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Would You Spend More Than Iceland’s Annual GDP on Marketing?

It is a basic law of sales that marketing has to perform an important function in order to make any company successful. This is especially true for consumer products, where there is usually competition anywhere you look. If properly executed, marketing can reinforce a brand’s image in the consumer’s eyes, and help create the value proposition that the company is looking to achieve. If done properly, a well-executed marketing strategy will definitely lead to higher sales. But sometimes, just throwing money around in an attempt to lure customers can be a flawed proposition, especially if there isn’t a lot of focus on how the money is spent. It appears that this is the case for Samsung, who is making a concerted effort to get their brand name spread all over the world.

 

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Yes, Iceland

 

Samsung plans on spending over $14 billion this year on marketing and advertising across the globe and yes, this is more than the entire gross domestic product of Iceland. As they are a giant electronics company, they have a lot of different product lines that they want to promote. These include their popular smartphones and tablets, television sets, dishwashers, refrigerators and other household appliances. As you can imagine, trying to create one advertising campaign that fits the myriad of different cultures around the world is extremely challenging. As it turns out, Samsung’s marketing department seems to have missed the mark on several occasions. Product placement in the middle of any activity, including a television show, is a delicate balancing act. Viewers in the UK were not impressed when Samsung sponsored the popular X Factor television show: there were too many product placements in the middle of the show for viewers to feel comfortable and many resorted to social media sites such as Twitter to complain about the experience.

 

Putting It in Perspective

 

So how much does $14 billion gets you? In the case of Samsung, they spend a higher percentage of their annual revenue than any other major corporation in the world. It pencils out to 5.4% of revenue, which is a lot more than Apple, its major competitor in the mobile device business, spends. Perhaps because of Apple’s perception in the market as a high-end product, they only spend 0.6% of their revenue on marketing and advertising. And $14 billion is a lot more than Google spent on acquiring the fabled Motorola cell phone division, which is now producing some excellent and inexpensive smartphones that are sure to cut into Samsung’s own sales. It appears that Samsung needs to start paying more attention to focus groups, where they can get input from real consumers in regards to how their marketing campaigns are perceived, before investing more money without having a solid idea of how effective they will be.

 

Spend Your Money Wisely

 

Any company in the UK knows that they have to engage in effective marketing campaigns to achieve the desired sales results. In today’s digital world, a lot of it has to do with how a company presents itself on the Internet. As a result, there is a great need for experts who can create bespoke designs and consumer interactions across multiple platforms. By visiting http://www.absolute-design.co.uk you will discover a company that can provide you with all the services required to make your Internet presence successful.

 

 

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