One of the most important aspects of any business is marketing. Without a good marketing strategy, your business won’t make it very far. Samsung conducts research in order to create the right marketing mix for their products and services. This information can be used to help them target their audience, get feedback on their product offerings, and measure whether or not they are achieving their objectives.
Marketing Research Process of Samsung
Market research: What is it?
Market research is the systematic collection of information about problems with the marketing of goods and services. For instance, this could be done to assess purchasing patterns and consumer behavior.
How Samsung utilizes Market Analysis
Samsung will make significant financial investments to research consumer behavior. This is a crucial component of Samsung’s profit-making because it operates in a sector that is constantly changing.
An online survey where users can submit their preferences for new product features is one way that Samsung gathers market data.
Quantitative and Qualitative Research
- Compared to quantitative research, qualitative research typically requires more time to record. This is so since quantitative research necessitates judgments and more specificity.
- Because the data are less detailed than in qualitative research, quantitative research is preferable for collecting information for larger populations of people.
Face-to-face interaction is a major component of primary research. For instance, door-to-door polls, surveys sent via mail, and polls taken over the phone.
Secondary research differs slightly from primary research in that it uses both internal and external sources as its primary sources.
Information that already exists within the company is referred to as internal sources.
Information from outside organizations is referred to as external sources.
Data collection in the form of electronic transactions is an example of secondary research used by Samsung.
Market research benefits
An advantage of market research for a business is that it can assist it in identifying its rivals.
Market analysis also reveals to the company what kind of advertising was most effective for them.
Utilizations and Restrictions of Market Research Restrictions
Research on the Market’s Restrictions
Because it is typically quite expensive, market research may not be feasible for smaller businesses with smaller budgets than larger corporations.
Marketing Concept of Samsung
The fact that Samsung has the largest marketing budget among its rivals contributes to the company’s leadership position in terms of market share. Samsung spent $11.5 trillion (10.2 billion USD) on marketing in total in 2016. With a 15% increase from 2015, this included USD3.9 billion (4.4 trillion won) for advertising. As will be covered in more detail below, the Samsung marketing strategy incorporates various forms of advertising, occasions and experiences, public relations, direct marketing, and personal selling. 53 international sales locations serve the multinational electronics corporation.
The following tenets serve as the foundation for Samsung’s marketing strategy:
- Compared to other elements of the marketing mix, such as process, people, and tangible evidence, Samsung 7ps of marketing places a greater emphasis on the product element of the mix. With 34 R&D facilities worldwide and 53 global production bases, the multinational electronics company specifically aims to maintain a steady stream of new products with cutting-edge capabilities and features.
- Multi-segment, imitative, and anticipatory positioning techniques are all included in the Samsung segmentation targeting and positioning strategy.
- The two steps of the Samsung marketing communications strategy, as shown in the figure below, each involve a different set of activities. It should be noted that both the production and execution steps of the marketing communication process involve legal review, which is a crucial component. This is due to the fact that ignoring legal implications related to the creation and delivery of marketing communication messages can seriously harm the brand’s reputation and have serious financial repercussions.
Samsung Company Strategy
Samsung’s marketing plan is centered on creating new, cutting-edge products that are backed by powerful branding and advertising campaigns. Mr. Yun launched a new competitive strategy with the intention of creating and marketing superior products while also enhancing Samsung’s reputation as a chic, premium brand deserving of a high price. The goal was to carve out a distinctive niche using technological innovation and create products that appealed more to younger consumers and affluent consumers worldwide. Yun argued that if they kept competing on price, they would eventually fail.
R&D Into Innovative Tech
Samsung made the decision to spend a lot of money on these areas. Samsung had to become a forerunner in the creation of new technology in order to have a competitive advantage fueled by innovation. Sony had a competitive advantage in consumer electronics during the 1990s, but it was based on analog technology. The company invested a significant amount of resources into developing large-area LCDs, chipsets, and cellphones as a result of the digital world’s need for new products. During the 2008–2009 financial crisis, Samsung invested over $7 billion, or nearly 6% of its unit’s revenue, in research and development. At that time, more than 25% of the company’s workforce was involved in R&D.
Product Design and Development
Samsung placed an emphasis on product development and design as well, realizing that market success is not always guaranteed by cutting-edge technology. Their objective was to develop goods that offer advantages that, for at least some consumers, would justify the cost. New product development at Samsung typically involves a team of designers who work closely with the company’s engineers, manufacturing teams, and marketers. This is because many product benefits can be subjective, such as appealing styling, a cool image, or even the quality of the camera.
Brand Building Campaigns
Last but not least, Samsung’s marketing plan centered on developing a promotional campaign to enhance the company’s reputation. In order for a new competitive strategy to be successful, it was equally important for companies to revamp their marketing strategies. This is because even the most technically advanced and well-designed products are likely to fail if consumers are unaware of them, find them difficult to obtain, and don’t believe they are worth the money.
In order to lead a global marketing initiative, Eric Kim was hired. One of his first actions was to restructure the company’s distribution networks in order to align them with the strategic goal of making Samsung a premium brand. Many of the company’s products were initially removed from low cost discount chains and their distribution was switched to big-box electronics retailers like Best Buy and online retailers like Amazon.
They also reduced the number of advertising agencies from 55 to just one, the global advertising group (WPP), in order to ensure consistent marketing communications across all markets. WPP also started the company’s first branding initiative. They promoted the technical sophistication of their products while also creating a sense of modern style through fashion-forward TV commercials. In order to strengthen the brand, WPP also used promotional tools like product placements, social media ads, sponsorships, earned media, and online advertising.
What Were the Results of Samsung’s Strategic Marketing Decisions?
The updated marketing initiatives and competitive strategy that Samsung created and put into place have been a resounding success. From 2003 to 2008, Samsung’s brand value increased by more than 200% globally, surpassing Sony to become the most valuable consumer electronics brand.
Due to the introduction of the Samsung Galaxy, unit sales increased to $119 billion by 2009, and as of 2018, revenue has increased to an astounding $218 billion. By the end of 2020, Samsung wants to generate $400 billion in sales and rank Samsung Electronics as one of the top five global brands, according to the company’s vision statement. Additionally, it appears that they are sticking to their strengths given Samsung’s continued dedication to advancing technological and product innovations. For instance, the Galaxy Fold and the Galaxy Z Flip are two of the most recent examples of cutting-edge innovation from Samsung.
The Use of Marketing Research in Samsung’s Business.
Samsung’s business is structured around the goal of maximizing profits. In order to achieve this, marketing research is used in order to understand customer needs and preferences. Marketing research can be used for a variety of purposes such as identifying new markets, understanding customer behavior, and developing product strategies.
What is the Purpose of Marketing Research in Samsung’s Business
The primary purpose of marketing research in Samsung’s business is to help the company achieve profitability. By understanding customer needs and preferences, marketing research can help the company create products that meet these needs while also keeping profits high.
How Does Marketing Research Affect Samsung’s Business
In addition to helping the company achieve profitability, marketing research also affects Samsung’s other goals including driving innovation, increasing brand awareness, and Garnishing Overall Success (GOS). GOS refers to the overall success of a company and its subsidiariesin terms of market share and revenue growth. By understanding customer behavior, marketing research can help companies ensure that their products are being marketed at the right level so that they reach their target market without impacting competition too much.
How Does Marketing Research Help Samsung’s Business
managing marketing research involves ensuring that it is conducted in a responsible manner and meets the standards set by various organizations such as The International Standard on Market Research (ISO/IEC 17025). In addition, it is important to consider how researchers protect participants’ privacy while conducting study sessions and protecting subjects from potential harm during study participation.
The Importance of Marketing Research in Samsung’s Future.
Samsung is perpetually looking for new ways to improve its products and services. Marketing research is one of the key ways that the company does this. The goal of marketing research is to understand customers and their needs in order to make better decisions about products and services.
In addition, marketing research helps Samsung develop new products and services that are more efficient and effective. By understanding how customers interact with different products and services, Samsung can create products that are more beneficial to its customers.
What is the Purpose of Marketing Research in Samsung’s Future
The primary purpose of marketing research in Samsung’s future is to help the company improve its product offerings. However, other purposes can include developing new strategies, improving customer service, or understanding how consumers behave when using different products or services.
How does Marketing Research Affect Samsung’s Future
Marketing research has a number of effects on Samsung’s future including:
In order for Samsung to continue making great products, it relies on accurate information about its customers.marketing research helps to determine which features our customers want and which ones reduce costs; reducing the need for expensive marketing campaigns; identifying opportunities for improvement; developing new product concepts; etc.; thus giving us an advantage over our competitors who may be releasing similar products without knowing all of the intricacies involved.
In addition, marketing research helps to ensure that customer service is top-notch. By understanding customer needs and desires, Samsung can create customer service policies and procedures that are effective and efficient. By doing this, Samsung can improve the quality of its customer service and make it easier for customers to order products they need or want.
How Does Marketing Research Help Samsung’s Future
The main benefit of marketing research is that it helps to improve the accuracy of data which in turn allowsSamsung to make better decisions about products and services. by knowing what customers want,Samsung can create products that are more beneficial to its customers; reducing the need for expensive marketing campaigns; identifying opportunities for improvement; developing new product concepts; etc.; giving us an advantage over our competitors who may be releasing similar products without knowing all of the intricacies involved.
Marketing research is an important aspect of Samsung’s business. By conducting marketing research, the company can determine what products or services to produce and how to price them in order to reach a wider audience. In future years, the importance of marketing research will continue to grow as Samsung expands its product line and looks for new ways to market its products.