MKT00720 - Marketing Strategies of Samsung and Apple: A Report

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This report analyzes the marketing strategies of Samsung and Apple, two leading companies in the digital market. The report begins with an introduction to the importance of marketing and the roles it plays in business success, particularly in the competitive landscape. It then provides background information on Samsung and Apple, including their founding, revenue, and market presence. The core of the report examines the marketing processes, competitive advantages, and marketing-related successes of both companies. The report also examines the sustained marketing strategies employed by each company, including the push and pull strategies used by Samsung and the Ansoff matrix approach used by Apple. The report concludes by summarizing the key findings and highlighting the different marketing approaches that have contributed to the success of each company. The analysis is based on academic literature and the report also references the assignment brief provided by the university.
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Running Head: MARKETING & MANAGEMENT 0
Marketing & Management
(Student Name)
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MARKETING & MANAGEMENT 1
Table of Contents
Introduction......................................................................................................................................2
Background of Samsung..................................................................................................................2
Examples of Marketing Process...................................................................................................2
Competitive Advantage................................................................................................................2
Background of Apple.......................................................................................................................2
Examples of Marketing Process...................................................................................................3
Competitive Advantage................................................................................................................3
Marketing related success of Samsung and Apple..........................................................................3
Sustained Marketing Process...........................................................................................................4
Samsung.......................................................................................................................................4
Apple Inc......................................................................................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................6
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MARKETING & MANAGEMENT 2
Introduction
Marketing play a vital role in the business. It is the exchange system that fulfills the requirement
and wants of the individual. Marketing is considered as the reason of aching success of the
organization in an effective manner (Homburg, Jozic and Kuehnl, 2017). It plays a key role in
the sales of most goods as well as services. It is one of the effective tools to spread awareness
about the product in an effective manner. In the recent scenario, most of the leading company’s
has adopted effective marketing strategy to grow and survive in the competitive market. The
marketing is the tool to reach out maximum number of people in a limited period of time (Baker,
2016). The leading companies such as Samsung and Apple have also adopted effective
marketing strategy in its business that made the possible to grow in the market and can able to
compete with each other (Wu and Vasquez-Parraga, 2016).
In the following report there will be detailed analysis of the competitive advantage of both
companies Samsung and Apple that made them leading in the market and the sustainability
strategies that they have adopted that made them unique in the market
Background of Samsung
Samsung is the South Korean multinational electronics company with its headquartering at
Samsung city, Seoul. The company was founded in the year 1938. Samsung is the international
leader in semiconductor, telecommunication, convergence technologies as well as digital media.
In the year 2018, the total revenue of the company is approximately KRW 59.27 trillion which is
one of the biggest achievements for the company. The company employed more than 300000
employees across 46 countries in the world the company more strong (Rani et al., 2016).
Examples of Marketing Process
The company has adopted effective marketing process and strategy to run its business. Its target
several market segment as well as design separates offer for each for example Samsung target
teenagers or young generation for Samsung Galaxy S due to the reason the smartphone is gentle
with innovative and smooth curve that attract such range of consumers efficiently. Secondly, it
target aged people for smart TV (Iblasi, Bader and Al-Qreini, 2016).
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MARKETING & MANAGEMENT 3
Competitive Advantage
The main competitive advantage of the company is they drive its particular inimitable form of
that specific invention that ends up creating even greater deals than the innovators. It has an
antagonism to emulate further brands as well as manufacturing accurately a produce that
matched the specification of the respite (Čirjevskis, 2016).
Background of Apple
Apple Inc. is one of the leading companies in the digital market. Apple Inc. was established in
the year 1976 in California USA. The company has diversifies its business in more than one
segment that made them competitive in the market. It has covered 15.8% market share
throughout the period. More than 132000 employees are working in the company. It has created
great image in the international market. The company operates in more than 50 countries and it is
considered as one of the major technical corporation in the international market with the income
of approximately $60 billion per annum (Payne, 2017)
Examples of Marketing Process
The company has adopted effective, marketing process to target its consumers. It mostly target
tech savvy youth, mostly student as well as business professional’s. The company offer it
product at premium price that set up the royal image of the company in the market for example
the price of X max is $1449 which is high a comparison to the competitive smartphones. The
company has invested hue amount on marketing its product. It is estimated that the company has
invested $1.8 billion on the advertisement (Jackson and Ahuja, 2016).
Competitive Advantage
The differentiated product of Apple is the main source of its competitive advantage. In such
competitive market, no further corporation is able to emulate its exclusive competences. The
integration system of the company is very high that made them competitive in the market
(Purkayastha and Sharma, 2016).
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Marketing related success of Samsung and Apple
Samsun Electronics has invested huge amount on the process of marketing rather than Research
and Development for the first time in three years. Since the year 2011, the company has spent
giant breads on advertising of its forthcoming smart phones that also include the model Galaxy
S4 smartphone, to transform more iPhone as well as iPad operators’ faithful or playful
competing company Apple Inc. the company disbursed a record of 13 trillion gained on
promotion last years (Kotler et al., 2015). It was around $1.3 billion which is more than what it
decanted into the department of research and development. The smartphone tablet hybrid a
astonishment hit in the year 2012 those appeals to the individual who favor big shades to
improved access graphic gratified. Therefore, the profit of the company rose by 53% to $7.7
billon as mid the smartphone as well as deals in emergent marketplaces aided the company to
surge over the off-peak season. The company has adopted skimming pricing strategy to gain the
upper hand over its competitors. Galaxy A9 smoothly sells its product around the world due to
its innovative marketing strategies (NDTV, 2013)
The company Apple has generated around $400 million in publicity since the year 20017 with
the announcement of Steve Job. They only focus over its quality in advertising and give surety
that iPod and Apple has ever made as well as it has also the best phone that anybody has ever
made. The company has adopted traditional method for marketing its product. It has adopted
television advertising; prints ads as well as web based designed to represent the disappearing and
reappearing touch keypad of the phone. One of the best influential periodicals dedicated to the
advertisement is in 2007, the company has selected as runner up for the Annual Marketer of the
Year. Such status was conveyed due to the reason of Apple rare accomplishment of successfully
bringing a new product into an already crowded as well as competitive market (Shankalia and
Ramu, 2018).
Therefore, both companies has achieved growth success in the market with the help of effective
marketing strategies that is been adopted by the company in an efficient manner. Their marketing
strategies made them unique in the market made them possible to grow in a sustainable manner
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MARKETING & MANAGEMENT 5
Sustained Marketing Process
Samsung
Samsung uses many strategies that make the product of the company famous among the targeted
audience. Mainly the company has adopted Push and Pull strategy to promote its product. Both
are promotional strategies to bring the product to its target market. The push strategy represent
that the company put its efforts or pushes a product with the support of advertisement as well as
other strategies such as sales. The company has adopted such strategy by contributing the money
one on classic advertisement. It is clear from the advertisement such as old medium included
print as well as other new mediums that also include online networking. The push strategy put
the product of the company in front of its consumers in the form of advertisement. It is adopted
by the company to spread awareness adopt the existence as well as new product or upcoming
product in the market. The company also uses pull strategy to which means that through social
networking, the company make all its efforts to keep up the relationship with the consumers.
Samsung also uses the account on social networking sites to make the latest declaration as well
as announcement about its products to spread awareness about the information of its company to
maintain string bond with them. Moreover, the organization also maintains healthy relationship
with its retailers in other nation to provide them assistance to sell its Samsung Galaxy products
through the strategy of sales promotion (Yeung, 2016).
Apple Inc.
The marketing strategy of the Apple is explained through Ansoff matrix. The company has
adopted different method of marketing that made them successful in the market. The Ansoff
matrix of the company is explained in the below points:
Market Penetration: It refers to sell the existing product in the existing market. The existing
market for the company Apple consists of its international operation that are distributed into five
operating segment which include Japan, China, America, Europe as well as Res of Asian Pacific.
The company operates and manages 506 stores across 24 countries.
Product Development: it includes developing new product to sell in the existing market. The
core growth of the Apple is to develop newfangled product in a unvarying way. The corporation
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MARKETING & MANAGEMENT 6
often introduced efficient version of its prevailing products as well as services and also introduce
new product in the market. It invests $14, 24 billion on research and development, $11, 58
billion in the year 2018 and 2017.
Development of Market: the strategy of market development is connected with the verdict of
novel marketplaces of prevailing products. Such approach has been adopted as the foremost
development approach by the organization. The Asia is considered as attractive market for
largest IT Company for longer term of perspective.
Diversification: it includes developing new product to sell to new market. The company Apple
is not been well-known for appealing in divergence corporate approach. Nevertheless, it takes
into version the worldwide market inundation for iPhone that is the major basis for the
corporation (Khan, Alam and Alam, 2015).
Conclusion
It can be concluded from the above analysis that Samsung and Apple are giant company in the
international mare. The company has adopted effective marketing strategy that made them
possible to grow in the competitive market. These are the competitor of each other. Samsung has
invested huge amount on marketing that made them successful in the market. However, Apple
has adopted unique approach of marketing. It maintains its premium brand in the market that
attracts the consumers towards the company. Samsung has adopted push and pull strategy to
compete its competitor. It majorly focus over its promotion however, Apple has adopted Ansoff
Matrix. The company majorly focuses over the market to target its consumers. Therefore, both
have adopted different marketing strategy that made them successful in the market.
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References
Baker, M.J. (2016) What is marketing?. In The Marketing Book(pp. 25-42). London: Routledge.
Čirjevskis, A. (2016) Designing dynamically “signature business model” that support durable
competitive advantage. Journal of Open Innovation: Technology, Market, and Complexity, 2(1),
p.15.
Homburg, C., Jozic, D. and Kuehnl, C. (2017) Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing
Science, 45(3), pp.377-401.
Iblasi, W.N., Bader, D.M. and Al-Qreini, S.A. (2016) The impact of social media as a marketing
tool on purchasing decisions (Case study on SAMSUNG for electrical home
appliances). International Journal of Managerial Studies and Research, 4(1), pp.14-28.
Jackson, G. and Ahuja, V. (2016) Dawn of the digital age and the evolution of the marketing
mix. Journal of Direct, Data and Digital Marketing Practice, 17(3), pp.170-186.
Khan, U.A., Alam, M.N. and Alam, S. (2015) A critical analysis of internal and external
environment of Apple Inc. International Journal of Economics, Commerce and
Management, 3(6), pp.955-961.
Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G. (2015) Marketing. Australia:
Pearson Higher Educatio.
NDTV. (2013) Samsung success story: More about marketing than innovation? [Online].
Available from: https://gadgets.ndtv.com/mobiles/news/samsung-success-story-more-about-
marketing-than-innovation-350582 [Accessed on 02/08/19]
Payne, B. (2017) Brand Positioning and its Usefulness for Brand Management: the Case of
Apple Inc. Newcastle business school student journal, 1(1), pp.51-57.
Purkayastha, A. and Sharma, S. (2016) Gaining competitive advantage through the right business
model: analysis based on case studies. Journal of Strategy and Management, 9(2), pp.138-155.
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MARKETING & MANAGEMENT 8
Rani, H.M.N.S., Zuber, F., Yusoof, M., Zamziba, M. and Toriry, S. (2016) Managing Cross-
Cultural Environment in Samsung Company: Strategy in Global Business. International Journal
of Academic Research in Business and Social Sciences, 6(11), pp.605-613.
Shankalia, M.U. and Ramu, M. (2018) A Study on Marketing Strategy of Apple Products.
International Journal of Pure and Applied Mathematics, 119 (17), 551-559
Wu, Y.C. and Vasquez-Parraga, A.Z. (2016) Fitting Consumer Needs to Perceived Product
Value: The Example of Apple versus Samsung Products. Atlantic Marketing Journal, 5(2), p.13.
Yeung, N. (2016) Promotional Strategy [Online]. Available from
http://www.versiondaily.com/marketing-strategy-samsung-galaxy/ [Accessed on 21/07/19]
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