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

2

TABLE OF CONTENTS PAGE NO

EXECUTIVE SUMMARY......................................................................04

TASK 1.1.................................................................................................07

TASK 1.2.................................................................................................10

TASK 1.3.................................................................................................12

TASK 2.1.......................................................................................... .......21

TASK 2.2.................................................................................................24

TASK 2.3.................................................................................................26

TASK 3.1.................................................................................................30

TASK 3.2.................................................................................................34

TASK 3.3.................................................................................................38

TASK 4.1.................................................................................................42

TASK 4.2.................................................................................................47

TASK 4.3.................................................................................................50

CONCLUSION........................................................................................51

REFERENCES ........................................................................................52

WEB REFERENCES...............................................................................54

3

Organization:

The organization taken as case study for doing the assignment is Samsung.

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

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 vision 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

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.

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:

Foresight on technology.

Creating customer value.

In depth market research.

Differential advantage.

Creativity and innovation

Marketing

process of

Samsung

Foresight on

technology

Differential

advantage

Creating

customer value

Creativity and

innovation

In depth market

research

10

for

Thus, based on the above factors that are involved in the marketing process for

Samsung Company.

11

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 s trategy for the

Samsung Company can be evaluated by:

The effective meeting of the business goals and objectives of the

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.

13

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:

14

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.

16

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

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.

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.

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

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

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.

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.

Marketing tactics

Strategic positioning

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

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.

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.

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:

Stage 2:

Stage 3:

And some of the important and useful marketing techniques to ascertain growth

opportunities for Samsung Company can be given as:

Prior to

marketing

activity

During

marketing

activity

After marketing

activity

Market research

Developing marketing mix

Evaluation of market

potential

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.

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.

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

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 play 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.

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

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.

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."

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

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

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

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

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.

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.

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

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.

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:

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

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.

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/

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.

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

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:

Routledge publishers.

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

Web References:

http://www.fek.uu.se/student/blivandestudent/index.asp?page=blivandestudent_

smm accessed on 5-5-14.

http://www.gsb.stanford.edu/exed/smm/ accessed on 5-5-14.

http://booth.chicagoexec.net/programs/smm.aspx accessed on 5-5-14.

http://www.slideshare.net/aeldeeb/strategic-marketing-management3rdedition

accessed on 5-5-14.

http://www.ehow.com/info_8186633_strategic-marketing-management-

definition.html accessed on 5-5-14.

https://www.ventureline.com/accounting-glossary/C/corporate-strategy-

definition/ accessed on 5-5-14.

http://prezi.com/f-sc0-wx9dxk/corporate-strategy-samsung/ accessed on 5-5-14.

http://www.businessinsider.in/Samsung-Has-A-Totally-Different-Strategy-

From-Apple-And-Its-Working-Great/articleshow/21250813.cms accessed on 5-

5-14.

http://cct424-samsung.wikispaces.com/Five+Forces accessed on 6-5-14.

http://managementstudyguide.com/porters-five-forces-analysis-of-samsung.htm

accessed on 6-5-14.

http://cct424-samsung.wikispaces.com/PESTEL accessed on 6-5-14.

http://www.marketingprofs.com/articles/2013/12158/three-marketing-tactics-

for-the-emerging-apple-demographic accessed on 6-5-14.

http://www.businessknowhow.com/marketing/5marktech.htm accessed on 6-5-

14.

http://www.ukessays.com/essays/marketing/marketing-techniques-to-ascertain-

growth-in-a-market-marketing-essay.php accessed on 7-5-14.

54

http://researchpasspapers4u.blogspot.in/2013/03/strategic-marketing-

management_15.html accessed on 7-5-14.

http://s3.amazonaws.com/caclubindia/cdn/forum/files/132406_948325__itsm_q

uestions_chapter_4and5.pdf accessed on 7-5-14.

http://www.marketing91.com/swot-analysis-samsung/ accessed on 7-5-14.

http://www.slideshare.net/ramtinreza/samsung-swot-analysis accessed on 7-5-

14.