Marketing is defined as “the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain relationships that will satisfy individual and organizational objectives.” (Kotler and Armstrong 166). Another definition proposed by American Marketing Association states that marketing is: “the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives” (AMA, 2009). The importance of marketing is explained by the ability to join manufacturers and end consumers. Channels of distribution that coordinate the activities of wholesalers, retailers, and manufacturers, or physical distribution activities resulting from the integration of warehousing, storage, transportation, handling, and inventory activities, are examples of marketing systems. The fact that entities or activities are capable of being understood as a coherent group, rather than as a collection of parts, makes them a system. This conceptual insight has led to the development of new disciplines such as industrial dynamics and systems engineering. Market development is characterized by increased sales volume and an increased number of customers buying a particular product. Market development links institutions to achieve a coherent pipeline capable of moving goods and their title to markets. Physical distribution relates to the development of logistical systems. It integrates physical handling, transportation storing, sorting, and distribution of goods systematically and effectively.
I always hated going shopping for consumer electronics and a new LCD TV. Then I discovered Samsung. Samsung set out from the beginning to make things different. The company revolutionized the way LCD TVs are sold through its “no-hassle, no-haggle” approach. Samsung gladly makes available detailed price lists with options, plus booklets. These booklets contain a model-by-model account of the purchase price, ownership costs (projected), warranty/maintenance information, resale value, cumulative costs, and ratings on “ownership cost value.” Samsung makes it easy from every angle. Stop by a retail facility and pick up any Samsung brochure or literature. My visit to Samsung ended up buying a Samsung (Samsung Home Page 2009).
Salespeople at Samsung retail facilities are referred to as sales consultants. And, this approach is important in creating the long-term relationship that leads to customer loyalty. Although price haggling may not be a factor in your business, there are plenty of lessons to be learned about this stage of the buying process. One woman from Indianapolis told me that she used to work for other dealerships, in the “old way” of selling and delivering LCD TVs. But now she’s a Samsung sales consultant. “What a joy it is,” she said, “to be working in a place where honesty is number one and customer enthusiasm is the driving force.” To better understand this Samsung difference and why the salespeople are called consultants, take a look now at “The Samsung Consultative Sales Process.” It was developed as a guide for sales consultants in assisting customers, and focuses on customers’ wants and needs, to help them in the purchase decision-making process (Schaefer 77).
There are several easy ways for people to get Samsung information before they ever set foot in a showroom. Calling the toll-free number for potential buyer inquiries is one way. Samsung’s website on the Internet is another way. One potential customer shopping for LCD TVs requested information from several LCD TV companies’ web sites. She later sent an e-mail to Samsung, saying that she had been impressed by its being the only company to send a pricing sheet along with the catalog, and had wondered what everyone else was trying to hide. She cited this as another example of how much Samsung does to make LCD TV buying easy, and thanked the company for making her first LCD TV-buying experience such a good one. Samsung has received various e-mail messages from customers indicating that the information provided via the web site or e-mail led them to buy. Information available on Samsung’s web site that would help people at this stage of the buying process includes, for each model: colors and fabrics, features, pricing, and specs. And then there’s the Interactive Pricing Center where you can do lots of useful things, like calculate monthly payments or begin the credit application process. Other information on the web site lets you order a brochure, find the nearest retailer, and bone up on the used-LCD TVs inspection process. Samsung makes it easy for people to get information. Displays in retail showrooms include a touch-screen computer system for visitors’ use that covers all sorts of information about Samsung Corporation, the LCD TVs, the manufacturing process, and so on. Audio and video combine to present the information in an easy-to-understand manner (Kotler and Armstrong 54).
Ethical implications at Samsung are that there is no pressure, no back-and-forth with the sales manager, no “must buy right now today!” demand. The price you see on the sticker is the price you pay. For you, there will always be salespeople, somewhere, willing to accommodate your style. So, Samsung blazed the trail by developing the perception that it’s easy to do business with Samsung. Others have seen its success and tried to emulate it. One company’s three-quarter-page ad in USA Today attempted to capture customers’ attention with big and bold headlines shouting “NO HASSLE.” But there’s more to the no-hassle, no-haggle approach as far as customers are concerned. If the customer has not already been given a tour of the facility and service area, that is done. He or she is introduced to the service manager and told about hours of operation and phone numbers. After all the buying and payment details have been worked out, a salesperson gives their customer a thorough introduction to the Samsung owner’s manual. Guarantees, warranties, and roadside assistance programs are reviewed (Schaefer 78).
The marketing approach of Samsung appeals to many customers. Making the buying process easy for customers begins with a knowledgeable, trained staff. I have heard some employers reason that it’s a waste of time to train employees because many times they won’t stay with the company long enough to make the training pay off. Samsung’s value is determined as “continuous improvement”. Take a look, and you will find that it is simply written in a conversational-style language like the example from a brochure on used LCD TVs Samsung also makes it easy to understand about risks and guarantees. The owner protection plan brochure clearly and simply states the Samsung money-back guarantee: Samsung provides information for potential buyers in various ways—by phone via the toll-free number, by mail, through the website, and easy-to-understand printed materials. By that time, I was thoroughly impressed and informed, and the consultant already knew more about my wants and needs than the last six salespeople combined at other shops. The whole system is designed to keep customers coming back. Samsung begins communicating immediately, with the “delivery” of the product that makes customers feel special and appreciated.
Works Cited
American Marketing Association 2009. Web.
Kotler, Phillip, Armstrong. Gary. Principles of Marketing, 12ed, Pearson Prentice-Hall, 2008.
Samsung Home Page. 2009.
Schaefer, Anja. An Introduction to Marketing in Business. Open University Worldwide, 2006.