A Study on the Impact of Online Advertising on Samsung's Profitability

This report investigates the impact of online advertising on Samsung's profitability within the UK electronic sector, using a case study approach and a quantitative research paradigm. It examines the significance of online advertising, its influence on Samsung's profitability, and potential strategies for enhancing returns. The research incorporates primary data collected through questionnaires, supported by a literature review on the electronic sector and online marketing. The findings reveal variations from general assumptions, highlighting the importance of online advertising for profitability in the electronic sector. The study offers practical implications for Samsung's online advertising strategies and contributes as an academic study on this topic. The report includes an introduction, literature review, methodology, findings, discussion, and conclusion with recommendations for further research.

Table of Contents
Chapter 1: Introduction ...................................................................................................................5
Background to research topic ..........................................................................................................5
Background to research organization ..............................................................................................5
Research rationale ...........................................................................................................................6
Research question (s) ......................................................................................................................6
1.5 Research aims and objectives .................................................................................................6
Chapter 2: Literature review ............................................................................................................8
2.1 Introduction of literature review ................................................................................................8
2.2 Main body with heading and sub-headings ................................................................................8
2.3 Conclusion of literature review .............................................................................................12
Chapter 3: Methodology ...............................................................................................................14
3.1 Research process......................................................................................................................14
3.2 Research approach....................................................................................................................14
3.3 Research strategy......................................................................................................................15
3.4 Research methodology.............................................................................................................15
3.5 Research instruments/tools......................................................................................................16
3.6 Sampling....................................................................................................................................16
3.6 Ethical implications...................................................................................................................17
Chapter 4: Findings (data presentation) .............................................................................................18
Chapter 5: Discussion (data interpretation) ......................................................................................19
Chapter 6: Conclusion, recommendations and implications for further research ........................29
CONCLUSION...................................................................................................................................29
RECOMMENDATIONS......................................................................................................................29
IMPLICATIONS.................................................................................................................................30

References ...................................................................................................................................31

Abstract
Purpose – This research study aims to investigate the impact of online advertising
on profitability level by using case study survey methods within a quantitative
research paradigm. It explores how online advertising for electronic sector have
contributed to the Samsung success within a very competitive industry.
Design/methodology/approach – This report is based on primary research.
However, the empirical framework for this research is founded on literatures on
electronic sector. Primary data is collected through questionnaires to answer the
research questions.
Findings – The picture of the findings are not straightforward and some variation
have come out which are quite different than general assumptions. The study
has established that there online profitability in electronic sector with having
advertising for their succession. Should Samsung knowingly choose to have
profitability levels in sector of electronic in makreting of internet for making
profits. which is in agreement with literatures on the topic.
Practical implications – This study finds online profitability in electrical sector in
having huge impact of advertising. It also has some stratregic for implementing
their online advertising to improve Samsung success.
Originality/value– This paper is the first academic study conducted the impact of
online advertising on profitability levels in eletronic sector with case study of
Samsung.
Key word – advertising, profitability and electronic sector.
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Acknowledgement
At first, I would like to thank God to make me capable enough to do something
worthwhile.
I would especially like to thank my supervisor for his generous time and
commitment. Throughout my dissertation, he had taken his valuable time to help me
whenever I needed; read through my draft copies; listened to me patiently; quickly
answered all my email queries and supported me every step of the way. Starting
from refining the research topic, he has encouraged me to develop independent
thinking and greatly assisted me with writing.
Thanks to all of those Samsung peoples who had taken time for filling in the
questionnaires in my research. Without their active participation it would not be
possible to carry out this research.
Last but not the least, I thank to my family members, friends and relatives for
their kind help and cooperation during the research period.
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Chapter 1: Introduction
Background to research topic
Internet market becoming more and more popular as new marketing channels for
selling as well buying of products and services. The electronic sector includes their online
selling products such as television, radio, smartphones, telephone exchange, radars and so
on. In serpent internet has become important while also for doing business in which they can
gain huge amount of profits. In having business online they can easily attract more customer
by having attractive websites, blogs and proper used of social media platforms where they
can make teenagers as their targeted for selling electronic products. Internet marketing also
promote high level of satisfaction along with that consider successfully business. Internet
keep support for conducting business plus maintain interaction with other customer in selling
and buying (Pärssinen and et.al., 2018). E-commerce business earning can be done easier
in sale and profits done furthermore maintain performance level of business in market. In
changing time business towards internet is getting vast and many peoples are getting
attached towards them. In traditional and modern changes with adopting new technology
along with that improving economic productivity and performance of business. Through
conducting business online stores can more develop them as offline stores and in various
countries for making more customers. In having higher level of satisfaction as products and
services can be maintained solving their problems clear and keep focused towards them so
it means that they can make retention in customer attraction along with attention. In terms of
online advertising they used different technological including banners, pop-ups messages
for internet user as well. One of the greatest benefits in online advertising is cost-
effectiveness for business and might be affordable as well inexpensive in promoting
business online.
Background to research organization
Samsung group is multinational conglomerate company with having headquartered
in South Korean. From last years they have diversified them into such groups insurance,
retailing, textiles, securities etc. in making more probability. The company power influenced
development of economic, politics, culture and media plus having major driving behind them
in market. Samsung has started with small business with only forty employee and moving
forwards they have moved towards lines of insurance, retailing, securities as well. In 1960
company have entered in market of electronic sector and formed various products such as
telecommunication, television set and electronic mechanics. From last years Samsung has
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become the largest producer of memory chips. It is also known for information technology
and electronic market company in producing Air conditioners, computer, digital televisions
etc. they have developed more in Smartphones platforms as officially launched Samsung
Solstice (Chung and et.al.,2017). The organization has the largest number of making phone,
and they have also overtaken to Nokia, company build up them for growth opportunities in
market. Later, Samsung has granted patents with any other companies including Apple,
IBM, Google and Sony. Increaser business activity globally in electronic, its semiconductor
and phone have become important source of income for them. In selling their phone online
as well some other products companies have also become many more known to all sector in
developed countries. The company have some major clients like Royal Dutch and Ontario
governments.
Research rationale
Online advertising become more profitability level for all the sector and while
conducting this they can attract customer this is main objective for choosing research topic.
Today's time many business have been conducted e-commerce sector in developing their
companies as well to their business. So they can make their business in well some other
developed countries. People should come to know about their strategies in having business
online and how they make profits in internet marketing. Many business are required to
create e-commerce process in which they can easily attract more customer and satisfaction
for existing customer with various products and services, it could be another reasons for
selecting this research topics.
Research question (s)
 What is the concept of online advertising along with analysis of its significance for a
company.
 What is the impact lead by of online advertising on profitability levels of Samsung
within in UK while operating in the electronics sector.
 What are the new and latest form of online advertising that can be implicated by
Samsung Company to have enhanced level of profitability while operating in
electronic sector of U. K.
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1.5 Research aims and objectives
Aim: “To analysis of the significance of the concept of online advertising along with its
impact on profitability levels in the electronics sector of UK. A research project on Samsung.
Objectives:
 To review about the concept of online advertising along with analysis of its
significance for a company.
 To investigate about the impact lead by of online advertising on profitability levels of
Samsung within in UK while operating in the electronics sector.
 To determine some new and latest form of online advertising that can be implicated
by Samsung Company to have enhanced level of profitability while operating in
electronic sector of UK.
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Chapter 2: Literature review
2.1 Introduction of literature review
Literature review is scholar survey which is used for sourcing specific topics. While
this writing it can include finding with relevant publications, analyzing them and explaining
what have been founded. In research, it used many sources such as theory, description,
summary, critical evaluation to those who are working in investigating report of research.
Different authors will have different take on objectives which is going to impact the
knowledge and information in an individual will increase (Mayyas, Steward and Mann,
2019). The further literature review is going to consist of different authors and their point of
views.
2.2 Main body with heading and sub-headings
Significance of online advertisement
As per the view of (Vasilkova, 2019), a lot of online platforms are present in the
market which is going to make the satisfaction level, sales, profitability, standards and brand
value of the company be increased. Online advertisement has analysed that there are more
customers which are getting attracted to products and services online which is going to be a
great factor. Businesses in the market are making sure that they are having the right
measures and methods for this factor to be implemented. Importance of online
advertisement needs to be understood and planned effectively so that there is going to be
higher functioning and performance which is going to be present. In according to (Liu, 2020),
local presence can also be improved by having right online advertisement which would be
present so that there are higher performance and operations which would be present.
Businesses need to have a never ending cycle of goodness which must be present in an
organization so that there is going to be higher purchasing of the clients in the firm. Online
advertisement is going to get in a large audience base which is going to make the business
have more accessibility in the market which is going to be a great factor. Beliefs, values and
behaviour online of the audience can be understood well which would make the standards
and performance of the company be increased and that is going to make the sales and profit
margins of the company be much higher.
In the opinion of (Ng, So and Tam, 2021), in reality online marketing or
advertisement is going to make the offerings and promotions for the products and services
of the brand be easier which is going to be a great factor for the company to have. There are
a lot of methods, offerings and strategies which are present in advertisement online factor.
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Pay per click is the most wanted and informative factor for the businesses which is making
the company have more sales and attract the customers. Gender, age, preferences,
demographic audience, etc. are well understood by organizations which is going to make the
performance and sales of the company be higher and that is good for the further growth of
the business as well. Engagement is going to make the performance and functioning be
higher and is going to make the online advertisements be further improved so that there is
going to be more sales. Re- marketing advertisements are also present in the market so that
the achievement and goals can be achieved on time which is going to make the brand be
able to have higher awareness and generation of motives for the clients which is going to be
created. Author suggests (Cheung, Pires and Rosenberger, 2020), Google is a re-
marketing tool which is mostly used by businesses in order to be able to have higher sales
and is an easy method as well which would be very helpful as well. There is a lot of
investment but all that investment in online advertisement which a business is going to make
can be refunded to the business again by having the right strategies and measures which is
going to make the company have higher brand value and reputation in the market.
As per the author (Bosher and Yeşiloğlu, 2019), better visibility for the channels and
firms are present online. Samsung is investing on online advertisement a lot which is going
to make the sales and performance level of the company be higher. By having online
advertisement there is going to be another advantage which is going to be present which is
that there is going to be two- way communication which is going to be created. Relationship
with the clients has to be present therefore this is a modern method which can be used in
order to make sure that there is going to be more sales and performance of the company is
going to be improved. There is call, chat, email, etc. methods which are present and that is
going to make the interaction much stronger. In opinion of the author (Castilho, 2019), the
visibility of the business is going to be increased and there is going to be higher
performance and marketing factors for the business which is going to be present. There is
multitasking for the clients and the business to have which is going to help the business be
able to operate effectively and efficiently in the market. Opportunities in the market regarding
this factor are many which is going to be effective for the overall development and
performance which is going to be there.
Profitability level of online advertisement of Samsung
In consideration of (Li and et.al., 2017), Samsung takes the data of the customers
and provides them with the sales, offerings and other aspect so that there are going to be
more sales. Promotions online is going to make the company have more profit margins
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because they would be able to attract the right customers. There are no limitations on the
online advertisement which is going to make the standards and impact of the company be
higher on the customers. Quality of the advertising online has improved which is going to
make the reputation be higher. Customer satisfaction is important for the firm to have so that
there is going to be higher satisfaction level which is going to be present. Customers prefer
online advertisements and get easily influenced which is going to make the satisfaction level
of the customers be present and also make the right decisions accordingly in Samsung
which would be present. View of (De Toni and et.al., 2017), there is a lot of profit margins
which Samsung can get if there are right decisions and measures which are going to be
taken according to the clients online. The online clients have a different approach and idea
of online advertisement which must be considered. Clients are going to remember the online
advertisements more because the company is investing and making sure that the population
is having this factor. Online advertisement is reducing the wastage as well which is very
good for the overall development and profit margins which is going to make the
improvement be higher and the company will be able to make the right standards and
working for them.
In according to (Holland and Gutiérrez-Leefmans, 2018), exploring new methods is
something which Samsung is experienced within which is going to make the company be
able to make the online presence be much higher. There is a lot of traffic online as well
which is present therefore Samsung has their own website as well so that they can
understand the working and performance of the organization so that there is going to be
higher performance. Sales and loyalty of the customers is present in Samsung clients which
is why there are good preferences and understanding between the two. Samsung has been
able to have higher satisfaction level and which online advertising measure has got for the
firm which is going to make the company be able to have profitability. There is a growth in
the sales from 2015 which was $178 billion to $222 billion which is visible and is going to
make sure that there is effective working which is going to be present. In discussion with
(Palazzo, Vollero and Siano, 2020), Samsung is promoting their galaxy models online by
advertising them so that there is going to be higher functioning and revenue generation
which is going to be present. Attractive and careful designing for electronic has to be present
in Samsung so that there would be better growth and development of the organization.
There is a steady growth of Samsung even after having so many other competitors is
because of the decisions which the firm has been taking because of the experience which
the company has gained.
As per the view of (Trivedi, 2019), Samsung is providing a lot of offers and affordable
budgets for the clients which is going to make the sales of the company be higher and that is
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good for the overall growth of the firm. There are a lot of social media featuring sites which is
going to make the performance and operations of the organization be higher which is going
to make the revenues of the company be higher. Tools which are being used in the
organization have to match the standards and brand value which the company has gained
over years which is going to be great factor for the company to have. There is 6% revenue
which Samsung is putting for the research and development department so that they can
find easier and more effective measures to be able to make sure that there is good revenue
and profit margins of the company which can be improved. The author recommended
(MuneebMehta and et.al., 2020), that the businesses must be able to make sure that the
implementation of the online services must be effective so that there is going to be higher
performance. There are still a lot of companies which are using the traditional methods for
advertisement which includes Samsung as well which is using this aspect in order to get in
the customers which is going to make the satisfaction level of the customers be higher.
Level of the profitability in Samsung is evident and the company is making further
investment in this aspect so that the company will be able to have the right functioning and
operations which is going to be present.
Forms of online advertisement which can be implemented and be beneficial for business
In opinion of (Orhangazi, 2019), author there are a lot of factors which can be
implemented in businesses so that there is going to be effective online advertising measures
which can be taken. There have to be more native advertising measures which must be
taken for the organization and video advertising is going to make a higher impact as well.
Feel and functioning of media is going to make the clients be able to connect with the
organization further and that is going to be a great factor for the company to have for a long
run. Paid content is a measure which Samsung is using so that there is going to be higher
performance and functioning which is going to make the standards of the company be
higher. There has to be good information and traditional methods must be continued to be
used by businesses which want to gain competitive advantage in the market so that there is
going to be higher sales and impact. As per the view of (Estrada and Dong, 2020), there
must be good content for online advertising as well which needs to be present so that there
would be higher functioning and satisfaction which is going to be there. Display
advertisement is going to help the company be able to make the right funds and further
expansion is also going to be present for the higher functioning of the company. Emotions,
typographic composition, minimalism, gestalt principles, focal point and colour psychology
must be used effectively so that there is going to be higher satisfaction and accomplishment
of the company is going to be on that point.
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As per the (Lee, Leem and Bae, 2018), author is making a statement that there has
to be a good use of text and colours which are present in the advertisement has to be
according to the attraction level of the clients so that there is going to be higher functioning
which is going to be present. Internet is very addictive for the customers which is why it is
important for the company to make sure that they are taking the right actions in order to
make sure that there is going to be higher functioning and performance level would be
higher. Though, online advertisement is complicated therefore experts are present in
Samsung which is going to make the performance level and working of the organization be
higher. The author recommended (Buratto, Cesaretto and De Giovanni, 2019), Samsung will
have to make sure that they are having right research engine marketing and optimization for
the products and services so that there is going to be higher functioning. It is important that
emails and other direct contact with all the customers is kept so that there is going to be
more trust and loyalty which can be gained and that is going to make the company be able
to have higher functioning. Loyalty ad spreading of word through the online advertisement is
very easy which is going to make the standards of the company be improved and the
reputation of the company is going to be higher. Google can be used as a business which is
going to make the business be able to have more knowledge and sales impacting in higher
profitability.
In discussion with (Fraser, 2020), paid search is going to make the primary working
and expectations of the company be higher which is going to be a good factor for a long run.
Social media is running 24 hours and engagement is also going to be according to that
therefore using this platform for Samsung is going to be a lot more helpful for a long run.
There are broadcasting channels which have increased in number and that is going to make
the standards and promotional factor for the company be much higher. Click to online
purchase is going to give out information of the customers to the company which is going to
help the business be able to have the right standards and sales which is good for a long run.
In according to (Kotler and et.al., 2019), Facebook, Instagram, Pinterest, etc. social media
can be used by Samsung to be able to make the electronic services be improved and
developed around this factor which is going to be a great factor for the company. Samsung
is trying to have higher sales which is going to make the investment for the company be
present and that is going to make the performance also be improved as well.
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