Marketing Strategy for Samsung Company - Case Study Example

Abstract Samsung Company is an important player in mobile phone operations. This is even more so when viewed from the point of retaining satisfied mobile phone users and attracting new ones. A lot of quantitative research on mobile phone industry has been done to understand the needs and wants of mobile phone users. The total experience of using a Smartphone includes several components ranging from fast internet surfing, entertainment and other high-end features. Increased competition in the entire mobile phone and other gadgets and choice coupled with dwindling customer expectations challenged players in the market to device high levels of personalized service. It is therefore imperative for mobile phone producers understand the concept of the customer decision-making process when purchasing any mobile gadget. Introduction Mobile phone companies spend significantly on developing a new brand. The mobile phone production industry is a massive one that calls for constant and progressive development of new features. It is a crucial aspect, to reduce production costs and maximize profits, that every mobile phone company should have a marketing plan that attracts new customers while at the same time retaining the existing and loyal ones (Geoffrey, 2010). The advert of Samsung Company in recent days out its new Samsung-Galaxy II may have played a crucial role in fueling the expectations of mobile phone users along with new devices. However, typical with the market, this trend is quite crucial in making it important for all mobile phone companies to emphasize, innovate and market their mobile phone services for them to maintain a competitive advantage. Interestingly, competition in the general market is what results in new innovations and the entry of new devices to the market. This paper seeks to assess the need for the Samsung Company to understand customer-decision making strategy in buying products and assessing its positioning strategies against those of its direct competitors.The five stages in consumer decision making include ‘problem recognition’, ‘information search’, ‘evaluation of alternatives’, ‘decision implementation” and finally, ‘post-purchase evaluation’ (Solomon 2002). Problem Recognition In every market, the consumer recognizes a problem in comparing any valuable difference between a current state of commodity and an ideal state of a new product (Solomon 2002). In the context of mobile phones, making choices already established a customer need to have a smart phone that comes with high-end features such as Samsung-Galaxy II. Information Search Customer need for sufficient information is necessary in solving the problem identified. Information search entails consideration of available information within customer’s reach to help the customer make a reasonable decision (Solomon 2002). In the case of Samsung-Galaxy II however, the search of information on a quality product and good value for money is readily available. This means that the search of information involves the balancing factor of price and thus the majority of the search of information would be internal and external as well. The internal search of information would entail the use of past experience with other products while external search entails the use of advertisements and friends using the targeted product (Solomon, 2002). However, most customers prefer the use of feedback from friends as the most trusted source of information and searching the Internet for complaints and testimonials (Samsung.com). Finally, advertising plays a role of reaffirm existing reputation(s) of Samsung-Galaxy II and usually has a long-term effect on customers and is more relevant to customer evaluation of alternatives (Paul, 2012). Evaluation of Alternatives Samsung markets are widely spread across the globe. The number of mobile phones designed and marketed by the company and customer choices has also increased steadily. The evaluation of alternatives by customers is a crucial aspect of making decisions and entails the ranking of criteria that helps customers to narrow down the alternatives (Solomon 2002). All alternatives can be categorized into evoked, inert or inept set. The evoked set, according to Solomon (2002), includes product alternatives that are ripe in the memory of consumers and those widely used in the market. Due to the considerably few alternatives when choosing a smart phone with specific features that come with Samsung-Galaxy II, personal experiences from information search could override the reputation of other brands in the market. Inert set of alternatives includes products that are widely known by the consumers yet will not consider buying. On the other hand, an inept set of alternatives includes those product alternatives that are unknown to the consumers. Decision Implementation This is the penultimate stage of customer choice to buy a product. According to Solomon (2002), customer decision will greatly be influenced by all the stages described above. If the customer’s evaluative criterion is primarily based on the quality of Samsung-Galaxy II, for example, better battery consumption, fast browsing, quick multi-tasking, and quick encoding/decoding that supports video viewing, then a customer is most likely to have formulated a loyal brand analysis. Customers would be able to use Samsung-Galaxy II most of the time. If customers adopt multiple evaluative criteria that takes into consideration price, the decision becomes a bit complex. However, according to Solomon (2002), a compensatory decision rule that allow a product to disapprove its weaknesses are rarely adopted in the mobile phone industry with exception in the case where a consumer is willing to be compensated for, say, failures unforeseen in the performance of the device. Post-purchase Evaluation This is the final stage that looks into a consumer experience of the Samsung - Galaxy II and determines whether a consumer or not. The outcome of the experience is closely linked to whether customers will consider a repeat purchase and maintaining a long-term loyalty to Samsung Samsung Company. A positive or negative customer experience may be quite rare, but that is solely dependent on the consumer’s perception, and up to the Samsung Company to influence its consumers via advertising. However, with good services and high end features, Samsung-Galaxy II may remain viable in the market as one of the most affordable mart phone and choice of many customers. Perceptual Mapping and Positioning Samsung Company manufactures different models of mobile phones. The Samsung-Galaxy II model is among the company’s latest brands of smart phones that improved the reputation of the company in the market due to its cutting-edge features and applications. Improved sales across the widespread market is attributed to individuals buying phones as a way of lifestyle and price affordability of the brand (Richard, 2008). To sustain and retain customers, Samsung must develop a marketing plan through a perceptual map that sets the product aside from those of its competitors, and clearly position the company. Samsung is positioning its products in six main strategies. The use and benefit of the Samsung-Galaxy II is stylish with its slim model and easy to use. The other positioning tool is user needs. Most individuals need a user-friendly phone with high speed internet connectivity. The product is also positioned according to the services it offers (Ramesh, 2007). Exclusively, the ability of a phone to multi-task is a key element in Samsung-Galaxy II that is rarely found in other phones such as Nokia brand. The quality and price of Samsung products are also rated highest. This gives the company an added advantage over its competitors. This is important or the company for positioning entails all hat customers believe about a product but not what the producer expects the consumers to believe. Conclusion The mobile phone industry does not just develop intangible but keep researching and improving features added to existing products to make them more appealing to customers. This is even more evident especially with the profound neck to neck competition typical of the market.With critical market research and modern investment in technology for inventions, companies are always I the search for development of new products. Consumer behavior therefore becomes an issue of concern in the market. Consumer behavior can be shaped by advertisement and especially after a consumer encountering experience in the past that may be positive or negative. This calls for mobile phone producers to remain on their toes to continuously produce new products by analyzing the needs of its consumers and their behavior. As discussed above, consumer decisions to purchase a product on not are influenced by several factors. Finally, market and product positioning is crucial for companies to successfully market their products. A perceptual map provides an overview of customers’ opinions about certain product or service, which helps the company to prepare itself in developing products that meet customer needs and wants. Marketing research provided Samsung Company with the necessary information of the critical parameters and features that modern mobile phone users are likely to admire. References Geoffrey, P 2010, Consumer Behavior in Action: Real-Life Applications for Marketing Managers, New York, Sharpe Paul, F., 2012, Marketing Strategy, London, Routledge Ramesh, K 2007, Consumer BehaviorAnd Branding: Concepts, Readings And Cases-The Indian Context.New Dehli, Pearson. Richard, L 2008, Marketing. New York, Barron’s Educational Series. Solomon, M 2002, Consumer Behavior. International Education, 5thEdn, Chapters 7 and 9. New Jersey, Prentice Hall Read More