Samsung puts great emphasis on its presentation and image in public. Promotion is highly important part of marketing mix and the company sets aside a sufficient and quite large budget for making the best to promote itself. Support of selling is highly intensive and always tries to react on the competition. There are many types of promotion. Samsung uses three types of them. The first one is selective promotion. Selective promotion means that the company provides distribution of its products only through intermediaries, who own special skills that allow them to offer these products to market more effectively. The second type of promotion which is used is intensive promotion. This type’s priority is to achieve the largest possible presence of the products in retail outlets, so the company tries to sell the largest possible number of outlets. This is how they sell to the mass markets. The last one is exclusive promotion. The company sells its products through a limited number of intermediaries.
The most commonly used in the luxury segment, to emphasize the exclusivity of these products. The higher priced phones and other electronics are sold through this. Samsung as a company believes in pulling the customer to themselves through advertising but at the same time uses strong tactics to push the product to the customer through sales promotions. Thus on one hand, Samsung uses various marketing vehicles across the year covering festive season as well as non festive time. On the other hand, it gives many offers and discounts to its trade partners to motivate them to sell Samsung above competition. With such a strategy, Samsung’s brand is on the rise so that both, the pull as well as push strategy is working simultaneously in Samsung.
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. At Samsung Electronics, all of the advertising activities are designed to provide the public with accurate information on who they are and what they make through fair and high-quality advertisements, thus helping customers with their buying decisions. Creating a good image through mass media is as important as innovative products. Samsung Electronics’ advertisement is centered on the empowerment of corporate brand identity and product. Samsung promotes its products in a variety of ways ranging from attending the relevant trade fairs for each of its products, to providing print brochures, posters and specification sheets. Information about products is also available on Samsung’s website and via brochure lines.
Brochure lines are 0800 numbers which the public can use to find out more about specific products and at which retail outlets they are available. As an example of advertising, most advertising made for Korean consumers is outsourced to advertising agencies. In these cases, the TV advertisement is released on media after careful examination by the organizations of advertisement consultation to make sure that the ad meets legal and moral concerns. For printed advertisements, the in-house committee conducts an examination with ethical code after their public release. With production made for overseas consumers, overseas subsidiaries and branches carry out advertising activities mostly related with product advertisements and firmly abide by the laws, regulations and moral concerns of the country in which they operate Direct marketing
Samsung has turned to the use of Internet to its greatest advantage. For instance, in 2002, the company spent 10% of its advertising budget on-line, up from about 1% in 2001. It used more than 50 Web sites to flood consumers 24/7 with brand messages and real-time promotions to make retail traffic. Each ad drove business customers as well as consumers to Samsung’s web site, an 800 number and selected retailers which are directly connected to its site through an exclusive extranet. Peter Weedfald, Samsung Group’s vice president for strategic marketing, estimates that reaching 1,000 people on-line is about 50 times less expensive than doing it on TV. Once Samsung used our Telescoping Folder direct mail solution for Wave 2 of their multi-wave integrated campaign. As you pull on the tab, a new panel pulls out containing information about the featured Galaxy S phone. In this example, there are 4 panels of information. A lot of information packed into a 5″ x 7″ mailer! Personal selling and sales promotion
Traditional personal selling is a method that is use to persuade a buyer to purchase a product or service Personal selling is for Samsung really important. For instance in Great Britain the consumers do not expect nothing else than huge professionality and professional communication as well. As for the sales promotion, Samsung Electronics Corporation holds various promotional events to hold loyal customers. One of the promotional events is called “Samsung Sense Academic Festival” which is lasted for more than 10 years. The company sells electronic products such as desktop, laptop, MP3 and electronic dictionary as well which are well designed for students. The reason why Samsung Electronics Corporation is holding such a promotional event for students is that students are main customers of their products themselves and the company can hold life-long loyal customers by offering them the point of entry which makes customers very loyal. Another of Samsung major sales promotions was offering two free pairs of 3d glasses with the purchase of a new 3d TV. Public Relations
The main feature of this company is the term „quality“. All workers should pay attention on these two things: Samsung products should be of high quality and sufficiently reliable. This kind of philosophy is abide by all people who works for Samsung (everyone from the top management to the single one worker on the production line). It is really important for the brand to be associated only with successful firm and not to become depreciated. Public relations, whose aim is to create favourable relationships with public and to have a good reputation, is basically a part of values which Samsung sticks to. As an example, Samsung supports some sport and cultural activities like: Olympic games sponsorship since 1996 Nagano to 2008 Beijing Games 2004 Athens games
Torch relay in 27 countries, 34 major cities, reached more than 50 million 7% increase in Awareness, 15% increase in Purchase Intention
In this Brand Innovator Spotlight, Louis Giagrande, senior manager of online marketing at Samsung, shares one of the company’s game changers for 2011 and provides tips on how marketers can sell their companies on digital. Brandon Gutman: What new insight did you learn from last year’s marketing initiatives? How are you applying it towards 2011 campaigns? Louis Giagrande:The main insight we learned from 2010 was that consumers liked 3-D televisions but it was not going to become the primary driver of TV purchases in 2011. It’s still a cool feature for consumers and we continue to see positive reactions to the 3-D experience being brought into the home but our consumers showed a stronger connection and appreciation toward our TV Apps Platform. We don’t regret any of our 2010 3-D marketing efforts because we ended up securing around an 80 percent market share in the category, and marketing trade magazineBrandweek named our 3-D TV campaign the best TV tech spot of the year. However, we knew in late 2010 that the focus of our marketing in 2011 would be around our Smart TVs. Another key insight that will mold our digital marketing initiatives in 2011 is the amount of consumer confusion regarding both 3-D and Smart TVs.
As recently as a few years ago, all of our TV product innovations just made the TV picture look better. Consumers didn’t need to know exactly how certain features produced a better image. They would see it, like it and hopefully buy it. With the introduction of 3-D and Smart TV, there is so much more to the product experience than just looking at the picture. For example, we were surprised to hear consumers asking questions like, “Does your 3-D TV also show a 2-D picture?” It’s a very logical question but none of us thought to make it clear in our marketing that a 3-D TV played both 3-D and 2-D. In 2011, our digital marketing initiatives will be centered around educating consumers around Smart TV. We have a laundry list of educationally rooted activations that include a team of Samsung online brand ambassadors that will engage consumers wherever they are asking questions about Smart TV. That’s all I can say right now. What’s your major game changer for the industry this year? I can’t get into specifics about programs that could be copied by our competitors but I will give you one cool initiative we are developing thanks to the insight of our senior leadership team. We have millions of people who already own a Samsung Smart TV and millions more that will come this year.
That’s a significant audience of Samsung consumers who we can engage in a completely different way than our CRM program or our Facebook page. This campaign will have elements of a loyalty program and social media activation. I love it because our product plays such a big role in the consumer engagement. Our service center already created a product support app where consumers can watch videos on how to optimize their TV experience or change settings or other support related issues. It was one of the top downloaded apps prior to us pre-installing it on our TVs and it continues to be one of the most utilized TV apps on our platform. In my Q&A with Pepsi last time, Shiv Singh, who heads up digital in the company’s beverages division, shared his advice on how brands can begin and scale their activities in digital. What tips would you add? Shiv is a very smart man and his advice was excellent. I am in strong agreement with his view on creating campaigns that are digital at its core. You can’t expect a TV or print campaign to cleanly translate into a digital campaign. I also liked Shiv’s comment about digital not being the answer for every marketing campaign. I laughed when I read that because digital is often the dumping ground for any marketing idea someone scribbles on a napkin. Two additional tips:
1. Set up your success metrics from the beginning. It’s understandable if you want to measure everything, but pick a few key metrics you need to improve and focus on those. If you don’t set up what you want to accomplish from the beginning, you won’t completely understand if your campaign was successful because you can always find good and/or bad metrics in a sea of numbers. 2. Make sure you are properly prepared to listen to what consumers are saying and are capable of acting on it if needed. I see companies putting up Facebook pages assuming that they will dictate the discussion topics and they aren’t prepared to answer tough questions in a timely or relevant manner. Social engagement is the foundation of digital marketing. If you are a digital marketer, you need to be friends with as many people in your company as possible. When we launched our consumer forum on CNET, I had to make sure I had people who I could rely on in our legal, PR, service, product marketing and sales departments, etc. If someone is having a negative product experience, I can’t wait two weeks for approval on a reply back to them. It will cost you a few lunches or drinks but you need to go beyond setting up an internal process. You need internal relationships to make most social campaigns work.