Samsung Electronics year throws 14 billion dollars to advertise over Iceland's GDP

[Guide] just a huge amount of advertising input, not necessarily can produce the desired results. Tencent Science and Technology Ming Xuan November 28 compiled Samsung Electronics this year's advertising and marketing spending is expected to reach 14 billion U.S. dollars, more than Iceland's gross domestic product. But the advertising and marketing input of Samsung Electronics is not always worth the money. A huge amount of advertising has made the Korean technology giant appear in the art of television screens, film screens, billboards, major sporting events, even the Sydney Opera House and the New York Radio City Concert Hall. You know, Google (Weibo) to buy the entire Motorola Mobile, spend more money than Samsung Electronics this year's advertising and marketing spending much less. As a company with a market capitalisation of $227 billion trillion, Samsung Electronics has made no secret of its active involvement in marketing and promotional activities, because the company wants its brand to be as successful as Apple. But a huge amount of advertising will not necessarily produce the desired result. Last month, the Samsung electronic-sponsored micro-film contest was set to fall in the Sydney Opera House. Although Samsung Electronics appeared in a series of films "Behind the scenes", but its response is very dull. Earlier this year, Samsung Electronics launched the latest Galaxy smartphone launch in New York's Radio City Music Hall. The campaign has also been criticized by the industry, because when men talk about new handsets, the sexy, bright young models hired by Samsung Electronics are talking about jewellery or nail polish. Samsung Electronics has also been criticized for hiring swimsuit models when it released new refrigerators and washing machines in South Africa. "Samsung Electronics is too focused on the image that the company aspires to: Innovation and packaging," said Oh Jung-suk, assistant professor of business school at Seoul State University. The company failed to build a bridge between the company's desire and the consumer's response to the campaign. According to data from Thomson Reuters, Samsung Electronics spends more revenue per year on advertising and marketing than any company in the top 20 of global revenue. The ratio of Samsung Electronics to 5.4%, far more than Apple's 0.6%, and General Motors 3.5%. "In the case of Samsung Electronics, if the brand does not have a clear identity, sustained investment may be the best strategy," said Moon Ji-hun, head of South Korea, Interbrand, the world's largest brand consulting agency. But to maintain such a high level of investment in the long run will not produce more profits. No one can rival Samsung in terms of advertising, but I am skeptical that this level of input is effective. "In response to the report, Samsung Electronics said in a statement that the company" will continue to use the brand power to maintain growth momentum, while focusing on optimizing the efficiency of marketing activities. " "Our product innovation and marketing strategy makes Samsung Electronics the most popular brand in the world," Shen Zongjun J.K, Samsung Electronics Co-CEO, said recently. Today, we will transform from the most favored brands to the world's mostOne of the successful brands. "Innovation rather than following the" Next Big Thing "and" It's Time to change "marketing campaigns in Samsung Electronics emphasize that the company's products use the most advanced technology, but Samsung Electronics boast technology has not really commercial maturity. For example, the company currently has only a flex-screen mobile phone in the Korean market, while a curved-screen TV can cost up to nearly 10,000 dollars. For a company that has long been seen as a follower, it is indeed difficult for others to believe that they have become innovators. Although Samsung Electronics has already become the world's largest advertiser, only last year's advertising spending reached 4.3 billion U.S. dollars, but the company's global brand value of only 39.6 billion U.S. dollars, not only half of the advertising investment of 1 billion dollars of Apple. True, Samsung Electronics has a more diverse range of mobile products, and the introduction of different audiences in the home appliances, chips and other products, but a huge amount of advertising investment, that Samsung Electronics still need to prove to consumers, the company has become a top brand. The reason why Apple does not need a huge amount of advertising is that the company's brand is already popular. In response to Apple's advertising spending, independent market research company Asymco founder Hollis Dediu (Horace dediu), "when there is a strong, differentiated products, Apple does not need to use advertising for product promotion." "Samsung Electronics can defend its advertising budget by leveraging its dominance in the global smartphone market." At present, Samsung Electronics in the global smartphone market share has reached One-third, Apple's more than twice times. The Korean company has resorted to advertising to mock Apple believers and to strengthen the Galaxy mobile brand by investing heavily in the channel sector. Bennedict Evans Benedict Evans, a mobile industry analyst, said the Galaxy brand had been built. With the exception of Apple, Samsung's brand is now more powerful than Android or other original device makers. The problem is that Samsung has molded itself into a trustworthy quality brand, not a differentiated or first-class brand. So for Samsung Electronics, it is wise not to confront Apple directly. "Gear problem Samsung Electronics recently invested heavily in the Galaxy Gear smart watch, but this device has attracted almost all the commentators ' spit." Although the use of a barrage of advertising to promote the Galaxy Gear, but the listing of two months, Samsung Electronics also only sold 800,000 Galaxy Gear. By contrast, since the end of September this year, 3 smartphone sales have exceeded 5 million in the same period, meaning that less than one-fifth of note 3 users have opted to buy the auxiliary device Galaxy Gear. But Samsung Electric's moon Ji-hun said, "Samsung Electronics may be clearer than anyone else galaXY gear will not be a mainstream product. Even so, the company still wants to signal that ' we are the first company to have such technology '. By this, Samsung Electronics wants to imprint the brand with advanced technology companies. ”