So, too, is the marketing function of pricing. #Samsung #Marketing. Samsung can be considered as a late comer in the major product market it produces with the company finding it with already established brands and as such the need to utilize a practicing strategy this gives it an edge. Stanley et al., (2009) argue that skimming allows the firm to adjust and update its prices with increased competition resulting to a decreased price in order to attract more consumers. Samsung is known to be a great brand but LG still retains higher market share for home appliances. The recent Samsung Note 8 and it’s 8 + variant are the latest entrants in the market which are catching people’s eyes. Skimming price – Samsung’s smart phones are one of the best in the market and are the market leader in terms of the features and USP’s that they provide. Palmer (2004) argues that in order for a company to acquire a competitive edge, it requires to have a marketing strategy that is optimal and unique. 9) IT – Laptops, printers and accessories. Stanley F. Slater, G. Tomas M. Hult, Eric M. Olson. Thus Samsung uses Skimming price for these products wherein it tries … In fact, it is present in most of the consumer durable segments in the market. 29,900. It uses two pricing schemes which are: Skimming Price –Samsung uses skimming price policy. Samsung business strategy is marked with a high level of flexibility in a way that the company is determined in changing its strategy dramatically according to changes in external business environment. Pricing is one of the trickiest issues in marketing as it requires understanding the product and understanding the market. This website uses cookies to improve service and provide tailored ads. As a result of these 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. One of the most important tools you have for building and monetizing your customer relationships is thoughtful pricing and packaging - and marketing needs to take an active role in this pricing exercise. Change ), You are commenting using your Twitter account. In the event that other smart phones are introduced to the market, the company needs to lower their prices such that those consumers who want to buy a Smartphone are attracted to purchase their products. Similarly in Washing machines – Whirlpool, and in Cameras – Cannon, are the brands to be beaten. Samsung still leads the smartphone market in 2017 with shipments of 79.8 million units in 2Q17, a rise of 1.4% YoY compared to 78.6 million units in 2Q16. CELEB ENDORSEMENTS: Enhancing brand image or ruining it? Skimming Price – 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. However, before introducing a new brand or product in the market, it is important for Samsung to undertake market research in order to ensure that the product being introduced in the market meets the needs of the consumers. Marketing strategy of Samsung revolves around the pricing of its different brands and models. The Samsung’s pricing strategy undertakes two components with the first being the skimming price and the second the competitive pricing. ( Log Out / And the importance of your pricing strategy in marketing cannot be ignored. In the event that other smart phones are introduced to the market, the company needs to lower their prices such that those consumers who want to buy a Smartphone are attracted to purchase their products. However, before introducing a new brand or product in the market, it is important for the company to undertake a market research in order to ensure that the product being introduced in the market meets the needs of the consumers. By using this site, you agree to this use. Competitive pricing – For products other than smart phones, Samsung uses competitive pricing. Samsung will follow its price revision strategy to remain competitive in market. For instance, when Samsung launches new products with different variants of storage capacity, it prices the product … Pricing should be dynamic. It’s strategy has been argued to be the most effective marketing strategy ever undertaken by a company. Because of its presence in different product categories, Samsung uses various pricing strategies. Pricing is very crucial for Samsung as it ensures that the company communicates to the consumers the value which they attach to the product. 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. Samsung uses Skimming price strategy for these products wherein it tries to get a high value for its phones in the beginning before competitors catch up. The strategy Samsung opted for revolves around the pricing of its different brands and models. Competitive Pricing - Competitive pricing is setting the price of a product or service based on what the competition is charging. Skimming price strategy is basically for the early adopters of the … Televisions, air conditioners, refrigerators and other products have competition in the form of Panasonic or LG. ( Log Out / Like Apple, it utilizes a skimming price in order to acquire a competitive edge in the market and Samsung has followed suit with the Galaxy S6 and S6 Edge new products for the company and promoting them as the best Smartphone in the market. Introducing a new product is critical as it ensures that the company’s products are well represented in the market. Few people know that the Samsung initially started as a grocery store in Korea in 1938, switched to noodle business in 1940 and moved to sugar production in 1950. ( Log Out / Samsung has a vast product portfolio and its presence is in several different product categories. The Samsung’s pricing strategy undertakes two components with the first being the skimming price and the second the competitive pricing. S6 Edge goes for 1180 dollars which has attracted a large number of consumers across the globe. Samsung hardly uses penetrative pricing strategy because it never enters late in the market. Once the model is old or its competitors has launched a similar product, Samsung immediately drops the price. 3) Televisions – LEDs, LCDs. Samsung is faced with highly rivalry by others in the market like Apple, HTC, and Microsoft among others. This should be done by understanding the competitors, consumer behavior, pricing and other factors affecting the purchasing behavior of the customers. Marketing is an art and a science. Palmer, A. Samsung uses multiple pricing strategies to target different customer segments basis the different products that they offer. Pricing is very crucial for a firm as it ensures that the company communicates to the consumers the value which they attach to the product. This is the advice that Samsung followed and developed a marketing strategy which enables it to become an industry leader in the technology sector. 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. As such, pricing is a critical marketing element as it communicates the market and product value of the product being introduced in the firm. To achieve Samsung’s strategic plans for growth and expansion in the global market, this generic strategy requires the application of product development as a main intensive growth strategy to compete against technology firms like Apple, Google, Sony, and LG. Samsung has not been so popularly in the past but have undertaken strategy in marketing to increase its popularity in the Smartphone market.