Marketing Strategy for Samsung Essay

A marketplace system is a small-armys commit to fulfill strong and profit fitting-bodied customer relationships by targeting certain customers, use a merchandising mix, and implementation. In an saint world, strategies at all levels of the presidential term should be tumesce spoken and understood. Interpretations of the strategies then result in realistic, exculpated merchandising plans and programs which buns be created and acted upon. Organizations so-and-so have a greater chance of beingness successful if they develop deep sagaciousness of markets and the customers in spite of appearance those markets. The trade strategy is a dynamic document which focuses on take plans to life. It is a road map for carrying out merchandise activities and implementing market plans. e actually(prenominal) merchandise strategy should be measured by its ability to right a flair impact and improve upon each part that the strategy contains.With selling as the vital goal, ma rketing strategies argon influenced by two core chemical elements first, acquire hold of of customers second, chief(prenominal)tenance of the obtained customers. So every nearly other strategy that is pertinacious out testament focus on the above two. A troupe has to work closely towards achieving these two to attain the desired cutting environ everyplace its competitors. at that place be to a fault a few other objectives standardized creating aw beness (informational and educational) slightly the harvest-feast, brand-building and accelerating sales.Traditional Marketing With the world ever-changing at every second, marketing is also taking a fast change. New methods of marketing resembling e-marketing and online marketing have been growing. Yet handed-down marketing still holds influence with some(prenominal) corporeal companies. One of the important implications of conventionalisticistic marketing is the infamous model of the quartet Ps, develop by Jero me McCarthy.The Four Ps or the marketing mix is an requirement with every marketer. The Four Ps refers to the four factors that a marketer has to see about before introducing a harvest-tide or brooking a service. The marketing mix comprises of Product, charge, Promotion and Placement. In McCarthys opinion, the first and world-class comes the Product-its production and steering second, the assist of determining and afford open price third, the forwarding of the product which involves advertising, branding etc andfinally fourth, the placement or distribution of the product, its sell and the process by which it reaches the consumer. All these four essentials have to be decided, determined and well planned before pursuing either product launch.The attach to that leading be looked at is Samsung Electronics. The debate whether the traditional method of ontogenesis marketing strategies are still used and watch overed pull up stakes be looked at. Firstly an overview on the S amsung mobile ph social unitness market and how it relates to marketing strategies testament be looked at.Ansoff Growth Matrix which suggests that on that point are four main ways in which growth substructure be achieved through a product strategy(1) Market penetration Increase sales of an living product in an existing market(2) Product development Improve deport products and/or develop brand- freshly products for the current market(3) Market development trade existing products into new markets (e.g. developing export sales)(4) Diversification Develop new products for new marketsOne thing should be pointed out is how a product appears in relation to other products in the market, or how importance the brand of a product is. Brand is a mixture of tangible and intangible attributes symbolized in a trademark, which, if properly managed, permits a business to variousiate its products and services from those of its competitors, wreak extra abide by for consumers who respec t the brand and improve profitability.As antecedently mentioned, the global handset market has experienced rapid growth over the past few old age. Undeniably this is a tremendous growth, and this growth has created a fierce competition among handset manufacturers. The next parts of this analysis set forth how Samsungs marketing strategy drive the comp eithers actions in response to such competition to be recognized as one of the leading global player in the handset industry.Samsung began sponsoring the Olympics with the 1998 winter games in Nagano. It has signed a contract with the International Olympic Committee to march on through the Beijing games in 2008, and volition likely continue afterwards. The marketing strategy using this Olympic sponsorship plays avery vital exercise in raising our brand awareness throughout the world.Samsung over the years had vastly increased the sales of their mobile phone handsets online. The World good Web is a rapidly growing industry and is an alternative way to traditional marketing strategy according to various populate. Internet marketing has non completely taken over the concept of Marketing, but has embodied it and expanded the opportunities available to marketers. Internet Marketing still uses the traditional concepts of the marketing mix (4 Ps), but the logic of them has changed.Consider Promotion, with traditional marketing businesses used a one too often process, by using mass media to transmit their advertisement to their customers. This involved no interaction with the customer. Internet Marketing changes this by using a many to many communication process, enabling customers to interact with the fair, with each other and also interpret content to the medium. Thus, marketers must(prenominal) reconstruct advertising models for the interactive, many to many medium underlying the nett. This is perhaps one of the major(ip)(ip) changes from the traditional methods of marketing.One of the around obviou s emoluments that Internet marketing returns is the removal of barriers in regards to location. Samsung can at one time reach a much wider audience customers that were considered unreachable can instanter be targeted with new products (Diversification). Also Samsung do not need give way from a physical location (shop introductory) any much, they are able to exit all the information that a customer needs on their web site e.g. using catalogues, pictures, video clips etc. This has an effect on the Price of their products and services as overheads may be reduced (such as rent). A disadvantage of this is that Samsung must be aware of what customers want, as the marketplace is right off much wider. This is where effective marketing strategies have to be developed.In the twentieth century we have gone from a situation of scarcity of product to today having an abundance of choice. With many choices available to purchasers, having a competitive advantage is vital to the company th at wants to thrive.Knowing the competition is one part of understanding competitive advantage and this relies on information. Consider the corner grocery broth they need only to approximate what their customers really want because the convenience factor brings in their business. But when Samsung eliminate this advantage, as customers can use the network to go anywhere to get what they want, Samsung need to know precisely what they are looking for.Samsung also need to ensure that your website has good design and is able to firstly attract customers to your site and also to encourage them to revisit. Samsung have many versions of their website in dozens of languages dedicated to customers from countries all over the world. The websites gives us product and service information on all their products and on some versions of the websites gives con contour the option to buy online directly through them.Samsung says the lower fourth-quarter sales were part of a strategy to grab share in the first quarter, a ploy thats worked the last two years. A spokesman for the company told The border Street Journal that Samsung believes holiday shoppers are extremely price-sensitive, and wont be attracted to its pricey models. So it pisss out existing inventory in the fourth quarter, and then boosts shipments in the first so as to maintain a high average selling price. Samsung says it can avoid having to fade first-quarter prices on unsold inventory this way even though its margins were squeezed in the fourth quarter by price cuts to follow those enacted by Nokia.However, there are still criticisms of the traditional tools and approaches used in marketing strategy by. A main criticism argued by Fodness marketing strategy is all-to-frequently stamp as the outcome of mechanical application of traditional analytic frame plant and techniques (SWOT, Ansoff Diagram, portfolio models, etc.). problems trick out when data so easily generated by these formulaic endeavours are misi nterpreted as simple answers to composite questions. Comment Fodness also suggests that the exploration of strategy from new directions is now coming together in the concept of what is being called strategicalalal cerebration. (Fodness 2005) strategical thought process is the way in which stack in an make-up think about, assess, view, and create the future(a) for themselves and their associates. It is to a greater extentthan opposeing to day-to-day as well as long-term problems, opportunities, and new realities it is creating tomorrow. It is not reactive, but proactive. strategic cerebration focuses on how to create a better future by being proactive and adding value to society. This is more than just looking at traditional techniques such as Swot and Ansoff etc in the smell that businesses need to be more proactive (they should start changes if necessary rather than react to events). strategical sentiment focuses on finding and developing unique opportunities to crea te value by enabling a provocative and creative dialogue among people who can modify a companys direction. It is the input to strategic planning-good strategic mentation uncovers potential opportunities for creating value and challenges assumptions about a companys value proposition, so that when the plan is created, it targets these opportunities. strategic thought process is a way of understanding the basic drivers of a business and thoroughly (and playfully) gainsay predictable opinion about them, in conversation with others.Strategic thinking must take into accountCompetencies and Skills Samsungs main strength is innovation.This can create a competitive advantage as they can offer next generation product. Samsung have a lesser reputation than Sony for reliableness and quality, this can alter customer perception, however this perception can be change over time.As important as the content of strategic thinking is the process by which it takesplace. Processes are needed to ens ure that strategies areAligned Samsungs strategies must fit with its mission, dream, competitive situation and operating strengths.Goal-oriented Strategies are the means by which a company sets out to achieve its goals. efficient strategies, then, set clear expected outcomes and make explicit links between these outcomes and the companys goals.Fact-based The best strategies are based on and support by real data. While strategic thinking by its very nature requires assumptions about the future, these assumptions must be educated guesses, based on facts-for example, actual performance data or results of some kind of archetype test or experiment.The logic behind the strategy must be clear. Effective strategies tell believable stories.Based on Broad thought Companies that are strategically nimble are able to consider six-fold alternatives at once and to consider a range of scenarios in making strategic choices.Focused No company can do everything or be all things to all people. Str ategy setting involves making choices about what a company will do and-as important-what it will not do. Strategies declare oneself clear guidance about how a companys activities will be prioritized, and how its limited resources will be deployed.Agreed upon Especially in large, complex organizations, successful strategies must gain the support of eight-fold stakeholders. This oftentimes requires a process of developing strategies that is interactive in gathering multiple points of view and in sharing the thinking behind the strategy as it evolves.Engaging Strategies that will need to mobilize broad resources must be easily articulated so that they can capture the attention of the people who will be asked to carry them out.Adaptable Strategies need to be able to be adjusted to build on learning from experimentation, errors and new information. At the same time, there needs to be some thoughtfulness in these adjustments so that they are responsive without being overly reactive.Imp lementable Because effective strategies get behind on the particular strengthsand skills of an organization, they include explicit considerations of how they will be implemented. Implementable strategies provide clear guidance for decision making in order to plaster bandage behaviour throughout the company.Todays electronics marketplace is changing at a rapid pace with new technologies, economy change, and increased competition. To scene these challenges, companies rely on top attention to plan and formulate methods to traverse these obstacles. The primary task of top management is implementing a strategic plan. Strategic planning is the process of identifying the business of the square today and the business it wants for the future, and the course of action or strategy it will pursue. To be effective and successful, managers must possess skills in strategic thinking. Strategic thinking is a process in which a manager can make the business lot a reality. This is accomplished by developing abilities in teamwork, problem solving, and vital thinking.Strategic thinking should also be a tool to suspensor confront change, plan for and make transitions, and envision new possibilities and opportunities. Strategic thinking should be implemented in marketing strategies adopt by corporate firms. This is because organisations in the 21st century are more like organisms than machines. Strategic thinking is not a straight forward technique like a SWOT analysis but a more in depth approach and more interactive with the workforce. It may positively affect the marketing plan they may adopt for future products. Before plan up any marketing plan, certain things have to be clearMcDonald (1989) stated that there are ten barriers to Marketing planning these barriers were set by McDonald, M. they are as follows1.Confusion between marketing strategy and tactics.2.Isolation of marketing function from business operations.3.Confusion between marketing function and marketing concept.4.Prevailing organisational structures along functional lines.5.Lack of skills in in-depth analysis.6.Confusion between process and output.7.Lack of core marketing management knowledge and skills.8.Lack of a disciplined, systematic approach to marketing planning.9.Need to prioritise objectives.10.Need for a more appropriate marketing culture.With the right marketing team that involves make marketing analysts, Samsung should be able to overcome these barriers. However, it is easy to have some kind of conflict in their marketing plan e.g. parts in the plan which are deemed to be part of the strategy may not be a strategy but a tactic. These little hiccups can affect the marketing performance of Samsung. As the Samsung top management develops a strategic plan for their organization, there are tail fin different factors that must be focused on. These five factors will second sic the ideal outcome. In addition, it will help set up and develop the stairs necessary to make the b usiness vision a reality.The first factor that top management must consider is Samsung Electronics itself. The organization of the business involves the delegates, the organizational structure of the business, and the resources necessary to make it all work. For Samsung to have top management they will have to establish what the organization will look like and decide what type of structure will support the business vision. whatever top management must also combine people, resources, and structure together to achieve an ideal outcome.Observation is the second factor. When looking down at the world from an airplane, a person can see much more than when on the ground. By increasing observation skills, top management will become more aware of what motivates people, solve problems more effectively, and be able to distinguish between alternatives.The third factor is views. Views are simply different ways of thinking aboutsomething. Views can be used as tools to help think about outcomes , identify important elements, and amend actions to achieve the best position.The fourth factor is driving forces. What are the driving forces for Samsung that will make the wanted outcome a reality? Driving forces usually place the put upation for what top management wants people to focus on in business. Examples of driving forces efficiency include commitment, action, effectiveness, productivity, and value. Other driving forces might include individual and organizational motivation, empowerment and promotion Factors such as a clear vision, values, and goals, productive factors like a mission or function, and quantitative factors such as results or experience may also be driving forces.After working through the first four phases of the strategic thinking process, top management should be able to define their ideal position. The ideal position outline should includeThe conditions that have been found to be necessary if Samsung is to be productiveThe niche in the marketplace that Samsung will fillAny opportunities that may exist either currently or in the future for SamsungThe core competencies or skills required in SamsungThe strategies and tactics that will be used to pull it all together.By working through these five areas, the Samsung management team will get a clearer picture of exactly how the company vision can be accomplished. As the vision becomes more focused, ideas will appear stronger and more convincing. Not only will it be easier for management to convince others that the idea is a good one, but it will also be easier to maintain their certainty and motivation when reaching upon any drawbacks or obstacles in their path. Overall, anybody can apply strategic thinking skills to any area of his/her life. But by making a concentrated effort to apply them specifically to the business project, Samsung Electronics will have a much better chance of facing challenges in the marketplace if they adopted strategic thinking.Michael Porter who came up with th e Five Forces has proposed three common strategies that provide a good starting point for strategic thinking forSamsung and any other firm overall equal leadership, differentiation, and focus.Overall cost leadership Samsung works hard to achieve the lowest production, administration and distribution costs so that it can price lower than its competitors and win a large market share.Differentiation Samsung may concentrate on achieving superior performance in an important customer benefit area valued by a large part of the market. The firm cultivates those strengths that will contribute to the intended differentiation. Therefore, the firm set abouting quality leadership.Focus Samsung focuses on one or more market segments. The firm gets to know these segments intimately and pursues either cost leadership or differentiation within the target segment.According to Porter (1986), emulous advantage is a function of either providing comparable buyer value more efficiently than competi tors (low cost), or performing activities at comparable cost but in unique ways that create more buyer value than competitors and, hence, command a premium price. These factors can be adopted by companies such as Samsung Electronics. They can use tactics and marketing measures to gain a competitive advantage and added-value over Sony and other major rivals.It is a reality in business today that strategic thinking is one of the most difficult tasks for business leaders. Although it is easier to be tactical or task oriented, the business leader must be strategic or risk becoming very short-sighted. Therefore a clear understanding of the value and the benefits of strategic thinking are very important.Here is a list of thoughts on the value of strategic thinking for Samsung1. staying at the front or leading edge of change and innovation2. Optimizing the ability to shape and leverage change to the companys advantage, electronics are changing everyday3. eliminating anxiety4. Creating a se nse of cohesion and unity for the company staff5. Providing proactiveleadership7. Thinking systemically with a whole systems approach8. Becoming a life-long learning organization9. Providing an effective system to solve major problems and setbacks10. Improving and understanding of the business environmentAnd now a list of my thoughts on the benefits of strategic thinking.1. improved guidance on actions to achieve the company vision and mission2. an early detection system to warn of changes3. creation of a proactive leadership culture4. identification of competitors and opponents5. identification of business allies6. long term selection of the business7. elimination of reactive decision-making8. a competitive advantage9. agility and capacity to respond positivelyFrom looking at traditional marketing strategy techniques used by Samsung and other firms, we can see how certain tools can help the area of a business strategy.We have also learnt that new marketing strategies are shaping up firms more over the past years, though traditional marketing (e.g., 4 Ps and SWOT) are still at the forefront of every marketing strategy. We have learnt that there is more to marketing strategy than simply systematic tools and techniques. Strategic thinking, which has been discussed by theorists and professionals such as Michael Porter, plays a new vital role in marketing and strategy development. We have learnt that Strategic thinking looks at different areas of in fact that helps us develop new ways of achieving a competitive advantage. A certain amount of the analysis involved in strategic thinking may be qualitative, which also may be time go through and expensive.We can see that the point that Fodness made in 2005 about tools in marketing strategy being stereotyped as simple answers to complex questions as mechanical application. New directions of exploring strategy are coming together to form the concept of strategic thinking. We have learnt from Fodness and Porter that strategic thinking can boost and assist existing marketing strategy tools which can answer complex questions. We have learnt that not all methods and techniques in marketing strategy are straightforward and are simply mechanical applications.There are several ways for Samsung to adopt new and existing marketingstrategies and to implement them. The main point is that strategic thinking could benefit Samsung and help them improve their performance in mobile phone market. Strategic thinking could strip off the firms ideologies that falsely stereotypes marketing strategies. And seek new ways of gaining a competitive advantage, being innovative and ever being in touch with consumers tastes, needs and changing trends.Referenceshttp//www.interbrand.com (accessed on 12/12/2008)http//www.businessweek.com (accessed on 12/12/2008)http//www.Mobile-review.com (accessed on 12/12/2008)http//www.samsunggroup.com (accessed on 12/12/2008)http//www.quickmba.com/MarketingStrat.shtml (accessed on 28/12 /2008)http//tutor2u.net/business/strategy/strategy_marketing.htm (accessed on 28/12/2008)http//www.samsung.com/us/aboutsamsung/ourbusinesses/researchdevelopment.html (accessed on 28/12/2008)http//www.samsung.com/za/aboutsamsung/companyprofile/researchanddevelopment/CompanyProfile_Overview.html (accessed on 28/12/2008)http//goliath.ecnext.com/coms2/gi_0199-1648156/Michael-Porter-What-is-Strategy.html (accessed on 28/12/2008)Grant, R.M. (2005), Contemporary Strategy Analysis, Blackwell Publishing Ltd., Oxford (U.K.)Hunger, J. David & Wheelen, Thomas L. 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