pricing is one of the trickiest issues in marketing as it requires understanding the product and understanding the market. to curb this competition and in order to be competitive, samsung undertakes a pricing strategy which is winning. as a result of its strategies, the company has been able to acquire a position a major competitor for apple inc. further in regards to brand, it is the seventh most valuable brand currently and the largest tech business with regards to revenue. in order to acquire a competitive edge for a company it requires to have a marketing strategy that is optimal and unique, samsung followed and developed a marketing strategy which enables it to become an industry leader in the technology sector. the samsungâs pricing strategy undertakes two components with the first being the skimming price and the second the competitive pricing. skimming price â skimming pricing is used when a product, which is new in the market or just launched, is sold at a relatively high price because of its uniqueness, benefits to customers or its current wow factor.
skimming allows the firm to adjust and update its prices with increased competition resulting to a decreased price in order to attract more consumers. as apple, samsung also uses skimming price to gain the upper hand over their competitors. for instance, in october samsung galaxy c9 pro, the company’s first smartphone with 6gb ram, has received price cut in india it is now retailing at for rs. 36,900. samsung will follow its price revision strategy to remain competitive in market. competitive pricing – competitive pricing is setting the price of a product or service based on what the competition is charging. thus,samsung provided better features and played cost competition to make its market. this is particular in the cases where consumers use the price set to judge and make a decision on the value of a particular product.
marketing mix of samsung analyses the brand/company which covers 4ps (product, price, place, promotion) and explains the samsung marketing strategy. samsung invests a lot in research and development to deliver the best products to its customers. the diverse offerings come under the products of samsung marketing mix. but when other competitors launch a smartphone with identical features, samsung lowers the price and easily prevents the reduction of its market share due to the launch of the competitor. samsung has not succeeded in becoming the leader in other product categories. also, samsung is a not a first mover in these product categories and thus it has to defend its position in the market. also read samsung swot analysis, stp & competitors samsung sells directly to the retailers and service dealers.
samsung also distributes its products using a single distribution company in a particular location that further distributes the products to other locations. samsung believes that advertising the best form of promotion to engage potential consumers and position the brand. besides advertising, samsung also uses different promotional tactics to make customers buy the product. this concludes the samsung marketing mix analysis. samsung is a south korean company founded by byung-chull lee in 1938. the company started as a trading company and gradually became a multinational conglomerate through many acquisitions and mergers. the company also inspires to be in the top 10 world’s best workplaces. browse 4ps analysis of more brands and companies similar to samsung marketing mix.
samsung still leads the smartphone market in 2017 with shipments of 79.8 million units in 2q17, a rise samsung price/pricing strategy: samsung is a market leader in smart phones and is a dominant there are many different pricing strategies. some of the strategies are premium pricing, penetration pricing,, pricing strategies for mobile phones, pricing strategies for mobile phones, samsung pricing strategy 2019, samsung pricing strategy 2020, samsung pricing strategy pdf.
samsung products in the market are fairly competitive and are one of the best in the market. that being the case, samsung uses a price skimming pricing strategy to get the best value for its products. in almost all cases, it is the first to launch new smart phone products. in the event that other smart phones are introduced to the market, the company needs to lower their samsung mobile’s line-up of smart phones and tablets has helped the handset maker rally a significant share in a market,
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