Samsung to cut back on advertising for mobile related products
posted by Alan F. / Jan 24, 2014, 12:31 AM
Senior Vice President Kim Hyunjoon told analysts in a conference call after the earnings report, that the company will be reducing its mobile marketing budget this year. Still, the company does plan on spending to promote its mobile devices during the Winter Olympics in Sochi. At the Winter games, each athlete will receive a free Samsung Galaxy Note 3 courtesy of the Korean manufacturer.
While lowering the amount it will spend on advertising, Samsung hopes to stretch each dollar spent by making its marketing spend more efficient. This could be a risky strategy for Samsung if one of its rivals were to go all in with a massive ad campaign.
Posts: 75; Member since: Aug 07, 2013
How much have Samsung pay to microsoft for using the Linux-based Android? No wonder really if the Chinese and Indian Governments will allow a deal between Nokia and Microsoft? Huawee and Microsomax will have it really hard aginst microsoft Then the risk of hitting the entire industry when microsoft will have a senseless cones tage
posted on Jan 24, 2014, 12:40 AM 0
Posts: 428; Member since: Nov 26, 2011
Samsung cutting their marketing budget. If Samsung still sells more phones than the other OEMs I wonder if people will still blame Samsung's success on marketing.
posted on Jan 24, 2014, 12:42 AM 2
Posts: 1290; Member since: Jun 20, 2012
It's not so straightforward. If Samsung now cuts on marketing costs, it will still have the advantage of the brand recognition that it gained with with previous marketing campaigns. And brand recognition is what marketing is all about, much more than advertising just a single product. Once you become a famous brand, everyone knows what you produce, even without explicitly advertising it.
posted on Jan 24, 2014, 12:57 AM 6
Posts: 151; Member since: Oct 20, 2013
If, by brand recognition, you mean those weird, unintelligible Galaxy ads. Or those ads where they mock users of other brands in the hope of winning their loyalty. Because that's not the kind of brand recognition any company would want.
posted on Jan 24, 2014, 4:54 AM 0
Posts: 248; Member since: May 02, 2012
Samsung will indeed get the fallout from last years utterly insane marketing spend - $14 billion for 2013. But marketing is a strange business: whilst people won't forget your name, they may de-prioritize it if not reminded constantly.
posted on Jan 24, 2014, 2:42 AM 2
Posts: 6474; Member since: Jan 28, 2013
They are cutting back marketing because they know that they don't really need it to beat down HTC, Sony, and Nokia. Which effectively destroys those really weak theories about Samsung selling Galaxy phones over garbage Nokia, HTC, and Sony phones strictly because of marketing.
posted on Jan 24, 2014, 4:10 AM 0
Posts: 1457; Member since: Mar 09, 2010
They need to cut back on imitation knock off of their top tier phones like the Note lite vs the Note 3. Their strategy to flood the market with all kinds of cheap phones waters down their brand in my opinion.
posted on Jan 24, 2014, 7:36 AM 0
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