Answered: The company recognises the importance…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Question

The company recognises the importance of environmental scanning not only to analyse the present state of the environment but also to plan for the future. Analyse this statement and advise Samsung on the process of scanning the environment.

Transcribed Image Text:Samsung's marketing strategy focuses on developing new innovative products that are supported by strong branding and promotional campaigns. Mr. Yun Initiated a new competitive strategy with the goal of developing and marketing superior products while also building an image of Samsung as a stylish, high-quality brand worthy of a premium price. The objective was to establish a unique position using technical Innovation while designing more appeal to a younger generation, as well as upscale customers around the world. Yun argued that to continue compete on price would eventually be their downfall The company recognises the importance of environmental scanning not only to analyse the present state of the environment but to plan for the future. Samsung chose to invest heavily in technical innovation and R&D. In order to have a competitive advantage driven by innovation, Samsung had to become a pioneer in developing new technology. During the 90's, Sony had an advantage in consumer-electronics, but it was rooted in analogue technology. The digital world required new products and consequently, the firm shifted substantial resources into developing large-area LCDs, chipsets, and cell phones. Fast forward to the economic crisis of 2008-2009, Samsung spent over 7 Billion dollars for nearly 6% of the unit's revenue into research and development, and at the time, more than 25% of the company's workforce engaged in R&D. Product Development & Design Understanding that cutting-edge technology does not always guarantee market success, Samsung also focused on product development and design. Their goal was to create products that deliver benefits that at least some segment of consumers will consider to be worth the price. Since many product benefits may be subjective attractive styling, say, or a cool image, or maybe the quality of camera new product development at Samsung usually involves a team of designers who collaborate closely with the firm's engineers, manufacturing teams, and marketers. Living standards measure of Samsung products: LSM 8-10 High school and higher schooling. Mostly Urban and Suburban. Salary ranges from R13, 210 to R32, 521 per month (approximately US $825 - $2,000). Media: Wide range of commercial and community radio, wide range of TV channels, daily or weekly newspapers, magazines, accessed internet, cinema and outdoor life. General: Full access to services and bank accounts, full ownership of durables such as cars, furniture, and appliances, participation in any leisure activities of interest and access to all economic activities. Brand Building Campaigns Last and certainly not least. Samsung's marketing strategy focused on creating a promotional campaign to build Samsung's brand image. Revamping their marketing efforts was just as critical to the success of a new competitive strategy because even the most technically sophisticated and well design products are likely to fail unless customers know they exist, can acquire them easily, and think they are worth the money. Eric Kim was brought in to head a global marketing effort. One of his first moves was to reorganize the firm's distribution channels to be consistent with the strategic objective of establishing Samsung as a high-quality brand. To start, many of the company's products were pulled out of the low-price discount chains and shifted distribution through big-box electronics stores like Best Buy and online shopping through Amazon. To ensure consistent marketing communications across all markets, they also consolidated their roster of advertising agencies from 55 down to one global advertising group, who launched the organisations' first brand-building campaign. Using fashion-forward TV commercials they created a contemporary sense of style while also promoting the technical sophistication of their products. The revamped competitive strategy and marketing programs that Samsung designed and implemented have been a huge success. The global value of Samsung's brand increased by more than 200% from 2003 to 2008, and it took over Sony as the most valuable consumer-electronics brand. Source https Worcachosolutions.com/how-samsungs-marketing-strategy-turned-them-into-a-technological-powerhouse

Expert Solution

Step 1: Introduction

Environmental scanning is a crucial aspect of strategic management for companies like Samsung. It involves systematically gathering and analyzing information about the external factors and trends that can impact an organization's business environment. This information is vital for making informed decisions, planning for the future, and staying competitive in a rapidly changing market. In the case of Samsung, a global technology leader, environmental scanning is of paramount importance as the tech industry is highly dynamic and influenced by various factors. This answer will delve into the significance of environmental scanning for Samsung and provide recommendations on how the company can enhance its scanning process.

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