It’s no secret that Samsung spends a lot of cash on marketing it products,
with its total marketing spend being more than the entire market value
of other individual Android manufacturers. According to the Korean
media, Samsung took its marketing costs to new heights this year – the
company reportedly increased its sales promotion budget by 38.7 percent
from last year, with 934 billion won (roughly US$889 million) spent on
sales promotion during the first three quarters in its home country.
However, Samsung has also changed the way it markets products. The
company reduced the investments in advertisements from last year’s 1.71
trillion won (~ US$1.63 billion) to 695 billion won (US$661 million) –
the money was instead spent on the aforementioned sales promotions, such
as rebates, discounts and other incentives getting a higher focus
compared to the ads we’ve come to expect (and in many cases, love) from
the world’s largest mobile manufacturer.
Will a reduced focus on ads mean Samsung’s products don’t sell as
well as before? Not really, since even with the reduced advertising
budget, Samsung still puts in more in ads than most other manufacturers
combined, so the company doesn’t exactly have much to worry about for
the foreseeable future.
Via | Source