Analyzing the Marketing Activities of a Samsung

Analyzing the Marketing Activities of a Samsung

1. Market Environment

Competition

Samsung Inc. is one of the leading companies in the telecommunications industry. The company’s main competitors are Apple, Huawei, Xiaomi, Sony, Lenovo, and Oppo. Apple poses the most competition because it launches new products frequently and uses innovation to meet customers’ needs and preferences. Huawei poses competition based on price and product quality. Also, Xiaomi and Oppo have gained global recognition over the past two years for manufacturing high-quality smartphones sold at affordable prices worldwide. Further, Lenovo poses competition to Samsung in the smartphones and laptop market. One key feature distinguishing Lenovo laptops from Samsung laptops is battery life. Lenovo has created a legacy of providing laptops with a high battery life compared to competitors such as Samsung, thus creating a competitive advantage. Lastly, Sony poses competition in the smartphone market by producing high-quality phones with unique features, including water resistance and high battery life.

Industry Trends

The telecommunications industry is rapidly changing due to technological developments. One of the trends in the industry is the development of 5G. Consumers are now looking for smartphones that can support 5G network so that they can access new apps and digital services that provide more stability and security. Therefore, smartphone manufacturers such as Samsung must ensure that their smartphones support the 5G network to create a competitive advantage. The second trend is the preference for fast-charging smartphones. Technological advancements have led to the rise of flash and fast-changing technology enabling smartphone users to fully charge their phones within the shortest time possible. Therefore, smartphone manufacturers must ensure they install the fast charging feature in their phones to attract customers.

Environmental Threats and Opportunities SWOT

The main political threat that could impact Samsung’s success is the disagreements between different countries. The disagreements could lead to increased trade tariffs, thus reducing the company’s profits and expansion into new markets. Next, the main demographic threat that could impact Samsung’s success is the rise of influencers between 15 and 30 years looking for unique features such as high-quality cameras that enable them to take quality videos and pictures to attract followers. Therefore, Samsung may be forced to update its camera features regularly to meet new customer demands and preferences. In addition, the main technological threat that could impact Samsung’s success is the rise of 5G technology which could impact the demand for Samsung phones that do not support the 5G network leading to reduced competitive advantage. Furthermore, the main opportunities the company could leverage to create a competitive advantage and enhance growth are partnering with other phone manufacturers who have established a large market share in developing markets to increase sales and investing in the supply of 5G technology.

1. Current Strategy Description and Evaluation

Product (Production Time, Life Cycle of Product)

Samsung’s product time and the life cycle is influenced by the product’s demand. However, the company maintains a small product life cycle to create and maintain a competitive advantage. The company advertises new products to customers before launching to secure a market before releasing the product, thus creating a competitive advantage. The main products include memory or storage devices, television, laptops, printers, home appliances such as cooking appliances, refrigerators, washing machines, vacuum cleaners, air conditioners, and mobile devices.

Price Strategy

Samsung uses the skimming pricing strategy. According to AlJazzazen, skimming pricing strategy includes setting a high price after launching a product in the target market and lowering the product after some time (5). Samsung sets a high price after launching a product with new features and lowers the price when competitors introduce products with similar features to maintain a competitive advantage.

Distribution Channels

Samsung uses selective distribution. According to Materljan and Materljan, selective distribution includes restricting the number of authorized distributors, thus enduring that a certain level of control is maintained over how goods get to consumers (830). Samsung maintains selective distribution by requiring all sellers to get authorization from the company, thus maintaining control over the distribution and sales of all its products. Customers can also purchase Samsung products from Samsung online and physical stores.

Promotion Mix and Marketing Mix

Samsung uses traditional and modern marketing methods to market its products. The company uses social media platforms, print media, and digital media to reach existing and potential customers. The company also hires celebrities as brand ambassadors and markets its products through social media platforms. According to Laila and Sjabadhyni, celebrity marketing increases purchase intention, thus increasing a brand’s sales (192). Samsung uses its social media platforms to inform customers about new products, upgrades, and unique features and gather feedback about existing products.

Market Positioning

Samsung uses innovative, multi-segment, and anticipatory market positioning. Multi-segment positioning enables Samsung to reach many customers by targeting different customer segments simultaneously by providing various services and products that meet the needs of each target group. Innovative positioning includes adapting products to imitate the products provided by successful brands. For example, the Samsung Galaxy series imitates the features of Apple iPhones. Anticipatory positioning, on the other hand, includes launching low-turnover products expecting they will become high-turnover products in the future.

Social Media Uses

Samsung has maintained a legacy of successfully using social media to market its products and interact with customers. The company uses its social media platforms to get feedback on customer experiences to effectively plan for product improvements. The company also uses digital campaigns on social media platforms to interact with customers. Some campaigns that have attracted a large audience include the #YouMake and Growing Up campaigns. The #YouMake Campaigns encourages customers to use Samsung’s virtual benefits and services. Similarly, the Growing Up campaign encouraged people to consider more options by considering various Samsung products.

Works Cited

AlJazzazen, Sahoum Ali. “New Product Pricing Strategy: Skimming Vs. Penetration.” ResearchGate, 2019, p. 5. https://doi.org/https://www.researchgate.net/publication/342520940_New_Product_Pricing_Strategy_Skimming_Vs_Penetration.

Laila, Ratu, and Bertina Sjabadhyni. “The Influence of Celebrity Endorsement Types and Congruency Celebrity with the Body Care Products on Instagram Users’ Intention to Purchase.” Proceedings of the Universitas Indonesia International Psychology Symposium for Undergraduate Research (UIPSUR 2017), 2018, p. 192. https://doi.org/10.2991/uipsur-17.2018.28.

Materljan, Igor, and Gordana Materljan. “Selective Distribution of Trademarked Products and Restrictions of Online Sales.” EU AND MEMBER STATES – LEGAL AND ECONOMIC ISSUES, 2019, p. 830. https://doi.org/10.25234/eclic/9033.

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Please analyze the marketing activities of a company of your choice (Existing or Created). This analysis should cover the major topics as discussed in the course. The paper should focus on the strategic marketing decisions of a particular product or service. You will take the position of a marketing manager for the product or service. This paper should be at least 2/4 pages in length (double-spaced). Written analysis of product/service should include the following as appropriate (or as needed).
A. Market Environment
1. Competition
2. Industry trends
3. Environmental threats and opportunities S.W.O.T (political, demographic, technological, cultural, legal, etc.)
B. Current Strategy description and evaluation of the following:
1. Product (production time, life cycle of product)
2. Price strategy
3. Distribution channels
4. Promotion Mix, marketing mix(personal selling sales promotion, advertising)
5. Market positioning
6. Social media uses, positivity/negativity (if any) in marketing the company