Business Marketing

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.

Segmenting And Targeting Markets

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.

Developing And Managing Products

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 .

Integrated Marketing Communications

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 . 

Product Concepts

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.

Sales Promotion And Personal Selling

 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.

Advertising And Public Relations.

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.

Retailing

Although Samsung doesn't have any specific retail stores, many manufactuers and companies sell their products such as AT&T, Sears , Best Buy, RadioShack, etc. Many people who want Samsung products usually go to these stores and find great deals. Samsung also have a very successful online store . 

In my opinion, if Samsung did have retail stores their business would be much more successful than it already is. Giving their products to these companies to sell, gives the company more freedom to sell it how they want, which can minimize profits for Samsung ; however, their online business is expanding, and in the future they may decide to open their own retail store.

Consumer Decision Making

There are many things that a specific company can do that can affect the decisions that consumers make; such as : advertisement, prices, quality of products, etc. Recently, Samsung created a commercial ; that everyone has been talking about. They implied that Apple has done nothing new to their products, and that they are made for the elderly. They also stated that the next big thing that everyone was waiting for, was already here. Apparently, this had a lot of people reconsidering buying the iPhone .

One of the reasons why Samsung is so popular, is because of the prices on their phones . More middle-age people who want a smartphone but don't want to spend so much money, are more attracted to Samsung. Their also attract people with the size of their screens, and the durability. What they create and how they go about advertising it, highly affects the decisions that these consumers make . They successfully reach their target market and others outside of it . 

Samsung's Global Vision

     As a world leader in technology, Samsung is advancing in product development and contributions to the global society. Recently, Samsung stated their new corporate vision.; they pledged to "become the lifetime companion to protect clients' values and prosper together". In their new vision, Samsung also plans to change all their systems and processes to become more customer-oriented and deliver the best product and services to the world.

With the launch of Samsung's most innovative home appliances yet to come, Samsung is well on its way to becoming the biggest home appliances brand. Samsung has the largest European portfolio up to date with home appliances. These products simplify consumers lives in a major way . Boo-Keun-Yoon , president of digital appliances, stated that "Its truly a revolution when everyday chores like cooking and cleaning are transformed into insightful experiences". Samsung's home appliances has firmly claimed their role as the brand to watch within the global market.

Since its founding in 1938 Samsung has maintained their mission statement; " We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society". In my opinion, this mission statement represents the company's growth into a giant competitor in the global consumer market.

The Marketing Environment

With more technology advancements than the market can handle, Samsung has proven that they are one of the most prestigious tech companies in the industry. Over the years, Samsung has mainly focused on integration and innovation. Samsung's innovative technology usually ends up putting them one step ahead of their competitor. 

In the near future, Samsung plans on creating a gaming system that collaborates with Microsoft. They plan on creating the ultimate gaming experience; alongside their 3D television. Samsung creates their products to attract young males between the ages of 20 - 30 . They believe that this category of people are most likely to buy all their products. They also target a group called "Cube Tubers" which is a group of primarily young people who grasp onto new technology quickly. 

Even though the technology market is highly competitive, Samsung always seems to one step ahead of their competition . Since the release of their new 3D television they have been working on a new model that does not need the glasses to operate. If their strategies and tactics are successful they will continue to hold and maintain  the top spot in the market. 

 

Ethics And Social Responsibility

As a very large company , Samsung believes that through ethics and integrity, they are able to provide great values and benefits to their shareholders, customers, employees, and partner companies . Samsung has a set of guidelines they follow known as the "Ethics For Employees And The Code For Procurement ". They strive to reach a higher standard than the law requires .

Samsung Electronics contributes to society by helping to improve the lives of people in the community. They have highly  intensified their social contribution activities .  This company runs computer classes for the blind , provides scholarships for children from poor households, and good-will services for the needy . Each branch  also provides meals to malnourished children in the community where they work , which has brought these various communities closer together.

Many people believe that because Samsung is a large company , they only care about making a profit and doing things that are beneficial to themselves. They know they have a responsibility to help others, and they fulfill it well.

Strategic Planning For Competitive Advantage

Lately, much attention has been centered on Apple gaining 1 billion from Korean electronics giant Samsung. In my opinion, this did not have a major effect on Samsung because they sold more smartphones and they still hold the leading seat in the global cell phone marketplace. Samsung also outsold Apple with a margin of 44.5 million to 35.1 million removing Apple from the number one position .

      There are many reasons that Samsung has been able to maintain its competitive edge . Samsung offers a wide variety of phones and a even wider selection of features, than Apple. There is no substantial reason why Samsung is able to keep up with this level of competition, other than simple economic factors such as price and features . Samsung also tends to drop the prices of their phones on a regular basis . They are more likely to attract a low-end customer into a buying a cell phone with high-end technology. For example, my father was never interested in smartphones. He always would have a basic phone, because he felt it fulfilled the purpose he needed it to . He recently decided to change his phone to a Samsung Galaxy S 2 . The price had dropped from what it originally was and he felt it was time for a change . He is now in love with the phone and the various features it has to offer.

 
   

Mission Statement & History

MISSION (Management Philosophy)
Samsung Electronics is committed to inspiring its communities by leveraging Samsung's three key strengths : new technology, innovative products,  creative solutions, and promoting new value for Samsung's core networks: industry, partners, and employees. Through these efforts, Samsung hopes to contribute to a better world and a richer experience for all .

HISTORY
Samsung was founded in 1938 in by Lee-Byung-chull and was originally named Samsung Sanhoe. It originally started as a small export business in Korea that produced food and sugar then later on joined the electronic industry in the late 1960's.

           Samsung went through a pioneer digitial age from 2000-2010. The digitial age was a time of revolutionary change . Samsung responded to this demand in technology with competitive products and constant innovation such as releasing a pda phone, lcd tv, first solar powered mobile phone, and created the world's thinnest tv at 6.5 mm. Samsung now specializes in digital appliances, media, phones,  semiconductors, memory, system integration, etc .

               In 2009 Samsung became the worlds largest technology company surpassing both Siemens and
Hewlett-Packard with a revenue of 172.5 billion compared to Apple's revenue at 63.5 billion.