HND Marketing Principle Assessment

Question: Discuss about the HND Marketing Principle Assessment. Answer: Introduction In this study, the focus is on the marketing of the smart phones and how the companies who are in the manufacturing of smart phones deal with the competitive markets and industry. This study will give a brief description about the two companies that are the leading companies of smart phones: iPhone and Samsung. After analyzing and research on this study, the learners will learn and understand about the concepts and procedure of marketing that takes place in both of the companies (Wilkie, and Moore, 2003). In a business organization, there are many departments to manage the entire work o the marketing of the products and service. The revenues and sales of the company mainly dependent on the activities of marketing takes place in the company (Parasuraman, and Grewal, 2000). So, there is a need to develop a dynamic team for the marketing of the products to ensure the profitability and higher sales. Normally, the multinational companies spend and invest big amount of investment in the marketing activities for their products and services. The report represents the marketing strategy of those big companies like Samsung, iPhone, etc. and their marketing environment (Gummesson, 2005). The study is conducted by using various types of concepts of marketing, methods, approaches, position of the company, marketing mix, etc. there are various contexts for all the companies who are into the production of mobile phones. It becomes very important for companies to analyze the marketing condition before framing of plans and policies. The study will describe about the marketing mix that consist of 7 Ps of iPhone and Samsung. The 7 Ps of both the companies will introduce about the types of products manufactured by both and the difference between the products of both companies (Parasuraman, and Zinkhan, 2002). The distribution is also different of iPhone and Samsung. In this way, the place, price, promotion, physical evidence, people, etc will be mentioned. There are various types of additional elements in the marketing mix that directly or indirectly explain about these companies. The discussions will also be on the marketing orientation approach for the launch of new smart p hone in the market. The macro environment that is the internal and external environment for the smart phones companies will be analyzed. It is through the PESTLE and SWOT analysis that are required to be considered while framing the decisions for the marketing. This report will also conduct an analysis on the marketing segmentation, targeting and positioning for the new smart phone (Summers, 2001). In this part of the report, the discussion will take place on the marketing mix for the two companies that are Samsung and iPhone. In this, this part there is an in-depth discussions on the 4 Ps and well as the extended 7 Ps of marketing. iPhone Samsung Product Development of the products in a way that they can be sustained and compete in the markets and industry of smart phones To sustain the competitive advantage, the iPhone company is using the techniques of product differentiation. It refers to planning of the policies and the procedures that are related to the iPhones offered by the iPhone company. Generally, the decision for the products manufactured by apple are related to the functionality, quality, packaging, branding, after sales service. The product portfolio of Samsung is very vast. They use quantity to sustain in the competitive advantage. They have various types of product categories. The varieties of Samsung phone are available at every price. The biggest benefits for the Samsung are that the customers trust this brand (Gummesson, 2003). There is no such differentiation in any other smart phones and Samsung phones as the soft ware used in this company is very basic and android. The uniqueness is that this company phones are the most selling phones in the entire world due the availably of all the features of smart phones on reasonable rates. Place To provide customer convenience to the customers the companies use very effective and efficient procedures that are mentioned here The place plays a vital role in the distribution of the product. The products of apple are available of the authentic stores and apple stores like imagine. The online purchase of apple products takes place on Snapdeal, Flipkart and Amazon. There are more 500 apple stores in the entire world (Castaldo, Premazzi, and Zerbini, 2010). The distribution of this company is little bit restricted as the smart phones of apple are not available at any store. The company has some restrictions in the distribution of the phones. They have apple store for the customers who have any problems and issue with the phone. The same distribution takes place in Samsung company. The stores and outlets of Samsung phone are amazing and they are also sold at authentic retailer sellers. The phones of Samsung are also available online on many online website like Amazon, Flipkart, Snapdeal, paytm, etc. The phones of Samsung are made available in the market and the service centers are also there to solve the problems of customers (Parasuraman, and Colby, 2007). Price The prices are set to attract a large group of customers and the prices are set to reflect an organisations objectives and market conditions for both the companies The phones of iPhone do not compromise with their price due to any reason. They do not change the price due to the competition and for any other reasons (Phelps et.al. 2004). The price of iPhone smart phones does not go down due to old model. It is a premium seller and this company does not have any compromise with the products and its prices. The price of this phone is determined by the differentiation, uniqueness, and the features. It is a company that o not believes in the competition with any other company of smart phone in terms of process. Thus the strategies of for the pricing their products are as an inspirational item. The smart phones of apple are the most expensive phones. There is no company that can compete with the prices of this brand. It helps the company in maintaining the brand image and the royalty. There are various types of strategies used by this company. They use various methods of pricing like skimming method in which the high value is transferred to the customers as compared to competitors. The pricing strategy of this company is that once the model is old and any competitor launched the same product, than they drop the price (Balmer, and Greyser, 2006). The company Samsung is just opposite from the apple company because the pricing strategy of this company is to attract more customers through reasonable prices of their smart phones. Promotion Promotional activity is integrated to achieve marketing objectives Apple is known as a major marketer for its product and services. There are various ways through which the marketing and promotion of apple products takes place that is through events, press, developers, etc. who sell and promote the products of apple live. They use very easy and effective methods in the advertisement of their products and services. The YouTube of apple has more than 3 million subscribers and it has more than 140 millions views on the video. The last video of apple has more than 1 million views. They try to maintain good relations with their experts who help in publishing of the newspapers and magazines and also review them (Rafiq, and Ahmed, 2000). There are multiple types of promotion used by Samsung. It is a company that attracts the customers through advertisement and pricing strategy. They use strong tactics to push the product into the market. It provides many offers, discount, gifts, etc. to the customers. People The additional elements of the extended marketing mix Apple is famous for its operations, unction and process. This company has many factories that work in a very systematic way to produce all the products and services. They are also famous for the kind of simplicity they follow in their company. It can be easily visible and ultimate sophistication from the website and YouTube videos. If anyone wants to see their process of GUI than the websites architecture can help them to find the same. They try to be very helpful and provide good customer service to their customers (Kay, 2006). The motive of the company Samsung is to satisfy the demand of every people so they manufacture the smart phones in a way that they are reasonable and affordable by all. This is one of the unique elements in the Samsung phones. The kinds of people they hire in their company are very efficient and work with the dedication. The process of manufacturing is available on YouTube. They have a systematic flow of the wok and it s also a very simple company that believes in simplicity. The try to follow a particular tradition t manufacture their smart phones and this is the reason due to which the company is enjoying the position of a leading company. Physical Evidence As discussed in the above description, the apple stores are way better than any other smart phones store. This company has wonderful apple store that has a class and provides the customers a delight while visiting the stores of apple. The website of this company is very smooth and designed in a way that it attracts the customers and appeal to it premium and permanent customers with less of words and more art. The type of services provided by this company is very premium as they are professional and know how to deal their customers across the world. The other extended marketing mix are the dress code, paper work, etc. There are many additional services provided by the Samsung to their customers. They also provide Process Apple is company that is very much known fro their operation and procedures. The company has a very systematic Samsung use effective way to manufacture their products and they have a systematic way to work in the organization (Spurling et.al. 2010.). Marketing proposal Sonic is a new company that was initiated in the 2015. It is just an 18 months old company. The company is trying to launch new smart phones in the market. So it requires various types of marketing techniques to establish a reputed place in the smart phones industry. It is knows as sonic 1000. The market segmentation for these products is very specific as the phones of this company are not very famous (Knight, Madsen, and Servais, 2004). The aim of this company is to target the current telecommunication and smart phone market in which the demand for mart phones is very high and it is increasing with the time. There s a need n the expanded communication, storage facilities, entertainments, etc. the primary marketing objective of this company is to achieve a big amount of sale that is 500000 units in the first year of their launch. So the companys primary objective is to have revenue of up to $ 75 million in its first year of launch. The company is also trying to maintain its loss less than $ 8 million in the first year. In this way, the company is planning to go herd. In the second year, the sonic company is hoping to have revenues more than the last year and to become the records also (Stenbacka, 2001). The current marketing situation The current marketing situation of sonic market share is made due to the customers who prefer to purchase the smart phones of sonic company. They chose to use this device that has entertainment, information storage, telecommunications exchange, etc. to ease the data to day activities of the customers (Vachon, and Klassen, 2006). So the aim of the company and they are looking forward to the needs and demands of the customers. They are trying to put all the features in one phone so that the customers can enjoy using sonic smart phones. They can carry a phone that has all the features that are found in any expensive smart phone. They want that customer do not have to carry different devices with them. The aim is to put all the relevant apps and software in one phone which is smart enough. For such reason, the target of sonic are the business organization, corporations, entrepreneurs, professionals, students, medical users, etc. they are also targeting the house wives a there are special features for the women in the phone (Varadarajan, and Yadav, 2002). Marketing planning process The planning for the marketing of sonic products takes place by using various sources. They are using many types of platforms in the advertising and marketing of the sonic smart phones. They are using brand positioning techniques. In this the sonic company is trying to differentiate the products by positioning sonic as the most convenient, versatile and value added product for both; personal and professional (Creswell, 2013). They are using various types of product development strategy like the sonic 1000 will be sold with a warty of one year. There will be free insurance for the phones. They are also saying that at the end of they launched a better high end model in the market that will be known as sonic 2000. They are also using the logos and brand of sonic to promote and to make the sonic brand familiar with the customers (Zahra, Ireland,and Hitt, 2000). Argue marketing oriented approach for the smart phone product Macro i.e., external (PESTLE) Political Environmental Social Technological Legal Economic Government rules Regulation stability Rules and regulation related to environment Government interventions Culture Trend Change in technology Updated technology Laws Legal obligations Changes in the countrys economy Currency value Strengths The company sonic has an advantage to be innovative and creative for the beginning of its launch as they offer as large number of features on a single gadget. They also provide many types of securities as they run on a Linux operating system. The operating system of sonic 1000 is also priced model than many other models (McDougall, and Oviatt, 2000). The company has an advantage to get benefits of a new venture as it is new company. There are many types of remedies and subsidiaries provided by the government to such kind of companies. Sonic smart phones have a quality that it has all the features that expensive companies smart hone have. In this way, a sonic smart phone has the caliber to capture a big market share in future. The strength of this company is the innovation and creativity used by this company (Li, and Gima, 2001). Weaknesses The major weakness of this company is that sonic 1000 is lacking of brand awareness. The brand promotion and advertisement of this company are not very effective and efficient. They do not have any prominent marketing strategies to promote their products (Shane, and Venkataraman, 2000). Since the company is new to the market, they have to lots of competition due to the poor marketing and branding of the smart phones. The other weakness of this phone is the physical appearance and physical appearance. The appearance of the phone is slightly thicker as compared to the other smart phones (Oviatt, and McDougall, 2005). The weight of the phones is also heavy due to the combination of all the features its phones have. It is the reason due to which company is facing many issues and problems. The fact is that the customers now want a sleek and light weighted phone that looks ice and decent. It is very heavy as compared to other brands phones that are slimmer and lighter with great looks. It is one of the biggest weaknesses of the smart phones manufactured by sonic (Li, and Zhang, 2007). Opportunities The biggest opportunity of this company is that the smart phones of sonic are in high demand since they come to the market as the phones have many functions. The other opportunity with sonic is that this company has the availability of the cost effective technology that is available at lower cost (Gruber, 2004). The smart phones are very reasonable and can be affordable by a medium class people. It has allowed the company to add value to the smart phones by increasing the profits of the company. Threats The major threat for sonic smart phones is the competition. There are many Smartphone producers in the mobile industry due to which the new companies have to face competition. The old companies are established with effective marketing and branding of their products in such situations, it has become difficult for the smart phone companies to establish their business. The market is flooded with the smart phone companies due to which sonic company have to face issues with the pricing of it products (Dess, and Lumpkin, 2005). Sonic company has to reduce the prices to the pricing of other smart phones. It is the only way to cut down the competition present in the mobile industry. Another fact for sonic smart phone company is the minimal product life cycle of the smart phones. This is the reason due to which the company has to add new features, bring innovation and creativity timely. The segmentation for the population of product of sonic are very common there are no specific difference as the company is new to the market and they first have to establish awareness of the smart phones manufactured by them (Stevenson, and Jarillo, 2007). In this way, they can divide their broad customers base into small segments which helps in targeting and brand positioning of sonic products. Behavior segmentation- this type of division divide the population according to the behavior of the customers Benefit segmentation- this type of segmentation is the most fruitful for the companies as it provided various types of benefits to the company itself. Demographic segmentation- it refers to the segmentation in which is the widest segmentation for the company. It refers to age, gender, family, size, occupation, income, race, nationality, etc. Psychographic segmentation- it is related to the lifestyle, activities, interests, opinions, etc of the market segment. Targeting and positioning For the positioning of the brand, sonic used differentiation in their products as it is one of the convenient way to specify the product. It also helps in developing high vale, versatility and convenience to both the customers as well as producers. The brand positioning takes place by analyzing the demands of the customers and try to fulfill them in the bet way. Marketing mix in different concepts 7 Ps for both customers and business markets Product strategy- The product strategy of this company is that they sold sonic 1000 at a warranty of one year. They are using various types of product development strategy like the sonic 1000 will be sold with a warty of one year. There will be free insurance for the phones. They are also saying that at the end of they launched a better high end model in the market that will be known as sonic 2000. They are also using the logos and brand of sonic to promote and to make the sonic brand familiar with the customers. Pricing strategy- The pricing strategy of this phone is very effective as they use basic pricing methods for the sonic smart phones. The sonic 1000 will be introduced at the price of $ 150 that is the whole sale price of the hone. The retail price for the same phone is $ 199. But at the time of launch the pricing of the sonic 1000 was $ 175 wholesale for per unit. Place- Sonic Company intends to use very selective and particular distribution strategy in their company. The strategy of the company is to distribute the phones only at well known, reputed and online stores. The motive behind this is to manage the value of the phone in the eyes of customers. It will help the company to use particular media to reach to their customers People- The motive of the company sonic are to satisfy the demands of every people due to this they manufacture the smart phones in a way that they are reasonable and affordable by all. This is one of the unique elements in the sonic phones. The kinds of people they hire in their company are very efficient and work with the dedication. They have a systematic flow of the wok and it s also a very simple company that believes in simplicity (Shepherd, Douglas, and Shanley, 2000). Physical evidence- The Company has much evidence like they have data, information, dress code, customers feedbacks, etc as the physical evidence. Process- The type of procedure used by this company is very much effective. Application of marketing mix while new product launched in international markets At the time of launch of the product of sonic phones the company analyzed its various internal and external factors ha can emphasize the product. There is an analysis of all the 4 Ps of the company as well as the extended 7 Ps of sonic company. It has helped the company is identifying the success of the company in the future (Castaldo, Premazzi, and Zerbini, 2010). Conclusion The conclusion of the present study is that marketing of the smart phones has become very important due to the fact that there is a huge competition in the smart phones industry. There are not only multinational companies who are manufacturing smart phones but also many small companies how provide equal competition. In order to remain in the race of smart phones, the company le apple also has to develop strong marketing and advertisement of their company. In this report, we have studied various factors that impact the organizations internal and external environment. In his way there were also discussions on the smart phones like apple and Samsung that are the leading companies in the smart phone. From this study it becomes very clear that marketing management plays a vital role in the promotion of the companies. The companies have to maintain a good marketing strategy in their organization. It can be done through analysis of mart and marketing factors that influence the working of th e companies. We have studies about the marketing mix of apple and Samsung from which an in-depth about the companies has received. From this report, it becomes clear that it is not easy for a new company to start their business in such competitive environment for the smart phone industry. Hence, there is a requirement to identify and analyze the environment of smart phone industry. 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