data. Frequent customers who choose to fill out this process normally receive special offers, rebates, and discounts towards their next purchase(s) for being loyal customers.


SAMSUNG APPS GIFT CARDS

$10 Samsung Apps Gift Card 

Bonus offer with all purchases of a Samsung Galaxy MEGA and Samsung Galaxy Tab 3 (7", 8" and 10.1" models).

$20 Samsung Apps Gift Card

Bonus offer with all purchases of a Samsung Galaxy Note 8.0 (LTE and Wi-Fi models) and Samsung Galaxy Note 10.1 (including 2014 model).

Samsung markets products that are of high value, therefore it does not implement the same practices as a company that mainly focuses on traditional personal selling. However, modern marketing has caused companies to borrow from both sides of sales management resulting in a more effective process. Technology is a prime example, where the internet plays a major role in personal selling. E-business is a cost effective way that allows companies to market, buy, sell, and service customers electronically. It also allows customers to gather information of products, place place orders, and price merchandise on their own, without the need for a salesperson. In Samsung's case, the customer can go onto Samsung's website and search for various products. They will also learn the different features, price options, and any current promotions in an all-in-one experience.

Chap. 16: Advertising, Public Relations, and Sales Promotion

Brien S.

With heavy competition from major competitors like Apple and Microsoft, Samsung has to find a more aggressive, strategical approach in marketing it's products to its consumers. So far it has seemed to have done so by making itself synonymous with Android.  Specifically when it comes to Galaxy phones, Samsung has spent a ridiculous amount of money on advertising and sales promotion. In Q4 of 2012, Samsung had already spent close to 1 billion in advertising alone. One point of advertising and marketing is to create information that will peak customer curiosity and leave them with something to talk about and remember. A prime example is the 2012 Galaxy S3 commercial of two men transferring data by touching their phones (all while doing so in front of an iPhone 5 purchasing line). This created a buzz for public consumers who are attracted to "something cool" as well as first time smartphone buyers.

 The company can breath a lot easier when it comes to sales promotions as well. It's biggest rival, Apple, does not offer sales or discounts on their products; much to consumers' chagrin, they are almost always forced to buy their devices at full price, void of any discounts. Samsung on the other hand, uses various price cuts and promotions during the various seasons to sell a device that is already cheaper than their competition. This combined with the amount of money they put into selling the Galaxy places them as the forerunner of the competition. The following is a chart from the last four years, showing how predominantly aggressive Samsung has been in sales and advertising compared to other companies:

To further market the Galaxy, Samsung has created new ads that are shown on the internet and television of celebrities, such as basketball star Lebron James, using the Galaxy Gear along side the Note 3. He is depicted performing every day activities; from spending time with his children and playing golf with friends, to practicing and training. Their "Always On" campaign is Samsung's attempt to get the consumer to believe that their mobile products are convenient to use, versatile, and cool, and also to reinforce their slogan that their gadgets are "The Next Big Thing."