With the latest technologies around us, one must think how a well-known brand will be in the forefront of competition following reports on a product recall specifically for one of the world’s top branded products. Samsung is well known for their Electronics and Appliances, and is now receiving poor publicity as a result of product explosion.

What can Samsung do to evaluate its brand and most importantly change consumers perception?


Marketing evaluation focuses on marketing metrics in identifying measures that would help marketers to quantify, compare and understand marketing performance and identifying strengths and weaknesses of the company through customers level of satisfaction (Iacobucci, 2014).



Return on Customer is a business metric that would assist in better management decisions and often brings a higher stock price (Ambler & Roberts, 2008). In assessing marketing performance of Samsung, we must consider the impacts of the recall and how the company should invest in identifying its customers’ location, when and where they shop and the type of media they are likely to consume especially those who have lost trust in the products.


Defection rate is the proportion of the total customer base who used to buy the product and have now stopped buying the brand due to several reasons (Sharp, 2013).

The latest issue on Samsung Galaxy Note 7 phones has impacted greatly on the company’s sales of nearly $5billion revenue loss from recall (Lee, 2016). The main problem is the faulty batteries being reported as fire-prone that caused explosions in customers homes. This has come at no better timing when there is tough competition with Apple’s iPhones and other well known brands in the market place.

Customers are also being warned about Samsung’s washing machines that are also showing similar defects (Horwitz, 2016). A number of customers have reported their washing machines to have exploded and burst into flames while operating their washing. The defection can be improved if the brand has higher penetration rate with more customers coming on board. However that will only depend on how well the marketing strategy will influence the buying behaviour of consumers to reaffirm their trust on Samsung.


  • ROI

Following the success of its Galaxy franchise, Samsung spent $401 million to promote its products in the U.S. in 2012, compared to Apple’s marketing budget of $333 million in the same year (Cheng, 2013). Samsung’s marketing is seen everywhere from television campaigns to events where they launch their latest products. The company is expected to keep spending heavily on promotion to retain customers satisfaction and trust on their products following the negative impacts of the recall worldwide.


The Social Media Platform 2016 research shows that over half of Northern American social marketers have a hard time finding out how much return they would get from their social efforts. Facebook yields the best return on Social media followed by Twitter.

ROI provides the toughest challenge for marketers given the size of data that marketing people would need to collect and also for the teams to be well equipped to measure the returns on its marketing investment (Burrows, 2014). Measuring ROI for Samsung may not be the same as measuring other brands and this is due to the fact that many approach can be used to calculate ROI and build business cases.


Customer value reflects the profits a company earns by focusing on particular customers especially if they target a particular product. The Customer lifetime value provides an estimation of the company’s future profitability of the customer over their lifetime as a customer (Sharp, 2013).

Although it can be dificult to estimate what a particular customer spends on a product, it is within every company’s interests to increase its customer lifetime value by raising the retention rate or by increasing the share of the customers. These can all be done through creative marketing and providing that extra benefit to the customers to become loyal to the brand.


While there is good intentions in everything we do, there will also be risks intact and this is similar to the case of marketing evaluation which specifically focus on the use of metrics. The effectiveness of marketing measurement can limit the marketing creativity in different ways resulting in misapplication of the research and analytical approach or leaning towards a wrong conclusion which can reject creative ideas (Wyner, 2008).

Samsung identified and weighed the returns on its marketing evaluation and investments based on the increase in sales of all its product range. Sales reports different profits based on specific products although it is evident that any new Samsung product launch has greatly followed by an increase in the company sales (Cheng, 2013). While Samsung product sales may be easily identifiable in the short-term, it will not necessarily attributable to its marketing investment or capture the longer term benefits which would only show up in repeat buying. 


Posted by: Alberta Malielegaoi – 215419386


Ambler, T., & Roberts, J.H. (2008). Assessing marketing performance: Don’t settle for a silver metric. Journal of Marketing Management, 24 (7/8): 733-750. [Online] Available from: [Accessed 25 October 2016].

Burrows, D. (2014). Too many metrics: the perils of training marketers to calculate ROI. Marketing Week: Marketing Consulting Services. [Online] Available from: [Accessed 30 September 2016].

Cheng, R. (2013). Samsung outguns Apple in marketing: Samsung spent $401 million to promote its products in the U.S. last year, compared with $333 million spent by Apple. [Online] Available from: [Accessed 30 September 2016].

Horwitz, J. (2016). Now Samsung washing machines are blowing up, too. [Online] Available from: [Accessed 1 October 2016].

Iacobucci, D., 2014, Marketing Management (MM4): Student Edition, South-Western: Cengage Learning, Mason.

Lee, S.Y. (2016). Samsung shares slide thanks to Galaxy Note 7 recall. [Online] Available from: [Accessed 2 October 2016].

Sharp, B. (2013). Marketing Metrics: Theory, Evidence, Practice. Oxford University Press: Melbourne. [Online] Available from: [Accessed 23 October 2016].

Social Media. (2016). Measuring ROI Still the Top Struggle for Social Marketers Among platforms: Facebook yields the best return. [Online] Available from [Accessed 2 October 2016].

Wyner, G.A. (2008). Do Financial Metrics Stifle Marketing Creativity? Marketing Management Journal 17(6): 6-7. [Online] Available from: [Accessed 30 Septemver 2016].



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s