Market evaluation is the part of a feasibility study which incorporates community market progressions, social and demographic characteristics, recent advancement trends, specific markets, the competition, and geographic elements.
Marketing evaluation benefits include strengthening and improving brand awareness, educating clients and prospects about the advantages of products; and creating stakeholder relationships.
Ideally before a company’s fiscal year, marketing evaluation should be an logical reference for budgeting and planning exercise.
The goals that are set should be both quantifiable and applicable to each marketing role within a company. Organisations employ different systems to measure marketing performance and make sure that they meet those performance goals.
Marketing metrics are useful for both marketing executives and non-marketing officials, from the CEO to the VP of sales.
Marketing metrics are also used by the senior management team in order to gauge how their spending and marketing activities affect the organisations primary concern. This is particularly important since during economic downturn, mergers and downsizing, organisations are inclined to decrease their marketing budgets.
Here we shall discuss about how Samsung has achieved its marketing evaluation using three different metrics.
Market Evaluation metrics (Iacobucci, D 2014)
ROI for Samsung:
Samsung has constantly utilised online networking to expand their ROI. For instance, Samsung utilized Facebook ads to advance Samsung Galaxy S3 smart phone in 2012 (Yung, M 2013)
Samsung spent $10 million dollars and gained $129 million in million in deals specifically owing to their Facebook campaign (euro news Knowledge, 2016)
Samsung’s Customer Profile Metrics:
With reference to Customer Profile Metrics, the different buyers, where they shop, what media they consume and how, when and where they live should be understood by the marketers.
Under geographic case the company has Samsung guru segment and for urban areas it has Samsung galaxy segment.
In demographic case Samsung targets consumers using normal devices for everyday use and also the standard industrial equipment. Samsung usually targets customers with the age group of 20-50’s or even elderly persons.
Samsung offers products in the market for every age group as long as the person has the ability to purchase and use the product.
Samsung targets teenagers between the age group 14-25 by offering smart phone as this age group is usually technological savvy. In the recent years Samsung saw that this group is growing compared to past as of late this age group has got more spending power.
Samsung also targets a specific age group customers between 26-50, as this age group most ability to purchase the products that Samsung has got in the market to offer be it from cameras, smart phones, smart televisions and any other household products like washing machines or vacuum cleaners.
In the upcoming years Samsung would see a proportional growth with this age group of consumers.
Behavioural metrics for Samsung:
Under Behavioural metrics, we need to understand market share, market penetration and purchase frequency. From the 2nd quarter 2009 to 1st quarter 2016, Samsung in the smart phone market hold a share, which is shown in the below graph:
The above statistics shows the share held by Samsung in the global market for smartphone market from the second quarter of 2009 to latest quarter. Samsung had a global market share of 3.3 percent in the fourth quarter of 2009. They had increased their market share to 31.7 percent by the start of 2013.
From the above metrics we can understand that Samsung has the best marketing evaluation techniques through which the company stands has one of the leading mobile suppliers in the world.
- Iacobucci, D 2014, Marketing Management (MM4), South-Western, Cengage Learning, Mason.
- Boundless 2016, “The Importance of Evaluating Marketing Performance”, 20 May 2016, retrieved 22 May 2016, <https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/introduction-to-marketing-1/evaluating-marketing-performance-23/the-importance-of-evaluating-marketing-performance-133-4047/>
- Yung, M 2013, “ROI for Samsung”, retrieved 20 May 2016, <https://makhangyung1.wordpress.com/2013/10/03/roi-for-samsung/>
- Mark Zuckerberg: Facebook and Samsung join forces on nascent VR market, 2016, euro news Knowledge, 24 February, retrieved 19 May 2016, <https://www.youtube.com/watch?v=FLFY3idyuHM>
Submitted By: Donavalli Satya Gagana Sai (214396408)