Business marketing is the sale of products to customers for the purpose of doing business. In the U.S. ,the size of the business market, is much more large than the personal consumer market. Successful business marketing, can bring in more revenue and brand awareness. Unlike a personal market, in a business market one customer can purchase lots of goods at one time, and are usually more prone to brand loyalty.
As leaders in the global market, Samsung are huge business marketers. Their companies do not have personal stores that a customer can go into and purchase a product for personal use. Instead, they distribute all of their products to other companies to sell for them. This has been proven to be very successful, & Samsung will most likely continue this method for years to come.
Traditionally, companies competing in the market are into geographic and demographic segmentation. Samsung segmentation strategy emphasizes on psychographic segmentation which is based on the personality,motives, and lifestyles of the targets. While the competitors are focused on geographic's and demographic's, Samsung focuses on other areas of segmentation in order to have more direct interaction with its customers.
All products made by Samsung are created based on the lifestyles of the target market. Samsung has a well-developed concentrated targeting strategy which selects one segment of a market to display their marketing efforts to. By focusing on a market niche, Samsung can perform heavy research and understand the best way to reach their targets.
According to Samsung, more than 40,000 of their employees engage in research and development in order to discover the next generation of powerhouse products . Samsung focuses sedately on innovation. As Samsung fights to be number one against their greatest competitor Apple, speed and innovation is crucial in obtaining a competitive advantage. In 2013, Samsung plans to spend about 9.3 billion a year on research and developement, compared to Apple's 2 billion. Spending this much money, Samsung has a much greater chance of being the forerunner in innovation. They also can secure more patents, which can help them against big lawsuits that threaten to damage the company, and help in their fight against Apple. Samsung controls 100,542 patents worldwide; 4,551 registered in the U.S. making them second to IBM .
Intergrated Marketing Communications is the coordination and integration of all marketing communciation tools, avenues, and sources . All aspects of marketing such as sales promotion, advertising, online communications, and public relations work together to create a commendable experience for their customers. The traditional marketing concept of solely looking at the advertising department has been changed . IMC encourages all departments of marketing to work together to reach all consumers . As time goes on, every consumer cannot be reached in the same traditional way.
IMC promotes using multiples forms of communication to reach consumers . They often target specific groups of people . Correct use of IMC can create a very high advantage against vast competitors. IMC highly endorses customer satisfaction. They promote a form of relationship marketing which helps to create loyal customers. Loyal customers help to prevent the inevitable downfall of the company due to competition .
As a growing company, Samsung focuses highly on products and concept creation . They have three teams within the company that focus on this specifically .They are broken into divisions called Product Management, Product Planning, and Concept Creation . The Product Management division focuses on creating products with quality and delivering them on time . The Product Planning division focuses on products within their earliest phases while Concept Creation creates products for the future.
As an electronics company, Samsung creates mostly shopping products. A shopping product is a product in which a consumer will spend time gathering information about price,quality,etc ,before making a decision to buy . Samsung also creates convenience products, which are consumed on a regular basis, and purchased frequently.
Recently Samsung has created a new sales promotion for the holidays. If a customer purchases a Samsung refrigerator they are eligible to receive a $100,$200,or $400 gift card to buy Samsung products. This promotion last through January 2013. When the holidays are close, Samsung often use gift cards to get customers to purchase more of their products such as washing machines, televisions, refrigerators, tablets, etc.
With the recent release of Samsung's 3d Television, they wanted sales of their new 3d technology to boom. One of their major sales promotions was offering two free pairs of 3d glasses with the purchase of a new 3d TV. Many customers bought the product expecting to receive what they were promises. However, many customers only received one pair of glasses. People were very upset with the electronics company, and were creating chaos about it. In order to fix this problem Samsung created a website for customers to receive the extra pair of glasses they were suppose to get.
Electronics giant, Samsung has many products. However, they are best known to the public for their outstanding cameras, televisions, and mobile phones. Samsung has just overtaken Nokia, to become the biggest phone maker in the world. As said in their marketing strategy, Samsung wants to draw lots of attention to to their phone, not necessarily sell loads of phones. Samsung also wants their phones to attract everyone, not just the buyers who race to get their hand on every new phone. Their goal for their new phone the Galaxy S Three, is to far outsell the previous Galaxy S Two.
To fulfill all their marketing goals, Samsung knows that they cannot solely rely on their innovative technology ; they have to put a emphasis on advertising. Unlike their competitors, Samsung doesn't use celebrities to promote their phone. They prefer to show everyday scenarios made better by using the phone. Samsung uses an "emotional theme" such as reading a bed-time story to a child or giving birth.
