Samsung Marketing Strategy

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1.0 Introduction As the figure 1 shows, Samsung has a more stable and higher market share in the smart phone market. But it doesn’t mean it has a best fit position and profit compared to the other competitors. To simplify this point, we should not predict the situation of one company based on the sales, there is a lot of aspects need to be measured, such as the expenditure, ROMI, and so on. And this report explain about the definition, application, and roughly explain about the importance of marketing metrics which adopted by Samsung group. Except of this information, the report will be ended by recommendation. 2.0 Background of Samsung Samsung Group is a South Korean multinational conglomerate company headquartered Seoul. It is the largest…show more content…
The meaning of ROMI is return on marketing investment, which can be found in two books named “ return on marketing investment’ by Gup Powell(2002) and ‘marketing ROI’ by James Lenskold(2003). To simplify it, ROMI is more concentrate on the profit which gain against investment.’ (Farris, P, W et al., 2012, p.385). ‘Return on investment means the total revenue generated by a specific campaign and then reducing its total cost of implementation. This amount is then divided by the campaign's cost to get a percentage figure’( wisegeek, 2014) but the return on marketing investment is quite different, as it measures about the incremental sales attributable to marketing. The ROMI is a subset of the ROI. According to Chris Smith, Samsung is willing to spend about 14billion(USD) on advertisement and marketing. The gross profit of Samsung in 2013 is 22,5billiion(USD). Although the marketing spending in 2013 is very large , the revenue generated in 2013 is also quite high. So the marketing spending is worthy for Samsung to generate the…show more content…
Marketing metrics can be divided into nine parts which are margins and profits, customer profitability, pricing strategy, promotion and so on. In this report, the major metrics adopted by Samsung should be margin and profits and marketing and finance. Both metrics are more concentrate on the ratio of generated profit from the several parts. They are statistical measurement about the effectiveness of individual marketing effort of the particular company. in the aspect of financial, marketing metrics concentrate on the ROI (comparison of the cost and return). And the rest of the metrics focus on the psychology of the customers and how many customers.( including new and existing customers) they
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