Fahim ShahMarketing mix of Samsung (4Ps of Samsung)
This is a thorough analysis of the marketing mix of Samsung. It consists of the 4Ps i.e. product, price, place, and promotion that are viewed as one unit and very useful for integrated marketing communications. The marketing mix is one of the top factors behind the success of Samsung. In fact, it is impossible for it to operate without these mix components.
Product strategies of Samsung
Diverse products of Samsung
Samsung manufactures a diverse range of products. They include smartphones, tablets, audio sound equipment, mobile accessories, televisions, sound devices, watches, refrigerators, vacuum cleaners, washing machines, cooking appliances, cameras, printers, memory cards, USB flash drives, monitors, and air conditions (Samsung, 2023).
Design centres around the world
Samsung’s products are designed in global design centres and manufactured worldwide. The company operates many research and developments centres around the world which engage in new product development.
Product testing
When Samsung launches a new product, it allows some customers to test the product and give their feedback on it. This helps it generate sales by knowing that the product is something that they may recommend others to purchase.
Focus on innovation
Samsung’s product strategy is cantered around innovation and the development of new technologies. The company is committed to delivering products that meet the needs of today’s consumers while also anticipating and addressing the needs of the future. This commitment to innovation is reflected in its extensive portfolio of products.
User friendliness
In addition to technological innovation, Samsung also prioritises the design and user experience of its products. It strives to create products that are not only visually appealing but also intuitive and user-friendly, ensuring that consumers can easily navigate and enjoy the features on offer. This focus on design and user experience has helped differentiate itself from competitors and build a loyal customer base.
Issues with some products
Samsung has been the recipient of many awards and recognition for its innovative products. However, some of its products have raised concerns among customers and investors. For instance, a major battery flaw in Galaxy Note 7 has caused dozens of fires, and recalls and therefore, the company has completely stopped its production.
Pricing strategies of Samsung
Pricing is a key element in this marketing mix of Samsung (4Ps of Samsung). Samsung’s main pricing strategies are outlined below.
Samsung’s price skimming strategy
Samsung implements the price skimming strategy, when it introduces a new smartphone with new and innovative technology. This helps it gain a high profit. Once competitors begin to launch similar products, it lowers the price of that product in order to gain more market share and increase its sales.
Samsung’s competitive pricing strategy
Samsung also uses competitive pricing for some of its other products such as refrigerators, televisions, and air conditioners. This is due to high competition from other brands selling similar products in the market. However, competitive pricing sometimes leads to lower profits.
Place/Distribution strategies of Samsung
Various channels of distribution
Samsung distributes its products through various channels in the market. It has service dealers who handle the key accounts for it. It also sells the products through large retailers.
Consumers can browse through products in the showrooms and choose their items of choice. It should be mentioned that Samsung sometimes distributes its products through a single distribution company in a particular territory.
Official website
Samsung has its own website from which customers can choose and order items of their choice. This gives them an opportunity to shop leisurely whenever they prefer. Likewise, through the website, Samsung can capture consumers who do not have easy access to a Samsung dealer or retail store.
Promotion strategies of Samsung
Promotion is the main component in the Marketing mix of Samsung (4Ps of Samsung) due to high levels of competition in the market. Samsung advertises via social media, newspapers, billboards, television etc. to capture new customers.
Advertising
Advertising plays a crucial role in Samsung’s marketing success, as it helps to create brand awareness and drive consumer interest in its products. Samsung understands the importance of advertising and invests heavily in this area, ensuring that its products can reach a wide audience.
Samsung’s advertising budget is massive. For instance, it spent around $2.3 billion on advertising alone in the USA in 2021. Interestingly, it was slightly more than the ad spending in the previous year (Statista, 2023).
However, it is worth mentioning that some of Samsung’s adverts went wrong. For example, some of its endorsed celebrities were seen using iPhones just after the Samsung commercials. Likewise, its ad featuring woman running alone at 2am criticised by many as naïve, unrealistic, and insensitive (Farah, 2022).
Samsung’s social media approach
In today’s digital age, social media has become an increasingly important component of marketing strategies for businesses worldwide. Samsung recognises the value of social media marketing and has developed a strong presence across various platforms, including Facebook, Twitter, Instagram, and YouTube. It uses these platforms to engage with consumers, share product information, and showcase their latest innovations.
Sales promotion
Samsung also employs various promotional tactics to encourage consumers to purchase its products. It frequently offers discounts, deals, and bundles, which help to create a sense of urgency and encourage consumers to make a purchase.
Sponsorships
Samsung often sponsors big events. For instance, it is an official partner of the International Olympic Committee (IOC). Its contract with IOC has been extended until 2028 (International Olympic Committee, 2022).
Samsung is a sponsor of David Beckham’s esports team. It also sponsors several football teams around the world. These sponsorship deals help it broaden its reach and attract a diverse audience.
Summary of marketing mix of Samsung (4Ps of Samsung)
Samsung’s marketing activities have undoubtedly played a significant role in its success, driving sales, and increasing the market share in the competitive technology industry. The company’s commitment to innovation, strong advertising campaigns, and effective social media marketing have all contributed to its ability to capture the attention of consumers and maintain a strong presence in the market.
The impact of Samsung’s marketing activities is evident in its impressive sales figures and market share. The company consistently ranks among the top smartphone manufacturers globally, with its flagship Galaxy series proving particularly popular among consumers. However, as shown above, it needs to improve in some areas of its marketing mix strategy.
Hope the article on the ‘Marketing mix of Samsung (4P’s of Samsung)’ has been useful. Please share the article link on social media to support our work. You may also like reading the following:
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Last update: 05 April 2023
References:
Farah, H. (2022) Samsung ad featuring woman running alone at 2am criticised as ‘naive’, available at: https://www.theguardian.com/technology/2022/apr/28/samsung-ad-featuring-woman-running-alone-at-2am-criticised-as-naive (accessed 05 April 2023)
International Olympic Committee (2022) Samsung, available at: https://olympics.com/ioc/partners/samsung (accessed 04 April 2023)
Samsung (2023) About us, available at: https://www.samsung.com/uk/about-us/company-info/ (accessed 05 April 2023)
Statista (2023) Samsung Electronics advertising spending in the United States, available at: https://www.statista.com/statistics/621999/samsung-ad-spend-usa/ (accessed 05 April 2023)
Author: Fahim Shah
Fahim Shah has been working in the UK as a visiting lecturer in Business and Tourism for the last 10 years. After completing a Bachelor’s degree in Business and Marketing, he went on to gain an MBA from the University of Bradford, the UK. He is a Fellow of Advance HE (FHEA) and a full member of the Association of Business Executives (ABE).
M Rahman
