Changes in Samsung Marketing Strategy - Research Paper Example

? Samsung Thesis ment The change in the marketing strategy of Samsung will lead to a development. Body How is the new marketing strategy effect on the Samsung Company? Samsung as a company has devised the strategic marketing strategy as the new marketing strategy. The aim of using the strategic marketing strategy as the latest strategy is to improve the sale of the brands of the company from a lower percentage of 55%-90%. Alongside this, the company through strategic marketing would wish to create a new market driven strategy and create valuable designs for their customers. Samsung currently capitalizes on cheap technology to displace apple from the market. We witness the latest run ads of the Galaxy s II show Apple fans waiting in line in the cold while those for the perfectly content Galaxy S owners are living their lives freely. The ad further shows Gal Pals poking fun at fan boys who are waiting for a small-screened phone without 4G connectivity, while one dude gets a date by using Samsung’s Siri competitor, S-voice (Koekemoer, 2004). The current marketing strategy has made Samsung be the current king of the mobile holding majority of the market from the US throughout the whole world. The company has the technical knowhow of building the technology quickly and cheaply. They are also able to emulate the likeable competitor’s device given the top brains they possess. As a competitive edge Samsung uses product innovation as a strategy as another form of its latest marketing strategy. Its product range covered all the categories in the consumer electronics and home appliances right from audio and video products, It products, mobile phones and home appliances (Koekemoer, 2004). Analysts felt that the wide product range of Samsung was one of main reasons for its success in the worldwide market. Samsung positioned itself on the technology platform through through advertising and sales promotion after they realized that in most of the world markets like India consumers were still not aware of them. Samsung latest marketing strategy being the use of K-pop Superstar as the face of their brand hence increased sales of the products. Body 2: Products and services that help the company be famous The products that have made Samsung become famous in the electronic industry range from mobile phones, televisions both audio and video, camera/cam recorder, home appliances and lastly we have the PC/Peripherals printers. The company keeps repositioning such products. The repositioning of these products take place in for of pricing after Samsung realized that they were always associated with bargains due to their extremely low prices (Koekemoer, 2004). They realized that the up market is associated with high price leaving the low prices for the low market. To Samsung higher price would bring more profit and at the same time it is the better imply of good quality. The strategy of reposition helps Samsung starting to build its noblest image. In its service provision, Samsung realizes the need for global competitiveness in the era of global competition and then argue that to remain relevant understanding of the clients is major through knowing who your customers are, what they need and the dynamism within them. In this way, the company is fully committed to understanding their customers throughout the world across all the functions of their products from development and production to the marketing and the after sales services. They also change their thinking and working procedures to serve the customers better through innovative products and services such as the provision of the customer delight services, product quality and safety. Samsung provides these services through its numerous applications such video apps from Netflix, Vudu, or Hulu Plus, which are to be included on, network TVs.  However, the concept of other types of apps on our TV is still new and we may wonder why we would want applications on TVs.  Some of the applications are useful while others may be irrelevant.  Some game applications are fun, either playing against the TV or playing with friends. All these have facilitated the popularity of Samsung through their products through the creation of products and services as a new marketing strategy to extensively widen its market (Koekemoer, 2004). Body 3: Talk about the income of company how is change before these strategies and after producing these products The sales revenues of the company have tremendously increased through the years with the inception of new marketing strategies increasing it even further. The margins averaged 11% during 2007 and 17% during the trailing four quarters. This 54% increase in margin has been matched by a 55% increase in average selling price from $151 in 2007 to $234 in the latest quarter. This is despite the fact that the firm is involved in a lot of serious spending on sale, general and administrative expenses which includes the expenses on advertising, sales promotions and commissions. It is hence notable that as the sales of the Samsung electronics increases the expenses coming along the same grow in the same proportion. The introduction of the smart TV and Samsung galaxy phones have gone the long way in busting the sales revenues of the company despite the fact that the costs have also increased proportionately (Koekemoer, 2004). Profits before the new marketing strategies were left at $14m and currently according to the latest reports, they are $15m. Recording a tremendous growth in profitability of over 1m dollars depicts a growth because of the marketing strategies (Koekemoer, 2004). Summary of the thesis As indicated by the thesis statement, the change in marketing strategies by Samsung has resulted into the company experiencing tremendous growth hence the said marketing strategies can be pronounced to have brought with it development. Through product differentiation, the company is able to provide its clients with a variety of any of the products that it offers. For example, Samsung offers a variety of phones ranging from the simple ones for the lower market to the complex ones for the up market like the galaxy tap. Pricing are moderated depending on the on the target consumers. The development caused by change in marketing strategy is enormous and unquantifiable.   References Koekemoer, L. (2004). Marketing Communication. South Africa: Lansdowne. Read More