Thecurrent business environment requires companies to have marketingstrategies and plans that attract customers. Some of these companiesunderstand the importance of segmentation, targeting and position oftheir products and services (Sepherteladze, 2015). For example,Samsung understands that it operates in a cutthroat environment,hence the need to have a marketing plan that helps them stay ahead ofcompetitors. This paper will analyze the marketing strategies used bySamsung to reach their market. It will also offer a detaileddepiction of the marketing management stratagems used by the companyto implement its marketing plan. The paper will provide theintegrative strategies applied in the current business environment toreach the target markets and maximize dollars spent. Lastly, thepaper will provide the different ways in which a product or servicemay be marketed, while it will also analyze why particular strategiesfit certain target markets.
SamsungElectronics is a multinational electronics organization from SouthKorea with headquarters in Seoul (Samsung, 2016). The company becamethe largest electronic device manufacturer globally, after beatingHewlett-Packard in 2009. The company employs 160,000, workersworldwide. Byung Chull started the company in 1938 as an exporter offruits, vegetables and fish to China. Byung then ventured inconfectionery machines and flour mills before turning the companyinto a corporation in 1951. Samsung joined ship building, chemicals,media and financial industries during the 1970s. The company venturedinto electronics in the 1990s (Samsung, 2016).
Samsungoperates under the vision Inspire the World, Create the Future.”The company is committed to providing leading innovations insolutions, products and technology. The company’s goals entailreaching USD 400 billion in sales and become the leadinginternational IT organization. It also targets to become the bestworkplaces in the world and the creator of new markets and besttalents (Samsung, 2016).
Samsungoperates in a cutthroat environment with other big organizations,such as Apple Inc., Huawei, Sony, Mitsubishi Inc., Panasonic Inc., LGElectronics Inc. and Vizio Inc. However, the company remains theleading smartphone company in the world today.
Samsunguses segmentation, targeting and positioning strategies to markettheir products. Segmentation entails splitting a huge targetmarketplace into subsets of countries, businesses, or customers withsimilar needs before designing and implement approaches that targetsthem. Targeting entails determining the potential customer segmentsthat a company wants to concentrate on (West, Ford & Ibrahim,2010). Positioning entails implanting the targeting of a company.
Selectedsegmentation methods for the company include demographic andgeographic segmentation. Demographic segmentation relies on variableslike income, occupation, education-level and lifestyle. Ondemographic segmentations, Samsung uses age segmentation thatconcentrates on old people, adults and teenagers. The company mostlytargets teenagers with cameras, personal computers (PCs) and Samsungtablets. Alternatively, the company targets old people with laptopsand hand phones for business applications. It also targets olderpeople with HD (high definition) televisions due to their demand forclear vision interfaces for their eyes.
Samsung’sincome segmentation focuses on low-income and high-income householdswith the ability to purchase their products (Sepherteladze, 2015).The company’s high technological products target high-incomeconsumers as they can buy them regardless of the price. Nevertheless,the company caters for low-income consumers with affordable anduseful products.
Samsung’soccupation segmentation focuses on products related to consumers’professions. For example, it targets consumers that require PCs andtablets for their offices (Sepherteladze, 2015). The company useseducation-level segmentation that targets highly educated customersthat require computer aid during their learning, work, or otherpurposes. Lastly, Samsung uses lifestyle segmentation to targetconsumers based on their living standards. For example, the companyhas convenient and light phones, laptops, and tablets for busypeople.
Alternatively,Samsung uses geographic segmentation and focuses on regions likeNorth and South America, Asia, South Africa, and Europe. For example,Samsung split the Asian market into diverse geographical areas, suchas southern, northern and eastern regions. The company also targetsseveral Asian nations differently by splitting various marketsincluding the China market and the Indian market.
Samsunguses a differentiated marketing strategy to target different marketsegments and offers distinct offers for each (Samsung, 2016). Thecompany targets and selects profitable target segments that alsoproduce increased sales and proceeds. It targets young people orteenagers with innovative products like the Samsung Galaxy S3 thathas a groundbreaking, gentle and smooth curve. Samsung targets agedcustomers with elegant products, such as plasma TV and smartphones.Additionally, the company targets Generation X due to its wealth withhigh technology smartphones, laptops and tablets among other productsbecause they have more money. Besides, Samsung also uses the nichemarket strategy, such as the flip smart phone. It introduced SamsungSCH-W2013 in 2013 before introducing it in China.
Positioningrefers to what consumers believe regarding the benefits, features andthe value of Samsung products (West et al., 2010). Samsung positionsits products as convenient value-added devices that can be usedpersonally and professionally by everyone. The company also focuseson convenience by incorporating features like internet access andmusic in the gadgets. The positioning approach improves Samsungproducts as fashionable and professional.
Globalcompanies have identified the importance of having integrativestrategies in their environments to reach targeted markets andmaximize marketing dollars spent. Integrated marketing refers to theuse of different strategies to deliver a marketing strategy and buildknowledge, trust and like amongst consumers (Richard, n.d). The firstintegrative marketing strategy entails “thinking outside the box.”Richard (n.d) argues that companies are coming up with uniqueproducts to attract old and new clients. The second integrativestrategy used by most global firms to reach targeted markets andmaximize marketing dollars spent is through social media. Accordingto Richard (n. d), social media gives additional prospects forleveraging a integrated marketing approach to improve preferences andawareness of products and services. Social media includes tools, suchas MySpace, Instagram, Facebook and Twitter that helps companiesconnect with different audiences, together with websites, blogs andadditional online strategies that have widened the reach and reducedthe costs of reaching more people.
Moreover,companies are using sales promotions to attract targeted markets andmaximize marketing dollars spent (The Economic Times, 2016). Forexample, Samsung attracts its customers through sales promotion byoffering airtime and other packages, such as memory cards tocustomers who purchase certain products.
Marketinga product or service is a task that requires the marketer tounderstand the current marketplace and stay ahead of competition.Therefore, there are several marketing strategies that I would applyduring the process. The first marketing strategy includesendorsement. Working in a large company like Samsung or LG means thatI would be able to endorse well-known celebrities to boostproduct/service sales. Endorsing a famous person allows anorganization to sell its products to the fans of the chosencelebrity. Moreover, technology advancement has created social mediacites that allow celebrities reach their fans who emulate their senseof fashion and accessories. I would also use the social media toadvertise my product or service because using sites, such as Twitter,Facebook, Instagram and MySpace amongst others will help reach manypeople worldwide. For example, if I am dealing with phones, usingthese social media sites would help my company reach many youngpeople who spend most of their time online.
Lastly,I would apply pop-up messages as a way of advertising my product orservice as well. The fact that most people with internet connectionsspend their time online means that the chances of receiving thosepop-up messages are very high. It is a great way of informing peopleabout new products and services too.
Inconclusion, marketing plays a significant role in the success of anybusiness. Samsung understands that using effective marketingstrategies through segmentation, targeting and positioning attractsmore customers worldwide. Moreover, customers prefer companies thatmake them feel wanted and those with convenient and affordableproducts. Therefore, companies should design effective marketingplans and strategies to increase their consumers, hence profits.
Phillip,K., & Keller, K. (2006). Marketing Management. PrenticeHall.
Richard,L. (n.d.). Examples of Integrated Marketing Strategies. Accessed onAugust 20, 2016 fromhttp://smallbusiness.chron.com/examples-integrated-marketing-strategies-3226.html
Samsung.(2016). Vision 2020. Retrieved on September 7, 2016 fromhttp://www.samsung.com/uk/aboutsamsung/samsungelectronics/vision2020.html
Sepherteladze,S. (2015). Samsung Marketing Strategy: The Master Brand. Accessed onAugust 20, 2016 fromhttp://inevitablesteps.com/marketing/samsung-marketing-strategy/
TheEconomic Times. (2016). Definition of ‘Sales Promotion.’ Accessedon August 20, 2016 fromhttp://economictimes.indiatimes.com/definition/sales-promotion
West,D., Ford, J., & Ibrahim, E. (2010). Strategic Marketing:Creating Competitive Advantage. Oxford: OUP Oxford.