Principles of marketing

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Abstract

Marketers take into consideration various factors before releasing their products to consumers. Identification of threats and opportunities in a business environment forms the most vital issues that promote a successful marketing plan. Below is a market analysis of Samsung smart phones from the manufacturers to end users. The analysis uses direct distribution channel as the best distribution strategy for Samsung smart phones. In addition, a multi-channel distribution system was recommended that utilized only the catalogue and the sales force. The target market needs identified indicated that most Smartphone users demand the android operating system, and are very sensitive to original products from Samsung thus validating the direct distribution channel.

Introduction

In order to effectively sell their products, marketers must consider a number of factors that contribute to a perfect marketing and distribution plan. Some of the vital things to consider while marketing a product include the distribution channels to adopt, the target market needs and its effect on the chosen distribution channel, and the type of channel member to use, whether a retailer, wholesaler, manufacturer, or a dealer. According to Kotler & Armstrong (2001, p. 15), marketers should have the ability to identify threats and opportunities within a business environment in order to develop a perfect and successful marketing plan. The following discussion provides a deep analysis on how an entrepreneur can market a product and make it available to the end user. The selected product was a Samsung Smartphone. The increasing demand for technologically advanced gadgets in the present digital world stimulated the above selection.

Analysis

Market analysis of smart phones

The high rate of technology advancement and the increased globalization has created a ready market for mobile gadgets. Samsung Company forms one of the best mobile phone manufacturers in the world. Samsung has brought into market different types of phones that fit different consumer needs depending on the level of income, the intended use, and the consumer environment. Smartphone business has had a positive response in the electronics industry getting large number of consumers especially from the younger generation. In addition, most business people use mobile technologies to market their products and services (Ballve, 2014).

Distribution channels

A marketer may utilize either direct or indirect distribution channel levels. In the direct distribution channel, marketers sell products directly to consumers without using intermediaries. On the other hand, indirect distribution channel involves selling of products to the end user with the help of other people called middlemen. Direct distribution is the best channel for marketing the Samsung Smartphone. The channel was selected based on the following benefits. Firstly, it does not have loss margins incurred through the use of intermediaries. Secondly, the marketer has a complete control over the distribution process. Finally, there will be less competition when the product goes directly to the end user. In addition, direct distribution will eliminate chances of other manufacturers coming up with counterfeit products using Samsung brand name (Kotler & Armstrong, 2001, pp. 77-78).

Catalogues and sales force channel members will be utilized in marketing of products to different destinations across the world. A direct distribution channel was adopted that limited the number of distributors to only those directly in touch with the manufacturers. Catalogues will enable marketers relate the cost of distribution to the selling price and allow sales force make the necessary decisions about the expected selling price of the product to the customer. Manufacturers will be responsible for producing catalogues for use by sales representatives. On the other hand, sales force offers a smooth distribution process free from counterfeit products, and the consumer gets a guarantee of receiving original products. A selective distribution process will be utilized to select channel members who will be responsible for product distribution from the manufacturer to the end user. Consumers will have the opportunity to order a product directly from the manufacturer through the company website and have the products delivered by sale force representatives.

Marketers may use conventional, horizontal, multichannel, or vertical marketing systems depending on the type of distribution channel used. Under the direct distribution channel, the multi-channel distribution system will be adopted. By following the multi-channel system, Samsung’s distribution design will entail selling of products directly in company-owned shops worldwide, use of direct marketing system through selling via direct mail, or a single-party selling that involves selling through electronics stores. The multi-channel distribution system assists marketers in expanding their distribution process and reaches a wide range of consumers (Kotler & Armstrong, 2001, pp. 74-75). Moreover, the system will ensure timely delivery of products to the end user because of the direct contact established, and the company can gain a higher profit margin.

Target market needs

In marketing, target market forms a vital factor because it helps in designing strategies of reaching the end user of the product. Different people have different needs when it comes to the demand of a smart phone. Target marketing needs for a smart phone depends on the operating system, hardware manufacturing, and contents. Most Smartphone customers are more interested in hardware manufacturing than any other factor. People purchasing smart phones to use in business focus more on the operating system. Android and Mac are the most demanded operating system by consumers today because they are easily compatible to different personal and business applications (Song, n.d). From the above channel of distribution, the target market wants original products with android operating system and whose specifications fit individual customer’s demand. Direct distribution channel using sales force representatives ensures all consumer needs are met without involving very long channels.

Conclusion

The above analysis shows that marketing of Smartphone would be effective if carried out using a direct distribution. Because of involving fewer parties in the distribution process, a multi-channel distribution process was recommended with three channel members. On the other hand, the target market was selected on the basis of consumer wants in a gadget. The analysis shows that most consumers demand Samsung Smartphone with android operating system because it accommodates most business and personal applications.

References

Ballve, T. (2014, March 10). The Battle For The Smartphone Market Has Definitively Moved To

Emerging Markets. Business Insider. Retrieved June 27, 2014, from http://www.businessinsider.com/innovation-in-the-smartphone-market-3-2014-3

Kotler, P. and Armstrong, G. (2001). Principles of Marketing, 9th edition. Upper Saddle River:

Prentice Hall.

Song, H. C. (n.d). Analysis of the global Smartphone market and the strategies of its major

players. Hanyang University, University of Texas at Dallas. Retrieved from June 27, 2014:

http://jgbc.fiu.edu/files/journals/2/articles/36/public/36-150-1-PB.pdf