Marketing Mix Strategies For Samsung Galaxy Smartphone

Background information

Samsung is an international company from South Korea with its headquarters in Samsung Town, Seol. In the early period of its establishment in the year 1938 by Lee Byung-Chul, the company had diversified in many areas such as insurance and securities, until 1960 when the company specialized in the electronics. At the moment, Samsung has many branches and networks spread across the globe, and it now ranks the world second largest information technology company. It has established clients in the market such as Apple, Nokia among other players in the electronic industry (Karniel & Reich, 2011)

The success of Samsung in selling its smartphone can be greatly attributed to the successful implementation of the appropriate marketing strategies which have helped the company to improve its sales. The company has invested a lot in embracing the marketing mix strategies which have largely contributed to its success. It is, therefore, true that if the company continues to apply the marketing mix rightly (Grewal & Levy, 2010), it is likely to continue enjoying the industry leadership.

A marketing mix is a marketing tool that businesses use to achieve their marketing objectives and targets. At the moment, this tool is a necessary and inevitable aspect of marketing in business (Kotler, 2012). The tool comes as eight Ps; product, people, prices, promotion, distribution, partnership, process and physical evidence. Firstly, for successful marketing, the business organization must consider the product. The product must fully satisfy the consumers both regarding quality and quantity. Samsung as electronic and technology company has committed itself to these marketing mix strategies for its success in marketing its smartphone (Dencic, 2013).

How research was conducted

This research about Samsung Galaxy Smartphone was carried out using both qualitative and quantitative way. Qualitative research way necessary in this exercise since it helped to give descriptions of the various aspects on how people or feel about Samsung Galaxy smartphones.  This helped to give an underlying truth about the smartphone concerning the opinions, reasons, and motivations. Also, quantitative research about the Samsung Galaxy Smartphone was conducted in this exercise. This was used to establish the figures and numerical quantity about people’s views, opinions and other factors regarding this smartphone (Hutson & Richards, 2008). The method was useful for quantifying the relevant variables about this phone.

Data was collected and analyzed through various ways. First, primary data collection tools were used where data was collected but under supervision. Some of the primary data collection techniques that were employed in this case include questionnaires, observations, the interviews, email, phones among others. Also, secondary data collection tools were applied where data used previously was reused. Most secondary data came from the books and journeys which played a critical role in this exercise.

Product

The product, as one of the 8Ps, refers to the item being sold. The particular product under assess in this case is the Samsung Galaxy smart phone. This smartphone runs on Android platform; a very common operating system in the world currently. This product is used by many people in the world to offer them communication services (Wooliscroft, 2011). There are various aspects of Samsung Galaxy that are discussed in this report.

Literature Review

Product category. Products can be put into two main categories the as consumer or business products. Samsung Galaxy smartphone belongs to the consumer goods group because it is mostly purchased for personal use, family or household usage. Samsung Galaxy is a shopping product under the product category of the consumer goods because customers usually compare the price, available brands, and others factors before making a decision to buy the product (French et al., 2015).

Product life Cycle. Regarding the current product lifecycle of Samsung Galaxy smartphone, it is in the growth phase. Products usually have four stages in their lifecycle. The cycle starts with the stage of introduction where the product is launched, and there is low profit, then the growth stage where the company makes more profit due to the rapid development of the sales. The third stage in the cycle is the maturity stage where the benefit reduces slowly due to competition and other factors, after that, the product enters the decline stage where the sales of the product fall mostly due to stiff competition (Karniel, A & Reich, 2011). 

Figure 1

Product Adoption. Samsung Galaxy smartphone is currently in the adoption phase. At the moment, most people already have sufficient knowledge about the product and are, therefore, deciding for themselves and choosing whether to go for it or not.  The product adoption process usually has five stages starting with product awareness where the potential clients come to hear about the product but lack enough information about it. The product then enters the interest stage where the customers get the desire to know more about the product in the market, after that, the product enter the trial stage, where the customers want to try out the product after getting information. Finally, the products come to the adoption phase where the potential customers decide for themselves whether to buy the product or not.

Product Quality. The product quality refers to a balance between the expected features of the product and its actual performance. A high-quality product will satisfy the user exactly as expected while a low-quality product will some user expected feature (Thilmany, 2007). Samsung Galaxy smartphone is of high quality since most customers seem satisfied with the features of the phone. Product quality consistency is important since it determines the quality of the product to the users. Also, the user brand perception greatly determines the quality level. Samsung, being an established brand, definitely has Galaxy smartphone perceiving it positively (Cooper, 2010).

Product support services. Samsung offers support services for the Galaxy smartphones through their website. It has a provision for customers to submit their queries about their Galaxy smartphone. Also, it has a forum integrated with their website where the users are given the opportunity to share views. Also, Samsung supports its Galaxy smartphones through phone calls, text messaging, email and online chats. This is an essential and inevitable act for business success at the present times (Dencic, 2013).

Design labeling.  Regarding the phone design and finishing, the Samsung Galaxy smartphone has a smooth body finishing that can be easily and comfortably used by the customers. The phone aims to be very light in weight for portability. Also, Samsung Galaxy is branded with the Samsung logo in a position that is eye catching to the users in the environment thus improving on its recognition.

Methodology

Figure 2

Price strategy. Price refers to the monetary value that has been put on the product. Samsung offers its Galaxy phones to customers at a price that is directly proportional to the smartphone features. Thus, Samsung advocates for the value exchange strategy for its Galaxy smartphone. It is also noted that Samsung gives little to its competitor’s voice and therefore, does not allow its prices to be affected by the rivals. This strategy has been helpful to the company and thus helped it to attain more of more sales of the Galaxy smartphones.

Also, Samsung applies other price strategic activities to its Galaxy smartphone. The company used product discounts, provision of specials, bundle pricings among other pricing strategies. This has significantly contributed to attaining of more sales of Galaxy smartphones by the company and thus increase profitability. Better pricing strategies play a critical role in the general product sales by the enterprise.

Samsung uses various considerations in the process of setting the price for its Galaxy smartphone mobile. Just like other businesses in different industries, Samsung considers context to determine the appropriate price strategy to use for its Galaxy smartphones. For example, the company uses price skimming strategies in the individual events.  In this case, Samsung changes the price of its Galaxy smartphones depending on the game. Also, the company uses multiple units or the bundle pricing strategy for supermarkets and other phone shops, offers a quantity discount for the wholesalers among other strategies. These policies help the company to make more profit and at the same time satisfy the customers.

Product Setting. Product quality is critical in the phone industry. When combined with price, they directly affect the product likeability in the market. Customers always desire to get the best value for their money. Too high prices for low quality will change the attitude of the customers towards the product, and thus Samsung should strive to achieve a balance between the price and the quality offered. Samsung should also consider the affordability of the Galaxy smartphone in the target market.  It should consider producing the Galaxy smartphone which the target market can afford to purchase thus increasing the sales of Galaxy phones to the market. Therefore, Samsung needs to find pricing and quality factors since they have a direct impact on the product lifecycle of the Galaxy phone. (Solis, 2011).

Place, as one of the marketing mix, refers to the actual point of product sale and has a significant impact on the sales of the Samsung Galaxy smartphones. The place can significantly impact on the general sales of Samsung Galaxy smartphones. It defines the channels and intermediaries that the corporation uses to make sales of the product, the type of retail stores, the channel utility and the order processing method that the Samsung uses (Mankiw & Taylor, 2011).

Channels and intermediaries. Samsung Galaxy smartphones undergo a process before reaching the customer. Sales of the phones can be made directly from the company to the consumer or through a channel with various intermediaries before reaching them. Samsung has established strategies that are used to control the channel of the Galaxy smartphones. This helps to reduce price overload to the consumers and ensures the general efficiency.

Data collection

Types of retail stores of Samsung. Samsung has many retail stores that are used to help the company make more sales of the Galaxy smartphones. They are of various types and include discount stores, convenience stores, and supermarkets among many others. Galaxy smartphones are distributed all over the world to reach many people on the globe both in cities, suburbs and other regions.

Figure 3

Channel Utility. Samsung, just like other companies uses intermediaries to in its distribution channel of the Galaxy phones.  Intermediaries in the distribution channel save money for the organization because it efficiently performs the necessary tasks in the distribution process. Also, the intermediaries usually have a better knowledge and understanding of the customers and therefore, understand the exact customer requirements and can thus identify new possible market opportunities faster. An intermediary of Samsung creates four types of utilities in the process of product distributing the Galaxy smartphones. These process services are time, place, form and possession which are important aspects of consideration by Samsung (Shimizu, 2016).

Order Processing. Samsung uses the standard order processing procedure in selling the Galaxy smartphones. One makes an order for the product warehousing; then the order is transported to the respective destination. Also, customers have room to make an online order which is a convenience to some customers. Samsung is, therefore, flexible in its order processing process.

Figure 4

Promotion entails informing and persuading people to build and maintain relationships. Promotions have an impact on the brand name of the company, and therefore it should be done effectively. Samsung uses various channels to carry out promotions of the Galaxy smartphone. These channels include advertising, social media, sales promotions, social media and sponsorship among many others. When applied well, they have a significant positive impact on the sales of the product (Jim, 2009).

Samsung needs to facilitate reseller support through the provision of stands that make the Galaxy smartphones appear in an appealing manner to attract more customers. They also consider offering exclusive offers as a promotional strategy to get more customers. At the moment, Samsung mainly conducts promotions through advertisements through various channels such as television, radio, billboards among others (Sun, 2010). This promotes the sale of the Samsung Galaxy mobile phones.

Figure 5

Also, it is a modern practice to conduct promotions through public relations. It usually entails efforts to create a good relationship between the company and its stakeholders. Samsung is currently using public relations as a promotional tool to improve the sales of Samsung Galaxy Smartphone.

Besides, Samsung has invested more in digital marketing to promote the sales of Galaxy mobile phones. The company has a Facebook page with million likes, Twitter handle, Instagram and many other social platforms. This provides a forum for the promotions to reach many people all over the world. The company should invest more in these platforms since they provide a forum for many people to hear about the Samsung Galaxy Smartphone. Also, Samsung participates in sponsorship as a practice to promote the products. Samsung has sponsored people from all over the world. It mostly sponsors the innovations, schools for ICT and many individuals and groups.  

Data Findings and Analysis

Figure 6

Process refers to a series of activities through which a product undergoes before reaching the customer. The process is a critical aspect of the marketing mix that must be considered for effectiveness. It covers aspects of customer orientation, timing, automation level, payment system, the partnership among other aspects. Samsung has shown efforts to serve the client in the best way possible and in time. Also, Samsung has shown efforts to automate the process internally and also externally to the customers. The company has an online order processing system which has created efficiency in the sale process. The company also allows various payment systems such as cash, check, PayPal, Visa among others. This diversification significantly promotes the company’s sales of the Galaxy smartphones (Fleetwood, 2014).

People refers to the human beings who are involved in delivering the product. Successful marketing can be achieved if people are considered. The individuals involved in marketing include the staff, influencers, and other stakeholders in the process (Smith et al., 2010). Samsung has shown considerations that on the team and the people participating in the process. The company has promoted training of the sales agents and other staff for effectiveness.

Physical evidence refers to the tangible products that facilitate product sales. Marketing requires an emphasis on the physical evidence for it to be effective. Marketing managers should consider focus for actual results in the marketing. Samsung should put efforts on the physical evidence, and this has helped it increase the sales of the Galaxy smartphones (Lunden, 2014).

Organization refers to creating relationships with others. The partnership is an important aspect that cannot be ignored in the mix. It entails creating the relationship with other companies that are likely to impact on the sales of the business product. Samsung as a company has put a lot of efforts in partnership by creating links with other organizations from various regions of the world. It has partnered with other electronic companies, sales consultant companies, and many others.  These significantly contributed to the increase in sales of the Galaxy smartphones.

Corporate social responsibility is inevitable for the success in business. It should focus both the staff and the customers.  Samsung like other electronic companies face challenges of with environmental sustainability due to products that don not decompose thus an environmental problem. Samsung has adopted green computing to manage the electronic waste from its Galaxy smartphones (Kerr et al., 2009). Green computing advocates for better usage of the electronics and technology wastes (e-waste) by incorporating them into other activities that can be profitable. The end products from the Galaxy smartphones are used for other purposes in the Adoption and integration of green computing in the process of Samsung will significantly improve its operation to support sustainable living (Gardiner, 2007).

Samsung has also come up with training programs to educate the public about responsible living. This is an important aspect of CSR that has significantly helped it to gain more market for the Galaxy smartphones. Besides, Samsung produces its Galaxy smartphones in a way that minimizes pollution to the environment. It has strategies to curb the toxic substances that can be harmful to the environment (Kim, 2013).

There are many other contemporary issues that affect the operation of the Samsung. They include social media interactions; where times have changed, and many businesses are targeting to reach people through social media such as Facebook, Twitter, Whatsapp among others. Advances in technology have also affected Samsung, though the company is making efforts to adopt the best technology of the time (Milisavljevic, 2013). Also, the organization is concerned with ethical issue handling strategy and globalization because they are necessary for the success of the business.

 Regarding place, Samsung should encourage more intermediaries in the distribution channel. The intermediaries are critical for the success of the company in its sales endeavor. Also, Samsung should encourage pre-ordering will help Samsung to be able to avoid problems associated with weak market demand analyses such as underestimation or overestimation. It helps the company to have an approximate figure of the market demand and thus produce sufficient quality as per the size. If the estimation projects a bigger sale, the company increases the quantity of the product to be produced, but while estimate projects a lower amount, the company calls for the cancellation of the goods to be manufactured. Samsung should, therefore, embrace pre-ordering for its profitability and increased customer satisfaction (Rafiq, 2016).

As a recommendation for promotion, it is important for Samsung to perform thorough evaluations of the individuals and groups that are likely to impact positively on the sales of the Galaxy smartphones and then incorporate them in the promotional activities. Also, it is important for Samsung to empower public relations to participate in promotional activities such writing positive stories about the products of the company and many others (John, 2015). 

Recommending about the price, Samsung as a company can get more profit from the Galaxy smartphones if the company continues to adapt pricing strategies depending on the context. The company should make the prices of the Galaxy smartphones flexible and thus able to change it depending on the context thus achieve marketing effectiveness. This pricing intelligence strategy is necessary for the improvement of sales. Also, Samsung should consider branding as a tool for better profit. Samsung should continue improving on the brand name so that it can enjoy the profit from willing buyers for Galaxy phones from the reputable company. However, the organization should ensure that it optimizes the gain with affecting the sales or brand name (Wooliscroft, 2011).

It is also recommended that Samsung can improve the place as a marketing mix through improving online order processing. This will avail the Galaxy phones to most people all over the world. As a recommendation for the process, Samsung should invest more into creating and improving the customer oriented process. This will help the client to get the best experience and thus increase their desire to buy the products of this company. This is likely to improve the sales of the Galaxy smartphones in the entire world.

Also as a recommendation for the people factor, the company has promoted training of the sales agents and other staff for effectiveness. It should continue with these practices since they are healthy and promotes the sale of the Galaxy smartphones. Regarding physical evidence, the company should keep emphasizing on the physical evidence for better results in the sales of the Galaxy smartphones since it helps to visualize the progress. Lastly, regarding partnership, the company still has room for partnership, and it should continue building relationships but mostly focusing in the developing countries which seems to be a potential market for the Galaxy smartphones

Conclusion

In conclusion, effective marketing goes beyond the 8ps marketing mix (product, people, prices, promotion, distribution, partnership, process and physical evidence). There have many companies have tried to successfully adopt these marketing mix strategies with expectations for effective marketing but does not yield enough. Marketing mix alone is not exploitative. Companies face many issues beyond the 8Ps that need to be addressed. It is, therefore, critical for business organizations to establish these industry problems and then adhere to the best recommendations for the effective marketing.

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