Marketing: Mobile Phone and Samsung Essay Example

its strong reputation by offering a range of mobile phones tailored for different users in various countries. To further expand its market share, the company can explore sub-brands and implement effective promotion programs in developing and third-world nations while also establishing more stores in these regions to achieve this goal. One advantage that Samsung possesses is its ability to produce affordable smartphones that are popular among low-income consumers in various countries. This strategy helps retain current customers and attract new ones. Additionally, introducing more durable products could appeal to conservative customers and result in increased sales and profit margins.Despite facing competition from Monika, Motorola, and Chinese mobile phone companies, Samsung has a strong portfolio and numerous opportunities to expand its market share. The widespread availability of the internet allows consumers to communicate through alternative methods such as Spiky on computers, posing a challenge for Samsung's dominance in the market. However, other companies are offering additional features at lower prices in response. Despite the growing presence of alternative products and services in the Samsung Telecommunications market, there are risks and threats that the company faces.One key competitor in the communication and information technology industry is Monika, a Finnish Multinational Communication company. Monika produces and sells mobile phones and portable IT devices worldwide. It is a joint company with Siemens, providing equipment and services for telecommunications networks globally. This section will discuss competitors' activities in the global telecommunication market and analyze different competitors of Samsung Telecommunication to highlight its competitive edge.The key factors contributing to Samsung's success in this competitive environment are extensive growth and brand recognition.Monika offers a variety of products including smartphones, mobile computers, networks,

mobile gaming devices, mini laptops, and internet tablets (Monika Booklet 36) (Monika Corporation, 2009). From 1998 to 2012, Monika was the leading global vendor of mobile phones (BBC, 2012). Despite recent competition challenges, Monika continues to hold a significant market share worldwide by offering affordable and durable handsets targeted towards lower and middle-class individuals. In contrast, Apple Inc., who markets Monika's phones, has gained a substantial market share since its initial release due to its exceptional operating services (Honda & Mathew, 2007). Apple Inc. has subsequently introduced five additional devices with improved features that have garnered positive customer reputation (Appendix 1). The number of customers has increased from 0.27 million in Q2007 to 37.40 million in Q2013. However, lower and middle-class individuals find it difficult to afford Apple's phones due to their generally expensive prices. Furthermore, the phone market is gradually shrinking due to technological advancements and competition. Despite existing phone models' ability to adopt newer software versions, customers are content with their current phones and do not feel the need to purchase newer versions.Motorola, an American telecommunications company, split into two separate entities in 2011. It focuses on selling cell phones of varying levels of smartness. Although it lost market share over the past decade, Motorola is now trying to regain it by promoting the intelligence of its products through Google's Android operating systems.

Samsung Telecommunications offers a range of products including tablet computers, smartphones, networking systems, and mobile telephone infrastructure. These products have a significant impact on Samsung's business.

BlackBerry has gained a substantial global market share since its launch in 1999. In 2011, it accounted for 3% of global mobile device sales and

held 25% of the smartphone market according to Garner. The number of BlackBerry users steadily increased from 2003 to 2012.

Samsung has established a strong global presence by delivering high-quality products at affordable prices across all customer segments. Recent reports show its adaptability to changes and competitive position in the market. Extensive research confirms Samsung's exceptional reputation among customers worldwide. For example, their GALAXY SO received over 10 million advance orders across 145 countries, demonstrating its strong market share (Samsung, 2019).Samsung Telecommunication could consider producing smartphones at more affordable prices to tap into a growing market and counter competitors' advancements. This can be done by implementing effective promotion programs through market segmentation, targeting specific customer groups, and positioning phones according to their needs and preferences. These steps allow for the identification of customers, selection of popular mobile phones, optimization of product segmenting for Samsung, and effective communication with customers.

Segmentation is the process of identifying customer demand and understanding what customers want. Some customers may not have a need or desire for smartphones, while others are interested in them for their multiple uses. Not all phones will be suitable for all customers. By focusing on the preferences of the majority of customers, Samsung can increase its profitability.

Market segmentation divides the market into groups based on similar trends, requirements, interests, and needs. The three segments for Samsung's customers are demographic, socio-cultural, and cryptographic. The demographic approach includes segmenting the market based on income level.

The range of phones offered by Samsung caters to a wide variety of customers by providing different models at various price points to meet their expectations and demands. Socio-cultural segmentation takes cultural and habitual

differences among customers into account.

The mobile phone preferences of British customers compared to those in the Middle East demonstrate differences. Additionally, limited internet access in developing countries such as Bangladesh may restrict access to certain Samsung models. To meet customer needs for seamless functionality, Samsung ensures that its mobile phones are user-friendly and portable. The target market refers to specific groups of customers who use a company's products or services, which Samsung identifies and satisfies through market segmentation. They offer phones at various price points and models to cater to different segments of consumers. Samsung understands the expectations of their target users by providing expensive mobiles for the affluent class and lower-priced options for individuals from lower-class backgrounds. Furthermore, they can also target average customers who value reliable service and entertainment from their mobile phones. Age is another factor considered in targeting customers as demand varies across age groups; therefore, Samsung can create phones tailored to different demographics (see Appendix 3). Positioning also plays a role in shaping customer perception and ideas about products; thus, Samsung can develop phones specifically designed for different target customers since a phone popular with young people may not gain the same popularity among older customers.The Samsung Annual Report 2011 states that having a strong brand and good products influences customer purchasing decisions, leading to repeat business and a competitive advantage. Samsung telecommunication differentiates their phones and services based on pricing and features. Increasing sales volume during occasions like New Year, Christmas, Valentine's Day, etc., can benefit companies. Samsung can implement effective measures to meet the increased demand during these periods. The information in "Appendix 3" could further clarify how

Samsung tailors its phones to different age demographics. Appendix 4.3.1 includes the four AS concept (product, price, place, and promotion), which helps companies overcome physical barriers in widespread production adoption. When developing phones, Samsung considers factors such as design, quality, features, packaging, customer services, and after-sales services. Adapting products to changes in demand is crucial for attracting new customers and retaining existing ones to increase sales and profit. Price plays a significant role in the marketing mix since high prices can deter potential customers. Samsung can improve its pricing strategies by aligning them with brand strategies and adjusting them based on different customers' income levels.It is important to offer a variety of prices in order to attract customers who prefer branded products at affordable prices. Samsung chooses not to sell phones directly to consumers and instead relies on multi-level distributors to ensure efficient product distribution. In stores, it is crucial to prominently display Samsung's smart spheres as this enhances their perceived value and easily grabs the attention of potential buyers. Additionally, marketing strategies should be customized based on different regions or locations.The four AS concept (product, price, place, and promotion) is crucial for companies like Samsung to overcome physical barriers that hinder widespread production adoption. This concept is shown in appendix 4.3.1. When developing phones, Samsung must consider various factors such as design, quality, features, packaging, customer services, and after-sales services. Adapting the product to changes in demand will not only attract new customers but also retain existing ones, leading to an increase in sales and profits simultaneously.

The price of a product plays a crucial role in the marketing mix as a high price can

drive away customers. To enhance their pricing strategy, Samsung can align it with their brand strategy and make adjustments based on different customers' income levels while offering different price ranges for various products. It is crucial for Samsung to offer a range of prices to attract customers who are more likely to purchase branded products at reasonable prices.

Instead of directly selling phones to customers, Samsung relies on multi-level distributors to ensure their products reach the hands of customers. In-store displays are important for Samsung's smart spheres as they should be prominently displayed so that all customers can easily notice them and potentially increase their perceived value.

Marketing strategies should also be customized for different regions or locations where Samsung operates. Promotion plays a crucial role for Samsung by requiring active promotion of their phones from the moment they are introduced. This helps differentiate themselves from competitors and attract customers effectively.Samsung can effectively promote its unique product features and services through various platforms such as radio, computers, online processes, billboards, conferences, TV, and seminars. By developing slogans specific to each mobile phone model, like the GALAXY SO's "Inspired by Nature" (Samsung 2011), Samsung can enhance sales and market presence simultaneously. To compete in the smartphone market and achieve a larger market share, it is recommended that Samsung reduce prices. Additionally, promoting innovative features through appealing advertising and branding can benefit Samsung. Expanding the number of global Samsung Mobile Stores will also increase brand visibility among customers.