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SamsungpricingStrategy|T12016MPK732MarketingManagement(ClusterB)

SamsungpricingStrategy
MAY2,2016 / KBUNGLA454
Pricingisoneofthetrickiestissuesinmarketingasitrequires
understandingtheproductandunderstandingthemarket.
Samsungisfacedwithhighlyrivalrybyothersinthemarketlike
Apple,HTC,andMicrosoftamongothers.Tocurbthis
competitionandinordertobecompetitive,Samsungundertakes
apricingstrategywhichiswinning.
SepherteladzereportsthatSamsunghasnotbeensopopularlyin
thepastbuthaveundertakenstrategiesinmarketingtoincrease
itspopularityintheSmartphonemarket.Asaresultofthese
strategies,thecompanyhasbeenabletoacquireapositiona
majorcompetitorforAppleInc.Furtherinregardstobrand,itis
theseventhmostvaluablebrandcurrentlyandthelargesttech
businesswithregardstorevenue.
CompetitiveEdgebySamsung:BestPriceOers
Samsungseeksacompetitivepricingstrategyinensuringa
competitiveedge.Palmer(2004)arguesthatinorderfora
companytoacquireacompetitiveedge,itrequirestohavea
marketingstrategythatisoptimalandunique.Thisistheadvice
thatSamsungfollowedanddevelopedamarketingstrategy
whichenablesittobecomeanindustryleaderinthetechnology
sector.ThefollowingimagesshowarangeofSamsungphones
whichhavebeenlaunchedinthemarkettocompetewiththe
otherbrandsintheSmartphonemarket.

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SamsungpricingStrategy|T12016MPK732MarketingManagement(ClusterB)

(hps://mpk732t12016clusterb.wordpress.com/2016/05/02/samsung
pricingstrategy/hqdefault3/)

(hps://mpk732t12016clusterb.wordpress.com/2016/05/02/samsung
pricingstrategy/samsunggalaxydatarecovery/)

(hps://mpk732t12016clusterb.wordpress.com/2016/05/02/samsung
pricingstrategy/samsungdesign640x342/)

TheSamsungstrategyhasbeenarguedtobethemosteective
marketingstrategyeverundertakenbyacompanywiththe
articlereportingthatasaresultoftheircostdrivenstrategythe
companyisbecominganindustryleader.Asaresultofthepast
successinitsmarketingstrategy,thecompanyhaveoverthe
yearsbeenevolvinginitsstrategytoaractmoreandmore
consumersinthemarket.TheSamsungspricingstrategy
undertakestwocomponentswiththerstbeingtheskimming
priceandthesecondthecompetitivepricing.
Skimmingpriceisutilizedbythecompanyinordertocompete
withitsrival.LikeApple,itutilizesaskimmingpriceinorderto
acquireacompetitiveedgeinthemarketandSamsunghas
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followedsuitwiththeGalaxyS6andS6Edgenewproductsfor

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SamsungpricingStrategy|T12016MPK732MarketingManagement(ClusterB)

followedsuitwiththeGalaxyS6andS6Edgenewproductsfor
thecompanyandpromotingthemasthebestSmartphoneinthe
market.

(hps://mpk732t12016clusterb.wordpress.com/2016/05/02/samsung
pricingstrategy/smg925fzdamid6255371/)

(hps://mpk732t12016clusterb.wordpress.com/2016/05/02/samsung
pricingstrategy/galaxys6topic/)

S6Edgegoesfor1180dollarswhichhasaractedalargenumber
ofconsumersacrosstheglobe.Stanleyetal.,(2009)arguethat
skimmingallowsthermtoadjustandupdateitspriceswith
increasedcompetitionresultingtoadecreasedpriceinorderto
aractmoreconsumers.
Intheeventthatothersmartphonesareintroducedtothemarket,
thecompanyneedstolowertheirpricessuchthatthose
consumerswhowanttobuyaSmartphonearearactedto
purchasetheirproducts.
ThesecondpricingstrategyutilizedbySamsungisthe
competitivepricingwherebyunlikeothersmartphonesinthe
marketsuchasApplewhichhavemanagedtolockaparticular
segmentofconsumershaveinthepastbeenfacedwith
dicultiesinacquiringacompetitiveedge.Initsmovetofacethe
sticompetition,wecanconcludethatthecompanyhas
employedtheuseofcompetitivepricing.
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Samsungcanbeconsideredasalatecomerinthemajorproduct

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SamsungpricingStrategy|T12016MPK732MarketingManagement(ClusterB)

Samsungcanbeconsideredasalatecomerinthemajorproduct
marketitproduceswiththecompanyndingitwithalready
establishedbrandsandassuchtheneedtoutilizeapracticing
strategythisgivesitanedge.

RelevanceofPricing
Pricingisverycrucialforarmasitensuresthatthecompany
communicatestotheconsumersthevaluewhichtheyaachto
theproduct.Thisisparticularinthecaseswhereconsumersuse
thepricesettojudgeandmakeadecisiononthevalueofa
particularproduct.Assuch,pricingisacriticalmarketing
elementasitcommunicatesthemarketandproductvalueofthe
productbeingintroducedintherm.Introducinganewproduct
iscriticalasitensuresthatthecompanyproductsarewell
representedinthemarket.
However,beforeintroducinganewbrandorproductinthe
market,itisimportantforthecompanytoundertakeamarket
researchinordertoensurethattheproductbeingintroducedin
themarketmeetstheneedsoftheconsumers.Thisisthrough
understandingthecompetitors,consumerbehavior,pricingand
otherfactorsaectingthepurchasingbehavioroftheconsumer.
KiranBungla211696223

References
Sepherteladze,S.,(2015),SamsungMarketingStrategy:TheMaster
Brand,hps://inevitablesteps.com/marketing/samsung
marketingstrategy/
(hps://inevitablesteps.com/marketing/samsungmarketing
strategy/)
Palmer,A.(2004).IntroductiontoMarketingTheoryandPractice,
UK:OxfordUniversityPress.
StanleyF.Slater,G.TomasM.Hult,EricM.Olson.(2009),Factors
InuencingtheRelativeImportanceofMarketingStrategy
CreativityandMarketingStrategyImplementationEectiveness.
IndustrialMarketingManagement,(3):19.

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SamsungpricingStrategy|T12016MPK732MarketingManagement(ClusterB)
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