1. ASSIGNMENT
For
STRATEGIC MARKETING MANAGEMENT
Name: A. Sampath Babu
Mode of submission: LIVE CAMPUS
Extended Diploma in Strategic Management
and Leadership
MAY 2014
Total Number of Words Including As Sections: 9590
Total Number of Words Excluding Title Page, Table of Contents,
Introduction, Conclusion, References, Web References: 8950
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3. 3
Organization:
The organization taken as case study for doing the assignment is Samsung.
4. 4
Introduction:
In today’s rapidly changing business environments, every business firm aims
and desires to be successful in its respective field, but in these tough and
competitive business scenarios, for an organization to be successful and to be as
an active player in the market place, there is need for one factor that plays a
huge and sophisticated role in the successful running of the organization and
also for the long term survival and growth of the businesses, and it is nothing
but the ‘Strategic Marketing Management’
Secondly, for any organization Strategic Marketing is the one that has a
significant role in creating, communicating, capturing and sustaining value for
the organizations and customers, and also it is the one that enables the
businesses to create value by knowing the needs and necessities of the
customers and by providing innovative products and services to its customers.
5. 5
TASK 1.1
Define and explain strategic marketing management. Discuss the role of
Strategic marketing in Samsung Telecommunications:
Definition of Strategic Marketing Management:
The term Strategic Marketing Management is defined as ‘the systems designed
to help the management in creating, changing or retaining business strategy and
to create strategic vis ion for the Company’ is called strategic marketing
management. (Aaker, McLoughlin, 2010)
In other words, it is nothing but the structured approach of knowing what the
business is actually trying to achieve, to measure and analyse the markets, and
market opportunities to grab and gain the most of the value leading to the
success and growth of the company. (Proctor, 2000)
And for any business firm, it mainly involves decisions related to the long term
view of the company, such as long term development growth and its survival.
Discussion on the role of strategic marketing management on Samsung
Company:
If we look at the Samsung Company, as we all know, today it is one the most
successful and valued brand globally, a pioneer in the consumer electronics and
telecommunication industry.
And one of the key and important factors that enabled the company to reach to
this stage is it’s ‘strategic marketing’, because if we look at the initial stages of
Samsung, it just started as a normal company like others. But now it has over
took all its competitors globally and stood as no.1 brand in its field, and it is the
firm that is giving tough competition to technological giant Apple, in the
consumer electronics industry.
For the Samsung Company, Strategic Marketing has played a very crucial and
important role in the success, growth and development of the Company and its
role on Samsung can be given based on these factors:
For the Samsung Company, it is the strategic marketing that act as a
central dimension of its entire businesses all these years.
6. Secondly, it is the strategic marketing that fostered and enabled Samsung
in making the lives of people easier, flexible and luxurious with its
products and services.
Also, it helped Samsung to meet the business objectives and goals in a
more effective and sophisticated manner.
Moreover, it is strategic marketing that made the company to became the
world’s largest phone-maker by unit sales, overtaking long term market
leader Nokia, and become number one player in overall mobile phones
sales.
It majorly helps to know the actual needs and the necessities of the
customers, and also it helps in creating the needs and wants for the
customers
Also, for the Samsung, it is the strategic marketing that led to achieve
superior competitive position in the electronic industry, by overtaking
major rivals like Sony, Panasonic etc.
Moreover, the company’s strategic marketing helped for its long term
survival, growth and development in the market place.
Role of strategic
marketing
management
on Samsung
6
Led to know the
customer’s pulse,
needs and wants
It helped in
meeting corporate
objectives of
Samsung
it helps to become
monster in
consume
electronics
Helped to achieve
superior position
in market
Helped for long
term survival and
growth
It helped to
become world’s
largest phone
maker in India
7. Also, the strategic marketing management helped Samsung in developing
various products like:
Tablet phone.
Galaxy note.
Smart phone.
Multimedia phone
Dual-Sim phone
CDMA phone and various mobile accessories.
Thus, likewise the strategic marketing management has played an important
role in Samsung company.
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8. 8
TASK 1.2:
Explain the processes involved in strategic marketing. Discuss them in
relation to Samsung Telecommunications:
In these tough and competitive business environments, for any organization, in
order to effectively manage the strategic marketing tasks, to achieve the goals
and objectives effectively, there is need for strategic marketing processes, which
enables the company to think about its present situation and the way it want to
be in the future.
Strategic Marketing Processes:
The term strategic marketing process is defined as the approach in which an
organization allocates its marketing mix resources to reach its target markets
can be given as Strategic marketing process and also it is the one that helps and
enables in achieving the goals and objectives of the company.
In simple words, it is just satisfying the needs and wants of customers by
performing market research and making them delighted with its products and
services.(Cravens, 1997)
Also, it is the strategic marketing processes that make the marketers to think
about:
Where we are now?
Where we want to be in future?
How can we get there?
How do we convert our plans into actions? Etc. (Gilligan & Wilson,
2012)
And in any organization, the strategic marketing process mainly consists of
three vital phases in order to answer the above questions, and these phases can
be given as:
Planning phase.
Implementation phase.
Evaluation phase.
9. Thus, with the help of the above phases, business firms will be able to
successfully meet their goals and objectives and enables to be an active player
in the market place.
Discussion of the processes in relation to the Samsung Telecommunication
can be given as:
If we look at the past and present performance of the Samsung Company, there
is huge growth and development in its performance, operations, profitability,
and market share, product diversification, market segmentation and brand
loyalty.
And for all this to happen, it is the company’s strategic marketing process that
enabled and led the company to reach to sky heights in its industry, as Samsung
has effectively done the market research and identified the needs and wants of
the customers effectively that made the company to develop various innovative
useful products needed for the customers.
Also, it is the marketing processes that helped the company to know its future
goals and objectives, and the way it want to be in future in the market place.
And the marketing process for the Samsung Company is majorly dependent on
these factors which can be given as:
9
Foresight on technology.
Creating customer value.
In depth market research.
Differential advantage.
Creativity and innovation
Marketing
process of
Samsung
Foresight on
technology
Creating
customer value
Differential
advantage
Creativity and
innovation
In depth market
research
10. 10
for
Thus, based on the above factors that are involved in the marketing process for
Samsung Company.
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TASK 1.3:
Explain how Strategic marketing is linked to corporate strategy. Evaluate the
linkage between the two with respect to Samsung Telecommunications and
discuss the synergy between the two:
Explanation of the ways strategic marketing is linked to corporate strategy:
If we look at the two terms strategic marketing and corporate strategy, though
the two terms seems to be different, but in any business these two terms are very
much important and are interlinked to each other.
If we look at the Corporate Strategy, it is nothing but, the direction an
organization takes with the objectives of achieving success in the long term can
be given as corporate strategy. In other words, the concept of corporate strategy
is mainly focused on the overall scope and direction of the organization, and the
way all the members of the company works in achieving the goals and
objectives. (De Wit, & Meyer, 2010)
Secondly, in any organization, the Corporate Strategy will mainly involves
developing the purpose and scope of the organization, and its activities, its
position in the market place, and the competition it faces are taken into
consideration. (Hulsmann & Pfeffermann, 2011)
Also, defining a corporate strategy is a continuous process, and the objective of
the process is to combine all the activities of various functional areas in the
business, in way it meets all the organizational goals and objectives.
But if we take Strategic Marketing, it is the one which is a part of corporate
strategy and it helps in making the corporate strategy an effective and
sophisticated one, and also strategic marketing acts as a catalyst for the firm in
developing corporate strategy for the organization. (Groucutt, Leadley, Forsyth,
2004).
In simple words, Strategic Marketing is like one of the ingredient in the
corporate strategy that helps and enables in meeting the goals and objectives
effectively.
And if strategic marketing is not included in the corporate strategy then it will
be a challenging task for the managers to develop and design corporate strategy,
12. as strategic marketing has an important role to play in developing corporate
strategy.
So, likewise in this way strategic marketing is linked to the overall corporate
strategy of an organization.
Evaluation of the relationship between strategic marketing and corporate
strategy with respect to Samsung Company can be given as:
And now if we take Samsung Company also, strategic marketing has played a
key and sophisticated role in developing corporate strategy for Samsung, and
these two are very much linked to each other and till now, these two had gone
hand in hand in success, growth and development of the company.
And the relationship between strategic marketing and corporate strategy for the
Samsung Company can be evaluated by:
The effective meeting of the business goals and objectives of the
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company.
Secondly, effective identification of the needs and wants of the customers.
Developing innovative and creative products that satisfy the customers
and making their lives comfortable.
Increase in the brand image and brand loyalty of the company.
The capability of the company to become as largest seller of mobile
phones in India, by overtaking Nokia.
The market share and profitability that the company achieves in the
consumer electronics industry.
Thus, likewise the relationship between corporate strategy and strategic
marketing can be evaluated.
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Task 2.1:
Explain three models used in strategic planning. Assess the value of models
used in strategic marketing planning in relation to Samsung
Telecommunications. [Ex: Porter’s five force model; STEEPLE analysis;
BCG matrix; Product life cycle model; Ansoff Matrix] :
For any organization, Strategic planning is the one that plays a key role in
growth and development of an organization and it is defined as, the
management activity used to set priorities, focus energy and resources, perform
effective operations, ensuring that employees are working towards the common
goal and adjusting the organizational direction in response to the changing
environment.
And for strategic planning firms will make use of various models according to
their requirements and the three models used by the managers in developing
strategic marketing plan for the Samsung Company can be given as:
Porter’s five force model:
For the Samsung Company, in developing strategic marketing plan, porter’s five
force model is the one of the important one that has key role to play, because it
helps in knowing the competitors, to Samsung in its field and it can be given as:
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Threat of new entrants (Low):
If we look at the Samsung Company, as it is one of leading firm in
telecommunication and electronic industry, and over the years it has been an
active player in the market, and so for the company the threat from new entrants
will be low, because it is in commanding position in today’s context and Also,
this company has high brand value and brand image globally, and moreover it
has its own sophisticated R&D in creating innovative and creative products that
matches and satisfies the needs and wants of customers, and also it has excellent
infrastructure that makes it to remain as competitive in the electronic industry.
Threat of substitutes (High):
Secondly, if we take threat from substitutes, in these easy access of technology
to everyone, this company may have affect from the substitute products
designed and developed by other firms from China, Japan, Thailand, Bangkok
etc, making an impact on the brand image, profitability and the R&D.
Also, when compared to price, these substitute products will be available to the
consumers with lesser price and look similar to original Samsung products,
which could make an impact on the overall market share.
Bargaining power of suppliers (Low):
15. Also, If we take Samsung it is itself a supplier to most of the electronics
companies like Apple, as it supplies chips, and other components, however, the
bargaining power of suppliers is high in this industry, but Samsung is an
exception, because it manufactures its own components and raw materials
needed for its products.
Bargaining power of customers (Low):
When comes to the buyers, now a days, due to easy access of information,
buyers have a good leverage when it comes to bargaining as we all know how
competitive the mobile industry is, as various products with different features
are available to the consumers, they can easily switch to other brand if they feel
they are paying more, and Samsung is not an exception in this one, and so for
the Samsung the bargaining power of buyers is more for Samsung.
Intensity of competition rivalry( High):
And lastly, if we take the intensity of competition, as mobile and electronics
industry is very competitive because of various firms competing globally in
order to make their mark in the market place, and Samsung faces tough
competition from Apple, Sony, Nokia, Micro Max, Karbon etc.
15
17. 17
PESTLE analysis:
Secondly, PESTLE analysis is another useful model for developing its strategic
marketing plan to Samsung Company, and it mainly deals in knowing the
external environment of business and its impact on Samsung and it can be given
as:
Political/Legal Factors:
If we take the mobile industry, over the past few years, there has been issues
regarding the patent of the products in the smart phone industry, and firms have
been aggressive in protecting their technical and intellectual properties by
claiming infringements on patents. So in these type of situations, it is very
important for the Samsung company should use its product and patent portfolio
to make it more tough for their competitors in order to gain larger market share.
And when comes to political factors, as it is the global brand serving in various
nations, this company has positive political factors enabling to perform its
activities globally.
18. 18
Economic Factors:
Secondly, if we take Economic Factors, though there has been an effect due to
recession that hit the US, UK and other European nations, as they are still
recovering from the crisis, resulting in unemployment rate, lower consumer
spending and lower disposable incomes of customers, making an effect on the
smart phone industry, but if we take the developing nations in Asia pacific like
China, India, there has been an increase in the buying capacity of the customers
leading to the increase in the sales of the company.
Social-Cultural Factors:
When comes to the social factors, because of globalization and improvements in
the life styles of the people globally, there has been an increase in the usage of
the smart phone industry, leading to increase in the number of users of mobile
phones globally, and also if we take age demographics also, the usage of mobile
of 13-17 age groups has been increasing extensively.
Technological Factors:
And now when comes to the technological factors, it is the one the key and
crucial factor that makes an impact on the smart phone industry, and because of
technology the competition is also increasing in this field, and if we take
Samsung company, technologically it is in commanding position by developing
creative and innovative products.
Environmental Factors:
And when comes to the environmental factors, as Samsung does not
manufacture its products in North America and other troubled areas of
environment, but still this company should be aware of extreme weather
patterns and availability of resources within the region, they have
manufacturing facilities.
19. Thus, likewise the PESTLE analysis can be done for the Samsung Company.
19
Marketing Mix (4 P model):
And along with the above two, Marketing Mix is another vital model used to
developing strategic marketing plan, and marketing mix for Samsung can be
given as:
Product:
If we take Samsung company, it has a vast product portfolio, and it is in
different product categories, which can be given as:
Tablets.
Mobile phones -Smart phones, normal phones.
Tv’s- LED, LCD Plasma, SMART TV, HDTV etc.
Air conditioners.
Refrigerators.
Microwave ovens.
IT-Laptops, printers etc.
20. So, having a huge product diversification is one of the biggest assets for
Samsung Company to be as most popular brand globally. And the benefit that
Samsung has is in terms of trust on all Samsung products, as all its products are
doing well during the past few years with very less complaints.
20
Price:
Because of tough competition in the electronics industry, Samsung had used
different pricing strategies to gain and retain its customers and this company
will use competitive and skimming pricing strategies to sell its products.
Placement:
And when comes to placement, it is present through various channels in the
market, it works on channel marketing concept, where there will be three
segments which are sales and service dealers, retailers, and distributors. And
this company uses all possible ways to make their presence in the market.
21. 21
Promotion:
For the Samsung, promotion plays a key role in the success and growth, as it
uses all promotion channels for promoting its products such as Tv ads, Holdings,
etc to make the pull the customers to buy Samsung products.
Thus, these are three models used for strategic marketing planning for the
Samsung Company.
And the value of the models used in strategic marketing planning in relation
to the Samsung Company can be assessed based on these factors:
It is the above models that helped Samsung to grab the opportunities in
the electronics and telecommunication industry.
Secondly, it is the above models, made the company to increase its
product base and fostered to develop innovative and creative products
useful for the consumers.
The models, enabled to take right and appropriate decisions in entering
new markets and to become successful for the long period of time.
Also, these models led to know the needs and necessities of customers
and what customers are expecting from Samsung in terms of consumer
electronics industry.
Moreover, these models, enabled to be as an active player in the market
place, by overcoming competition from its rival firms.
And also, these helps helped to know the pulse, mindset and attitudes of
consumers in buying electronics products.
Moreover, these models helped in analysing both the internal and external
environmental conditions and develop plans according to the
requirements.
Also, the strategic planning models enabled the compay to become as
pioneer in the field of electronics and stood as valued brand in the minds
and hearts of consumers.
Thus, based on the above factors, the value of the above models can be
assessed.
22. 22
Task 2.2:
Discuss the links between strategic positioning and marketing tactics. How
are the marketing tactics related to strategic positioning decisions with respect
to Samsung Tele Communications:
Discussion on the relationship between strategic positioning and marketing
tactics:
In these tough and competitive business environments, every business
organization aims and desires to achieve a unique strategic position in their
respective field in the market, and for this to achieve Marketing Tactics is one
of the important tools that play a key and sophisticated role because marketing
tactics are the one that helps and allows the businesses to focus on its available
resources, and enables in creating opportunities for the organization to increase
the profits, sales and market share of the company, and thereby creating unique
strategic position for the company, and the marketing tactics should be in such a
way that, it should meet the needs and wants of the customers effectively and
also the marketing tactics of the company should create demand for the products
and for its brand among the customers, which could help in achieving strategic
positioning.
In a simple manner, marketing tactics developed and used by the business helps
and enables to achieve unique strategic positioning, in the market.
Marketing tactics
Strategic positioning
And now when comes to the Samsung company, over the years, this company
has succeeded in achieving unique strategic position in the electronics field, and
one of the major reason for this is, the company’s ‘unique and innovative
marketing tactics’ that helped to become as a pioneer company in the market
place and also to achieve unique strategic position.
23. For the Samsung Company, the relationship between strategic positioning
and marketing tactics can be given as:
To create value to the customers.
To effectively meet the needs and wants of customers.
Providing pile of benefits to the customers with its products.
Building long term relationships with the customers.
Communicating in the language of audience.
Creating demand for the Samsung products.
Creating hype for the Samsung products in the market before its release.
Creating passionate brand community and brand value to its products.
Setting attractive prices for its products etc.
So, if we look at the above, these are some important marketing tactics that
Samsung develops and implements to increase its sales, profitability and market
share, and thereby ultimately achieving unique strategic position in the market
place when compared to the rival firms, and also with the help of above,
Samsung has succeeded in developing and building the company, to reach to
23
Marketing
tactics of
Samsung
Created value to the customers
Led to meet the needs and necessities of customers
Provided value of benefits to the customers with its products
Enabled long term relationships with customers
Created demand for Samsung products
Setting competitive prices to its products
Resulted
to achieve
unique
strategic
position in
the
market
24. unique brand image and to achieve an unique identity and niche when compared
to the rivals.
Thus likewise, these two are related with respect to Samsung Company.
24
25. 25
Task 2.3:
Explain the nature of relationship marketing. Analyse the merits of
relationship marketing in a particular strategic marketing strategy of
Samsung Telecommunications:
For any business firm, in these tough and competitive business environments, in
order to survive and run for long term, there is need for relationship marketing
for the organizations, as it helps and fosters the firms in developing and building
long term and strong relationships with the customers.
And also, the relationship marketing enables the customers to be more satisfied
and happier and wanting them to have long term relations with its firms, and
also it makes a huge difference in running of the companies and also it can act
as tool for gaining competitive advantage from its rivals.
Relationship Marketing:
The term relationship marketing is defined as development, maintenance and
the enhancement of relations with the customers and other stake holders so, that
all the objectives are met can be given as Relationship marketing.
In simple words, it is an arrangement where both the buyer and seller have an
interest in providing a more satisfying exchange.
Secondly, in these competitive business scenarios, relationship marketing has a
key role to play in the success and long term growth of the businesses, because
it enables to build long term relations with the customers, and it is where
customer loyalty can be achieved.
And now if we look at the Samsung Company, it is one of the firms that
develops and embeds relationship marketing in all its operations and tasks, and
that’s why it has gained huge customers, and became the largest seller of mobile
phones globally.
For the Samsung Company, the benefits of relationship marketing can be
analysed based on these factors:
It is the relationship marketing of Samsung that helped to gain sustained
competitive advantage from its rival firms Nokia, Micro Max etc.
26. Secondly, relationship marketing helped Samsung to build long term
relationships with its customers and built loyalty among the customers
with its products and services.
Also, it acted as a catalyst in the success and in the increase of the sales,
market share and dominance of the company.
It is the relationship marketing that fostered Samsung to develop new
products with more creativity and innovation embedding in its products.
Also it has made the company to increase its product base in the field of
electronics and telecommunication.
The implementation of relationship marketing is the one which helped the
company to become and stand as a leader and pioneer in consumer
electronics.
Also it is helped in making the company as leading producer and seller of
smart phones in India by overtaking Nokia.
And this approach resulted in increased word-of-mouth activity, repeat
business and a willingness on the customer’s part to provide information
to the organization.
Thus, based on these factors the benefits that Samsung has gained by
developing and implementing relationship marketing.
26
27. Market research
Developing marketing mix
Evaluation of market
27
Task 3.1:
Use appropriate marketing techniques to ascertain the growth opportunities for
Samsung Telecommunications in the mobile phone market:
As we all know that, mobile phone industry is one the competitive business
industry, where it is important for the organizations to look for innovative
techniques in order to market its products, to keep its pace and to be active in the
market place.
And if we take Samsung organization, in order to compete more effectively in
this volatile market, it has to use and embed appropriate marketing techniques to
grab the growth opportunities.
For the Samsung Company the marketing techniques are employed at three stages
of bringing the product into the market and these stages can be given as:
Stage 1:
Prior to
marketing
activity
Stage 2:
During
marketing
activity
Stage 3:
After marketing
activity
potential
And some of the important and useful marketing techniques to ascertain growth
opportunities for Samsung Company can be given as:
28. 28
Targeting:
In these present competitive environments, in order to attract, gain and retain
customers it is very important to use targeting marketing technique so that it can
increase sales of its products.
And the targeting should be in such a way that:
All the products should attract the customers that they can buy without
looking into other brand models.
It should be easily reachable to customers.
The pricing should be attractive and should be affordable to customers.
The product should be measurable in terms of features, accessibility,
characteristics, flexibility, durability etc.
And the targeting should be with a innovative marketing plan that they
should focus on homogenous group.
Also, it should focus on quality standards by all means and at all stages of
marketing.
Positioning:
For Samsung, positioning is very much essential and important because with
positioning a distinct image can be developed and maintained among the
customers and also in the market and it helps in brining and attracting more
number of customers and to increase its customer base.
And the criteria for positioning are:
Price: the prices should be attractive, competitive and affordable to customers
and should be able to grab all segments of customers such as low, middle, high
class.
Promotion: the promotion should be done in a creative and innovative way such
that, it attracts and brings customers to the stores.
Product: it should develop all types of products with wide variety of latest
features so that it can attract customers, and also, the product should be durable,
user friendly, and flexible.
29. Placement: all the products should be placed such that, it is easy accessible to
the customers and moreover, the distribution of product should be selective,
intensive and exclusive.
29
Segmentation:
And another marketing technique that helps Samsung to develop its growth
opportunities is market segmentation.
In order to gain extensive and diverse market and customers it is very important
for Samsung embed segmentation in its product development and releasing
them into the market.
There are mainly four categories in market segmentation which can be given as:
Geographic segmentation:
If we take geographic segmentation, Samsung should segment its products
geographically and globally so that it can increase its customer base and also
sales. And should sell its products based on geography such as city, pin codes,
states and countries. And the company has placed all its products globally in
order to target all segments geographically.
Demographic segmentation:
30. When comes to demographic segmentation, it is the process of segmenting the
customers according to age, gender, occupation, income status etc. and
Samsung is effectively its products according to the demographic segmentation.
30
Psychological segmentation:
And when comes to psychographic segmentation, the company has various
products that meets the tastes, preferences and needs of customers.
Behavioral segmentation:
The behavioral segmentation is the process of segmenting the customers
accruing to the attitudes, life styles, brand awareness and loyalty on which the
customer buys.
Thus, likewise for the Samsung Company the growth opportunities can be
developed by using marketing techniques.
In addition to the above, the other techniques include:
By conducting SWOT analysis.
Identifying critical success factors.
Thus, these are some of the techniques that help Samsung to identify and
ascertain growth opportunities in the mobile phone industry.
31. 31
Task 3.2:
Draw out an appropriate plan for Samsung Telecommunications on how to use
marketing strategy options in the mobile phone market:
For any organization, ‘Strategic Options’ are the one that p lay a key and
sophisticated role in the survival and growth, because it is necessary and essential
to have multiple strategic options for the company in order to be as an active
player in the market, as due to rapidly changing environments, having multiple
strategic options helps the business to survive for long term and can be able to
change its strategies according to that particular situation.
And if we look at Samsung, in these fast changing business scenarios, it is very
much necessary for Samsung to plan for various strategic options that helps and
enables to compete on any circumstance.
The following are some of the strategic options for the marketing plan for
Samsung Company which can be given as:
Porter’s Generic Strategies:
The porter’s generic strategy is one option that Samsung has in order to draw out
appropriate marketing plan, and it can be given as:
Cost Leadership:
If we take samsung company, it uses cost leadership by producing products at
very low and seeting lower proces, givng price sensitivyty to the customers , so
that it can incresae its sales and can sell more number of products when
comaptred to other firms.
32. If we take all samsung smart phones all are price sensitive and if we look at the
prices of mobiles, they have all features and also they are price sensitive for the
customers.
32
Differentiation:
Secondly, the company should focus on differentiation strategy by produing
products wih various features and options that should attract the customers and
create demand among the customers, and this is for the customers who are
insenstive to price and more interested in having better and advanced faetures
and options.
And tyhe company has entered into various markets and it has products in
almost all segments.
33. 33
Focus:
Thirdly, the company should focus on various gruop of customers and
geogarphic markets that helps in grabbing all types of customer segemnts and
markets in the mobile indutry.
Core competencies:
Secondly, Core Competencies is another option that Samsung can use in
developing its marketing plan, because by keeping core competencies as base it
can develop unique plan that helps in gaining edge from its rival firms.
The term Core Competencies is nothing but, the ability and capability of
Samsung in gaining competitive advantage from its rival companies and also it
provides potential access to a wider variety of markets, also makes significant
contribution to the perceived customer benefits to the end product, and more
importantly making the products that should be difficult to imitate by the
competitors.
And the core competencies for Samsung Company can be given as:
Its ability to design and develop mobile phones accruing to the needs and
wants of the consumers.
Its ability to give excellent feel and user experience with its products.
Also, having unique R&D in the organization.
Moreover, being a supplier of major electronic components and raw
materials to other mobile phone companies.
And then the ability to create and maintain brands in the market.
Setting unique and competitive prices to its products making the customers
to attract and create demand in buying its products.
34. Thus, based on these options that are available for the Samsung Company to draw
out appropriate marketing plan.
34
35. 35
Task 3.3:
Explain strategic marketing objectives. Create appropriate strategic marketing
Objectives for Samsung Telecommunications in mobile phone market:
Strategic Marketing Objectives:
Definition:
The term Strategic marketing objectives can be defined as the group of goals set
by a business when promoting its products or services to the potential customers
that should be achieved within a given time frame can be given as strategic
marketing objectives.
And for any company, the marketing objectives for any particular product or
service should include increasing the product awareness among the targeted
consumers, by providing information about the product features, and reducing
consumer resistance in buying the product.
Explanation:
For any organization, strategic marketing objectives are the one that helps the
businesses in accomplishing marketing activities effectively and in a
sophisticated manner. And when setting the marketing objectives, it is very
important to ensure that the objectives are specific, measurable, achievable, and
realistic and time specific, or SMART for short. The "SMART" approach
allows you to effectively manage your marketing activities and importantly be
able to determine how successful they have been and whether they have
delivered the particular benefits sought. Moreover, for any organization, in the
overall success, growth and development marketing objectives has a crucial
role to play because, in the overall performance of the businesses, ‘marketing’
plays a key role, and so it is very important to meet the marketing objectives in
an effective manner.
In these tough and competitive business environments, any company should
develop innovative objectives that attract the customers leading to the long term
survival of the company.
And some of the objectives that a company should develop for smooth and
successful running of the company can be given as:
36. Increase in sales:
For any business Company, one of the important objective should e to increase
the sales, because marketing needs good return of investment, which means the
increase in sales should significantly exceed the cost of the marketing.
The more specific, the better -- "increase sales among women over 40," or
"increase the number of people who make a purchase while browsing our online
store by 20 percent."
36
Improve product awareness:
A marketing effort should be focused at reviving or invigorating interest in a
product that has been on the market for a long time or about which people have
longstanding attitudes. A good example is the ubiquitous "Got Milk?" campaign,
which was started by the California Milk Processor Board in the mid-90s, but is
now used national wide. According to the man behind the campaign, the effort
helped the industry achieve a 91 percent awareness rating after it was in use for
two years.
Establish Yourself in the Industry
Also, sometimes companies will find it extremely difficult to be heard above the
noise in a crowded marketplace, with a public distracted by many stimuli. An
example of a marketing objective for organizations with little public awareness
could be: "Become one of the top three brands in our industry named among
consumers." An example of a successful marketing campaigns in the 21st
century is that of GoDaddy.com, a company that hosts websites. It made a
splash by running provocative ads in high-profile places, such as during the
Super Bowl.
Brand Management
Maintaining a place in the mind of the public takes work, and some marketing
efforts are simply aimed to maintain a prominence in the public space. Major
organizations known worldwide, such as McDonald's and Nike, often run ads
that simply use images and tone to remind consumers of the brand, rather than
promote a particular product or service. An example of a similar marketing
37. objective could be, "Have our brand be recognized around the world, with no
further explanation." Starbucks generated a lot of free publicity in 2011 by
removing the company name from its logo, relying on simply the well-known
siren to remind customers of the company.
For example, a start-up business may set objectives such as:
To achieve a 60% product awareness among the target audience within
37
the first year of operation.
To establish a 25% market share within the first six months.
To achieve a sales target of $150,000 before the end of the financial year.
To attain constant annual growth of 10% revenue in each year of
operation.
So likewise, the marketing objectives should be in such a way that, it should
achieve
And when setting the marketing objectives, it is very important to ensure that
the objectives are specific, measurable, achievable, and realistic and time
specific, or SMART for short. The "SMART" approach allows you to
effectively manage your marketing activities and importantly be able to
determine how successful they have been and whether they have delivered the
particular benefits sought.
Moreover, for any organization, in the overall success, growth and
development marketing objectives has a crucial role to play because, in the
overall performance of the businesses, ‘marketing’ plays a key role, and so it is
very important to meet the marketing objectives in an effective manner.
And the Samsung Company, before going to develop its strategic marketing
objectives, it is very much essential to know some important points that help the
marketers in developing the objectives.
The company should get the support the support of stake holders involved in
the directly or indirectly which helps to develop effective and sophisticated
objectives for the company, secondly, t is very important to understand the
audience because only after better understanding of audience, the company can
develop its objectives in relevant to the pulse and tastes of the audience.
38. So, it is very important for the Samsung Company to keep these points into
consideration while developing the marketing objectives.
In the mobile phone market, the strategic marketing objectives for Samsung
Company can be given as:
To understand and satisfy the needs and wants of the customers in an
38
effective manner.
To develop new products so as to increase the market share of the
company.
To diversify the Samsung mobile phone product base, thereby improving
the profitability and market share of the company.
To create value to the customers with its superior and innovative products
and services in mobile phone market.
To maintain and to be as a leading company in the market place and not
to be outshined by its competitors.
In addition to that, Samsung should create value to the customers with its
superior and innovative products and services and enabling to be as a
leading company in the market place and not to be outshined by its
competitors.
Thus, likewise the strategic marketing objectives for the Samsung Company can
be given.
So for the Samsung Company, in these present and tough competitive business
environments, the above marketing objectives are very much necessary in order
to compete more effectively and to perform well in the mobile phone industry.
39. 39
Task 4.1:
Report on the impact of changes in the external environment on the
marketing strategy of Samsung Telecommunications with examples:
For the Samsung Company, the external environmental factors can be given as:
1. Political factors
2. Advantages in technology
3. Changes in economic development
4. Globalization
5. Customer expectations
6. Socio cultural factors
7. Legal
8. Customer service
1.Political factors:
For the Samsung company, one of the primary impact could be from the political
environment, because the changes in the political legal systems could impact on
the marketing strategies of Samsung, if we take for instance if the regulations are
far and encouraging to Samsung, it can make more products and its sales and
customer base can be increased, but where as in tight political climates, the
marketing strategy for producing more number of products could be reduced. If
we take India as nation, because of encouraging and stable political system
Samsung has entered India and has increased its market share in India. For
instance, Samsung has been at times subjected to political action lawsuit. For
instance, it has been subjected to copyright law suit.
40. 40
2. Advancements in technology:
If we take Technology as external factor, the advancement on technology has
helped Samsung to develop and design various models of mobiles which unique
and advanced features, enabling to be a largest seller of mobile phones, by
overtaking Nokia. So advancement in technology also plays an important role in
making changes in the strategies of Samsung, and as the technology changes the
preferences and tastes of customers also changes and therefore, its strategies also
needs to be changed in order to upgrade itself in meeting the needs and
necessities of customers.
For instance, Samsung is ranked as one of the most innovative companies. The
software and applications available in the Samsung phone makes it exclusive,
by taking technological advantage.
3.Changes in economic development:
Changes in economic development is another important factor that makes an
impact on the marketing strategies of Samsung, because god and healthy
economic development of a country leads to good employment for the people and
having good disposable income thereby more sales can be made by Samsung, and
so the strategy also changes and should focuses of gaining more customers.
For instance, the recession that hit America in 2007 negatively affected the sales
of Samsung phones in the US. Fluctuation of the dollar also affects the sales of
Samsung phones.
4.Globalization:
Globalization is another important factor that could impact the marketing
strategies of Samsung, and it has both negative and positive impact on the
Samsung company, on the negative side, more competition, and there will be
bargaining power of customers and also there is chance for threat of substitutes as
41. Samsung is a global company and when comes to the positive side, the company
can get international recognition, can increase its sales and customer base
globally, can make use of latest and advanced technology etc.
So, in both sides globalization can make an impact on the marketing strategies of
Samsung.
41
5.Customer Expectations:
Also, if we take changes in Customer’s Expectations as another factor, it made
Samsung to think innovatively and build creativity in producing its products, if
we take Samsung smart phones galaxy series it is because of the customer’s
expectations, that fostered Samsung to develop these products.
6.Socio and cultural factors:
Moreover, changes in socio and cultural factors is also another factor that made
an impact on Samsung, it fostered the company to produce various products
needed for customers, such as TV, Refrigerators, Mobile phones, Home
Appliances, Ovens etc
For Samsung company there has been a trend in various places that Samsung
produces the best smart phones. Therefore, consumers around the world are
influenced by this notion that Samsung produces the best smart phone.
Thus, these are some of the external factors that could make an impact on the
marketing strategies of Samsung.
7.Legal:
42. If we look at the Samsung Company, the company has to face the penalties for
its copying the I pad and I phone and it has led to the taking for the company
taking the beat for the public perceptions and consumer products of the
strategies are concerned.
42
8.Customer service:
In addition to that in these present and tough business environments, giving
excellent customer services is very much essential and important for the
Samsung company, because customers are more literate and aware about the
products and the services so they wish to take the product which is beneficial
for them having excellent quality and service. Customers prefer to those who
provide them better service.
Thus, these are some of the external factors that could make an impact on the
marketing strategies of Samsung.
43. 43
Task 4.2:
Conduct an internal analysis to identify the current strengths and weaknesses
in the marketing strategy of Samsung Telecommunications. How the identified
weaknesses could be overcome:
For any organization, the internal analysis for identifying the strengths and
weaknesses can be done by using various methods which can be given as:
Market analysis
Performance analysis
Market analysis:
The market analysis helps to determine the attractiveness of a market and to
understand its evolving opportunities and threats as they relate to the strengths
and weaknesses of the firm. And some of the dimensions that come under the
market analysis are: market size, market growth rate, market profitability,
market trends, key success factors etc.
Performance analysis
A performance analysis is generally called for when you want to improve a part
of the organization (look for needs) or to fix a problem that someone has
brought forth. Both are generally fixed in the same manner.
There are four p erf o rma n ce imp ro v emen t n e ed s : Business, job
performance, Training, and Individual (Phillips, 2002).
When performing an analysis, it is best to take a long term approach to ensure
that the performance improvement initiative ties in with the organization's
vision, mission, and values. This connects each need with a metric to ensure that
it actually does what it is supposed to do.
And now for the Samsung Company the internal analysis for knowing its
current strengths and weaknesses in the marketing strategy can be given by:
44. The growth and market share is the one that helps in analysing the market share
the company has gained in terms of its products and how well the company has
achieved growth in its sales and also its customer base.
44
BCG Matrix:
And now of we look at the BCG matrix, it helps in analysing the product
performance in the market, in terms of which product is selling more, which is
gaining more market share and which does not impress the customers etc.
And the BCG matrix can be given as:
Star: It is the position that the company has occupied in terms of its brand image,
sales and market share which is growing further and also shows its current
position in the market place and for the Samsung company, it is definitely a star
45. in the market place because of its global brand, its sales and achieving excellent
market share in the market place.
Cow: It is when the market share is growing up, but the company’s business
growth rate is falling down and the company need to invest more in order to be
more competitive in the market place, and when comes to Samsung, it is not
Cow.
Dog: In this one, both market share and business growth rate are falling down
simultaneously which means the time has come to sell its brand, but if we look
at the Samsung Company it is not in a position to be sold to another company,
as it has encouraging sales and market share globally.
Question Mark: This means, the growth rate is improving, but whereas the
market share is falling down which means there is need to take investments and
put in other businesses, but of we look at the Samsung it is all over from
mobiles, electronics to home appliances. So there is no point of question mark
for Samsung Company.
Along with the above the company’s internal analysis can be done by doing
SWOT analysis that helps in knowing its weaknesses and the opportunity to
grow further.
The current strengths and weaknesses in the marketing strategy of Samsung
Telecommunications can be given as:
45
Strengths:
The strengths of Samsung in the marketing strategy of Samsung
Telecommunications Company are:
It has the widest range of product portfolio.
Its brand image and brand value in the market.
Its global presence in electronics industry.
The company’s strong financial stability in the mobile phone market.
As Samsung having major assets on technology.
Major supplier of electronic components.
Its innovation and creativity in developing new products.
Having strong command on new technologies.
Predominance in market share in mobile phones.
46. 46
Weaknesses:
And now when comes to weaknesses in the marketing strategy of Samsung
Telecommunication company are:
It has the image of manufacturing lower quality products.
Not proactive in developing new products.
Language and cultural barriers.
Insufficient talent in creating its own software as like Apple I-OS.
Heavily investing in developing new markets, but not focusing on gaining
core competencies
The Samsung products are not being user friendly when compared to
Nokia.
And the weaknesses for the Samsung Company can be overcome by:
By doing this analysis and applying SWOT, the weaknesses of ST are:
1.Lack of its own software
2 Products are not user friendly
3.Recognised as a lower end product
4.Language and culture barriers
Ways to overcome these weaknesses:
1. Lack of its own software: By concentrating more on developing its own
software which should integrate with its hardware. Presently Samsung buys
and uses software from Intel. This way it could be global leader in electronics
by overtaking Apple.
2. Products are not user friendly: Secondly, the company has to put more effort
in developing more user friendly products for customers. As a result Samsung
is losing customers to Micromax , Xolo , MotoG , Lava.
3. Recognised as a lower end product : Samsung has to move away from being
recognized as a lower end product. It can do this by choosing a young dynamic
successful brand ambassador, sponsoring sports , cycling events, etc.By doing
47. innovative marketing techniques the company should erase that low product
brand that printed in the minds of the people.
4.Language and culture barriers: Moreover, the company should set up more
manufacturing plants in US and European nations, so that the language and
cultural barrier can be minimised.
Thus, by doing these Samsung can overcome its weaknesses and enable to
become as sophisticated and luxurious brand in the mobile industry.
47
48. 48
Task 4.3:
Propose strategic marketing responses to key emerging themes in a marketing
strategy of Samsung Telecommunications:
By keeping the emerging themes in mind, Samsung Company needs to respond
in order to stay in competition and to be as an active player in the market place.
And some of the strategic marketing responses that Samsung needs to make in
these key emerging themes can be given as:
Using advanced technology:
In order to respond effectively for the key emerging themes, it is important for
Samsung to use more advanced and innovative technology, so that it can
compete effectively with the rival companies. Because as different new trends
are emerging it is essential for Samsung to update itself and to respond very fast
and turning these trends as a success factor.
In addition to that, in these tough competitive business environments, for the
Samsung Company it is very much essential and mandatory to take technology
into consideration and by making technology as central the company needs to
develop its marketing strategies.
Increasing its product base:
Secondly, by increasing its product base by manufacturing wide variety of
models with various features so that it can compete effectively in the market as
the preferences, tastes and interests of customers are changing quickly so, it is
important for Samsung also to go along with the new emerging trends. As the
competition has been increasing from other firms like Nokia, Apple, Sony,
Micro Max etc it is very important and essential for the Samsung company to
manufacture various innovative and stylish products that attracts the customers
for a longer period of time.
If we take for instance the company should focus on developing more reliable,
user friendly and flexible mobiles so that it makes the customers to buy more
mobiles and increase its sales and market share.
49. Decreasing its prices to be more competitive:
Thirdly, in order to compete more effectively and to gain sales there is need to
reduce its prices because there is scope for emerging companies that could
affect Samsung in terms of pricing, and so, the company needs to respond such
that it should keep competitive prices to its products.
If we look at the mobile phone industry, it is one of the most competitive
industry, where customer is the king and it is the mobile phone firms needs to
understand the pulse of customers by giving mobiles with lower prices and with
more features when compared to the rival firm, so that it can be active in the
market. So for the Samsung Company also it is very much essential and vital to
minimise its prices so that it can gain more sales and market share in the mobile
industry.
Reacting quickly to the competitors strategies:
Also, to be as an active player in the market, it is very important for Samsung to
react quickly to the plans and strategies of other firms like Apple, Nokia etc so
that it can act quickly and can avoid competition from other firms. As the
competition has been increasing in the mobile industry, it is very much essential
go the Samsung to have better and more advanced strategies when compared to
the rival firms and it should react very quickly so that, they can be as a leader
instead of follower to the new and latest technology.
Increasing its skilled human resources:
Also, in order to keep balance and match with the changing trends, it is essential
for Samsung to have skilled and talented employees as they can make a huge
difference in the success and performance of the company, because in these
competitive business scenarios, gaining skilled employees is one of the
challenging tasks for the companies so in order to meet the emerging trends it is
very much mandatory and useful to increase the skilled employees needed for
the Samsung company/
49
Having foresight on technology:
In addition to the above, having foresight on technology is another thing that
Samsung needs to do, in order to meet and connect to the emerging trends in the
market, because being a technological company it is very much mandatory for
Samsung to have foresight on technology. As technology increases in a rapid
50. manner, it is very important for Samsung to guess and predict the next level of
technological advancement that could emerge and hit the customers, so that it
can be well prepared and could develop products according to the advancements
in technology.
Embedding innovation and creativity:
Moreover, along with the above, for the Samsung company there is need to
embed innovation and creativity in its products and also in its marketing
strategies so that it can effectively respond to the emerging trends that could
happen with the customers tastes, needs and necessities.
Effective utilization of resources and facilities – another important response
from the Samsung will be effective utilization of the resources that helps the
company to achieve lean in all its processes and operations leading to achieve
core competencies, because it will make the company to reduce its production
cost and to reduce wastages, which can increase the margin for the company.
Thus, these are some of the strategic marketing responses that Samsung has to
do, in order to compete well with the emerging trends.
50
51. 51
Conclusion:
Thus, from the above tasks and the case study, it can be concluded that in these
present business scenarios Samsung Company has been an active player in the
electronics industry and it has an effective strategic marketing management that
is making the company to be as a pioneer and monster in the mobile industry.
Also, if we look at the performance, the performance has been very effective
and significance both financially and also in the increase of the brand image of
the company. But still if we have an in depth analysis of the company, there is
still lot of scope for Samsung to improve and to become as global leader in
electronics and telecommunication industry by over taking Apple, Nokia, Sony,
and Panasonic.
52. 52
References:
Drummond, Graeme., Ensor, John., Ashford, Ruth (2008) strategic marketing:
planning and control, 2nd ed, USA: Butterworth Heinemann.
Gilligan, Colin., Wilson, Richard M.S (2009) Strategic Marketing planning, 2nd
ed, United Kingdom: Butterworth Heinemann.
Proctor, Tony (2000) Strategic marketing: An introduction, 1st ed, Canada:
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Rowley, J.E (2006) Information Marketing, England: Ash gate publishing Ltd.
Sahaf (2008) Strategic Marketing: Making Decisions For Strategic Advantage,
1st ed, India: Prientice Hall.
Stanco, James P (1996) Utilizing the strategic marketing organization: the
modernization of the marketing mindset, New York: The Haworth Press. Inc
53. 53
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