The Global Business Environment - Essay Example

Promotional and Advertising Strategies Introduction Global business environment is becoming highly competitive as several leading organizations within a similar industry are trying to develop and implement unique business operation strategies in order to gain potential competitive advantages. Samsung Electronics and Vizio can be considered as two leading and popular consumer electronic products manufacturing and delivering organizations around the globe. These two organizations have constantly developed and implemented unique marketing strategies in business operation processes in order to maintain their competitive edge over their potential competitors. Both these brands are familiar and recognized names in the global Smart TV manufacturing and distributing industry. Throughout the years, these two organizations have developed unique marketing promotional strategies in order to increase global market share in the global Smart Television industry. However, this essay will compare and contrast the promotional strategies used by both Samsung and Vizio. Moreover, the essay will assist and suggest the organizations best possible ways to enhance the development and implementation of marketing promotional and advertising strategies based on the determination of the market leader’s developed and implemented strategy. Discussion Global television industry has become highly competitive as each and every organization is trying to capitalize on the potential business operation strategies in order to meet the developed market demand and needs of target customers. This part of the essay will try to answer each and every developed question for this assignment based on the knowledge about advertising and marketing promotional strategies. Comparison and Contrasting It is true that both the organizations are leading and popular brand names among the consumers around the globe. In terms of contrast of advertising and promotional strategies, both Samsung and Vizio use traditional and contemporary promotional marketing strategies for the Smart TVs in order to create significant brand awareness to enhance competitive advantages. Consideration of each and every traditional print media and modern digital media promotional strategy helps these organizations to create awareness among each and every target customer group. In terms of comparison, Samsung Electronics used to significantly consider social media promotional strategy and print media strategies in business operation process to create brand awareness for the Smart TVs (Michell, 2010). The organization always invests significant amount of capital in these two promotional strategies to enhance brand awareness. On the other hand, Vizio prefers digital media promotional strategy in business operation process to enhance brand awareness. It is true that digital media promotional campaigning has helped Vizio to gain potential competitive advantages over its competitors in the United States of America. Recommendation of two ways to use marketing information and rationale Marketing intelligence and marketing research can be recommended to an organization within the global television industry that can help that particular organization to use marketing information to differentiate itself from other existing potential competitors in the market place. Adoption and implementation of marketing intelligence will help the organization to collect required important data and information from several external sources. This system will allow the organization to become knowledgeable about present marketing environment and changing market conditions. The organization should use trade journals, magazine and commercial press articles to gather market information quite comfortably. In some cases, the marketing management department of the organization may also use the analyzed report of several sales executives as these reports also contain important information about current market trends. It is important for the department of the organization to use the gathered data and information in an arranged and proper manner (Keller, 2011). An individual cannot use these information directly as it may hamper the development of marketing promotional strategies. Major important way to use marketing information is marketing research. This specific way can help the management of the organization to solve the problem associated with the organization. This process actually helps the organization to collect data and information about the current and existing problems. Then the marketing experts tabulate, analyze, evaluate and conclude the problem. Based on these aspects, the marketing management department can provide effective recommendation plans to overcome the developed problems. Therefore, it can be stated that the organization should use these two above mentioned ways to use marketing information to gain potential competitive advantages. Proposal of two consumer orientated promotions and rationale Value-added promotional activities and seasonal discounts can be considered as two major and popular customer oriented promotions that can assist an organization within the global television industry to gain competitive advantages. In terms of long-term perspectives, several value added promotional activities, such as introduction of loyalty membership cards for the potential existing customers can help an organization to maintain a constant growth rate in global market place. Loyalty cards always attract consumers to buy more products and services from a particular organization to enjoy consumption benefit. These value added promotional activities can help an organization to develop a potential client base around the globe. Moreover, it helps the organizations to gain significant customer loyalty. In terms of short-term perspective, seasonal discounting price of Smart TVs can be considered as an effective customer-orientated promotional activity that can help an organization to boost its revenue generation and profit maximization rate quite effectively within a short period of time. It is the behavior of each and every consumer around the globe to consume new quality products in discounted or economic price level in order to enhance their happiness and joy during the festive seasons. Therefore, it will be effective for the management of the organization to adopt and implement this seasonal discounting pricing strategy for the products. It will automatically help the organizations attract potential target customers to consume the products and services. Most importantly, implementation of aggressive discounting pricing customer oriented promotional strategy will help to gain potential competitive advantages as it will reflect in the average foot fall in the existing stores of the organization around the places (Kahle, 2006). Pricing decisions and pricing objectives made by the leading company Sony Corporation is the leading organization within the global television producing and distributing industry. The organization has maintained its leading position in market place in terms of sales growth rate, profit maximization, revenue generation and availability of target customer base. However, the organization has effectively developed pricing strategy for its Smart TVs. The organization has adopted and implemented cost-based premium pricing strategy for the products for the target customers who seek for high quality and differentiated products. There are several objectives of this adoption and implementation of cost based premium pricing strategy. First of all, demand for high quality and differentiated Smart TVs is significantly increasing among the target customers. Therefore, the organization has ensured high quality resources for the manufacturing of TVs. Therefore, the organization has considered premium pricing for the products. Secondly, Smart TV is a symbol of class and standard. Each and every Smart TV consumer tries to consume high quality products. They never negotiate with the organizations in terms of price. But, they negotiate about the quality. Therefore, Sony Corporation always wants to maintain high quality control of the products (Chang, 2011). These aspects allowed the management of Sony Corporation to develop cost based premium pricing strategy for the products. Two suggestions for other companies and rationale It is clear from above discussion that each and every organization in this global television manufacturing and distributing industry is trying to develop and implement unique marketing and business operation strategies in order to gain potential competitive advantages over the competitors in this saturated global market place. Companies like Samsung and Vizio should try to focus on both pricing and promotional strategy quite seriously in order to gain potential competitive advantages over its rivals. Adoption and implementation of cost leadership business level strategy in business operation process will help the organizations to attract more number of target customers towards the organization. It is true that, recent financial crisis and global economic recession affected the purchasing power of people. Low disposable income and reduced purchasing power are the major consequences of this economic slowdown. Therefore, consideration of cost leadership strategy will help the management of the organization to reduce business operation cost. It will automatically help the organizations to develop competitive pricing strategy that will allow the consumers to consume high quality products at economic price level (Stafford, 2005). Most importantly, this strategy will help the organizations to support the affected purchasing power of global consumers. Aggressive sales promotional strategy is another suggested action that may help the organizations to gain potential competitive advantages. It is true that aggressive promotional strategy creates a significant awareness among the target customers. Moreover, it ensures high brand recall. Therefore, it would be effective for the organizations to adopt and implement cost-leadership strategy and sales promotion strategy in business operation process. Effective advertising media and two examples to support Modern digital media and social media networking sites can be considered as the most effective advertising mediums for an organization within the global Smart TV manufacturing and distributing industry. For example, Samsung Electronics got huge success by using social media networking websites for the promotional of Smart TVs. It is true that majority of people around the globe uses social media networking sites to communicate with relatives or friends. Therefore, effective and aggressive social media promotional strategy will help an organization to enhance high brand recall in the mind of target customers (Hackley, 2005). In terms of modern digital media promotional activities, Vizio has adopted and implemented this particular strategy and gained huge success through it in the United States of America. Kids along with adult individuals love to watch television or listen to the radios. Therefore, promotion through these digital mediums can help the organizations to create huge brand awareness among the children and households (Belch, 2011). Conclusion Promotion and advertising can be considered as the most important marketing activities that help an organization to enhance high sales growth rate. Samsung and Vizio are the recognized brands in the Smart TV manufacturing and distributing industry. Samsung used to consider social media networking websites to promote its products. On the other hand, Vizio used to consider aggressive digital media promotional activities to market its products. Leading organizations, such as Sony Corporation has adopted and implemented cost based premium pricing strategy to offer high quality and differentiated Smart TVs to target audiences. It is the responsibility of several other organizations within the industry, such as Samsung and Vizio to consider unique market information and customer orientated promotional strategies to gain potential competitive advantages. Use of social media and digital media promotional strategies similar to Samsung and Vizio will help other industry players to secure their competitive position within global market place. References Belch, G. (2011). Advertising and Promotion. New York: McGraw-Hill. Chang, S. (2011). Sony Vs Samsung. Stamford: Cengage Learning. Hackley, C. (2005). Advertising and Promotion. New York: Ashgate. Kahle, L. (2006). Creating Images and the psychology of marketing communication. New Jersey: John Wiley & Sons. Keller, K. (2011). Strategic Brand Management. New Jersey: Pearson. Michell, T. (2010). Samsung Electronics. New York: Springer. Stafford, M. (2005). Advertising, Promotion and New Media. London: Routledge. Read More