Marketing concepts for Samsung Electronics
| Subject: | 💼 Business |
| Type: | Critical Analysis Essay |
| Pages: | 5 |
| Word count: | 1348 |
| Topics: | Marketing, Business Ethics, International Business, 🛒 Consumerism |
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Table of Contents
Introduction
The Samsung Group is an international conglomerate company that has its head offices in Samsung Town, Seoul, South Korea. It is the leading conglomerate in the world by revenue with yearly revenue of US$173.4 billion in the year 2008 and at the same time it is South Korea’s greatest chaebol. The latest vision of this multinational is to inspire the world and create the future going by its latest motto. This is a reflection of the fact that the organization is committed to inspiring its communities by leveraging its three major strengths of new technology, innovative products and creative solutions. The primary aim of this company is to form innovate technologies and efficacious processes that establish novel markets, enrich the lives of the people and at the same time continue to make the company the leading market leader. Presently, the company has a total of 111 subsidiaries that are in the form of sales subsidiaries, production subsidiaries, research laboratories, distribution subsidiaries and eight business divisions in foreign nations. Marketing concepts refers to all the activities that are used in the creation of place, time and possession utilities. Telecommunications industry is facing a lot of stiff competition hence due to the emergence of many other firms such as Apple, LG and Sony that have brought it a lot of innovation and creativity so as to claim the greatest market share and increase profitability. This paper looks at the various marketing concepts as they apply to Samsung Group Company and recommending the best that can help it achieve and maintain the lead in terms of the market share.
Marketing concepts
Product concept
According to this particular marketing concept, customers tend to prefer goods that are of the best quality in terms of both innovative features and performance. This particular concept believes in the client and it holds that the customers are susceptible to being increasingly loyal if they have a variety of options of goods or rather if they derive more benefits from the goods of the particular corporation (Ryan, 2016). This is a pointer towards the fact that in this case, consumers are willing to buy the product even at the highest price provided that it provides the greatest benefits to them or rather provided that the utility of value proposition of such a product is high. This has the greatest capacity to create increased customer loyalty hence providing a ready market for the products that are being manufactured by such an organization. Samsung as a company has been able to apply this concept so as to ensure that it produces and supplies high quality products to its clients. This is the only way in which it can cope up with the stiff competition that is being experienced in the industry due to the increased use of technology by the other players. In brief, the production marketing concept does not put emphasis on the quantity produced and supplied but rather it only focuses on the quality of the products generated and supplied in terms of both the unique features and the performance of the items since the higher the quality of the products, the higher the loyalty of the consumers towards it irrespective of the price at which the good is selling. This kind of strategy resonates well with the fact that any consumer will always want to get the value for his or her money by ensuring that the product procured offers the required utility with optimum performance. It is thus critical for the Samsung Company to stick to and continue to apply this noble marketing concept that guarantees ready market hence high profits.
Marketing concept
This particular concept centralizes on the wants or needs of the target markets in terms of delivering value that is far and beyond what the competitors are providing instead. The marketing concept puts a lot of emphasis on the pull strategy and it holds onto the fact that the firm needs to make its brand very strong to the great extent that the consumers themselves prefer the brand over those provided for by the competitors within and without the industry (Hansen, 2017). This can be greatly achieved through marketing. It means that this given strategy will transform the company into ‘a go to brand’ by the consumers due to the high utility of the products on offer. The beauty here is that the company will not then have to spend too many resources in market sensitization or activation activities in order to sell but instead, it is the clients who will pour in and purchase the brand owing to the fact that the goods produced will be meeting the specific specifications by the client. As a company, Samsung Company ought to make sure that it makes proper use of this particular strategy since it will guarantee it both a ready market for its products and also customer loyalty. The beauty of it all that the company will be generating its products after an extensive market research to ensure that it first establishes what the clients wants or identification of the market gap and then getting back to manufacture only those goods that meet the market specifications hence creating immediate demand.
Production concept
According to this particular marketing concept, the clients tend to prefer only those goods that are widely available and affordable or rather inexpensive. This particular concept is more operations oriented compared to any other concept (Baker and Saren, 2016). The management is more concerned with the production of volumes of products without giving any significant consideration as to the quality of the products that they are producing and supplying to the market. It is also critical to underscore the fact that there is a lot of focus on production efficiency in this particular concept meaning that the overall costs of production by the company are to be very low to allow for voluminous production. Moreover, this concept performs well when it comes to distribution in the sense that there is never any market deficit owing to massive production and supply of the goods to the market since the producers believe that the consumers will buy the product when they see the large volumes. Furthermore, the concept pays little attention to the consumers who also tend not to like it since the concept does not factor in the consumer specifications.
Recommendations/conclusion
In summary, it is proper for Samsung Group Company to embrace the marketing concepts of product and marketing. This is owing to the fact that the duo focuses more on the production of high quality products that have unique features and increased performance. This means that such concepts always make it possible for the organization to produce those products that are demanded by the consumers hence providing ready market (Wirtz and Lovelock, 2016). Furthermore, there is no need for intensive market activation since the production process is informed by the results of the market research and development activities that the company will have engaged into prior to embarking on the actual production process. The idea here is to have the consumers have the best of what they demand for hence guaranteeing them value for their value. Furthermore, the company will not suffer much wastage given that it will only be producing and supplying that which is enough for the market to avoid both the incidences of surplus or deficit that might be costly to it in the long run. For the reasons highlighted above, it is thus prudent for Samsung to continue applying the two marketing concepts of product and marketing so as to be able to uphold its leadership in the telecommunications industry that is under stiff competition from the other well established players.
- Baker, M.J. And Saren, M. Eds., 2016. Marketing Theory: A Student Text. Sage.
- Hansen, D.D.J., 2017. MARKETING CONCEPTS.
- Ryan, D., 2016. Understanding Digital Marketing: Marketing Strategies For Engaging The Digital Generation. Kogan Page Publishers.
- Wirtz, J. And Lovelock, C., 2016. Services Marketing: People, Technology, Strategy. World Scientific Publishing Co Inc.
Offered for reference purposes only.