Price and Channel Strategy

Price and Channel Strategy

MKT 571

Introduction

The promotional page of Samsung focuses on growing highly lucrative goods. They also targeted their focus on the international and domestic markets for Galaxy goods. Operations on the markets will continue to develop. The goal of this article is to explain Samsung Galaxy products ‘ marketing strategies and pricing strategies.

Distribution Strategies

In the domestic market and international market, Samsung Electronics is looking to increase its market presence. Channels of distribution are defined as a group of independent organizations, which are involved in the process of supplying a product or a service for consumption or industrial purposes (Investopedia, 2013). There are three different forms of distribution: manufacturers sell directly to consumers, produce selling at retail outlets, then retailers selling to consumers and manufacture, selling to wholesalers who then market to retailers.

Samsung will continue to work while encouraging its customers to directly and indirectly market their electronic devices. Galaxy items can be purchased directly from Samsung consumers throughout the company’s website. Samsung will continue to work with all distributors able to inventory its brand for its versatility. Samsung will be focused on the direct channel during the sale of merchandise through other distribution channels because this will allow Samsung to manage all its profits.

The task of this distribution channel is to effectively move the commodity to its end-users, according to Ross (2015), the direct channel enables business to manufacture the product and to meet its customers. Samsung will focus on increasing its demand development and lowering the cost of its phones by focusing on its direct network.

Positioning with channels

A new positioning strategy will be created by marketing teams with three fundamental elements, a target audience, a reference and a differentiation point to better position their Galaxy goods within a competitive market. Millenniums are quick-runners that prioritize the manner in which an object appears, sound and spend less time consuming literature and information. The new campaign will be displayed throughout the social media networks and will include state-of – the-art visual visuals appealing to the customers. Therefore, the value of the performance of the universe goods including length is very enticing to the public. Galaxy goods are similar to the products of its rivals, but cost is lower than the price of the rival. It helps prove its value while maintaining an affordable option for its customers. To millennials who have just left school looking for their first home to live, the inexpensive cost will be enticing.

Channel tactics (Pricing)

Pricing is among the factors directly affecting the buying decision of the consumer. This is why the brand pricing should be aligned with customer and industry prices. Consumers are aware of the rates offered by different companies (Kotler & Keller, 2007).

In the global and international market, Samsung is to sell the Galaxy devices. The excellent quality and reliability of the Galaxy brand is what determines Galaxy cost pricing. The sleek design, high quality and durability that Samsung business is ready to afford, because they know Samsung is the best, or exclusive, product. The technique decreases market elasticity when consumers feel “higher prices are justified” (Kotler & Keller, 2007). Market competition can influence pricing. The major competitor for Samsung is Apple. Samsung therefore had to set prices for its Galaxy devices for what the market is going to gain in a reasonable way. With the introduction of new products on the market at very competitive prices, Samsung hits more customers.

Through major retailers including Wal-Mart and Amazon, Samsung sells Galaxy items, but they both offer different costs. When a buyer prefers Wal-Mart, he or she can pay flat rates for an item or a monthly fee for the commodity that is split into the same 24 months, while at Amazon, he or she can choose to pay the consumer flat fee or fund the product at lower monthly costs. Samsung allows customers to choose a dealer and keep track of their purchasing experience and position in order to distinguish their value plan from other firms. The sales strategy for Samsung is to offer new goods at dynamic pricing.

Conclusion

Throughout both domestic and international segment, Samsung sells its end-users premium technology products with competitive pricing. Samsung recognizes that it is not easy to expand the business and that many considerations need to be taken into account. The judgment on location and marketing are some of the considerations. Because technology is constantly evolving, the electronics market continues to increase worldwide. Therefore; the new Galaxy models were released throughout its domestic and international market by Samsung.

References

Kotler, P., & Keller, K. (2006). Marketing management (12th ed.). New Jersey: Pearson-Prentice Hall.

Ross, S. (2016, June 05). What is the difference between a direct and an indirect distribution channel? Retrieved from http://www.investopedia.com/ask/answers/052115/what-difference-between-direct-and-indirect-distribution-channel.asp

Staff, I. (2003, November 18). Channel Check. Retrieved from http://www.investopedia.com/terms/c/channelcheck.asp