Marketing Promotion of Samsung Company - Assignment Example

Marketing Promotion Introduction This paper discusses the promotion and advertising techniques that Samsun Company uses in its promotion of its products. However, rampant and stiff competition in the global market forces the company to adapt new technological and smarter ways to beat their competitors. For effective communication and promotion of products, companies must ensure that they target four main great things, which include the buyer or the customer in this case not forgetting their actions and objectives. The second most important consideration is the brand to be sold by the company and how the brand will be processed through the media are four most important measures taken while involving in basic promotion and advertising. With this regard, it is also important to consider the various categories of customers or target audience. The first category lies with the loyal customers or audience who will never purchase a different brand but only a brand from Samsung Company. The second category is the new users who would like to try the new product or brand for the first time. It is important that this people are well targeted and enticed. The third category is the brand switchers. These people have experience with the type of brand they are looking for. Their characteristics include high possibility of uncertainty in their selection. They are choosy and always very critical in their selection. It is important that the category is well enticed while designing a product promotion[Pre06]. The communication process Every communication intended for product promotion must have its objectives well stated in order to experience increased sales. The first objective must be the satisfaction of the customers need. It is important that the sale promoters include the customers need in their promotion of the product. In addition to this, the promoters must be able to attend to different economic classes that are available in the market. The second objective should be being aware of the other options or substitutes within all the different economic classes in the strata. Another basic consideration while designing a communication process for product promotion is the intention to buy the product. Final objective in consideration is to ensure that no barriers affect the purchasing of the product in promotion. This is a psychological intention that should entice the target audience to purchase the product[Rob02]. It is important for sales promoters to identify their audience as the first step to win their market. A critical analysis of the behavior and attitude of the target audience is important to note before launching any product. In every advertising and branding project, there must be people who are the target to make decisions on the purchasing of the brand. For example, Samsung Company can design a phone for women but men will have influence on the purchasing power of women or their selection. Another example is the advertisement done on children toys but the main targets are the parents who have the purchasing power of the toys. In addition to this, the Company’s profile with regard to the product promoted is important in this case. The current trend of the product and the way the product exposure in the media is a necessary consideration. The types and styles of advertisement and the channels through which the advertisements are done is considered. The timing of the advertisement is a critical issue. Whether its early commercial advertisement or it is a late night TV commercial, the advertisement must ensure that it reaches the target audience. The organization Our target organization company in this paper is the Samsung Company. While considering TOWS strategy for Samsung Company we can develop a promotional technique. The company enjoys strong brand images, which displays well all over the internet and other communication channels. The Company also enjoys a good distribution channel all over the world thanks to their effective and string internet commitment. Samsung also enjoys a wider product variety ranging from electronics to printers and phone productions. The business also conducts its production in stages, which integrates from one stage to another. The company has a central production center therefore reducing the cost of production. The human resource management at the company is also good and this makes the company a good competitive company in terms of production of its products in the world. Regulation of promotion Advertising regulation is through self-regulation, which falls within the company, federal regulation that requires one to follow the law and finally the state regulations. It is however important to realize that regulation is done to avoid customer’s exploitation and existence of fake companies and money laundering businesses. Self-regulation takes place through advertising agencies. These agencies have stipulated rules and regulations that any company designing a promotional product must follow. Trade associations are also regulatory companies that do self-regulation while advertising. Trade associations come together and formulate rules and regulations that are bound to protect them from stiff competition and exploitation by other foreign companies. As mentioned earlier, businesses have the opportunity to formulate their own regulatory policies that is aiming at protecting them also. It is always important to involve the government in these regulations due to the kind of authority they have and it is therefore possible to control the advertising policies. Current trends in promotion and advertisement Current trends and advertisements in the world have become so stiff due to the internet services that are readily available globally. Most companies do their advertising through the internet since it is cheaper and readily accessible to most customers especially through their mobile phone. Social sites like Twitter, Facebook, Gtalk, and LinkedIn have revolutionized the advertisement industry. The rate at which information diffuses through the internet is rampant. The model of advertisement as a way of promotion is highly recommended because of its friendly nature to environmental control. Losses through papers and other synthetic materials used in product promotions have greatly reduced due to the promotions done via the internet. However, this promotion has side effects such a theft and conmen that exploit people via the internet mainly due of anonymity that is exists in internet product promotion. Through online marketing, the customers can shop at their own convenient time. This reduces the customer’s expenses in terms of transportation. Role or importance of advertisement in product promotion The major aim of advertising a product is to persuade a customer or remind the client to purchase the product or the services. Adverting plays a major role within the marketing mix and promotional mix within the company. Most of the companies use internet or online marketing since it is cheaper as compared to the target audience it is reaching. It is one of the fastest means of communication hence information diffuses faster and reaches the intended target quicker. Without advertisement, many people would not be aware of the existing products hence advertising plays a major role in informing the customers of the existing products and services and their prices. Advertisement has also made it easy for customers to compare products and make decisions on what they are willing to purchase. Various competitive products are advertised and customers are able to make a comparison and choose amongst the best alternative. It is through advertising that the goodwill of a company develops and this creates a good relationship between customers and the companies offering sales of the products. Through advertising, the demand of products is increased and when the demand increases the supplier’s increases leading to reduced prices, which is an advantage to the consumer. On the other hand, increased demand means increased sales, which is also an advantage to suppliers and producers. The importance of advertising is also important to the society in general since it helps reduce some of risks that may be exists within the society. For example, the warnings that comes with advertising of products such as alcohol and liquor or cigarettes. Advertising also protects some individuals in the society such as children and girl-child. Online marketing is the cheapest mode of communication. This is because the amount of money used compared to the target audience is incomparable. The rate at which the information diffuses is fast with comparison to other sources of advertisement [Ste12]. Online marketing is also very convenient as customers can budget ad buy at their own convenience. The language used is also the one understood by many customers depending on their geographical locations. The risk involved in digital marketing is also minimal as compared to other source of communication. It is also important that digital marketing has reduced the effect of environmental degradation as papers and other synthetics are not used. The rate at which feedback is received in digital marketing is faster compared to other sources of marketing. There is interaction amongst customers and their sellers, which is important in establishing good customer care relations with customers. There is also great exposure of goods and services as sites provides the customers with opportunities give their thoughts about the products and services. Through internet, marketing there is also a great possibility to measure and collect data, which is important for decision making for any business organization as a means of evaluation. Through digital marketing, the customers are able to have one on one interaction with their clients, which creates privacy, which lacks in other modes of sale. There is a great accountability, whichcomes through digital marketing. Digital marketing also provides a wider variety of goods and services only at the click of a mouse [Lau10]. Branding Product branding is one of the key techniques embraced by many companies in order to strengthen the customer’s relationship between the company and he product. It also makes the customer to be aware of the product in addition to increasing the customer’s loyalty. Research indicates that purchasing patterns tend to change when a customer’s identifies a brand and becomes loyal to it. Most of the managers attribute increased sales to product and service branding. Through brand promotion, it becomes very simple to identify, and introduce a new product into the market under the brand name. It became so simple for the Coca-Cola Company to introduce the sale of their bottled water product Dasani under their brand name. It is also becomes simple to introduce a new variety of food under McDonald company due to the loyalty it has created with its customers over the years. The branding of Samsung products has made it a major competitor in the production of smartphones overtaking apple incorporation back in April this year. Whilebranding it is important that you consider the following important aspects. Branding creates the first idea about the product in the customers mind. Branding aims at capturing the full attention of the customer. Secondly, ensure that the brand offers the customers perception of the real product. While designing a rad for an organization or a company ensure you include a good mission statement and objectives of the company. Finally, if the branding name satisfies the customer, the customers become loyal to the brand and this in return improve the turnover sales in a business organization[Ged98]. Creative aspects of advertising Every company aspires to be creative in what they aim to promote. To create means to come up with a real thing that is unique and original. Advertising needs three facets in order for it to be creative. The most important facet is the process of creativity. The process requires a lot of attention and how a person remains focuses during the creation process is critical[Ail08]. Second most important facet of creativity is the personality involved in the creation process. The characteristics and the personal traits of the person come into play in this situation. They individuals should focus and direct their achievement towards the intended purpose. The last important aspect of creativity is the creative situation. Is he situation workable within any of the practical environmental condition? Some of the creative aspects of advertising include promoting a company’s objective and mission during the process of advertising. This makes the customer to be aware of the product and increase overall sales. The ability to repair a damaged reputation of a company is also a positive aspect that embraced by advertising companies. This helps in eliminating losses and ensuring that the company remains viable. Creativity requires that the product and services remains as relevant to customers as much as possible. The product should also remain promising to the customer mainly through creativity. Working with advertising agencies The evolution of the advertising industry forces the advertising agencies to adapt to the rapid changes that exist in the ICT industry. Advertising agencies plays a big role of handling most of marketing and communication activities inbusiness organization or a client. The agencies differentiate into smaller and larger sizes depending on their areas of specialty. The agencies main role is to take a commission from the overall promotion process[Tay05]. For a larger company it is important that the manager choose a larger agency to handle its advertising policies. The business must also ensure that it is in collaboration with the agency to share ideas and make suggestions for business or the organization. In this case, employ good strategies of arriving at very creative solution between the advertising agency and the company. The best way of working with advertising agency is mainly through the trade associations that link with your business or the organization. For better ways of working with an advertising company, follow all the rules and regulations in order to avoid any breach of contract with the company, the state, or the agency itself. Ensure that ignorance is avoided at all cost sine it has always costs companies billions of dollars. While working with advertising agencies ensure that contracts taken are with agencies with good reputation and with a lot of experience. Choosing a company that can work longer is important since it is always about building trust and loyalty to the company and customers. Below the line advertising technique Below the line, advertising and sales promotion is a short time incentive that mainly aims at a specific customer. Below the line, advertising technique is useful when the target group is specific and small [Sha05]. This advertising technique as a tool for strategic management to reduce the costs since it is one of the most efficient way of communicating with large intended or target group. It is also important since it adopts specific channels of advertisement that are less conventional in nature as compared to above the line model of advertising. In this regard, it cut costs of mailing, public relations, and other sales such as sales promotion due to its direct nature. Under some circumstances below the line advertisement,generate trials, which become advantageous when it comes to getting customers feedback about the product. This technique also ensures that the brand of the product and important characteristic of the product highlighted therefore promoting the product at the same time. For products that people can touch and feel such as pens, use of below the line advertising strategy is embraced. Other techniques used with below the line Below the line is as a non-media way of advertisement. The customers and client interact one on one and this creates a good relationship between the customers and the seller. This method employs a strategy that is highly convincing for the customers since there is direct interaction between the buyer and the seller. The advantage of this technique is that the seller or the producer is able to have a direct correlation of the sales and the customers and it is useful as a quantitative data for research[van03]. If an employee is employed at a shelf to work on the below the line technique it becomes effective to try out new products with this technique. Task 2 Budget formulation In order to come up with a good budget for advertising it is first important to consider the total amount of money present for the entire process. The market conditions play a vital factor in determining the quantity of moneyuseful during this process. The first technique thatused to allocate money for sales promotion is through units of sale method. In this method, the amount of money allocation to the unit of sales targeted. The next way of allocating money while budgeting is through the competitive comparison method where the marketing strategists allocate fund depending on the amount of stiff competitors have allocated in order to suffice in the competition[Bel98]. However, at times the company might not have all the resources required for the promotion and will only allocate the amount available. Another best way of allocation of funds is through the objective-end task method, which is usually determined by the overall objectives and strategy of the promotion. It is widely used as a technique of allocation of funds. It is a flexible mode of promotion and increases with the intensity of promotion and sales of the product or services promoted. However, the budget may increase and reduce depending on the marketing conditions during the process of advertisement. Promotional plan The promotional plan is this context will be developing a site through the Samsung Company’s fun page where people are going to vote by liking the new product and those who do not like it will also place cast their votes. There will be a place for general comments about the release of the new product. From the initial analysis of the company, it is clear that the company has many advantages when compared to its weaknesses. It is for this purpose that the company managed to outsell Apple’s iPhone. The last quarter of the sales in Samsung Company, this year indicates that the company managed to outshine apple Incorporation by the production of their android galaxy phones. According to Mail Online, the report indicates that the company was able to sell 28.7 million handsets while Apple Inc. only manages 17.1 million. The success of Samsung in the sales of their galaxy phones is through their strength in production of the cutting-edge hips. Bibliography Pre06: , (Preston, 2006), Rob02: , (Robertson, 2002), Ste12: , (Rhodes, 2012), Lau10: , (Wilson, 2010), Ged98: , (Gedenk, 1998), Ail08: , (Ailawadi, 2008), Tay05: , (Taylor, 2005), Sha05: , (Shaffer, 2005), van03: , (van Heerde, 2003), Bel98: , (Bell, 1998), Read More