Background Of Samsung Electronics Company Marketing Essay

Samsung Consumer electronics is a Southern Korean multinationalelectronics and it has it headquarter in Samsung Town-Seoul. The set up vegetation and sales networks are available in many countries across the world, thus Samsung has employed 160, 000 employees.

In 2009, the business has become world's biggest electronic devices manufacturer by surpassing the previous leader Hewlett-Packard. Its sales earnings in the regions of Liquid Crystal Screen (LCD) and Light-Emitting Diode (LED) shows and memory potato chips are number 1 in the world. Therefore, Samsung has become a legend in Information Technology (IT) areas.

Samsung has a very humble beginning which started in 1938 whereby the Samsung's founder Byung-Chull Lee set up a trade export company in Korea, exporting fish, fruit and vegetables, and fruits to China. Within a decade Samsung got flour mills and confectionary machines and became a co-operation in 1951. It really is an excellent beginning.

From 1958 onwards Samsung commenced to step into other business such as financial, press, chemicals and ship building throughout the 1970's.

In 1969, Samsung Electronics was founded producing what Samsung is most famous for, Televisions, CELL PHONES (throughout 90's), Radio's, Computer components and other gadgets devices.

In 1987, Byung-Chull Lee passed on and Kun-Hee Lee took over turn into a chairman to replace Byung-Chull Lee. Around 1997, Kun-Hee Lee has lead Samsung to grow globally because they build factories in the US, Britain, Germany, Thailand, Mexico, Spain and China.

In 1993 Samsung developed the 'lightest' cellular phone of its time. The SCH-800 and it was on Code division multiple access(CDMA) networks. They developed smart mobile phones and a cellphone combined mp3 player towards the end of the 20th century. Now Samsung focus on the 3G industry. Samsung is designing and producing smartphones at an easy speed to maintain with consumer demand. Samsung has made stable growth in the mobile industry. This development sustained on through the next 10 years as Samsung kept on going beyond its limitations and restructuring its business plan to allow for the global arena. Adopting a new form of management proved to be a sensible move for the company as its products made their way on the list of top must-haves in their various fields. TV-LCD's, picture tubes, Samsung printers and other high-tech products became popular acquisitions due to their high quality. We target two products at this market, Tv set and Smartphone.

Market Segmentation

The chosen ways of segmentation for Samsung are geographic and demographic segmentation. Geographic segmentation is based on region such as Asia, European countries, North America, SOUTH USA and South Africa and county size while demographic segmentation is determined by the variables such as income, life style and education level segmentation. The results of the study on these matters will prove to be the info basis of the mark market section.

The first demographic market segmentation of Samsung is years segmentation which predicated on few stages of age such as young adults, adult and old people. Samsung mainly target young adults with Samsung tablet Personal computer (pc) or camera. For example, tablet computer can be utilized for gaming. On the other hand, Samsung targeted individuals with Samsung side mobile phone or laptop for the business use. Lastly, Samsung aim for old people who have high definition (HD) tv set because they desire a clear vision user interface for their sight. Samsung has the best quality screen among all products.

The income segmentation focus on both high income family and low income family, those have their own power to demand Samsung products. Samsung has developed very good quality product for high income people because high technology usually include high cost. Besides that, Samsung also produces some products which are useful and affordable to lessen income level people.

Occupation segmentation aim for consumer based on the job of consumers. Employees who are working in office require electronic digital products such as laptop of tablet laptop or computer.

Education level segmentation is a segmentation which focuses on consumers which is highly informed. High-educated consumers need laptop to assist in their research, work or even sure purposes. Therefore, Samsung had taken the benefit to develop laptop with affordable price to these consumers to gratify them.

Life style segmentation is a segmentation predicated on the life design of consumers. For instance, consumers which live in the city are very busy. They want products which are of help & most important is convenient to them. Thus, Samsung is rolling out products such as smart cell phones or laptops that are convenient to carry and light weight. Samsung try very difficult to lessen the weight and size of these products.

Market Targeting

Samsung Company is using differentiated online marketing strategy. Samsung focuses on several market sections and designs separate offers for every. Samsung Company is focusing on and selecting focus on sections which are more profitably and in a position to generate higher sales and profits. Samsung targets young adults or young people with products which are more ground breaking such as Samsung Galaxy S3 because the smartphone comes with even, gentle and progressive curve. When targeting older consumers, Samsung attempts to attract this market section with products that are chic such as graceful smart phone case and plasma Television set. Furthermore, Samsung also targets the Technology X because this generation happens to be the wealthiest generation on earth. Therefore, they could generate very high profits to the business.

Besides that, Samsung Company also using specific niche market online marketing strategy because Samsung has known a niche market for flip smartphone. Samsung attempts to draw in consumers who are interesting to turn phone. Therefore, Samsung is wanting to release a flip smartphone which is known as Samsung SCH-W2013 in 2013. This telephone is focusing on the Chinese language market.

Market Positioning

Diagram 1: Samsung Overall Placement Strategy

Source: Armstrong & Kotler (2012)


More Same Less

More for more

(Samsung Television)


More for the same

More for More

The same for less

Less for much less


Benefit Same


Positioning is what the customer thinks about Samsung product's value, features, and benefits. The full positioning of your brand is named the brand's value proposition.

More for further positioning entails providing the most upscale service or product and changing an increased price to pay the bigger cost. Example: Samsung Television set can earn much more profits even the price is high.

More for the same positioning involves introducing a brandname offering comparable quality but at a lesser price. Example: smartphone can earn much more earnings with the same price as compare to other brand such as HTC, Nokia.

Marketing environment

Micro environment


Suppliers form an important website link in Samsung Company's overall customer value deliver system. They offer the resources needed by the business to create its goods and services. Suppliers' problem can really affect marketing. For instance, supply shortages or wait, labour attacks and other occasions can cost sales in short run and damage customer satisfaction over time. If the recycleables such as Clear plastic Synthetic Rubber and Titanium Dioxide Powder prices are growing, this may drive the price of the products to increase and harm the company's sales level.

Marketing Intermediaries

Marketing intermediaries help the Samsung Company to promote, sell and send out its goods to final consumers or buyers. Included in these are wholesalers and merchants. Wholesalers such as Tesco acquisitions large levels of products from Samsung and store them in a warehouse and then provides smaller amounts to sellers. The suppliers will purchases smaller levels of goods from wholesalers or immediately from Samsung Company. Vendors will store the products at a store and resells these to specific consumers.


Samsung Company must provide better customer value and satisfaction than its competitors to be successful. Samsung Company must employ its competitive advantages to compete with its competitor. For example, Samsung offers a wider variance of devices, with a wider array of features and price factors, than Apple. Samsung has generally been inclined to further lower or go down their product's price.

Besides that, Samsung's DRAM dealer provides the company with this natural material in a very low price and high quality than other company of its competitors. This helps to reduce the production cost, thus Samsung can decrease the price of its products. Because of this, it will generate a higher sales volume of its products.

Macro environment

Economic environment

Nowadays, the economics of the world is facing downturn condition. The income level of people has been reduced. Therefore, consumers' spending patterns have been changed. They are simply spending more carefully. Thus, Samsung Company needs to introduce products that are affordable to them in order to keep up its sales. For example, Samsung Galaxy Y, the purchase price is just only RM 427, 90 and it's really a affordable by every covering of society school.

Technological environment

The scientific environment is the forces that induce new technology, producing new product and market opportunities. The technology of the world is improving and changing at a fast paced. Therefore, Samsung Company needs to introduce products which have the newest systems to attract clients, retaining existing customers and at the same time competing using its competitors.

Political Environment

The political environment includes laws, government firms and pressure groups that influence the limit various organizations and people in confirmed territory. You can find regulations or legislation which shields Samsung Company's copyright. Samsung Company is also shielded from unfair business with these legislations. For example, legislation that expresses that hearing a mobile when driving is illegal has increased the sales of hands free from products.

4Ps Marketing Mix

Product Strategy

The product mixture of Samsung is the full total variety of products Samsung provides. Firms should split their product mixture into communities known as products. A product series is a group of products grouped together predicated on similar or same characteristics. The quality used to separated products, will rely upon the firm and its product strategy. They include product quality, product price, concentrate on group of the merchandise, and product features. The product combine width is the number of different product lines the company provides. Samsung has two different products which is smart phones product line and television products.

The products length shows the amount of different products in something line. For example, Samsung's smart cell phones are divided into product lines based on the following features such as touch displays, slider or folders and QWERTY keyboards. Samsung also divided their televisions into products predicated on Smart Tv set, LED, smooth and Plasma Television set.

Product mix depth identifies the number of versions offered of each product in the collection. Some of the product types in something series may be break up again into group. The product lines depth shows just how many subgroups the merchandise line contains. For example, Samsung has splits their smartphone into the products based on pursuing features such as touch screens, slider or folders and QWERTY keyboards. Each of these product lines can be further split into subgroups at the time of writing this task Samsung had 7 slider phones, 4 QWERTY keyboards phones and 32 touchscreen smart phones, 32 is a deep product line. For television, Samsung possessed 25 types of LED TV, 11 types of Plasma TV, 2 types of even TV and a good TV.

Product mix regularity identifies how closely connect the various products are in end use, production requirements, distribution stations, or various other way. Samsung's products are constant in so far as these are consumer products that feel the same distribution programs such as retailers. Most of Samsung's products are are categorized as shopping product categories. Shopping products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.

Samsung offers the most diverse product in the 3D market. They are providing LED, LCD and Plasma 3D TVs. Samsung's cash cow product in the 3D market is the LED 9000 series. The LED 9000 series Plasma 3D Television set is in the cash cow category since it has low growth rate but high market talk about. It is a very successful product which needs less investment to hold their market talk about. It has a very high sales quantity, thus generate a lot of cash to the business.

Place Strategy

Samsung Company sold their products mainly online because customers are provided with services such as free shipment and establishing. This will enable consumers to check on for the presented of these products and analyses the information they may have found to aid in their purchase decision rather than them from a shop. Samsung will not sell their products through wholesaler like Tesco Extra, but Samsung will sell their product through dealer stores like Senheng and Thunder Match. Sellers such as Maxis and Hotlink will purchase the product from Samsung Company and resell it to other retailers or right to last consumer at a profit.

A channel level is each covering of marketing intermediaries that carries out some work in bringing the product and its ownership closer to the ultimate buyer. You can find two customer marketing stations employed by Samsung. One of it is immediate marketing channel which has no intermediary levels whereby Samsung markets directly to consumers. The other channel is indirect marketing route which is the opposite of immediate marketing channel. This channel consists of a number of intermediaries.






Figure 3. 1 direct marketing channel Number 3. 2 indirect marketing channel

Source: Armstrong & Kotler 2012 Source: Armstrong & Kotler 2012

Price Strategy

The price of the 9000 series is RM 18, 372. However, Samsung's diverse product mix of 3D TVs runs from RM3, 675 to RM21, 438. Samsung is rolling out and boosts their technology since Samsung bought DRAM technology from other company citation?. Samsung has released many products that is high technology products and low or affordable price. Since high technology product requires high cost to build up, Samsung has built a primary Research and Development facility and fib line in South Korean to reduce the cost of producing a product because having many branches in several countries require high cost. These cost authority originated from Samsung insurance policy, which is "We will devote out recruiting and technologies to produce superior products and services in that way contributing to a much better global population" citation?.

The price of Samsung smart telephones is affordable to people who have all level income. The range is from RM 183. 75-RM 2, 144.

Price Adjustment of Samsung

Psychological costs is adjusting prices for psychological ramifications of price finishing in 9. 99. Samsung preparing prices stopping in 9. 99 on major products. Some consumers will see the RM 1999. 99 as a price in RM 1000 range rather than the RM2000 range. The RM1999. 99 will more likely be seen as a good deal price.

Promotional charges is temporarily minimizing prices to increase short-run sales. Samsung use Special-event costs during festive season to pull more customers such as Chinese language New Year, Christmas and electronic good days. For instance, when Chinese New Time Samsung should come out the merchandise with red colour such as red shade casing for Samsung Galaxy S3 and some chinese pretty doll for decor. When Xmas, Samsung company will also come out the casing with Santa picture. Besides that, Samsung company should come out the new devices and promote in the electronic fair days.

Promotion Strategy

Samsung Company encourages its products through many ways or tools. One of it is advertising which is any paid form of non-personal presentation and campaign of ideas, goods, or services by an identified sponsor. For instance, Samsung advertise its product through newspapers, website and television to inform customers about the features of their new or existing product and to raise the sales of products. A lot of people need to listen to information more often than once before they maintain it, so reinforcing the communication becomes another reason to market. Moreover, educating consumers through advertising creates an easier selling environment for the sponsor because customers already are familiar with the products.

Next is sales advertising which is short-term bonuses to encourage the purchase or sale of something or service. For instance, Samsung gift smartphone case or hand free to its customer when customer buy a good phone from other company. Besides that, Samsung also provides discount or rebate on their smartphone when customers buy a smartphone and at the same time they subscribe a data plan offer. In addition, Samsung offers free movie theater vouchers to their customers when customers buy Samsung products. Samsung also provide a RM300, RM600 or RM 1200 present cards to customers that can be used to buy other Samsung's products when customers buy a Samsung product.

Furthermore, another tool is personal offering. Personal offering is personal demonstration by the firm's sales team the purpose of generating sales and building customer relationships. For instance, Samsung hires many sales people to promote their products to the customers and serve them. Reselling face-to-face (personal selling) is an extremely efficient way to promote product to customers. Through personal offering, customers can gain better understanding about Samsung's products as they could ask the salesperson directly when they may have questions.

In addition, the last way is pr (PR). PR involve building good relations with the company's various publics by obtaining advantageous publicity, accumulating a good corporate and business image, and managing or heading off unfavorable rumors, stories, and events. For example, Samsung sponsor and donate many third people such as natural catastrophe victims. For instance, Samsung donated 3Millions to Hurricane Sandy victims in the east shoreline. Samsung also actively involved in charity activity such as Habitat for Humanity; United Way Agencies; tree planting; Build-A-Bear for children in a healthcare facility; park clean-up among others.


Samsung not only can produce smart mobile phones which run android system, it can also consociate with Microsoft. It is because House windows 8 was just lately launched in Malaysia and Home window 8 is convenient for touch screen device. Therefore, Samsung Company can produce smart cell phones which run Glass windows 8 too.

Samsung Company should make an effort to reduce their price of some products so that it is less expensive by low income consumers. Furthermore, Samsung Company should make an effort to improve their fixing services so the services are better and time necessary for products mending can be reduced.

Samsung Company should enhance the quality with their smart phones, they have to turn out with smart telephones which is waterproof and wouldn't normally break easily if the phone drops on the floor. The other aspect, Samsung Company should also enhance their smart telephones' camera quality, turn out with higher megapixels built in camera. The Samsung should enhance the battery quality of the smart mobile phones so that the battery pack life can keep going for much longer and boost the standby time of the phone.

Lastly, Samsung Company should create aluminum case for its smart telephones and laptop such that it can release warmth faster.

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