Faculty Of Business & Management

SEMESTER SEPTEMBER 2014

BBMR4103

RELATIONSHIP MARKETING

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MATRICULATION NO

771205075862001

IDENTITY CARD NO.

771205-07-5862

TELEPHONE NO.

016-4400005

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E-MAIL

riffa@oum.edu.my

LEARNING CENTRE

RECSAM

TABLE OF CONTENTS
CONTENTS
Title Page

1.00 About Samsung:

1.02 Company Background
1.02 i) A Clear and sufficient description on the meaning of relationship strength and
potential customer
1.02 ii) A clear and sufficient decription on the companys product and customer
profile
Product
Customer Profile
2.00 Description On The Relationship Strenght Between Chosen Company and its
Customers.
Samsung Customer
Customer Relationship Management
3.00 Evaluation on the strength between the chosen company and its customer
3.01 Place
3.02 Price
3.03 Promotion
3.04 Product
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3.05 Customer Relationship Management (CRM)

Sigma program

4.00 Recommendation to further strengthen its relationship with customers.

4.01 Customer valuation

i) Marketing Strategy
ii) Priceing
iii) Brand Marketing

4.02 Develop and implement a corrective plan

4.03 Determine reasons for defection

4.04 Customer retention measurement

5.00 Conclusion

Referencess

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1.00 About Samsung:

The Samsung Group is a multinational conglomerate corporation headquartered in
SamsungTown, Seoul, South Korea. It is the world's largest conglomerate by revenue
with an annualrevenue of US $173.4 billion in 2008 and is South Korea's largest
chaebol. The company's strong influence in South Korea is visible throughout the
nation, which has been referred to as the "Republic of Samsung". The Samsung
Group is composed of numerous international affiliated businesses, most of them
united under the Samsung brand including Samsung Electronics, the world's largest
electronics company, Samsung has been the world's most popular consumer
electronics brand since 2005 and is the best known South Korean brand in the world.

For over 72 years, Samsung has been dedicated to making a better world through
diverse businesses that today span advanced technology, semiconductors,
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skyscraper and plant construction,

petrochemicals, fashion, medicine, finance,

hotels, and more. Their flagship company, Samsung Electronics, leads the global
market in high-tech electronics manufacturing and digital media. Through innovative,
reliable products and services; talented people; a responsible approach to business
and global citizenship; and collaboration with our partners and customers, Samsung
is taking the world in imaginative new directions

1.02 Company Background

Samsung one of the greatest brands available in the market aims to secure the world
leadership in the industry and earn devastating competitive strength by synchronizing
the development and manufacturing of product, design, marketing and sales. The
organization is well known for its great accomplishment in the industry of
semiconductors based on memory. Samsung maintains its high position in the
industry continuously from 1992 maintaining its top rank and stretch its financial
structure throughout the industry to maintain itself as a number one company in the
industry of mobile phones, semiconductors, monitors, computer gadgets, televisions,
TFT and LCD screens. It also achieved 4th place in the semiconductor industry and
sixth place in the mobile gadget industry by selling huge volumes.

1.02 i) A Clear and sufficient description on the meaning of relationship

strength and potential customer
Philip Kotler father of marketing describe the meaning of relationsip

is "the social

and administrative process by which groups and individuals meet their needs to
create and exchange goods and service
The marketing aims mainly to encourage the exchange between two parties so that
both are benefiting. According to Kotler, means the exchange "is the act of obtaining a
desired product of another person, offering something in return."

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Samsung is guided by a singular vision: to lead the digital convergence movement.

They believe that through technology innovation today,they will find the solutions
they need to address the challenges of tomorrow. From technology comes
opportunity for businesses to grow, for citizens in emerging markets to prosper by
tapping into the digital economy, and for people to invent new possibilities. Its their
aim to develop innovative technologies and efficient processes that create new
markets, enrich peoples lives and continue to make Samsung a trusted market
leader.

Samsung grew into a global corporation by facing challenges directly. In the years
ahead, They have dedicated people will continue to embrace many challenges and
come up with creative ideas to develop products and services that lead in their
markets. Their in genuity will continue to chart

1.02 ii) A clear and sufficient decription on the companys product and
customer profile
Product
Samsung's product range worldwide included CTVs, audio and video products,.
Information technology products, mobile phones and home appliances. Its product
range covered all the categories in the consumer electronics and home appliances.

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 Customer Profile
Samsung is a fine brand representation within young people groups .Market consist
of all the potential customers, sharing of particular need or want, who might be willing
and able to engage in exchange to satisfy their needs or wants.
2.00 Description On The Relationship Strenght Between Chosen Company and
its Customers.
When we talk about customer satisfaction and relationship , we talk about creativity.
Creativity allows Samsung to handle or diffuse problems at hand or later on in the
process of conducting the everyday business. Samsung is the highest brand having
the reasonable price.Samsungs price is neither high nor low, It means the price is
affortable.Samsung offers schemes for all new products ,

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In greatest festivales, new years and its aniversity ,which helps to motivated
psychologically to customer. Samsung has already started its online business which
help to extend global marketing . Using media , posters and news papers it has
extended its marketing . The selection of the location is not best because it is not
easy to find out its store in every city.
. They talk about how, or rather what, does the organization have to do gain not only
the sale but also the loyalty of the customer. They want to know the payoff of the
transaction both in the short and long term. They want to know what their customer
wants.

Samsung Customer
Buyer's power is very economically beneficial for the manufacturing companies as
operators purchase the products in bulk and large sum of money is invested to keep
their constant demand of good quality products. This large sum money provides
necessary funds to research and develop to satisfy the customers with their
demands. It shows the buying power of the customers which is a cyclic process and
favors the operators. Consumers of Samsung's products are divided into two group
Regular customers tend to be less expensive to service because they are familiar
with the process, require less "education", and are consistent in their order
placement.
Long-term customers may initiate free word of mouth promotions and referrals.
Long-term customers are more likely to purchase ancillary products and high margin
supplemental products.Customers that stay with you tend to be satisfied with the
relationship and are less likely to switch to competitors, making it difficult for
competitors to enter the market or gain market share.
According to Philip Kotlar, Marketing is a human activity directed at satisfying need
and wants through exchange process. Marketing Management is the process of
planning and executing the conception, pricing, promotion and distribution of ideas,
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goods and services to create exchanges that can satisfy both individual and
organizational goals.

Customer Relationship Management

SAMSUNG Electronics provide unique solutions to meet customer needs. For this,
Samsung will expand marketing programs based on CRM (Customer Relationship
Management) at the world level that can be applied to all products.
One way of Samsung to run CRM is with use facebook. Samsung use facebook and
create their self part in facebook to their activities especially sales, marketing and to
give serve of customer. Samsung promote their product using facebook. We know
that facebook is one of succes social media with more than 2 millions follower in
wolrd. Example is when Samsung promote Nexus as a new product, they write in wall
:Nexus S is here! Samsung has announced the release of the first smartphone to
feature the new Google Android 2.3 OS. Nexus S will be available in the Malaysia
later this month.
Beside Samsung can give serve to customer. It is trough wall of facebook or through
the board discussion. Samsung use facebook to as a place to talk about Samsung
Mobile and all things mobile. Samsung hear about suggestion from customer, hear
abou the advice, or about the complain from the customer. Then they respons it. It is
one of act, that they care to customer. They love passionate conversation, but let's
keep it clean and fun.
But Samsung has faced the tide well. If we look through the reviews and Facebook
section, its not all wine and roses. There are real, not-always-friendly reviews in
these sections. But what we also see is transparency from Samsung in how the
company deals with customer issues directly and in full view of the public.

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3.00 Evaluation on the strength between the chosen company and its customer
Every customer can buy its product easily because of the technology, that has used
by samsung the recent years and the clarifications of four ps as below :-

3.01 Place
Now a day samsung brands have 25 production base worldwide and more then fifty
sales subsidiaries in near about 50 countries.Their global strategy involves eight main
regions.Samsung also sells its product through independent retailers.Customers can
see and handle products they are considering buying.
3.02 Price
Pricing also seemed to have played a significant role in Samsung's success.
Samsung looking for its services accessible to as many people as possible.
It offers a lot of pricing structures to suit different customers groups.The price plans
are available monthly basis as well as prepay option.
3.03 Promotion
Advertising on TV, in magazines and in other media outlets reaches large audiences
and spreads the brand image and the message very effectively. This is also known as
above the line promotion.

3.04 Product
Samsung smart phones have taken up an amazing market share because they are
continuously designing products such that their existing customer base itself is
upgrading. Users loved Samsung S1 than S2, than S3 and finally Samsung galaxy
S4. Thus the brand equity now for Samsung is such that the customer will hardly think
of switching the brand. Even though Samsung has 20.4% market share worldwide
last year, it has by now been the second cellular phone manufacturer globally. Stylish
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design as well as high amusement technology, which is so pretty. Samsung have

possession of admirable technologies on amusement of cellular phone.In the above
example relationship marketing is occurring on a product level.The company also
develop better relations with the public in order to explain new products such as in :3.05 Customer Relationship Management (CRM)
One of example company that use CRM is samsung. Customer relationship
management is a broadly recognized, widely-implemented strategy for managing and
nurturing a companys interactions with clients and sales prospects. It involves using
technology to organize, automate, and synchronize business processesprincipally
sales activities, but also those for marketing, customer service, and technical support.
The overall goals are to find, attract, and win new clients, nurture and retain those the
company already has,entice former clients back into the fold, and reduce the costs of
marketing and client service.
According to Buchanan and Gilles, the increased profitability associated with
customer retention efforts occurs because of several factors that occur once a
relationship has been established with a customer.
Relationship is used to forge long term relationships with the customer such that the
customer forms a long term bond with the company and the brand. This in turn
benefits the organization in turnover, profitability, word of mouth publicity and overall
performance.
Relationship marketing is not easy because each and every customer is different and
when devising a relationship marketing strategy, the firm has to look at its existing
customer base minutely. The key to success of relationship marketing is to
understand your customer completely.

Sigma program

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Sigma program is key factor to develop the Supply Chain System.Samsungs efforts
are proving to be fruitful because their SCM six sigma program is very useful to
produce talented specialists.
It is expected that six sigma will play a vital role for global optimum. Branding strategy
of sponsoring big events like Olympics and placements of its products at festivals is a
good move of Samsung. Transition from 2G to 3G technology that emphasizes on
multimedia is good change in technology strength.

4.00 Recommendation to further strengthen its relationship with customers.

Samsung is still mostly focused on price and doesnt seem to be able to spell
customer loyalty. Building loyalty can pay huge benefits in the long term because
they reduce the relative cost of customer acquisition more customers simply
choose not to leave the vendor. Samsung does appear to be slowly winning people
over. Customer retention efforts involve considerations such as the following:
4.01 Customer valuation
Gordon (1999) describes how to value customers and categorize them according to
their financial and strategic value so that companies can decide where to invest for
deeper relationships and which relationships need to be served differently or even
terminated.
According to its strategic plans, it requires to focus all its resources on increasing
technological innovation and market share growth but the industrys, infrastructure
and labour skills at that moment were too unfavourable for Samsung to achieve these
and become competitive in the world market. In order to attain this, Samsung
reinvented itself by primarily keeping on tract with its customers needs and wants.
They should have regional service centres in North, South, East, West where the
complaints can be received and processed quickly.

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4.01 i) Marketing Strategy:-Samsung has to improve its after sales service in order
to retain customer and create brand loyalty. The current policy adopted by Samsung
is aggressives pending more on advertising and marketing and less on retaining
customers that isafter sales service. So the corrective strategy to be adopted by
Samsung must be to spend more on retaining customer rather than acquiring them as
it costs 5 times more to the company to get to a new customer rather than pleasing
existing ones. Moreover it costs 16 times to take the new customer to the loyalty
stage.
Retention strategies may also include building barriers to customer switching. This
can be done by product bundling (combining several products or services into one
"package") .
Priceing
Pricing is principally fixing a specific price for a product or service offered. In simple
words, Kotler and Armstrong (2004) explain the perception of price to obtain the
product. Fixing a price is not something simple. Normally in general law people argue
that a small price will draw additional customers. The argument is not true. Because
customers not only look for price alone. The customers expect a proper service and
value for the money that he pays. They act in response to value so a lesser price
does not essentially signify stretched sales if the product is not fulfilling the
expectation of the customers (Lazer, 1971).

Brand Marketing
Samsung mobile products are very crucial because new brands have been added to
already list of mobile phones sets. Marketing of these products must be in fashion
world and role models are very significant.

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4.02 Develop and implement a corrective plan

This could involve actions to improve employee practices, using benchmarking to
determine best corrective practices,visible endorsement of top management,
adjustments to the company's reward and recognition

systems, and the use of

"recovery teams" to eliminate the causes of defections. A technique to calculate the

value to a firm of a sustained customer relationship has been developed. This
calculation is typically called customer lifecycle value.

4.03 Determine reasons for defection

Look for the root causes, not mere symptoms.This involves probing for details when
talking to former customers. Other techniques include the analysis of customers'
complaints and competitive benchmarking(see competitor analysis).
Moreover they should employ and train the technicians to provide quality and timely
sales service.
4.04 Customer retention measurement
Dawkins and Reichheld (1990) calculated a company's "customer retention rate". This
is simply the percentage of customers atthe beginning of the year that are still
customers by the end of the year. In accordance with this statistic, an increase in
retention rate from 80% to 90% isassociated with a
doubling of the average life of a customer relationship from 5 to 10years. This ratio
can be used to make comparisons between products, between market segments, and
over time.

5.00 Conclusion
Samsung is a famous global company and market leader in Consumer Electronics
and Cell Phones.It has manufactured electronics goods and other concreat goods. It
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is a well known brand because of its service, excellent employees, Innovative reliable
product. A responsible approach to business and global citizenship and globlelisation
with partners and customers.Samsung is taking the world in progressive direction for
new generations.
After the external and internal analysis it is required that strategic issues in Samsung
must be addressed immediately. Best information management system can resolve
these strategic issues by implementing the current strategy to retain the long term
competitive advantages. Samsung being the key driver of technology transition of
mobile phones industry can sustain its continuous and new competitive advantages.
Samsung is not likely to fail because mobile phones are relevant to customers
demand and up to date.
Therefore , Samsung has focused much upon the brand marketing because global
market is highly competitive and dynamic. On the one hand Samsung is very
optimistic to facilitate the end users with best quality services and on the other hand it
is generating more revenue for its shareholders. Finally Samsung mobiles are
designed by talented designers; it ensures that products are displayed at best events
of the world and remain forefront at the fashion industry.
Samsung needs to improve its products promotional activities, customer service and
online business since it is very important to satisfy its costumers. Samsung strategic
growth plan aims to fulfill the needs and wants of customers, expectations of
employees and other stakeholders.

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Referencess
www.samsung.com- 12 Nov 2014
www.marsdd.com/mars.../relationship-marketing-kotler-on-marketing12 Nov .2014
www.marketing-schools.org/types...marketing/relationship-marketing
13 Nov .2014
http://

www.academicjournals.org/.../article1380706092_Percy%20et

%20al.pd
13 Nov 2014
http : // www.forbes.com/.../marketshare/.../this-is-the-most-importantword-whe..
13 Nov 2014

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