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."

 

Chap. 14: Marketing Channels and Retailing

Brien S.

Due to the fact that Samsung does not have a chain of stores like many other retailers, I decided to visit the next best thing which was Best Buy. Samsung did have a location in the Time Warner building in NYC called the "Samsung Experience," but that has been closed for over a year now. Best Buy does sell a bulk of Samsung products however, along with many other electronics and appliances.

With stores in the U.S., China, Mexico, and Canada, Best Buy happens to be the world's largest multi-channel consumer electronics retailer. BestBuy.com ranks among the top ten online retailers in the U.S.; their physical stores bring in foot traffic of over 600 million visitors yearly. Best Buy's central focal point is their commitment to deliver on their Customer Promise:
1. The latest devices and services — all in one place
2. Knowledgeable, impartial advice
3. Competitive prices
4. The ability to shop when and where you want
5. To support you for the life of your products

Most Best Buy stores have the same layout when a person first enters; they are normally greeted by strategically placed showcases of high end mobile devices and tablets. These gadgets are always hands on, and there is normally an associate nearby to assist with any inquiries a customer may have. In reference to the retailing mix discussed in this chapter, this is a very effective way of advertising to the consumer, simply because the 6 Ps (product, place, promotion, personnel, price, and presentation) are all implemented as soon as a person walks through the door. This also draws in the customer to continue to look around to see what other new products are in the store. The rest of the store contains computers, movies, televisions, etc., and has personnel that specializes in each department. The store is also amazingly uncluttered, with products organized by genre. An example is the home theater showroom that proudly boasts the most current, hi-def televisions from various manufacturers. The walls are laden with huge flat screens surrounded by comfy couches to draw in the movie or sports enthusiast.

Best Buy offers weekly deals and showcases many of them in the front and middle of the store. These can range anywhere from blu-ray movies to computer hard drives. A huge feature that Best Buy offers is their price match guarantee; the promise that they will offer a product for the same price that another retailer has if it's cheaper. This leaves the consumer satisfied knowing that they can walk out with a purchase and not have to worry if they could have saved money elsewhere. Best Buy's staff will also direct a customer to its online store for items that may temporarily be unavailable, and even assist them and place an order for the customer in the store. They also have fully knowledgeable representatives from the various mobile carriers that will answer any questions a person may have when choosing a device to purchase. Best Buy also offers rewards for returning customers, something retailers like Apple and Walmart have yet to pick up on.

The experience at Best Buy is quite enjoyable, even more for someone who is tech savvy. Their service is the best I've seen so up to date, with them helping me on numerous occasions with rebuilding my computer, setting up my surround sound home theater system, and most recently purchasing a television. In August I bought a 55" Samsung Smart TV that wasn't available in the store at that time. A sales rep answered all my questions about the product including features, price, and even the longevity of the device. He also placed the order in the store for me, saving me the hassle of having to do it once I returned home. With the television arriving only two days after the order was placed, I was quite pleased with the service I received as well as the quality of my device. Best Buy has truly proven it can hang with the "best" as a retail leader in the marketing world.

Chap. 6: Consumer Decision Making

Brien S.

When it comes to making a purchase, consumers implement various skills into their decision making process when buying a product, whether they realize it or not. Products based on ingenuity, popularity, cost, usability, overall performance, etc., will alter or heavily influence a consumer's want to purchase a specific product, look elsewhere, or not buy at all. Marketing managers actively seek these behavioral patterns to best gain knowledge on how to promote their product.

Samsung's products appeal to the consumer with its simple to use user-interface on its mobile devices and electronics. With the new Galaxy S4 (and even in its recent line of televisions), Samsung has boasted the ability to multitask on one device. Through the use of need recognition, Samsung wants the consumer to believe that life without its devices is limited, and tedious. With features such as watching TV while surfing the web, or using Google maps while watching a video, Samsung wants its consumers to realize that they can do so much more within their allotted time of daily tasks. The consumer may not necessarily need to multitask their daily activities, but the appeal alone will encourage buyers into believing this is the new convenient way of doing things. Samsung has now created an external stimuli based on functionality, along with an affordable price and the growing popularity of their devices.

With the bitter rivalry between Apple and Samsung, consumers have an easy approach as to how they will search for their information regarding the Samsung Galaxy. Many consumers will simply compare the features between the Galaxy and Apple's own iPhone, while others may resort to a nonmarketing controlled approach, such as asking friends and family members. Consumers will also search internally, like comparing the newest device to an older version of the Galaxy that they may have previously owned. Consumers can also use a combination of an internal and external searching, allowing them to have a more comprehensive view of the product they're willing to choose.

Once the consumer has made up their mind, they will evaluate their alternatives by comparing the phone to others on the market (price comparison, battery life, design, etc.). The Samsung Galaxy is based heavily on user preference, so when a consumer purchases it they have already deemed it beneficial to them over Nokia, Apple, and LG mobile phones alike. Consumers normally sit on their decision to purchase a Galaxy phone, content with the price advantage over other mobile devices, as well as a hassle-free product that does not require extra peripherals to get the full functionality out of.

With the Galaxy S4 fan base growing rapidly, postpurchase behavior is shown through already sold out preorders as soon as the device is released. This is normally based on the consumer's satisfaction with previous Galaxy devices, and the ability to view mobile reviews between two or more devices at once when the product is released. This also refutes any cognitive dissonance a consumer may have when a Galaxy owner second guesses themselves, leaving them happy and looking forward to the next device.

Chap. 5: Developing a Global Vision

Brien S.

Recently, Samsung has been aiming to deliver the best product and services to the whole world with their innovative Galaxy phone devices. Their overall aim is to provide the entire population with phones that end up being customer oriented lifetime companions. However, with their current market expansion and manufacturing increase in the Galaxy's production, Samsung has been exposed for fining and excessively overworking their outsourced employees in China. This is almost an ironic contradiction against their goal of "making the world a better place."


More than 40% of Galaxy smartphones and other goods are produced in China. Samsung has admitted their mistake, but believes outsourcing has manufactured more jobs for their company and also allows them to adjust the output of their smartphones, depending on the current demand or production problems at a specific factory. In an effort to negate the human resource violations they've created, Samsung has promised to implement a new system, including hiring more workers, introducing automation, and improving production processes. They're also making efforts in creating new guidelines to gradually reduce overtime work hours.

With their new phones in tow, Samsung has sold over 50 million units of the Galaxy S3 globally, and means to double that number with the recent arrival of the S4. This year, Samsung has topped Apple in the Fortune Global 500 list and aims to increase the gap of units sold worldwide between the two companies.

Chap. 4: The Marketing Environment

Brien S.

Samsung's target market is broader than many companies due to the fact that it aims to appeal to a wider audience. From the older generation to the cutting edge tech users, Samsung plans to market its products into three groups; frontier products, legacy products, and specialty products. The diversity of its products enabled Samsung to acquire customers from different segments, as well as target its niche market.

One of the biggest environmental factors Samsung faces is demography. With the demographic environment changing in age structure, the company focuses on innovating new information and technology that addresses a larger and more crowded (young) population. By doing so it also attracts new customers who in reality want to access social networks and the like anytime and anywhere. Unlike some other companies, Samsung wants its consumers to enjoy its innovations and products, without the hassle of emptying their bank accounts. It also has a clear competitive advantage by using cost efficient raw materials that yield overall superiority against its competitors. This, coupled with its employees being allowed to be creative and innovative will undoubtedly pose a threat to the rest of the marketing world for years to come.

Chap. 3: Ethics and Social Responsibility

Brien S.

Samsung has taken various measures to help better not only its consumers, but the global community in general. With their mission being "inspire the world, create the future," Samsung has taken on the role of being a good corporate citizen. It realizes that by making their products eco-friendly, it will have helped reduce our carbon footprint on the environment. An example of this is the LED technology that Samsung uses in its mobile devices and televisions; it significantly reduces energy use while at the same time the materials used for its products create less waste.

Samsung is also committed to using its resources to help communities in need. Its most exemplary social contribution, the Samsung Hope for Children program, benefits around 200,000 children and young adults in the developing world in both education and healthcare. By maintaining this social responsibility, Samsung hopes to increase its role in creating better lives for children around the world.

Chap. 2: Strategic Planning for Competitive Advantage

Brien S.

For years Samsung has been known for it's innovation of its products and the ability to lead in the electronics race against its rivals. Though it borrows from almost all aspects of competitive advantage marketing, it's main focus is to serve customers worldwide with an unique experience of its devices, primarily its mobile phones and tablets, such as the Samsung Galaxy. Samsung's plan is to make the device available for everyone, at a much less expensive price than its competitors. However, a cheaper price is not the only driving factor that Samsung uses to market its product.

With the arrival of the Galaxy S4, Samsung has shown a clear sustainable competitive advantage by making its device unique by being able to use both the front and rear cameras when shooting photos or videos, or even when making a call. Its hardware is superior to its biggest rival, the iPhone, ranging from better battery life, to a better screen display.

Samsung went to great lengths to create a device that will market to people who "want to do a lot of stuff" with their phones while having fun in the process.  The company has also successfully dominated the mobile race by investing heavily into its marketing campaign. However, this has seemed to work to their favor. In 2012, Samsung spent over $400 million to market its products in the US alone, and had successfully become the biggest phone manufacturer in the world, overtaking the company Nokia in the process. With this kind of marketing strategy, the competition will fear Samsung's marketing campaign, rather than the device itself.

Chap. 1: An Overview of Marketing

Brien S.

Samsung is a Korean company that has risen to prominence in many fields over the years. Samsung is one of the largest and most diverse companies in the world. While the company is mostly known for their technology division, like cell phones, radios, MP3 players, and computer screens, they have many other divisions as well.

The company has expanded from a humble storefront launched in the late 1930s to the largest company in Korea and the second largest company in the world. In addition to the electronics division, which is the most profitable and successful one in the world, the company also has forayed into finance, chemicals, retail, and straight-up entertainment - all with great degrees of success.

Their mission is to "inspire the world,"and "create the future." By doing so Samsung hopes to inspire its communities by leveraging three of their key strengths: new technology, innovative products, and creative solutions. Through all of this, they hope to promote new value for Samsung's core networks-industry, partners, and employees. Samsung believes that by doing this, they will be able to contribute to a better world and a richer experience for everyone.