MARKETING MIX

The term marketing mix was developed by Neil Borden who first started using the phrase in
1949. Marketing mix 7 Ps - process, people, physical evidence, product, place, price,
promotion. Given by - Bernard Booms and Mary Bitner , 1981.

The marketing mix (also known as the 4 Ps) is a foundation model . The marketing mix has
been defined as the "set of marketing tools that the firm uses to pursue its marketing
objectives in the target.’’ Thus the marketing mix refers to four broad levels of marketing
decision, namely: product, price, promotion, and place. Marketing practice has been
occurring for millennia, but marketing theory emerged in the early twentieth century. The
contemporary marketing mix, or the 4 Ps, which has become the dominant framework for
marketing management decisions, was first published in 1960.

MARKETING MIX OF SAMSUNG MOBILE PHONES

Despite the competition from similar companies, Samsung in India is growing manifold.
Samsung is a brand very common among the youth. Both, creative products and excellent
service. It presently has a strong hold on the market owing to its trusted performance in the
last decade.

The reason for the Samsung brand to shoot up in brand equity is the Samsung galaxy series
and Android phones. Samsung Galaxy is a series of Android powered Smartphone designed,
manufactured and marketed by Samsung Company. The Galaxy series are high-end
Smartphone series that include the likes of Galaxy Note Series, Galaxy J Series and Phablets,
which come with added functionality of a stylus. Samsung has developed a very
effective marketing strategy for its Samsung Galaxy Series in order to compete effectively in
the market.

Marketing Mix of Samsung analyses the brand/company which covers 4Ps (Product, Price,
Place, Promotion) and explains the Samsung marketing strategy. The article elaborates the
pricing, advertising & distribution strategies used by the company.

The 4P’s of Samsung mobile phones are as follows;

1) PRODUCT
Samsung has a wide range of products from Televisions to washing machines and laptops.
However, in the present market scenario, a major part is dominated by the Smartphone and
in that, the Samsung Galaxy series. Samsung has launched a number of Samsung Galaxy
Series smartphones and tablets, which have been well received in the market. In fact, it can
be described as among the best quality manufacturers of tablets and high-end Smartphone.

Samsung galaxy products include

To be on the top Samsung comes with a new model almost every month or even
less. Samsung Galaxy S9 and S9+, the latest offering helps to optimize work efficiency and
security and ensures business continuity. Samsung GALAXY Note 9 and Samsung GALAXY
M20 provides all the capability one needs to complete business tasks while exhibiting
professional style.

2) PRICE
Since Samsung has a wide range of products, it has various pricing methods. Price of a
commodity says a lot about the product. Innovative products, which are exclusive to a place,
are generally marked up to meet the demand curve and use skimming price. In certain
cases, Samsung also adopts competitive pricing  schemes to out beat the competitors in the
market.

i) SKIMMING PRICE - For instance, the recent launch of Galaxy Note 9 witnessed a huge
demand in the market. In such cases, Samsung adopts the skimming price technique,
whereby they get a high value for a commodity before the competition sets in the market.
Once the product becomes old or faces a clash by other such products, Samsung reduces its
price.

ii) COMPETITIVE PRICING - Nevertheless, one thing that is worth noting is that Samsung
doesn’t have the reputation of entering late in the market. So it means that it doesn’t have
to produce products at a lower price in order to catch up. Instead, other companies have to
price their products lower in order to compete with Samsung.
3) PLACE

Place not only means location and distribution schemes but rather includes the entire
management process until reaching the products to the consumer. Samsung products are
available in the market via varied channels working on the concept of channel marketing
with the segments- Sales and service dealers, Modern retail and Distributors. Samsung
retailers sell products through chains of supermarkets clearly concentrating on
the demand and opportunities to expand their in-store share.

i) Sales and service dealers are involved in corporate sales and they can also open their own
exclusive Samsung showrooms.

ii) Modern retail comprises of retailers like Saroj Galaxy and Chun Chun Mobile Centre.
These retailers prefer to keep Samsung as an alternative owing to its brand name and
quality products.

iii) Samsung has a unique distribution scheme with a single distributor in a city who further
caters to all the retailers of the area. It has distributors as the sole distributor for all its
products.

4) PROMOTIONS

For Samsung, the new product launches and schemes keep being updated in the local
media. Newspapers and the electronic media help in promoting new launches as well as in
informing the consumers about Samsung products and its goals. Samsung being a global
giant in consumer electronics is well aware of the fact that Promotion is the strongest pillar
behind the marketing mix strategies.
Hoardings and posters are put up in the major cities. Celebrities are invited for the launch of
a new product. In addition, to help promote the global appeal of the brand, often-famed
celebrity like Aamir Khan made its brand ambassador. It is usually Samsung’s strategy to use
almost 5% of revenue generated from sales in promotion. Public relations, putting out new
releases, writing articles for trade publications etc. are usually the part of promotional
schemes.

Besides advertising, Samsung also uses different promotional tactics to make customers buy
the product. Samsung is mostly famous for its product quality and user experience but
Samsung is also known for being a giant in sponsoring events. Samsung also sponsors major
events. Samsung offers heavy discounts during national festivals. This concludes
the Samsung marketing mix analysis.