Marketing Strategy for Samsung Essay Example

penetration, which involves boosting sales of an existing product in an existing market; (2) Product development, which entails enhancing current products or developing new ones for the current market; (3) Market development, which centers on selling existing products in new markets like expanding export sales; and finally, (4) Diversification, which encompasses entering new markets with new products.

When it comes to diversification, the perception of a product and the importance of the brand are key considerations. A brand encompasses both tangible and intangible attributes that are represented by a trademark. With effective management, a brand enables a business to differentiate its offerings from competitors, offer added value for consumers who prioritize brands, and improve profitability. The global market for handsets has experienced significant growth in recent times.

Undoubtedly, the significant expansion in the handset industry has resulted in intense competition between various manufacturers. This analysis further discusses Samsung's marketing strategy, which has driven the company's efforts to establish itself as a prominent player in the global market. Samsung initiated its association with the Olympics during the 1998 winter games in Angina. It has entered into a contractual agreement with the International Olympic Committee, ensuring its sponsorship extends until the Beijing games in 2008, and is expected to continue thereafter.

The Olympic sponsorship marketing strategy is crucial for increasing our brand awareness globally. Samsung's online sales of mobile phone handsets have significantly grown over time. Many people consider the internet as an alternative to traditional marketing and believe it is a rapidly growing industry. Internet marketing has not replaced traditional marketing but has integrated it and opened up more opportunities for marketers.

The traditional concepts of

the marketing mix (4 Up's) are still employed in Internet Marketing, but their logic has evolved. In the case of 'Promotion', traditional marketing involved a one too many process where businesses transmitted their advertisements to customers through mass media without any customer interaction. Internet Marketing, on the other hand, utilizes a many to many communication process that allows customers to interact with the medium, each other, and contribute content. As a result, marketers need to adapt their advertising models to the interactive nature of the web, which is characterized by a many to many communication approach.

The advent of internet marketing has transformed the marketing industry, allowing Samsung to overcome geographical limitations and broaden its consumer base. Consequently, this has facilitated the introduction of new products and diversification. Moreover, Samsung no longer needs a physical store since it can furnish customers with all necessary information online. As a result, this lowers expenses like rent and ultimately impacts the pricing of their offerings.

To succeed in the crowded market, Samsung must comprehend customer preferences and develop effective marketing strategies. In the past, scarcity of products was typical; however, now buyers have a plethora of choices. Thus, companies need to possess a competitive advantage. Acquiring information about competitors is vital for understanding and maintaining this advantage.

When it comes to the corner grocery store, they only need to make an estimated guess at what their customers desire, thanks to the convenience factor that draws in their clientele. However, if Samsung eliminates this advantage, as customers are now able to access the World Wide Web (WWW) to find what they want from anywhere, Samsung must know precisely what

customers are seeking. Additionally, Samsung must ensure that their website has a visually appealing design and is capable of not only attracting visitors, but also encouraging repeat visits. Samsung has numerous versions of their website available in various languages specifically tailored to customers from all around the globe.

The website provides product and service information for all Samsung products. Some versions of the website allow customers to purchase directly online. Samsung intentionally decreases sales in the fourth quarter to gain market share in the first quarter, a strategy that has been successful in recent years. According to a spokesperson for the company interviewed by The Wall Street Journal, Samsung believes holiday shoppers prioritize affordable prices and are not interested in higher-priced models. As a result, they sell their current inventory during the fourth quarter and increase shipments during the first quarter to maintain a high average selling price.

Samsung claims it can avoid reducing prices for unsold inventory in the first quarter by utilizing this method, despite its margins being reduced in the fourth quarter due to price cuts implemented by Monika. However, there are criticisms of the traditional tools and approaches used in marketing strategy. One prominent criticism by Fodders argues that marketing strategy is often perceived as the result of mechanical application of traditional analytic frameworks and techniques such as SWOT analysis, Anions Diagram, portfolio models, and others. Fodders points out that problems arise when data generated by these formulaic efforts are misconstrued as simple solutions to complex questions. Additionally, Fodders suggests that a new approach called strategic thinking is emerging in the exploration of strategy from different perspectives. According to Fodders (2005),

strategic thinking refers to how individuals within an organization think about, evaluate, perceive, and shape the future for themselves and their colleagues.

Strategic thinking involves more than just responding to daily and long-term issues, opportunities, and new circumstances. Instead, it revolves around creating the future. It is not merely a reactive approach, but a proactive one. Strategic thinking aims to enhance society by proactively adding value and considering how to shape a better tomorrow. This approach goes beyond relying solely on conventional methods like SWOT analysis or adapting to changes as they occur. Instead, it emphasizes seeking out and nurturing distinctive opportunities to generate value through constructive and innovative discussions among individuals who possess the power to influence a company's trajectory.

Strategic planning relies on strategic thinking, which helps identify potential opportunities for value creation and addresses assumptions about a company's value proposition. This approach enables targeting these opportunities when creating a plan. Strategic thinking involves comprehensively and playfully questioning predictable thinking about the fundamental drivers of a business, while engaging in conversations with others. It is essential for strategic thinking to consider competencies and skills, such as Samsung's main strength in innovation. This strength can lead to a competitive advantage by offering next-generation products.

Samsung, with a lesser reputation than Sony for reliability and quality, can alter customer perception over time. The process of strategic thinking is important as it ensures that Samsung's strategies align with its mission, vision, competitive situation, and operating strengths. These strategies are goal-oriented, aiming to achieve the company's goals by setting clear expected outcomes and establishing explicit links between these outcomes and the company's goals. The best strategies

are fact-based, supported by real data, although they require assumptions about the future that are educated guesses based on facts. Effective strategies provide a clear logic and tell believable stories. Strategically nimble companies consider multiple alternatives and scenarios when making strategic choices. It is important for a company to be focused and make choices about what it will do and what it will not do.

Strategies provide clear guidance on prioritizing a company's activities and deploying its limited resources. They also aim to gain the support of multiple stakeholders by involving them in the strategy development process and sharing the reasoning behind it. Engaging strategies that require broad resources must be easily articulated to capture the attention of those responsible for implementing them. Strategies should be adaptable, allowing for adjustments based on experimentation, errors, and new information. However, these adjustments should be thoughtful and responsive rather than overly reactive. Effective strategies consider the strengths and skills of the organization and include explicit plans for implementation.

Implantable strategies are essential in guiding decision-making and shaping behavior across the company. The electronics industry is currently undergoing significant transformations brought about by new technologies, economic fluctuations, and heightened competition. To tackle these challenges, companies depend on top management to devise and implement approaches for overcoming these hurdles. The main duty of top management is to execute a strategic plan that entails identifying the present business state and desired future goals of the firm, along with determining the strategy it will adopt.

To achieve success, managers must possess skills in strategic thinking. This process enables managers to transform the business vision into reality by honing abilities in teamwork, problem-solving, and

critical thinking. Strategic thinking is also essential for effectively managing change, planning transitions, and envisioning new opportunities. Its application is particularly valuable in corporate marketing strategies as 21st-century organizations resemble "organisms" rather than "machines".

Strategic thinking is a more comprehensive and interactive approach to developing a marketing plan than a straightforward technique like a SWOT analysis. It has the potential to impact the marketing plan for future rodents in a positive way. McDonald (1989) indicated that there are ten barriers to marketing planning. These barriers were identified by McDonald, M.

The listed items are as follows:

• Confusion between marketing strategy and tactics.
• Isolation of marketing function from business operations.
• Confusion between marketing function and marketing concept.
• Prevailing organizational structures along functional lines.
• Confusion between process and output.
• Lack of core marketing management knowledge and skills.
• Lack of a disciplined, systematic approach to marketing planning.
• Need to priorities objectives.
• Need for a more appropriate marketing culture.

'By incorporating a proficient marketing team consisting of key marketing analysts, Samsung has the potential to overcome the obstacles they currently face. Nonetheless, it is not uncommon for conflicts to arise within their marketing plan. Certain components that are considered strategic may turn out to be mere tactics. These incongruities can adversely impact Samsung's marketing performance. To create a strategic plan for their organization, Samsung's top management should prioritize five essential factors. These factors will not only help achieve the desired outcomes but also establish and execute the necessary measures to materialize the

company's vision. The primary factor that top management needs to focus on is Samsung Electronics itself.

The organization of a business includes the delegates, the organizational structure, and the necessary resources. Samsung needs to determine the structure and support to achieve their business vision. Top management must also combine people, resources, and structure for optimal results. Another important factor is observation. When viewing the world from an airplane, one can see more than from the ground.

By improving their observation skills, top management can increase awareness of motivational factors, enhance problem-solving abilities, and distinguish between options. It is also important to take into account different perspectives as they provide valuable tools for considering potential outcomes, identifying key elements, and optimizing actions for success. Furthermore, assessing the driving forces behind Samsung's operations is crucial in order to achieve desired results.

Typically, driving forces establish the basis of top management's desired priorities in business. These can encompass aspects like dedication, action, efficiency, output, and worth. Additional driving forces may encompass individual and corporate motivation, empowerment, and advancement. Factors such as a well-defined vision, values, and goals, as well as productive elements like a mission or function, and measurable factors such as results or experience can come into play. Once the initial four phases of the strategic thinking process are completed, top management should have the ability to determine their optimal position.

The ideal position outline should include the necessary conditions for Samsung to be productive in its niche in the marketplace. It should also address filling opportunities that currently exist or may arise in the future, based on Samsung's core competencies. Additionally, the outline should specify the

skills required and strategies and tactics that will be employed to achieve the company's vision. By focusing on these five areas, the Samsung management team will gain a clearer understanding of how to accomplish their goals.

As the vision becomes clearer, ideas will gain strength and become more persuasive. This not only makes it easier for management to convince others that the idea is worthwhile, but also helps them maintain certainty and motivation when encountering obstacles or setbacks. In general, anyone can apply strategic thinking skills to different aspects of their life. However, by deliberately focusing on applying these skills to the business project, Samsung Electronics can greatly enhance their ability to overcome marketplace challenges if they adopt strategic thinking.

The text discusses the three common strategies proposed by Michael Porter, including overall cost leadership, differentiation, and focus. Samsung aims to achieve low costs in production, administration, and distribution to offer lower prices than competitors and gain a significant market share. Additionally, Samsung can focus on delivering superior performance in an area valued by a large portion of the market.

The firm aims to utilize its strengths to achieve the desired differentiation. Hence, the firm strives for quality leadership. Samsung focuses on specific market segments and thoroughly understands them, pursuing either cost leadership or differentiation within these segments. According to Porter (1986), having a competitive advantage means providing buyer value more efficiently than competitors (low cost) or delivering activities in unique ways that create more buyer value than competitors and therefore justify a higher price.

Companies like Samsung Electronics can adopt these factors to gain a competitive advantage and added value over rivals like Sony. Business

leaders must prioritize strategic thinking over being tactical or task oriented in order to avoid short-sightedness. Having a clear understanding of the value and benefits of strategic thinking is crucial. Here is a list of thoughts on the importance of strategic thinking for Samsung: staying ahead and leading in terms of change and innovations.

Optimizing the ability to adapt and benefit from changes, electronics are constantly evolving. This includes reducing anxiety, fostering a sense of cohesion among employees, providing proactive leadership, thinking systemically, promoting lifelong learning, offering effective problem-solving mechanisms, and enhancing understanding of the business environment. These are the benefits of strategic thinking.

Improved guidance on actions to achieve the company's vision and missions and the implementation of a proactive leadership culture and a detection system to warn of changes are essential for the long-term survival of the business. Identifying competitors, opponents, and business allies can provide a competitive advantage and improve the agility and postoperative response capacity of the company. By examining traditional marketing strategy techniques used by Samsung and other firms, we can see how certain tools can help shape a business strategy. Although new marketing strategies are emerging, traditional strategies such as SWOT analysis are still crucial in every marketing plan. However, it is important to note that strategic thinking, as advocated by theorists like Michael Porter, has become increasingly important in marketing and strategy development. Strategic thinking delves into various areas to uncover new ways of achieving a competitive advantage. While strategic thinking involves some qualitative analysis, it may be time-consuming and expensive.

In 2005, Fodders made a point about the perception of tools in marketing strategy. They believed that

these tools were often seen as simple solutions to complex issues, merely applied mechanically. However, new approaches are emerging which emphasize the importance of strategic thinking. These new directions suggest that strategic thinking can enhance existing marketing strategy tools, enabling them to tackle complex questions. Consequently, it has become clear that not all techniques in marketing strategy are straightforward applications and should not be viewed as such.