Promotion and Product Life Cycle for Samsung
Marketing/ MKT 571
University of Phoenix
Promotion and Product Life Cycle for Samsung
The four steps in life cycle of a new product are an introduction, growth, maturity, and decline. There are four P’s of each product life cycle. Those four P’s are product, price, place, and promotion. The introduction stage involves altering perspective customers, product trial and securing distribution (Kotler & Keller, 2016). The marketing strategy at this initial stage will attract the target consumers. Premium yet affordable pricing will help generate purchases and build demand and profits for later stages. The product will be distributed online, at local and international Samsung retailer stores. Samsung will work on gaining news coverage, online, promotions and build a social media campaign. Advertising needs to emphasize life values that affect product choices such as relationship, communication, hard work, achievement, dependability, family, fun, reliability, resourcefulness, and vision (Sondergaard, 2005).
Stages of the product life cycle
The Growth Stage
The growth stage is very important because Samsung will explore ways to attract nonusers within target market to premium benefits. It covers Samsung’s improved latest technology such as its Galaxy products. The price point will not change, but it could increase or decrease slightly given competition and demand. Distribution channels will include other retail locations of convenience such as Best Buy, Wal-Mart, Costco Club, and other online retailers. Supply and demand value chain focused on customer requirements and paired with increase and effective marketing will lead to maximum brand loyalty and value (Bustinza, Parry and Vendrell-Herrero, 2013.)
The Maturity Stage
In maturity phase, pricing is slightly modified for competitive advantage. Distribution will include more locations. Samsung will offer incentives to retailers who display and help sell the product. Differentiation and commitment are the outcomes of a successful promotion. To continue to retain and attract the customers as sales slowdown and competition intensifies; Samsung will improve the quality of service by adding boosters both domestic and international.
The Decline Stage
During a decline stage, Samsung product, pricing and distribution activities will continue as in previous steps, however promotional efforts will continue to offer incentives and pursue gain of market share and loyalty. If there is a pattern of a decline in sales, resulting in profit loss, Samsung will improve its product technology, innovation and quality to continue to complete with its competition such as Apple and LG. The company will consider further diversification and look for a new or multiple channels of distribution.
To gain a better understanding of the consumer market, Samsung will use a focus group. The focus group will be used as study on what the current consumers feel about Galaxy products that are available on the market and what improvements could be made in the eyes of the consumers. The group will consist of 50 consumers, 25 will be men, and 25 will be woman. Twenty five users will have had used Samsung Galaxy products while other 25 users will not have any experience using any of Samsung products and will be asked about their thoughts about the idea of purchasing one of Galaxy products and overall concept of Samsung Galaxy electronics.
Samsung uses multiple forms of promotions to gain customers’ attention through advertising but at the same time uses strong tactics to push its product to the customers through sales promotions. Samsung provides numerous offers and discounts to its partners such as Best Buy, Wal-Mart and Costco to motivate them to sell Samsung above its competitors such as Apple.
Print media method
Samsung will create visually appealing ads that will attract attention of their users. These great ads will be used to convey the message to its users without having to use too many words, seeing is believing and that’s how exactly Samsung will use the ads to create customers interests. A great ad design can be emotional element that will match its viewers and how they see themselves using Samsung products.
Non-print media method
Samsung will create a teaser campaign on social media network such as Facebook and Twitter. This campaign will send messages to world that Samsung has something exciting in store for its users. This campaign teaser will allow Samsung to take its launch process of a new Galaxy product o entirely new level.
Integrated Marketing Communications
Integrated Marketing Communications for Samsung is an approach that is used to achieve the objectives of marketing campaign through well-coordinated use of different promotional methods that indented to reinforce each other.
Samsung will have TV advertisements to create a brand awareness. The advertisements will be used to present how exciting and nice qualities Samsung Galaxy products have. In addition, the ads will be used to enhance some of the great features that the newest technology has and how useful it can be to have it.
Online banner advertising and awareness on social network is very powerful. Samsung Galaxy will create videos that will be attention gathers and continue to engage with its consumers online with teasers.
To attract its consumers, Samsung will offer numerous promotions to those who buy a new Samsung phone and exchange their old one. Samsung has done promotions such as bonus pack, $100 off the price when users trade in their old phones. These will help to gain attention for their users.
Features of Samsung Galaxy will be released before the phone actually releases. Samsung will continue to utilize celebrity endorsement such as Black Eyed Peas and Ellen DeGeneres. A celebrity using a Galaxy in front of its viewers will only boost the demand for this new Samsung Galaxy addition.
For direct marketing, Samsung will come up with campaign to promote the new product. The product will target the audience between ages of 15-50 and will email their new Galaxy product’s postcard to its users.
Samsung Electronics has various promotional events to continue to have their loyal customers. Samsung will continue to have promotional events such as Academic Festivals to help with selling this new Galaxy product one to one basis, as they will be able to engage with their consumers individually and educate them on the product prior to sale.
Advertising Strategy/ Objective
The advertising strategy of Samsung products involves a heavy promotions using both push and pull strategy. In a push advertising strategy, Samsung pushes their product through advertising and sales strategies and it is done by investing heavily on traditional advertising. Samsung’s push marketing strategy involves using celerbity endorsements and spot placements on major events such as Super bowl. Samsung also maintains accounts in social networking sites such as Facebook, Twitter, and YouTube to continue to maintain its online presence. Samsung also utilizes pull marketing strategy. Using social media, the company builds and maintains relationship with its consumers through its online presence. The social networking also serves as venue of discussion and announcements of its new launches. These types of interaction initiate a system for pull strategy.
Launch factors and decisions have significant impact on market performance. Positive target consumers’ perceptions and satisfaction of expectations are very powerful regarding outcome; a careful-well planned launch with excellent product positioning will help ensure that the product is successful. The right product marketing mix will help the company to outperform competitors. Efficient pricing, distribution, differentiation and promotion strategies help increase sales and profitability. Overall, the launch marketing approach is holistic and strategies are integrated for optimal success.
Bustinza, O. F., Parry, G. C., &, Vendrell-Herrero, F. (2013). Supply and demand chain management: the effect of adding services to product offerings”, Supply Chain Management: An International Journal, 18 (6), 618 – 629. Retrieved from http://www.emeraldinsight.com.contentproxy.phoenix.edu/doi/full/10.1108/SCM-05-2013-0149
Kotler, P. T. & Keller, K. L. (2016). Marketing Management (15th ed). Upper Saddle River, NJ: Pearson/Prentice Hall.
Sondergaard, H. A. (2005). Market‐oriented new product development: How can a means‐end chain approach affect the process? European Journal of Innovation Management, 8(1), 79 – 90. Retrieved from http://www.emeraldinsight.com.contentproxy.phoenix.edu/doi/full/10.1108/14601060510578583