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.