Wednesday, September 21, 2016

BLOG POST #2


SAMSUNG AND APPLE'S MARKETING STRATEGIES

Source: http://media.vanityfair.com/

Do you ever wonder when you go watch a commercial there’s always that new Samsung Galaxy Note 7 or the new iPhone 7 that comes out and every single year there’s usually one or two other phones that try to compete against these powerhouses and they always fall short? Well, according to a blog from WordPress.com, that is unbiased and reaches many branches of both companies, it is the way that Samsung and Apple have promoted and linked their products to their customers that have made them today’s best smartphone products. Therefore, I am here to figure out what are the techniques and strategies they use to gain the maximum amount of consumers every year.

Both Samsung and Apple provide different marketing campaigns during the year, but the concern is how do they get many customers to buy their products every time. The answer to that is from a blog source from WordPress.com titled, "Customer Relationship Marketing: Apple Vs Samsung." where Apple uses a marketing technique called CRM (Consumer Relationship Marketing) which is “to get to know the customer as well as possible so as to help a company delivery better, more appropriate and higher added value to the customer.” And on the contrary Samsung uses another type of marketing called “Transactional Marketing” These two strategies and techniques of marketing correlates the reason of why Apple and Samsung produce many customers every year because it is the customers that believe that the company's’ new phone will be the one just for him/her.

Continuing on, Samsung gains consumer relationship and loyalty using a set of principles or steps. These principles are what companies use to produce positive results with Transactional Marketing  “4P’s of Transactional Marketing:
Product — Creating a product that meets consumer needs.
Pricing — Establishing a product price that will be profitable while still attractive to consumers.
Placement — Establishing an efficient distribution chain for the product.
Promotion — Creating a visible profile for the product that makes it appealing to customers.”
To clarify, CRM and Transactional Marketing are opposites of eachother. From WordPress.com “CRM is rooted in the idea that it is efficiency to retain an existing customer than to recruit a new one. CRM provides the customer with valued products and striving for the customers’ satisfaction, that gives the organization a competitive advantage.” On the other hand, Transactional Marketing “focuses on maximizing the profit of the company by recruiting more and more customers to purchase the firm’s product rather than developing a relationship with the buyer.”

With Apple, they follow a different technique CRM as mentioned. From WordPress.com,"Customer Relationship Marketing: Apple Vs Samsung."Google cooperates with other mobile phone manufactures such as Samsung, HTC and Sony in order to install the Android platform on those devices. On the other hand, Apple doesn’t focus on the number of the devices on the market, Jonathan Ive once said “for apple it’s quality not quantity”. Apple wants to make the consumer a die-hard Apple product fan. Apple does a great job of getting the customer to get hooked by their retail stores across the country. They let the customer try out the phone first-hand and get the “feel” of the product. Therefore, the majority of the time when a customer arrives at an Apple store, he or she is more likely to come out with a new Apple product.

Therefore, both Samsung and Apple use simple marketing techniques for a very complex oligopoly market and an industry that is difficult to create success when they start. In reality, I am an iPhone type person because when I arrived into an Apple store, they used the tactics of CRM to ingrain in my brain to love the product more than any other smartphone out on the market.

I would like to research more about Samsung and Apple about this question, "What is their next step to gaining more consumers?" as well as "How does Samsung regain their consumers when the majority takes Apple as their cellphone provider?"