SAMSUNG LEARNING POINTS This is a great case dealing with the “big picture/helicopter vision”. It is an ideal case to get us started. Below are the main learning points. There may also be other things you learnt from the class, that are not listed here. Think about how you can take some of these learning points back to your own companies and context, and apply them. The case teaches us: – about moving from a production/selling orientation to a market orientation. This is really really important. The whole case is about this. Market orientation is not just some price change or a new ad campaign.
It involves the whole organizational culture, organizational structure, and the whole marketing mix. Get it right inside (i. e. develop a market oriented company culture), and then go outside. – about the role and responsibilities of a chief marketing officer (Mr Kim) in a large MNC. – about bottom up and top down structures i. e. think global, act local. The GMO had a global strategy team (top down. Looking at global strategy, global branding, global budgets) and a regional strategy team, and the regional strategy team interacted with regional managers and country managers. the importance of internal marketing, and selling to staff the importance of being market oriented. – about being a market leader rather than a market follower i. e. moving from a commodity product to a premium branded product. Moving from a price taker to a price maker. Market leaders must be innovative and do market research. David Beckham doesn’t go to where the ball is! – about the hierarchy of effects. Samsung has achieved brand awareness, now they need to build brand preference and brand loyalty. Samsung “must be loved”.
Production orientation is a general approach to business that focuses on the manufacturing and production processes. Companies that make these processes primary focuses tend to make operational efficiencies and production optimization key objectives in improvement processes. This orientation was prominent during the industrial era and in the capitalism period of the 1950s. Says Law suggests that if a company produces good products, demand will naturally arise. Sales orientation: very internally focused and looks to sell products that the company is successful at making. Market orientation: externally focus on the consumers’ wants and needs.
Hierarchy of effect: can be explained with the help of a pyramid. First the lower level objectives such as awareness, knowledge or comprehension are accomplished. Subsequent objectives may focus on moving prospects to higher levels in the pyramid to elicit desired behavioral responses such as associating feelings with the brand, trial, or regular use etc. it is easier to accomplish ad objectives located at the base of the pyramid than the ones towards the top. The percentage of prospective customers will decline as they move up the pyramid towards more action oriented objectives, such as regular brand use.