Ch. 8 - 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 demographics, 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. Samsung can perform heavy research and understand the best way to reach their targets.

Ch.11 - Developing and Managing Products

According to the Samsung.com, Samsung is inspired by nature. The company regards beauty, efficiency, technology and convenience as very important in order to design their products.Samsung thinks innovative and reasonable design. No matter how good function the electronic devices have, the convenient use of users is the most important. Samsung design their products emotionally based on the products of users.  

          Samsung also pursue design that includes their spirit. It which means that Samsung design their product by their own image so that their products can be recognized at far distance.

more than 40,000 of their employees engage in research and development in order to discover the next generation of powerhouse products. Samsung plans to spend about 9.3 billion a year on research and development, compared to Apple's 2 billion. Spending this much money, Samsung has a much greater chance of being the forerunner in innovation

Samsung controls 100,542 patents worldwide; 4,551 registered in the U.S. 

Ch.12 - Services and Nonprofit Organization Marketing

                 In 2012, Samsung  launched a program of organizational reform that

addresses the changing global IT landscape. As a top priority of the organizational reform,

Samsung management structures in each business area. Samsung’s new organizational structure reflects the company’s refocused emphasis

on three key business sectors: Consumer Electronics (CE), IT & Mobile Communications (IM),

and Device Solutions (DS). These reforms will help Samsung improve upon its history of operational

excellence, allowing for increased growth opportunities and continued industry-leading innovation

              Also, Samsung  believes that its efficacy and success relies on its ability to create new business,

products, and technology. As a result, the company places a heavy emphasis on future investments

and patents. Samsung also believes in the power of constructive failures, recognizing

that challenges often for strategic problem solving and innovation within the

global marketplace. The company regards every challenge regardless of size as an opportunity

for knowledge building and growth. Through constant problem solving and creative technological

innovations, Samsung  is committed to creating a more sustainable future for the entire

global community.

 

 

    









 

 

Ch. 10 - Product Concepts

Samsung  products can be considered as shopping products, because it is more expensive than convenience product and there are fewer stores. Samsung products are usually more expensive than other electronic products. Even though Samsung sells expensive products, people can afford to have the products. Samsung offers a good warranty for their customers and produces products in a high quality. Samsung regards the satisfaction of customers as the most important factor in order to be success in their business. The company spends a lot of money to invest for designing products and making super high quality products.

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, before making a decision to buy. Samsung also creates convenience products, which are consumed on a regular basis, and purchased frequently.

 

 

Ch.17 - Selling and Sales Management

         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  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. For example of offering point of entry, a sanitary pad company offer free sanitary pads for female who have first experience of their menstruation and some diaper companies offer free diaper for a certain period to those who birth first baby. In this case, the customers who experienced the offer cannot easily change their products. Students usually change their phone or computer usually in every 2-3 years thus owning loyal customers is very important.

 

    Samsung also holds graduation and admission events for students to have various opportunities such as providing students free cyber lecture, fancy diary or additional batteries when they buy a new cell phone or laptop and the company also giving scholarships or travel gift cards by casting lots. These events reduce customers' burden a lot. For example, I also experienced such reducing burden when I recently bought a new Galaxy S5 and got many free attributes such as free charger cord, usb, and memory chips and it made me a loyal customer of Samsung. 

       Also traditional personal selling is a method that is use to persuade a buyer to purchase a product or service and Samsung uses this method to sell their Galaxy products because they come out with  new Galaxy products every year, so they are consistently persuading customers to buy their latest product.

Ch.16 - Advertising, Public Relations and Sales Promotion

Samsung uses product advertising to help increase their sales. Samsung promote their products  by television commercials, advertising on the trains, billboards, online, and ads in the movie theaters.

 Samsung developed a way to make their product a little bit better and interactive than their competitors, one of these upgrades include them teaming up with a global health service company called Cigna to put out a new application called S Health.The purpose of this is to focus on delivering health-related tips and articles to people with Galaxy phones  and connecting them with caregivers, doctors and hospitals to improve health and wellness worldwide.They release the application on the Galaxy Note 3 as  being apart of the smart phone market. For sales promotions Samsung and the mobile communications company may organize a limited time plan for consumers where they can pay a really low price or sometimes even nothing for the phone up front but they have to pay a certain amount that is added to their bill, which is a smart way to get rid of merchandise quickly.

Ch. 14 - Marketing Channels and Retailing

Samsung Store: 130 Prince St New York, NY 10012

The Samsung store is located in SoHo, one of New York City’s most busiest neighborhoods, the Galaxy Studio is a multi-level interactive experience featuring Samsung’s latest portfolio of mobile devices, including the new Galaxy S5 – 2014 Edition and Galaxy Note.Samsung did an excellent job making this place a fun hang out spot.Inside is great. There is a 3d printing station to make your little design trinkets for your keys, a camera gift maker that is just awesome. They have a tote making station and best of all a food area for small foods that is all free, also they have a kid zone. Kid friendly is a big yes yes for many people. This allows interaction with the products Samsung wants to promote in a fun way. Swung by on a night where they were making customized hand held mirrors and from what I understand, programming changes happen on a regular basis which include other customizable projects like t-shirts, tote bags, etc. This motivates people to come back and to earn visitor "points" on a personalized card you receive when you first arrive to the store. Some of the technology was a bit difficult to grasp for those not familiar with Samsung products but was cool to check out nonetheless. The employees will tell you what the space is about. It's essentially a studio devoted to educating consumers with one-on-one demos for Samsung's products. You can design personalized swag items, free of charge, and rent out Samsung phones. Free espresso and pastries, plenty of time to experience the entire Samsung Galaxy and Gear line. Friendly and knowledgeable staff too.

Ch. 6 - Consumer Decision Making

Consumers go through several steps before purchasing products or services.
        The first step is recognition which is very important because it leads consumers to buy products or services.
    The second step of consumer decision making is information gathering and searching. When an individual recognizes his or her need for a particular products or services he tries to gather as much information as he can. People can get information through several sources which are personal, commercial, public and experiential sources. You can also get information through advertisements, sales people, newspaper, radio, magazine and television. For these reasons, Samsung spends their one of the majority budget in advertisement on television, radio, newspaper, magazine and so on. You can find the advertisement of Samsung Galaxy S5 every where and thus you can learn about the products of Samsung Galaxy S5 easily. Good warranty is one of Samsung  key of success.  Once you get a good warranty service, you will think the company in positive way. And it reminds you the product of company when you decide to buy a new product.

    After gathering the information, an individual may think about before purchasing products. There are several major smart phone companies such as Apple, Samsung, and HTC satisfying needs  consumers. Samsung invests a lot of money in designing department and advertisement to attract young people in order to give the company an advantage over those strong competitors.

    The final step is that customers finally purchases the product. This process is followed by post purchase evaluation which is customer’s analysis whether the product was useful to him or not, whether the product fulfilled his need or not. Products of Samsung are evaluated positively by consumers. In addition, many existing buyers of Samsung Galaxy S5 show high repurchase intention because of good experience with previous products of the company.

Ch. 5 - Developing a Global Vision

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. 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.

Vision 2020

As stated in its new motto, Samsung Electronics' vision for the new decade is, "Inspire the World, Create the Future."

This new vision reflects Samsung Electronics’ commitment to inspiring its communities by leveraging Samsung's three key strengths: “New Technology,” “Innovative Products,” and “Creative Solutions.” -- and to 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.

As part of this vision, Samsung has mapped out a specific plan of reaching $400 billion in revenue and becoming one of the world’s top five brands by 2020. To this end, Samsung has also established three strategic approaches in its management: “Creativity,” “Partnership,” and “Talent.”

Samsung is excited about the future. As we build on our previous accomplishments, we look forward to exploring new territories, including health, medicine, and biotechnology. Samsung is committed to being a creative leader in new markets and becoming a truly No. 1 business going forward.

Ch. 4 - The Marketing Environment

Samsung Galaxy S5 target market has no limit but they specify to teens and adult male and female, between ages 20-40 and 50-65. Samsung was the only company that sold more than 5 million units both in the first and second quarters of 2011, giving them the world's best monitor brand reputation. Samsung performed well in emerging markets such as the Middle East, Africa and Central and South America, showing a strong market share increase in these regions up by 5.2 percentage points from the first quarter to 24.5% in the Middle East and Africa market, and by 4.2 percentage points to 28.9% in the Central and South America market.

• FOCUS ON GENERATING QUALITATIVE AND QUANTITATIVE GROWTH to enlarge control in the premium market as well as in the emerging markets.
• STRENGTHEN MARKET SUPREMACY AND INCREASE BRAND VALUE by making a high quality and customer oriented products which meets consumer's expectations and by adopting holistic marketing strategy in its place of individual marketing strategy.
• BUILD STRONG CUSTOMER RELATIONSHIPS by providing training to the employees on how to deal with the customer in order to gain customer loyalty.
• EXPAND THE SMARTPHONE CONCEPT by developing new multi-functional products that provides more functionality to users.
• Developing brand image and preference

PRODUCT PRICE PLACE PROMOTION by lowering than most models such as Sony or Apple .this pricing strategy proven to be useful because in other countries they are seen as expensive products and Samsung is not which gives them a leverage in sales.

Cited Sources:

http://www.samsung.com/us/news/22927
http://www.samsung.com/us/news/search/topic/environmentalnews?page=3

Ch. 3 - Ethics & Social Responsibility

Samsung is a company that doesn't base their business only in selling. They understand the importance of the environment and young generations. Samsung is committed to following with local laws and regulations as well as applying a strict global code of conduct to all employees. Samsung believes that ethical management is not only a great for responding to the rapid changes in the global business environment, but also a great opportunity for building trust with its various stakeholders including customers, shareholders, employees, business partners and local communities. Samsung aims to become one of the most ethical companies in the world, Samsung continues to train its employees and operate monitoring systems, while practicing fair and transparent corporate management.

Samsung embraces a corporate program that ensures the ethical business practices. Some of the policies such as: Audit committee, audit systems, Integrity Training, Cyber Audit Programs and the most important which is their Global code of conducts.

The Samsung Electronics Global Code of Conduct 5 principles.

Principle 1. We comply with law and ethical standards

Principle 2. We maintain a clean organizational culture

Principle 3. We respect customers, shareholders and employees

Principle 4. We care for the environment, health and safety

Principle 5. We are socially responsible corporate citizen.

Social Responsibility

Samsung takes very seriously being a part of the society as a major contributor. Samsung social program is called Citizenship. The Citizenship program is divided in many arms:

• Citizenship focus: acting as a accountable citizen involve the following: Social welfare; Cultural and arts, and Volunteer services: Samsung lunched the Social Contribution corps in 1995 where employee get involved with their communities.

Risk Management

With new technologies and the wrong doings of others, Samsung has to stay on top of threats and disasters, externally and internally. Risk management has become a top priority for corporations. Samsung has a company-wide system which reviews and avoids financial and non-financial risk factors both internally and externally through its business areas. Samsung’s Business Continuity Plan (“BCP”) is the emergency plan developed to reduce potential damage to the company during a massive disaster. “BCP” is used to avoid major problems, achieving targets for recovery and maintaining the operation of the business in case an emergency should happen. Disasters such as a fire, explosions, and power outages are included in the emergency plan. Samsung also make sure that their employees are aware of these plans and implements routine training.

Cited Sources:

http://www.samsung.com/us/aboutsamsung/sustainability/sustainablemanagement/samsungvaluecodeofconduct/

http://www.samsung.com/sg/aboutsamsung/samsung/valuesphilosophy_02.html

http://www.samsung.com

Ch. 2 - Samsung (Strategic Planning for Competitive Advantage)

Goal 1: To drive sales to support its large manufacturing capacity
Objective 1

·         To sell 70,000 S5s in week, and 300,000 in a month in Korea

     Objective 2

·         To increase the Samsung’s Mobile Market Share from 60% to 70% in Korea

Goal 2: To Avoid leveling high margin sales to LG and Apple
 Objective 1

·         To guarantee 50 million for marketing in South Korea (Used 1 billion dollars on ads and budget for the Galaxy S5)

Objective 3

·         To achieve a higher level  of customers satisfaction in south Korea

Objective 4

·         To meet the needs of customers

The Galaxy S5's strong first-month sales were partly due to better preparations than in previous years, Mr Shin said. This time, Samsung offered the smartphone simultaneously in 125 countries and had major carrier agreements in place from the start. The company has also been expanding its presence within retail outlets including Best Buy.

To figure out how to make the Galaxy S5 more attractive, Samsung analysed phones brought to its after-service centers and found that 30 per cent had been turned in "because people were spilling coffee over them or dropping them in water," Mr Shin said.

2013 Financial Highlights

AMOUNTS IN BILLIONS	WON	DOLLARS	EUROS
Net Sales*	302,939.5	268.8	208.4
Total Assets	503,677.1	470.2	356.2
Total Liabilities	279,298.0	260.8	197.5
Total Stockholder's Equity	224,379.1	209.5	158.7
Net Income*	29,537.0	26.2	20.3

[Amounts in billions]

* Won/U.S. Dollar yearly average exchange rate : 1,126.88/1$. Won/Euro: 1,453.68/1€ 
* Won/U.S. Dollar as of the end of December 31, 2012 : 1,071.10/1$. Won/Euro: 1,413.85/1€ 

Cited Source:

http://www.businessspectator.com.au/news/2014/5/15/technology/samsung-galaxy-s5-sales-strong

Ch. 1 - Introducing Samsung Galaxy S5 (Brief History and Mission Statement)

Samsung Galaxy S5 is an Android smartphone produced by Samsung Electronics. It was made public on February 24, 2014 at Mobile World Congress in Barcelona, Spain, it was released on April 11, 2014 in 150 countries. The Galaxy S5 is a dust and water resistant 16 megapixel smartphone that runs on the Android 4.4.2 (Kitkat) operating system and which was an improvement on it predecessor (Galaxy S4) . Also introduced to its design with a 5.1 Full HD display, software,fingerprint scanner, extended battery life, camera, and new built in heart rate monitor that keeps track of all kinds of exercise and keeps your diet in check.Which where all new features added to the S5. The S5 was criticized for its fingerprint scanner and hardware improvements over its predecessor( galaxy s4)

Comparison Galaxy S5 Vs Galaxy S4