The Necessity of Marketing Environments in Samsung Company - Assignment Example

As a senior partner in a marketing consultancy, short business report advising the Samsung Company Table of Contents The necessity of marketing environments in Samsung Company: 3 Importance of Marketing Environment for Samsung: 3 The key of an internal marketing environment of Samsung: 4 Strength of Samsung: 5 Weakness of Samsung: 6 The key aspects of an external environmental of Samsung: 7 Recommendations to the client: 9 References: 12 The necessity of marketing environments in Samsung Company: I met with the company Executive Officer of Samsung regarding critical issues of planning and implementing their marketing strategies. I have understood the problems that Samsung is facing in their others verticals of electronic segment and computer segment like televisions, desktop computers, laptop and note books etc. For this critical situation I would like to advice the company Executive Officer of Samsung that they should following marketing environments analysis to enhance their planning and implementing their marketing strategies. Here, I am going to discuss about the importance of marketing environment so that the Samsung can improve in their other segment of electronic and computer. Importance of Marketing Environment for Samsung: Marketing Environment: The troupe of non-marketing will have an influence on the marketing executives of the company and in their victory to maintain good and long term relationships with old and new customers. The market environment for an organization or business is consist of the macro environment that includes external issues of the company or business like political, social, legal aspect with nation and local market and in other hand the micro environment which includes the internal issues of company like strength, weakness and opportunities of the company or business which influence in running an organization and its functional departments like finance, production, marketing etc. It will assist the Samsung Company to determine the external and internal forces that influence the company’s potential to fulfill the desire needs of their customers. The Samsung company will able to know that how to change their decisions regarding the economic factors and demographic, so they can implement better marketing strategy to engage more their customers. It also aids the company to analyze the current trend of the market and the requirement of the population of the market via technological and other natural’s factors. Through the help of marketing environment the Samsung company will able to deal with political and legal factors of nations. The marketing environment can be done through with the help of PESTLE analysis and SWOT analysis. PESTLE analysis aids the Samsung to know about of external force which may influence on their work, whereas SWOT analysis will aids to indentify the internal factors and capacity of the Samsung Company. Through this analysis the Samsung Company will capable to know the political, economical, social, technological, legal and environmental forces, these are external factors. In other hand, strength, weakness, opportunity and threats of the company, these forces count as internal factors (Luck, 2010). The key of an internal marketing environment of Samsung: ‎Every Company should know their internal factors that can hamper or enhance in their growth. Likewise they should always evaluate their strength, weakness, opportunities and threats which are vital factors of internal forces. These factor always the company to understand their weak factors and strong factors, so the company can compare these and by improving their weakness area they can enhance their growth in to the market. Even though, it will help the company to enhance their brand value into the market and engage more customers. So I would like to suggest the Samsung Company to check their weakness, strengths, opportunities and threats in their electronic and computer segment through this they will able to know their internal conditions and capabilities to fight in the market. Here, I have discussed the strength and weakness of the Samsung Company. Strength of Samsung: They have strong hold in electronic industry. Samsung is count as an important player of electronic segment. They have maintained good relationship with their customers. To maintaining the good relation with customer, they made good supply chain system thru which they can distribute their goods to consumers and satisfy them by fulfilling the need. It also helps build trust among customer since they delivered the product to customer at a perfect time and if customer has any problem with the device they can visit Samsung store to solve it. They have highly skilled labor in the local market and the global market. The labour are highly trained and experienced in their field; and they know the exact work to make the Samsung perfect. They have produced lots of highly technological product in against of their rival like Apple. The Samsung is the first one who lunched smart watch in the market. This watch is liked by many customers and using them for their personal use. They have focused on their customer service. If any customer has problem regarding the Samsung product, it has been solved by the Samsung customer service. They maintain their reputation in the market and thru this build a huge faith among the customers. That’s the main reason in Asia sub continent’ nations, Samsung has most number of sales of their product. People of sub continent have believed in Samsung as a brand (Providence University, 2005). Weakness of Samsung: The Samsung is lacking in laser printer sales. They are shifted their focus on mobile segment more than other product of Samsung. Even though, Dell and HP are producing good quality of computer and printer to beat Samsung in this segment. The price of Dell and HP product are less than Samsung to compete in this segment. In this segment Dell has done well due to good supply chain management, where the customer can customized their laptop. Due to which they are not focusing any more laser printer. Even though Samsung has good name in computer segment and has good supply chain management, they only are concentrating on mobile segment. The pricing strategy of Samsung is very poor. They have good range of electronic products and with good quality. Due to their poor pricing strategy they have to sale their product in low price in compare to their competitors. However, they few product like Samsung S5 which very costly as compare to other brand of product. Their pricing strategy is not good. They have various range of product with various price ranges for lower to premium. Even though, Samsung is now more shifted to the mobile segment and they are not very popular for computer product as like HP and Dell do. Since the price of Samsung’ computer are very high than their competitors. The major weak point of Samsung that they are now more focusing on the mobile segment and forgetting their old product like refrigerators, computer, and laptop. This is a critical issue for Samsung to focus in one particular product. The main weakness of Samsung is, they have no specific operating system for their mobile product, whereas the Apple which is their main rival in this segment they have own operating system (Providence University, 2005). The key aspects of an external environmental of Samsung: I would like to discuss the PEST analysis of Samsung Company, so the company executive officer will able to know their external force which may influence in their business. Through this analysis the Samsung Company and its top management will get an idea, in which area they are lacking and how to improve this to extent their market in to the national wide. Political Factor: Every company should focus on political factor in its nations’ of operation. It might be possible that the government of any nation can bring changes in law suit to develop its domestic market and provide freedom to domestic players rather than foreign player. It may happen with Samsung because it is a leading global player and functioning is operation globally. Currently South Korea government is suffering from lots of critical issues. It gives the Samsung instability in their home nation. However, in some nations of Asia sub- continent they are doing well due to political support of nation’ government (Lee, 2005). Economic Factor: In economic factor, there are lots of issues and facts should be discussed regarding the economic condition of particular nation. In this factor the company has to deal with interest rate, currency exchange rate, inflation, economic development and growth. The marketing manager of Samsung should consider these factors before starting their operational function in a particular nation so that they can earn high revenue. (Lee, 2005). Social- Cultural Factor: Every nation has different culture and tradition. The consumer has to follow own culture and tradition, which influence the buying pattern. Even though, there are many other factors like age, income of people, life style and many more, which could affect on buying decision of the customer. If Samsung is willing to start operational function in new nation, then they should analyze the social culture of that nation. It will give a clear view to the Samsung about buying pattern of customer (Lee, 2005). Technological Factor: Samsung is well known for technological factor. They have done lots of innovations in this sector. The major ability of Samsung is they are managed to cut down their production price for electronic products like android phone. That’s the reason they are very competitive in the market aging of Apple and Sony. However, they never compromised with product quality. It is major strong point that for Samsung, it happened because they have most skilled labour for this sector. It aids to Samsung to be success in the market as innovation leader (Lee, 2005). Environmental Factor: The environmental factors concern about the climate and weather of a nation and the world related to global warming and pollutions. However, Samsung has shown approach toward this factor and started corporate social responsibility concerning for environment and to reduce global warming. To do this, they have started to design such product which are eco- friendly and protect the environment (Lee, 2005). Recommendations to the client: At the end I am using TWOS models to analyze the marketing environment of the Samsung Company through which I will able to give recommendation. For this section first I would like to describe TWOS Matrix. TWOS Matrix: It is a traditional tool to analyze the performance of business. There is a huge difference between SWOT and TWOS. SWOT is used to analyze the internals factors of a business, whereas TWOS Matrix is used to analyze external factors of a business. In TWOS Matrix, there are four components are use to analyze the exeternal factors, those components are STRENGTH-OPPORTUNITIES, STRENTH-THREATS, WEAKNESS-OPPORTUNITIES and WEAKNESS-THREATS. These four components helps to indentifies the external forces which are impacting on the business. TWOS Matrix for Samsung Company: STRENGTH-OPPORTUNITIES WEAKNESS-OPPORTUNITIES The company has investment in R&D. They can acquire small companies for growth. The company has good brand value in to the market, which is a valuable factor to enhance their sales revenue New markets are generating more profits than old ones. The company is focusing to capture new innovation of technology. Higher margin innovative products to drive profitability. STRENGTH-THREATS WEAKNESS-THREATS High brand value of the company is differentiating them from others. The company is concentrating in new innovation, which leads them high ROI. The company is trying diversifying in to new market. The company is investing lot in customer loyalty program and branding. From above TWOS Matrix of the Samsung company, we can see that the company should focus on more growth, enchantment of expansion in new market, more innovations and create new technology via research. Growth: The Samsung Company has huge amount of capital and good brand value. So the company should continue their growth rate via expansion to all over the world. It makes them a big player of electronic industry. Information Technology: The company should focus on more in information technology through which they able to target and positioning their product in to the market. They should promote themselves via social media which connects large mass at a same time. It will increase their value in to the market. Branding and customer loyalty: The company should focus more on branding and loyalty programs. It wills the company to retain old customers and engage new ones. The enhance branding is more vital for the company. It will give a more brand value to the company and helps to attract new buyers. Customer loyalty should be focused by the company, by providing old customers a discount on new product of Samsung. Differentiation: The company should focus on their Research and Development center to derive more and highly technological products in to the market. Since, this generation is evolving in aspect of technology. It aids the company to create high value in to the market. At last I want to give few suggestions and recommendations to the executive officer of Samsung Company to implement this strategy in their business model, so that they can enhance their growth in electronic and computer segment too as like mobile segment of Samsung Company. Since, in electronic sector is not easy task to survive and full fill the need of customers. Samsung is an old player of electronic and computer sector, to rebuild in these sectors. The company has vast product of lines including television sets, computer, information technology related and many more. My suggestions to Samsung to focus more on other segment rather than mobile segment and build a strong distribution and supply chain process to overcome from this issue. Due to laziness of Samsung, small companies like Acer are strongly become powerful in this segment and in future they can be a big count as big rival for Samsung. Few important recommendations are following after my market environment analysis of Samsung: Samsung company should build strong distribution channels for electronic and computer sector. They should reduce their profit margins in these sectors. The company should focus on more innovative products in these sectors like 6Th generations of note book and smart plasma or LCD television sets. The Company should open more retail shops in every nation. For computer sector they should design a online retailing shop, where customer can customize the features of computer. References: Dawson, J., 1979. “The marketing environment”. Croom Helm London. Husso, M. and others, 2011. Analysis of competition in the mobile phone markets of the United States and Europe. Lee, G., 2005. Global Marketing Strategy. [PDF]. Available at: http://www.samsung.com/us/aboutsamsung/ir/ireventpresentations/analystday/downloads/analyst_20051103_1600.pdf [Accessed On 4 Jun. 2014]. Luck, D., 2010. “Assessing the marketing environment”. 1st ed. Oxford: Butterworth-Heinemann. Providence University, 2005. Samsung Electronics Co., Ltd.. [PDF]. Available at: http://www1.pu.edu.tw/~acchang/courses/IBANA/IBA222.pdf [Accessed On 4 Jun. 2014]. Read More