Marketing mix of Samsung (4Ps of Samsung)

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Marketing 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 the company to operate without these mix components.

Product strategies 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, 2021).

Samsung’s products are designed in global design centers and manufactured worldwide. The company operates many research and developments centers around the world which engage in new product development.

When the company launches a new product, it allows a few customers to test the product and gets their feedback on it. This helps it generate sales by knowing that the product is something that they may recommend others to purchase.

Samsung has been the recipient of many awards and recognitions 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

Samsung implements the price skimming strategy, when the company introduces a new smartphone with new and innovative technology. This helps it to gain a high profit. Once competitors begin to launch similar products, it lowers the price of that particular product in order to gain more market share and increase its sales.

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

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.

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, the company 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.

Samsung’s advertising budget is massive. For instance, it spent around $1.98 billion on advertising alone in the USA in 2019. Interestingly, it was slightly less than the ad spending in the previous year (Statista, 2021). However, it is worth mentioning that some of Samsung’s adverts went really wrong. For examples, some of its endorsed celebrities were seen using iPhones just after the Samsung commercials.

Samsung often sponsors big events. For instance, it became an official sponsor of the World Cyber Games (WCG) in 2019. Likewise, it also has sponsorship contract with the International Olympic Committee and the contract has been extended until 2028 (Reuters, 2018).

Hope the article on the ‘Marketing mix of Samsung (4P’s of Samsung)’ has been useful. You may also like reading SWOT analysis of Apple. Other relevant articles for you are:

PESTEL analysis of South Korea

SWOT analysis of the USA’s information technology (IT) industry

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Last update: 14 July 2021

References

Reuters (2018) Olympics: Samsung extends Olympics sponsorship to 2028 – IOC, available at: https://www.reuters.com/article/us-olympics-samsung-idUSKBN1O30LD (accessed 14 July 2021)

Samsung (2021) About us, available at: https://www.samsung.com/uk/about-us/company-info/ (accessed 10 July 2021)

Statista (2021) Samsung Electronics advertising spending in the United States from 2014 to 2019, available at: https://www.statista.com/statistics/621999/samsung-ad-spend-usa/ (accessed 12 July 2021)

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).