Samsung as a new IT leader - Essay Example

?Samsung: The New IT Leader Word Count: 2623 Table of Contents Executive summary ii Introduction Market and Literature Review 2 Apple versus Samsung Brand 2 Marketing Mix Proposal 2 Marketing Activities 3 Marketing Communication Theory 4 Ethical Issues 5 Research Methods 5 Justification 5 Sources of Data 6 Data Collection Procedure 6 Limitations 6 Analysis 7 Results 7 Discussion 8 Conclusion 9 References 9 Executive summary The Chinese market is a new one, open for any innovative firm that has what it takes to acquire, satisfy and retain customers. A study conducted on the market indicated that most of the population was already aware of Samsung products. The work of the marketing management, therefore, is not to inform people of Samsung but convince them that Samsung can also offer products of comparable, if not higher quality than their favored brand, Apple. The research found out that a carefully implemented advertising mix and high quality products, even at premium costs, is a sure way to attract and retain a cult-like following of customers. On the contrary, the research revealed that an individual should not be the face of success or failure of the company because if that person were to pass on, as Steve Jobs of Apple did, the future of the company would be jeopardized. In addition, the study revealed that international adverts may not be effective in some localities; hence the need for advertisement targeted at local communities depending on social and cultural characteristics of the society. Samsung-The New IT Leader Introduction Marketing is a business strategy by which a manufacturer or producer of any goods or services shifts from the basic production function and takes into concern the needs and requirements of the customers-to-be. In this case, a manufacturer aims at discovering what customers’ interests in a rival product are and then attempt convince them that their product is better than the rivals’. The marketing department sells the product to the customer in such a way that the customer feels they have gained from the bargain more utility than they have paid for. Concisely, the main work of the marketing department of any institution can be summarized as to identify, satisfy and retain customers (Peter and Donnelly 2010, Edward 2005). Oversaturation of markets with similar goods from different manufacturers is among the many factors that resulted in development of marketing strategies. Therefore, a distinction between products by different manufacturers must be made to ensure that a customer knows the product they are choosing well before making judgment. In addition, a manufacturer should know the trends, tastes and preferences of customers as they change with the times. This means that if technologically savvy people are shifting towards the use of smaller but feature packed gadgets, then the manufacturer should either adapt or produce the ideal gadget for consumers. Conversely, the manufacturer can try various available advertising methods to convince customers as to why their gadget is much better than their gadget of choice. Therefore, in order to achieve its objectives and remain competitive, a firm should be capable of anticipating and satisfying customer needs better than competitors (Armstrong, Harker, Kotler and Brennan 2009, p.7). Market and Literature Review Apple versus Samsung Brand There are two main differences between the two brands, market perception and pricing. Customers assume that products that tend to be for the high-end market are of higher quality. On the other hand, consumers in a market could be concerned by the number of features available in a product. Therefore, before venturing into the Chinese market, it is necessary to know the consumer perspectives about products from both companies in order to determine the measures that the firm should take to ensure competitive and profitable sale of Samsung products (Mankiw 2009, p. 290; Joshi 2005). The major concern for a consumer in the Chinese market is the authenticity of electronics since traders have flooded the local market with counterfeits, some of which are ingenious copies of originals that it would be hard to tell the difference. On the other hand the Chinese economy, though of the fastest growing in the world, is still growing and the populace may not have as much purchasing power as that of their counterparts in the developed economies. Therefore, in the Chinese economy, there should be a balance between the number of features packed in a gadget and its price. This will enable customers to have more features at a relatively lower price as opposed to the premium pieces that go for high prices. All the marketing team has to research on is the features that customers cannot do without and then include all or most of them in a lowly priced gadget (Haig 2011, p. 170; Holbrook 2007; Hollensen 2011). Marketing Mix Proposal Apple does not have a strong base of retail shops in China, which gives Samsung an opportunity to expand through and overtake the number that Apple has and ensure its reaches even the remotest of areas. Since customers who are keen on quality almost always insist on making their purchases from shops belonging to the manufacturer, there should be more than five outlets like Apple has to expand coverage and market penetration beyond just Beijing and shanghai. Another outlet that can help with sales is an online store like the one Apple has. However, to increase sales through the online store, as it is cheaper to run compared to the physical ones, customers should receive a percentage discount for making an online purchase and further discount on referring a friend (Belch, Eugene and Michael 2007, Mick 2006). Apple does well in producing electronic gadgets that are of aesthetic value and high quality. The artistry and the science involved in production should intricately focus on each product as if it were the last, in order to capture a faithful following of customers who buy most of the products that Samsung produces. This means that instead of just coming up with products that have little impact, products should be carefully crafted such that their appearance and utility remain in people’s memories even after the product is no longer in use. For a product to be remembered as stated, it has to be unique. The marketing team will ensure that goods meant for the Chinese market are selected for quality and usability (Sak and Shaw 2004, p.3). Marketing Activities Apple’s brand has a character that excites even Apple non-enthusiasts. It is, therefore, quite beneficial to do something different, the way they did. Apple succeeded by building fantastic products around its name, ensuring that quality always comes to mind when one thinks of Apple. Obviously, all the pomp and color came at a price, the first being strategic advertising. Apple sparked enthusiasm in even the most reluctant of people by how they advertised their products even before their release. The advertisement always gave a feeling of exclusivity to products such that customers always flocked stores on release days in the fear that the products may run out. Positively, Apple does not disappoint even after advertising their products and seemingly overstating their awesomeness. On the release dates, customers usually admitted that the quality of the products had been understated. The Galaxy idea is excellent businesswise if the marketing team ensures that each Galaxy line product is always better than the previous one both in features and looks. That way, the people of China will come to believe that the Galaxy brand is to be associated with quality, just like Apple customers associate an ‘i’ or ‘mac’ in a product name, to be a sign of quality and sophistication. With the advances in technology, the easiest way to advertise, especially for the technologically perceptive mind, is the internet. However, traditional advertising should not be ignored, like television, radio, posters, banners and bringing a local celebrity who represents customers of interest to endorse the product (Stephen 2007, p. 58; Stanley and Ryans 2008). Marketing Communication Theory The marketing communication theory assumes the stages that a customer has to go through before making a final decision in obtaining a product. Advertising is the element of marketing that passes the customer through from being unaware of the existence of the product to awareness, comprehension of the qualities of the product in question, conviction that the alleged qualities of the product are real, and finally, convincing the customer to take action and acquire the product. All the components of advertisement are geared towards informing those who do not know, and convincing those who already know that the product they know about is worth buying. Posters, the internet and other graphical advertisement techniques act as a constant reminder to would-be customers, enabling them to think about the merits of the product whenever and wherever they can spare a moment to look at the advertisement. A local celebrity can endorse a product in an attempt to make their fans interested in the product. This method works for young people who have the mentality that if a celebrity is using a certain product, then it must be suitable for them, and they are encouraged to obtain the advertised product (Varey 2002, p. 30; Thomas and Dianne 2010). Ethical Issues As seen earlier, the information age has its misgivings, mostly in terms of ethical standards that keep changing often due to the rapid technological developments. For instance, copyright laws in China are not enforced, and a lot needs to be done about the brand to make it hard for unethical individuals to create copies of Samsung technology. In addition, staff, customers, and the public are supposed to be trained to enable them spot counterfeits and disadvantages of using counterfeit products. The company should join hands with the Chinese government and lobby for enactment of world standard copyright laws and their implementation to ensure only quality products are sold to the people of China (Ferrell, Fraedrich, and Ferrell 2010, p.320; Moon et al 2001). Research Methods Justification A questionnaire was used to collect data about the popularity of Samsung electronics in comparison to Apple products. Respondents were asked by the researcher straightforward questions requiring straightforward answers and thus reducing the likelihood of wrong data collection or reactions of apprehension from respondents. The questionnaire was most appropriate in this case as it is an inexpensive and accurate method of collecting primary data. In addition, other data collection methods could not be used to estimate study variables like the desire to obtain a gadget or the utility a respondent receives on using a certain gadget of choice (Gratton and Jones 2010, p.127). Sources of Data For the questionnaire, students in the campus were interviewed during their free time, answering the questions as the researcher put down their answers. Other data sources included online repositories that provided background information about the topic under study before the primary data collection was carried out (Creswell 2008). Data Collection Procedure Respondents were picked randomly from the school population by visiting their halls of residence and requesting them for to make time for an interview. This established a rapport between the respondent and the researcher. This ensured that the respondent offered consent to be questioned as per the requirements of the study (Gauch 2003). On the agreed date, the researcher showed up in time at the agreed place to avoid disappointing the respondent. The respondent was after immediately being informed of the basic requirements of the study including how to answer the questions posed (Leavitt 2007). The interview proceeded, ended in time, and the researcher moved to the next respondent until the entire sample picked at the beginning of the study was exhausted (Brace 2008). Limitations Though the respondents do not mention it, one may think that the interview is a waste of their time and choose not to turn up at the agreed time. Second, people may suspect the intentions of the researcher and end up lying to give the latter the results they think they wish to hear. Finally, questionnaires are a limited way of collecting data as the researcher can only interview a few people within the time allowed. Data collected this way comes from a small portion of the population and may not represent the views of the majority (Beiske 2007, p.4). Analysis Results Survey- Samsung-the new IT leader 1. Gender: Male-65% Female-35% 2. Age: 15-25-10% 25-35-45% 35-45-30% 45-over-15% 3. Marital Status: Single-10% Married-55% Divorced-5% in relationship-30% 4. Work Status: not employed- 5% employed- 90% student-5% 5. Have you heard about Samsung: YES-100% 6. Have you used their products: YES-60% (50%-TV; 10%-mobiles and Pads; 40% Computers) NO-40% 7. Have you heard about Gallaxi II: YES-80% NO-20% 8. Do you know someone who does and uses them: YES-35% NO-65% 9. If YES what do they think: 100% satisfied (30%-better than Apple, 70%-very good) 10. Are you eager to try one: Yes-95% No-5% 11. Did you know the majority of Apple iPhone parts are delivered by Samsung: YES-30% NO-70% 12. Do you have Apple product: YES-75% NO-25% 13. Are eager to change it: YES-5% NO-95% 14. Do you think Apple will continue growing even after Steve Jobs: YES-15% NO-35% NOT SURE-50% Discussion According to the results, 100% of people have heard of Samsung, meaning that part of the job of an advertising team had been done as none of the respondents claimed they did not know of Samsung existence. Of the 60% who admitted to ever using a Samsung-made electronic, an advertisement would only serve to convince them that other Samsung products are as durable and usable as the ones they had previously used. Here, the importance of producing high quality output is seen as the sale of one high quality product may lead a subsequent sale of another product, no matter how unrelated the two may be. The respondents in the sample have had their curiosity sparked by Samsung advertisements and an impressive 95% of them would like to try one. This means that they have the conviction that these products must be worthy every penny (Malcolm 2007). Another characteristic of a faithful brand following coupled with high quality artistry shows up; 95% of people with an Apple gadget are not eager to change it any time soon. This shows that though they may have been using their gadgets for some time, and other brands have produced newer products, Apple customers are still comfortable with the service the gadgets offer them. Another factor is, however, seen where a single person becomes synonymous with a brand; 50% percent of Apple customers are too afraid to admit their suspicions that Apple may lose a competitive edge now that Steve Jobs is gone. Samsung is not yet at a stage where a person represents the success or failure of the company and hopes are that Samsung never reaches that extent. The company should stand as an entity separate from any person to ensure its survival. A situation like that not only compromises customer faith in the products but also jeopardizes the livelihoods of thousands of people who earn directly or indirectly from Samsung (Imbimbo 2009). Conclusion The Chinese market is ready for a company with a new approach in manufacturing, branding, and marketing. Though the market already has information about the existence of Samsung, more needs to be done to convince potential buyers to take action and buy products. This can be achieved by strategic advertising, and taking Samsung retail outlets to areas where other brands have shunned. However, the marketing team should ensure that the right gadgets are advertised in the right localities. For instance, high-end smart phones cannot be sold in areas where most residents are jobless, but middle end smartphones can be sold to middle income earners and so on. Recommendations First, resources should be mobilized for the construction or leasing of retail outlets all over China. Second, the Samsung website service should not only be expanded to include local Chinese collection point but also payments in Chinese currency. Payments using cards from local banks and via mobile phones should also be made possible. 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