Samsung vs. Sony: Marketing Strategies - Case Study Example

Samsung vs. Sony Samsung vs. Sony The purpose of the paper is to compare and contrast the marketing strategies of two leading and most famous company products. The product category that will be discussed in this paper is Curved Television by Samsung and Sony. Both companies are using different types of marketing, pricing, and consumer-oriented promotional strategies for their curved televisions. Some of the strategic manner will analyze to determine the pricing decisions of both companies. The advertising mediums of both companies will also be discussed in this paper. 1. For the promotions of the curved television both Samsung and Sony used their best and most effective strategies. Both companies are the sellers of electronic items and televisions. However, due to the high competition both companies needs to market their products in an effective manner that the customers get motivated to purchase the new and latest technology. Considering the promotional strategy of Samsung, it can be said that Samsung used their strong, inspiring and most captivating marketing strategies for their curved TV. Samsung Company highlights their unique selling points in their advertisements. In order to make their advertisement effective, they use high-quality visual elements to grab and hold the attention of viewers. By telling a story and providing a simple message is one of the best promotional strategies of Samsung (Lee, 2006). It helps Samsung to make their innovation noticeable to the customers. For promotions and positioning of its curved TV, Samsung used a best punch line, and that is “The Curve Changes Everything”. It used an old and most effective technique promoting its curved TV that it applied snippets of dialogue from film or TV shows. It is the technique that impresses the viewer because it depicts that the character is also inspired that is being marketed (Collin, 2014). On the other hand, Sony also became active and launched the same product within the television category. Sony introduced curved LED HDTV, and for this they advertised their product as this product has all in one cinema experience. Sony focused on unique selling points of the curved TV for the promotions. It was the reason due to which they tried to explain each function and specification of the curved TV in their advertisements (Robarts, 2014). They also grab and hold the viewer’s attention is conveying simple and clear message about their product. They also applied snippets technique to capture the emotions of the viewers. In other words it can be said that promotional strategy of Sony for their curved TV has emotional influence and persuasion that it will combine the families to enjoy cinema experience together at their home (Chang, 2011). 2. Marketing information is a very necessary tool to accomplish more productivity and to keep the business profitable. Companies analyses the market and demand traits on the basis of recent market trends. Electronics involves technology that keeps on changing rapidly bringing up more competition to this industry (Robarts, 2014). In the case of the television market, companies like Samsung and Sony are making their way through to become the leading brand in different regions of the world by beating their competitors. Marketing information not only reflects the success and failures of a company’s marketing strategy but also gives out useful data about their competitors approach to the market. With this useful information, a company can differentiate and improve their approach and marketing strategy thus resulting in profitability (Collin, 2014). A products placement, pricing and quality are the most important characteristics purely defined marketing strategy that can be improved upon gathering pre-launch and post-launch marketing information. For example, Samsung has a low priced Curved HD TV in comparison to its competitors that drives more customer attention to the introduction of this new curved TV (Robarts, 2014). Technology offered by different brands of the similar device is same, but Samsung has improved its product’s side features and marketing technique due to good market analysis. It has also enabled them to reflect their superiority over others. 3. Consumer-oriented promotion techniques are always effective and improve the customer attraction and interest in a product. They are effective to improve the poor image of the brand and boost the profitability. These promotional strategies are very useful as it increases product accessibility and awareness within the consumers. Consumer-oriented promotions may include the Price markdowns, offering free coupons or discounts, free delivery, Sale, Loyalty cards and others. When customers are aware that they are going to get discounts, free coupons and sale, they are always attracted. However, consumer oriented promotion may result in a short-term cut down in profit margins but they have a positive impact in the long term. Technology giants like Samsung always show care for their customers by adding these consumer-oriented promotional techniques like offering free holiday tickets, price-off deals or coupons. Similarly, these kinds of promotions comes in handy on festivals and other holidays like Christmas where people are expecting discounts and good offers and a company can raise its product from its competitors by consumer oriented promotion (Ferrell & Hartline, 2010). In addition, it can also be said that the consumer-oriented promotions are necessary for the company to increase the sales of the product. As Ferrell & Hartline suggest in their study that consumers should be at the priority, the products must fulfill their needs and demands. The main focus of the company should be the potential customers within the market. It is the only way that can increase the sales and sustain the profitability of the company (Belch & Belch, 2011). 4. Pricing decisions are very critical for the success of a particular product brand. They directly influence the product image, accessibility, product acceptance and products profit. If we consider the technology giant such as Samsung, which also has various competitors, it could be highlighted that Samsung uses many pricing objectives like survival, profit, sales and status quo based pricing. Each one is described below: Survival It states that product prices are flexible, and a Samsung can increase or decrease prices based on the market trends and demand based analysis. For the survival of any brand and its products, it is necessary that the prices should be flexible (Ferrell & Hartline, 2010). For that, Samsung used survival based pricing objectives that helped to accept the short-term losses for long-term viability Profit In order to maintain the profit margin, it can be said that pricing strategy has a strong effect on the profit. To cover the cost of production and maintain the profit margins pricing strategy can have both direct and indirect effects on it. The reason behind this is that the prices have direct or indirect influence on units sold. It can be said that Samsung’s primary profit-based objective is to maximize unit margin and prices for long-term benefits and profitability (Ferrell & Hartline, 2010). Sales Samsung has successfully applied sales-oriented pricing objectives to increase the market share. For that, Samsung’s curved TV market share helps to measures sales of the product. It is a matter of fact that the market share and sales volume are both independent a change in one does not bring necessary changes in the other (Belch & Belch, 2011). Status Quo The last objective that Samsung is using is status quo price objective. It is a tactical goal that is used to encourage the competition and focuses on maintaining market share. It has stabilizing effect on the demand for the curved TV of Samsung Company. On the basis of Samsung pricing objectives, it can be recommended that Sony should set lower prices than Samsung to increase the sales and to sustain the business. They should use survival based pricing objectives because it is very helpful in the product’s market survival. By this Sony will easily accept short-term small losses in order to obtain the long-term benefit. In addition, by setting sales-oriented pricing objectives Sony can gain the competitive advantage within the same industry. 5. The most effective advertising medium for both companies is media. When it comes to media, the social media and electronic media play most effective role for making a perception in the consumers mind. The reason is that the media is that form of advertising medium that presents the live example and experience to know about the product. The expressions, words, emotions, product specification details, use of famous personalities to promote the products are those techniques that can attract the customers to buy a product. Thus, it can be said that both companies are using this medium to advertise their products. For example: when Samsung launched its new Curved Television, after its first launch ceremony they started to promote this new product by advertising it on electronic media (Collin, 2014). The curved television advertisement was made with the most convincing positioning line that suggested that the curve changes the world, and it surround you with the real feel and touch of the video. With extra and most high quality, picture quality and sound effects in the advertisements provide viewers the real feel of the picture in the advertisement (Robarts, 2014). On the other side, the example of the Sony curved television-advertising medium can also be considered. It can be noticed that Sony advertised it was curved TV by defining its best features and functions. Detail about each specification of media and the preferred media was social media. In addition, ATL above the line activities is also done by the Sony to promote its curved television. For that, billboards and print media were also used in an effective manner (Chang, 2011). Although, Samsung also used all promotional strategies to advertising its product in the market, however, Sony did a little different by simply choosing a different way of advertising medium within the media. Conclusion While concluding the overall information and compare and contrast of the products by Samsung and Sony, it can be said that both are offering the same product in a different manner. Even after having the same product and product specification the way of promotions and marketing is highlighting the differences. Both companies are differently handling their strategic and pricing decisions, and both have different pricing objectives to attain the competitive advantage. The effective use of advertising media such as social and electronic media and ATL activities for promoting the same curved televisions are used. Within, it should be noted that Sony used sales oriented pricing objectives to sustain in the market. The reason for selecting this objective is clear that Samsung was also offering the same product. Thus, Sony used consumer oriented promotional strategies to grab the customer concentration towards the same product of the different brand. Although Sony also have strong brand image, Samsung is a strongest competitor within the industry. It is the reason due to which both companies used most effective marketing strategies to promote their curved televisions within the market. References Belch, G., & Belch, M. (2011). Advertising and Promotion: An Integrated Marketing Communications Perspective. New York: McGraw-Hill Education. Chang, S. J. (2011 ). Sony vs Samsung: The Inside Story of the Electronics Giants Battle For Global Supremacy. New York: John Wiley & Sons. Collin, O. (2014, 05 26). Is Samsung’s “The Curve Changes Everything” great advertising? Retrieved from Covering the world of social media and technology: http://www.etondigital.com/samsung-curved-tv-advertising/ Ferrell, O. C., & Hartline, M. (2010 ). Marketing Strategy. London: Cengage Learning. Lee, D. (2006 ). Samsung Electronics: The Global Inc. New York: LEE Dongyoup. Robarts, S. (2014, 12 11). Whats the point of a curved TV? Retrieved from http://www.gizmag.com/curved-tv-benefits/34689/ Read More