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ACKNOWLEDGMENT................................................................................................... 2
Vision.......................................................................................................................... 3
Values & Philosophy................................................................................................... 3
The Samsung Philosophy............................................................................................ 4
Introduction................................................................................................................ 5
History of Samsung Mobile......................................................................................... 5
Marketing Mix of Samsung Mobile............................................................................. 6
Product....................................................................................................................... 7
Ethical Reasoning.................................................................................................... 8
Ethical Issues........................................................................................................... 9
Price......................................................................................................................... 10
Ethical Issues......................................................................................................... 11
Ethical reasoning...................................................................................................... 11
Place......................................................................................................................... 12
Distribution Network............................................................................................. 13
Ethical reasoning................................................................................................... 14
Promotion................................................................................................................. 14
Ethical reasoning and issues...................................................................................... 15
People....................................................................................................................... 17
Process...................................................................................................................... 17
Physical Evidence........................................................................................................ 17
Samsung illegal and Un-Ethical Practices........................................................................18
Individualism......................................................................................................... 19
Utilitarianism......................................................................................................... 19
Kantianism.............................................................................................................. 19
Virtue Theory........................................................................................................... 19
Conclusion................................................................................................................ 20
Refernces.................................................................................................................. 20
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Samsung Mobile
ACKNOWLEDGMENT
Every word of praise and gratitude goes to ALLAH Almighty Whose
blessings and bounties are innumerable to realize and count, and due
respect to Holy Prophet (peace be upon Him) who enables us to recognize
our creator and whose teachings are a role model for us to follow in the
time of darkness and despair.
Our extreme and hoariest thanks are for our Respected teacher,
Sir.Muhammad Umar Zaka, who gives us a project which enables us to
understand the integrated relationship between 4 Ps of Marketing mix and
their role in firms success and the ethical perspectives of the marketing
mix
HE IS A TRUE SOURCE OF KNOWLEDGE AND INFORMATION FOR
ALL OF US!
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Vision
Samsung is dedicated to developing innovative technologies and efficient
processes that create new markets, enrich people's lives and continue to make
Samsung a digital leader
Values of Samsung
People
Quite simply, a company is its people. At Samsung, were dedicated to giving our people
a wealth of opportunities to reach their full potential.
Excellence
Everything we do at Samsung is driven by an unyielding passion for excellenceand
an unfaltering commitment to developing the best products and services on the market.
Change
In todays fast-paced global economy, change is constant and innovation is critical to a
companys survival. As we have done for 70 years, we set our sights on the future,
anticipating market needs and demands so we can steer our company toward long-term
success.
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Integrity
Operating in an ethical way is the foundation of our business. Everything we do is
guided by a moral compass that ensures fairness, respect for all stakeholders and
complete transparency.
Co-Prosperity
A business cannot be successful unless it creates prosperity and opportunity for others.
Samsung is dedicated to being a socially and environmentally responsible corporate
citizen in every community where we operate around the globe.
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Introduction
From its inception as a small export business in Taegu, Korea, Samsung has grown to
become one of the world's leading electronics companies, specializing in digital
appliances and media, semiconductors, memory, and system integration. Today
Samsung's innovative and top quality products and processes are world recognized.
This timeline captures the major milestones in Samsung's history, showing how the
company expanded its product lines and reach, grew its revenue and market share, and
has followed its mission of making life better for consumers around the world.
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50,000. But thanks to the electronic industry they managed to curb this and continue to
grow.
The history of Samsung and mobile phones stretches back to over 10 years. In 1993,
Samsung developed the 'lightest' mobile phone of its era. The SCH-800 and it was
available on CDMA networks.
Then they developed smartphones and a phone combined mp3 player towards the end
of the 20th century. To this date, Samsung has been dedicated to the 3G and 4g
industry. Making a video,camera phones at a speed to keep up with consumer demand.
Providing latest android phone to large market makes Samsung Mobile very
demandable product in the market. Today they have competitors like Apple inc, Huawei,
LG, Google nexus, that are providing a very tough challenge to Samsung mobile.
Product
Price
Place
Promotion
People, physical evidence, and process
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Product
Samsung has a wide range of products from Televisions to washing machines and
laptops. However, in the present market scenario, a major part is dominated by
the Smartphone and in that, the Samsung Galaxy series. Samsung has launched a
number of Samsung Galaxy Series smartphones and tablets, which have been
well received in the market. In fact, it can be described as among the best quality
manufacturers of tablets and high-end Smartphone. By the end of 2015, Samsung
had sold over 700 million cellular devices and also remains as the largest
manufacturer of Android driven devices covering 36% of the market. In Pakistan,
Samsung mobile has a huge market segment to target.
Samsung galaxy products include
To be on the top Samsung comes with a new model almost every month or even less.
Samsung Galaxy Note and S series are very premium and high-end smartphones by
the Samsung. They provide the latest technology in the smartphones Tin terms of
camera, sound, durability, performance. Samsung Galaxy S7 and S7 edge, the latest
offering
continuity. Samsung Note 5, provides all the capability one needs to complete business
tasks while exhibiting professional style. It also lets business professionals view and
manage tasks with ease.
Samsung galaxy A series and Grand series are the mid-range smartphones by the
Samsung. They design these smartphones to target middle-class market of the
Pakistan. They offer some features of their high-end smartphones like S series and
Note series in their mid-range A and Grand Series. Samsung offering J series to target
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their middle-class segment as well. They have some features of their high-end
smartphone with some cheap in build quality, design,
Now let's move to some ethical and unethical practices that have been done by
Samsung Mobile in their products.
Ethical Reasoning
Low SAR Value.
Specific absorption rate (SAR) is a measure of the rate at which energy is absorbed by
the human body. Samsung Cell Phones Are Rated
Phones. It means that Samsung is very useful for the people that spend a lot of time in
making calls. Thus, Samsung smartphone are very environment-friendly as well as
human-friendly. Highest SAR value is very dangerous for the human body and head,
Samsung has a big concern in this regard, and they are providing very low SAR value in
their high-end smartphones as well as in their low and mid-ranges ssmartphones.
For example Samsung galaxy s6, s5, a5 have the lowest SAR value.
Eco-Friendly Smartphones.
Samsung cell phone are designed to make your life smarter, easier and better. It's not
just about making your everyday life more convenient. Samsung provides very ecofriendly smartphones to their customers. They stop the use of unsustainable materials in
their products and packaging That have a negative impact on the enjoyment of the
earth. They clean up their products by eliminating hazardous substances; they takeback and recycle their products responsibly once they become obsolete.
For example ; Samsung captivate is the first eco-friendly smartphone introduced by
Samsung in July 2010, after that they made their every smartphone eco-friendly.
Innovation.
Samsung provides very innovative features in their smartphones. For example in their
latest released smartphone Samsung galaxy S7 it has many new features like the best
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camera lens, better battery, more ram for multitasking, better design , better call quality,
fast charging, and Oculus support.
Ethical Issues
No regular software Updates.
when it comes to their low-end and mid-range smartphones, they fail to provide regular
updates. They provide updates of android once in a blue moon. They showed their
biases to their high end smartphones . many low- end smartphones have the same
android version in which they released. They do not provide software updates to fix the
issues and bugs in the smartphones.
For example Galaxy grand prime , core, core 2,core prime galaxy ace and many lowend smartphones did not get android Lollipop. Instead, they launched the same
upgraded smartphones with new price.
Patent Infringement.
Samsung has always faced criticism that they copy the concepts of Apples iPhone.
Samsung has been accused by apple for copying their invention and design without
their permission.such as cellphones icons, speaker design, body shape, touch ID
feature, earphone design, smartwatch UI, and even some Apps . Samsung also been
sued by apple in this regard and they have been heavily fined for this patent
Infringement. It is a very unethical act performed by Samsung.
For example : iPhone 6 and Galaxy S6 have a lot of similarities such as touch id, same
keyboard, same ear buds design, same speaker design, same icon.
Price
Since Samsung has a wide range of products, it has various pricing methods. The price
of a commodity says a lot about the product. Samsungs smartphones are one of the
best in the market and are the market leader in terms of the features and USPs that
they provide.
The price range of Samsung smartphones is following
Samsung marketing strategy involves two pricing strategies. Let's see which one is
ethical and which one is unethical.
Ethical Issues
Price Skimming
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Samsung uses Skimming price for these products where it tries to get a high value in
the start before competitors catch up.it means they launch their high-end smartphone
with very high prices. That do not meet their value offering. They make huge profits by
price skimming. Once the model is old or any competitor has launched a similar
product, Samsung immediately drops the price. Price skimming is regarded as a very
unethical act by Samsung. Because they are charging more from customers. It is also
very unfair for customers of Pakistan. People are paying more price to get the
smartphone. Price skimming ins a very useful strategy for generating profits but It is
also very unethical act. For example: Samsung's recently launched Galaxy S7 is selling
at a very high price of Rs 89,999. It is due to price skimming
a high-end
smartphone recently launched in the international market for around $717 dollars which
are 75304 Pkr, but in Pakistan, it has been launched with the price tag of Rs 89000.
The difference is around RS 14000 which is very high. We dont know why they are
more expensive in Pakistan. Even Samsungs low-end and mid-range smartphone have
same price issues. This considered as a very unethical act by Samsung Mobile.
Ethical reasoning
Competitive Pricing.
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Samsung also adopts competitive pricing schemes to out beat the competitors in the
market. Nevertheless, one thing that is worth noting is that Samsung doesnt have the
reputation of entering late in the market. So it means that it doesnt have to produce
products at a lower price in order to catch up. Instead, other companies have to price
their products lower in order to compete with Samsung. For example in order to contest,
the Huawei low-end smartphones like Y6, 4c, 3c, y635 which ranged from (rs 11000 to
20000) Samsung has released their low-end phones such as Galaxy j1 ace, J2, j1,
grand 3 which has the same price range
Price Discount.
Samsung dealers ,distributors , retailers and wholesalers give some amount of discount
to their final buyer. It is very ethical practice in a country like Pakistan. Where people are
not very rich. For example, if you buy galaxy J5 which has the price of Rs 23,000, you
can negotiate the price and can get the discount.
Place
A place not only means location and distribution schemes but rather includes the entire
management process until reaching the products to the consumer. Samsung products
are available in the market via varied channels working on the concept of channel
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marketing with the segments- Sales and service dealers, Modern retail and Distributors.
Samsung retailers sell products through chains of supermarkets clearly concentrating
on the demand and opportunities to expand their in-store share.
Place is also another significant element in the marketing mix strategy. Additionally, the
place concept of the marketing place refers to the identification of the products
manufacturing place, how it is transported to the customers and where it is a store
before reaching the customers. For example, it is the right of the customer to know the
manufacturing company of Samsung Mobile like J7, S7 and Note5 phone, the product
storage and shipping or transportation of the product to the final destination. The place
for the above-mentioned products should guarantee that the product gets to the exact
place at the appointed time without loss or damage. Therefore, the ultimate place
should be considerable cost to the company, reasonable and convenient for both the
company and the customer, free or low cost for the customer if it is a place where the
product is sold and accessible for the consumer/customer if it is a place where the
produce or good is sold. Place is also another significant element in the marketing mix
strategy.
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Factory
Distributor
Sub - Dealer
Modern retail/
Direct dealer
Exclusive
stores &
Samsung digital
plazas
Consumer/Customer
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Ethical reasoning
place.
Samsung is distributing its products in very large quantities via E-commerce.
Now we can order Samsung smartphones on via websites like daraz.pk,
Promotion
Samsung uses multiple forms of promotions. Samsung as a company believes in
pulling the customer to themselves through advertising but at the same time uses
strong tactics to push the product to the customer through sales promotions.
Thus on one hand, Samsung uses various marketing vehicles across the year
covering festive season as well as non-festive time.
On the other hand, it gives many offers and discounts to its trade partners to
motivate them to sell Samsung above the competition. With such a strategy,
Samsungs brand is on the rise so that both, the pull as well as push strategy is
working simultaneously in Samsung.
For Samsung, the new product launches and schemes keep being updated in the
local media. Newspapers and the electronic media help in promoting new
launches as well as in informing the consumers about Samsung products and its
goals. Samsung being a global giant in consumer electronics is well aware of the
fact that Promotion is the strongest pillar behind the marketing mix strategies.
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Advertisement
SAMSUNG is involved in aggressive marketing and advertising of its product to develop
attitudes, create awareness, and transmit information in order to gain a response from
the target market. Their main advertising channels include media such as newspapers
(local, national, free, trade),magazines and journals, television (local and national)
cinema, outdoors advertising (such as posters, bus sides)
Promotion:Offering advanced technology products and positioning itself on the technology platform
will not help a company sell its products if it fails to communicate properly with the
potential customers. To raise brand awareness and create strong, favorable and unique
brand associations, SAMSUNG adopted various marketing strategies like celebrity
endorsements, corporate advertisements, highlighting its technological superior goods
and many promotional schemes.
Sponsorship:
SAMSUNG used sponsorship of events like Olympic series to boost its sales.
SAMSUNG was the global wireless communications sponsors at the Athens Olympics.
SAMSUNG used the strategy of relating itself directly with the values of the Olympic
Games, which included attributes like world-class, global, excellence, fair competition,
and peace.
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Samsung mobile does not have many ads in Pakistan so we can not really analyze their
promotion. For this concern, we should go for international advertisement of Samsung
Mobile
Puffery.
Sometimes in Samsung ads, the quality of-of pics and videos taken from a smartphone
is no same as when we take the pic after buying it. So it is unethical to use puffery in an
advertisement which means false claiming or actual is far away from the truth.
For example : in the ad of galaxy j1 ace, the quality of the pics is very high but in reality
the camera performance is below the mark.
People
All companies are dependent on the people who run them from front line Sales staff to
the Managing Director. Having the right people is essential because they are as much a
part of your business offering as the products/services you are offering. Choi Gee-sung
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is President and Chief Executive of the digital media division at Samsung Electronics,
overseeing the third-largest business group of the South Korean company, which
includes televisions, flat-panel screens, MP3 players, personal computers, and other
consumer electronics.
Samsung has also very good people in their distribution network. Samsung is involved
in specially getting their staff trained in interpersonal skills and customer service with a
focus towards customer satisfaction. In fact, many Samsung has to undergo
accreditation to show that their staff is better than the rest.
Process
Service process is the way in which a service is delivered to the end customer.
Samsung service center is also very quick in this aspect. Greentech Samsung Service
Center is the service center that has been used in Pakistan for repairing Samsung
mobile and for getting new parts of phones such as lead, touch screen etc. On top of it,
the demand for these services is such that Samsung has to deliver optimally without a
loss in quality.
Physical Evidence
To create a better customer experience tangible elements are also delivered with the
service. Lets see how physical evidence have impact in Samsung
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communication materials
Individualism
According to Friedman's theory of individualism, the only obligation that the business
has is to maximize profit for the owner and stockholders. Samsung's manufacturer in
China was trying to cut their costs and maximize their profit by hiring younger
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employees and overusing overtime. This would be deemed ethical by individualists, but
they used illegal methods to maximize profit.
Utilitarianism
Utilitarianism is the maximization of happiness for all stakeholders. Utilitarians would
see this case as unethical for many reasons. They didn't maximize happiness for
employees, who were overworked, underpaid, and underappreciated. Shareholders'
happiness also wasn't maximized in this case because they found out that they were
funding a company who not only used child labor by their manufacturer but also their
other illegal labor practices they were found to have used.
Kantianism
Kantianism bases its perspective on people's ability to act rationally and their
motivations for their actions. It is clear in this case that Samsung didn't act rationally.
Their motivations for their actions were to maximize their profits for personal gain,
treating their employees as means to increase their profit by not following the
formulation of humanity.
Virtue Theory
The last normative theory is the virtue theory, in which honesty, justice, temperance, and
courage are evaluated to judge whether or not the company was ethical in their decision
making. Samsung was unethical in virtue theory as well because they didn't possess
any of these virtues. They weren't honest with their employees when hiring them, the
employees weren't aware of what they were getting themselves into. Justice wasn't
demonstrated in this case either because they didn't perform "fair practices." They used
child labor and overused over time so they didn't use fair practices.
Temperance wasn't portrayed either because Samsung didn't have "reasonable
expectations and desires." Samsung's manufacturer expected their employees to work
16-hour days with sometimes just one day off per month. These expectations are
absurd and definitely not reasonable. Courage also wasn't possessed by Samsung in
this case. Samsung didn't stand for "right ideas and actions." Their actions were very
poor and unethical, and certainly not courageous. The lack of these virtues proves that
Samsung is deemed unethical by virtue theorists.
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Conclusion
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References
http://www.marketing91.com/marketing-mix-of-samsung/
http://businessethicscases.blogspot.com/2013/04/samsung-illegal-laborpractices-2012.html
https://www.facebook.com/SamsungPakistan/timeline
http://www.marketing91.com/service-marketing-mix/
http://www.marketing91.com/marketing-mix-samsung-galaxy/
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