Marketing Planning Issues for Samsung Mobile - Assignment Example

MARKETING PLANNING ISSUES FOR SAMSUNG MOBILE By + Table of ContentsMARKETING PLANNING ISSUES FOR SAMSUNG MOBILE 3 PART A: The Marketing Audit 3 A Marketing Order 3 Tools for Conducting a Marketing Audit 3 External Factors Influencing the Marketing Planning of Samsung 4 Social Factors 4 Technological Factors 4 Political Factors 4 Economic Factors 5 Legal Factors 5 Part B: Barriers to Marketing Planning 5 Samsung’s Competitors’ Products and Technologies 5 The Customer Expectations for Samsung’s Mobile Products 5 Proposals of how Samsung may overcome these Barriers 6 PART C: Current Issues 7 How Ethical Issues Influence Samsung’s Marketing Planning 7 Allegations of Samsung’s Illegal Labor Practices in China 8 How Changing Consumer Environment Influences the Marketing Plan of Samsung 8 Part D: Conclusion and Recommendation 9 References and Bibliography 10 MARKETING PLANNING ISSUES FOR SAMSUNG MOBILE PART A: The Marketing Audit A Marketing Order A marketing order is an order to buy or to sell a stock or a security at the best available price in the market or industry (Tim, 2014). Marketing orders can be implemented immediately though the price at which it will be implemented is not guaranteed. Investors should therefore remember that the last traded price is not necessarily the price the market order will be executed at. In a highly competitive market, the price at which a market order is executed often changes from the last traded price. Marketing orders tend to put markets in a stable condition, help in standardization of quality and the packaging process. They also help in the regulation of flows to the market and the authorization of research and development in certain firm commodities. A marketing order is usually requested by a group of producers and it has to be approved by the relevant authorities and two-thirds of producers of the commodity in the area regulated (James, 2012). Tools for Conducting a Marketing Audit A marketing audit can be conducted by either market communication or brand development and competitive positioning. Marketing communication can be reached at by applying creative skills and copywriting skills. Digital advertising, social media strategy, video marketing, email marketing and the creation of a website for the marketing of the products all fall under this tool of communication. Brand development and competitive positioning can be conducted through the coming up of a brand strategy and the development of a brand. The Samsung mobile too can differentiate its positioning strategy from the rest of its competitors. External Factors Influencing the Marketing Planning of Samsung The steeple analysis tool of business environment of Samsung is used by the company for the strategic analysis for long term and short term goals. The external factors that would influence the marketing planning of Samsung are social factors, technological factors, political factors, economic factors and legal factors. Social Factors Samsung is a South Korean Chaebol and it does operate as a Korean company from within. Samsung therefore had to change its products so as to meet and match the rapidly changing consumer preferences in certain markets. This is because Samsung operates in a market environment influenced by consumers’ lifestyle preferences. Samsung has to adjust itself accordingly since the socio-cultural factors vary from one country to another. Technological Factors Samsung has been in the forefront in the innovation industry. They aim to dominate competitors through being the first ones to offer the latest products in the market. The innovation has also led Samsung to problems especially when Apple accused it of imitating its product design. This gave Samsung the impetus to do the basic right as it equally brings success. Political Factors The political environment does favor Samsung’s operations in most markets that it operates in except a few foreign markets like in India where it faces minor problems. Recently, it also faced a weighty political throw back in South Korea due to the tensions South Korea has with North Korea. Economic Factors This particular factor is very critical for Samsung due to the opening up of some developing markets. The reduced purchasing power of buyers in many developing markets forced Samsung to find a profitable solution. Legal Factors Samsung paid heavy penalties for charges that it imitated the Apple’s iPad and iPhone. The accusation made the public perception towards Samsung to worsen and even the consumer approval of its strategies was hampered. Part B: Barriers to Marketing Planning Samsung’s Competitors’ Products and Technologies Products and technologies of Samsung’s competitors have highly acted as barriers to Samsung’s marketing planning. This has especially been with the Apple’s iPhone and iPad company. When Samsung allegedly copied Apple’s iPhone and iPad designs, it was involved in a very expensive legal suit that made it to pay heavy fines. This too made a bad image of Samsung to its consumers in most of its global markets. Apple’s iPhone products have also posed a big challenge to Samsung phones in the market industry. This is due to the quality products that Apple produces and that are highly appreciated. The marketing process of Apple’s iPhone and iPad has also been one of the best in the global markets. This gave Apple a bigger advantage in garnering a bigger market share. The Customer Expectations for Samsung’s Mobile Products The customer expectations for Samsung products have acted as a barrier to Samsung’s mobile marketing planning. Samsung operates in many markets globally whose consumers have different expectations. Samsung therefore has to carry out different marketing advertisements and different designs of its products so as to meet the demand of its strategic markets. This has been an expensive process to implement. The purchasing power of Samsung’s mobile products has been too low in the developing markets (Suciu, 2012). This gives Apple a bigger advantage over Samsung since it rarely engages itself in developing markets. This has made Samsung to look for an alternative way to make good returns of their products. Proposals of how Samsung may overcome these Barriers Samsung may overcome the above barriers in a number of ways. This can be through the coming up of new innovations that will outdo the Apple’s iPhone and iPad products. This will enable the company to gain a big market share globally and consequently make good returns of their products. They should do this by not copying its competitors’ designs but by involving its innovative information technology experts. This will improve the consumer perception of Samsung products and hence enhancing its image in the market area. Samsung should also carry out a comprehensive research in the various markets in which it offers its products. This will enable it to be aware of its customer expectations and needs in the different global markets and hence be able to provide the best products to its consumers. The research will also enable Samsung to be aware of the different dominant religions of its consumers in the different global markets. This will enable Samsung to use the best advertising methods, designs and signs that do not go against the religious beliefs of its consumers. This will lead to a higher appreciation of its products all over the nations in which it operates. Through the above, Samsung mobile will be in a position to overcome the barriers that do face it. PART C: Current Issues How Ethical Issues Influence Samsung’s Marketing Planning The ethical issues influencing Samsung’s marketing planning are stealth marketing, selling of customer information, recalling of flawed products and comparison marketing. Under stealth marketing, Samsung ought to be transparent in today’s market place as its consumers are quickly learning the transparency rules. If they are honest and forthright, consumers will sample their products in a natural setting. On the issue of selling customer information, Samsung should consult the company’s code of conduct of ethics to determine if standards have already been set about how much information it can use internally and externally during its marketing planning. Samsung ought to create a policy on the acceptable ways to use information that the consumers share with it. On the ethical issue of recalling of flawed products, Samsung would be faced with a dilemma of where it discovers a flaw in one of its products and it thinks that telling the public might affect sales. In this issue, the marketing planning priority of Samsung would be to focus on the positives of the products and services it offers. Profit maximization should not lead Samsung down the wrong path of not recalling flawed products (Kotler, Phillip & Zaltan, G., 1971). Last is the ethical issue of making a comparison marketing. As much as competition is acceptable, Samsung’s marketing planning ought to consider that everything they are publicly saying in favor of their company/product and against their competitors is actually true. If this is not done properly, it would lose its sales and public trust and even be sued. Allegations of Samsung’s Illegal Labor Practices in China Illegal labor practices are a problem that any company working across the globe is likely to face. This is because there are different labor rules and laws in different countries (Suciu, 2012). This kind of an issue can cast a very long shadow on Samsung’s reputation. Samsung should conduct audits in relation to the allegations and determine whether they are true or not. If true, Samsung ought to put in place measures to ensure that suppliers adopt hiring procedure to screen out underage workers. On-sight inspections should also be conducted so as to ensure that there are no underage employees (David & Acker, 1988). Corrective actions for work hours and overtime practices ought to be implemented by Samsung in order to protect the health and welfare of its employees. Samsung equally ought to monitors what its chain supply partners in China are doing and examine whether they are complying with the local laws and regulations and whether they are treating the employees humanely (Francesca, 2015). Samsung should also take the allegations seriously and respond within the shortest time possible. This will allow it to fend off public embarrassment and do away with a problem. How Changing Consumer Environment Influences the Marketing Plan of Samsung The consumer environment is rapidly changing as consumers are getting more and more aware of their rights and they are being accorded protection for the same. The rights of consumers in this century companied with the production of goods and services has led to increased problems for consumers with regard to quality of safety of goods and services, their prices and general availability. Some goods and services call for expertise in discerning what they might have and such expertise is generally not available to all consumers. Samsung therefore ought to be guided by these factors in conducting its marketing planning. It should also put in mind that a consumer is not just the person who buys the goods or services but also the ultimate consumer of those goods and services. Samsung therefore should put in place bought preventive and restorative measures to counter any problems that might arise from their products. The preventive measures would encompass measures that regulate the supply/quality of products or services ensuring the consumers are not reaped of it. It also includes the education of the consumer to make him conversant with the variety of goods and services available to him enabling him to make an informed choice in any particular goods/services. The remedial/restorative measures are to be concerned with the measure for redress for those consumers whose interests and rights might have been adversely affected (McGraw, 1966). The fact that nobody is compelled to use goods or services offered in the market should not make Samsung not to consider consumer ethics issues in its marketing planning. Part D: Conclusion and Recommendation From the above discussion, it is clear that external factors greatly influence the marketing planning of Samsung. It shows that it is important to conduct a market audit for Samsung company to be successful in the global market. Samsung’s competitors’ products and technologies have acted as a barrier to its marketing planning. This was evidenced especially when it allegedly copied Apple’s iPhone and iPad designs. The customer expectations of its products also act as a barrier since different consumers in different markets have different expectations. The ethical issues and its alleged illegal labor practices also affect the operations of Samsung. Samsung should therefore be innovative through the involvement of its information technology expertise so as to avoid copying its competitors’ designs. It should also address the ethical issues that face it amicably to avoid posing a negative image to its consumers. This will enable Samsung to successfully plan its future marketing activities. References and Bibliography Brendan, K.(2003). No free lunch in marketing David, A. & John, W. (1988). Developing business strategies David, W. (2004). Factors that make controversial advertising offensive. Donnolly, James, H. & William, R. G., (1981). Marketing of services. Chicago: American Marketing Association. Francesca, D.M.,(2015). Ethics in marketing. London: Monster Contributing Writer Fugate, D. (2007). Neuro-marketing in layman’s look of neuro-science and its potential application to marketing practice. Journal of consumer marketing, 24(7), p.385-394 Hachbaum, D., Moreno, C., Yelland, P. & Catena, R. (2011). 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