Market Research Mix
Executive Summary
Market mix is a means of converting the marketing planning into practice. In the traditional marketing mix, product, price, place, and promotion provide and effective way through an organization can increase its position in the market. It is worth noting that marketing mix offers managers a theoretical tool for configuring their market plans into long-term and short-terms implementable programs. For a numberof years Apple has been the global emblem in the tablet market. Nonetheless, the entry of Samsung into the tablet market poses potential competition to Apple.It is notable that the launching of Samsung Galaxy Tablet gives Apple iPad a run for its money in the tablet market. As such, this study focuses on analyzing the 4Ps marketing mix strategy for the Apple iPad relative to its competitor Samsung Galaxy Tablet. This research draws its findings from secondary sources through systematic review of existing literature materials including market reports.
Introduction
An effective marketing strategy is a guarantee to the success of a business. The traditional marketing mix is a marketing strategy that includes the 4P’s representing product, price, place, and promotion marketing decisions. For a business to satisfy its customers, it must create a product, determine the price that the target consumers will be able to pay, identify the most convenient place to sell the product and promote the product to the consumers. This discourse seeks to examine marketing strategies that Apple and Samsung companies have adopted in the marketing of their products Apple iPad and Samsung Galaxy Tab respectively. This study adopts secondary research methods based on systematic review of literature from secondary sources.
The Apple Inc. started in 1977. It designs, manufactures, and markets personal computers, portable digital music players, mobile communication and media services and related software. The services and products include iPad, iPhone, iPod, Apple TV, and software applications. The Apple iPad is a mobile gadget that enables users to associate with their applications in an interactive way by browsing, watching videos, reading and sending email and reading e-books. The Samsung Company started in 1938. Its products and services include electronics, construction and petrochemicals . The Samsung Galaxy Tab is tablet computer that operates on Android system. According to Mintel, demand for personal computers is on the increase. Apple has the largest market size. Its consumers are more likely to replace their Apple iPads with the most recent series. The Samsung Galaxy tablet though impressive still lags behind Apple, which has the largest share in the tablet market. This is because the Apple iPad has the best applications. However, consumer trend is slowly changing with more people going for the Samsung Galaxy Tab shifting away from the iPad. According to Mintel reports, Apple consumers are not purchasing as much as they used to.
Target Markets
The world market is fast changing and becoming more competitive. As such, organizations must strive to develop plans for long-term survival in an ever-changing market economy. Notably, information and communication industry operates in a highly dynamic market economy where prices and demand are very elastic.At the launch of Apple iPad, the technology targeted three major market segments namely: education sector, the enterprise world, and consumers on the couch. Notably, the entry of Samsung Galaxy Tab poses a significant competition to the Apple iPad. In fact, the Samsung Galaxy Tab became the first android slate to give Apple a run for its money in the touchscreen tablet market. Apple iPad targets mainly the generation Ythat constitutes a large percentage of the youths.This target market is typically tech savvy, and is racially and socially diverse (Pfeiffer E. et al., 2013, p. 9).
Whereas the Apple iPad major market targets mainly the youths andexecutives,its competitor Samsung Galaxy Tab comes with features that targets mainly businesspersons and workers who to date have not replaced their old school PDAs.Samsung Galaxy Tab comes with features that are most suited for business people to build custom software and line-of-business apps more easily.One similarity in the target market of these two products is that both are targeting professionals. Samsung Galaxy Tab mainly targets professionals who have a taste for the iPad but have never purchased the iPad, as they need an alternative as a show-off. It is worth mentioning that the substantial increment in the income of most young adults and youths present the iPad and the tablets significant opportunities in the U.S and other markets globally.
Marketing Mix
Marketing mix encompasses products, price, promotion, and place, commonly known as the 4Ps. Pipanda A. (2012, p. 1) maintains that an organization must consider these 4Ps when making decisions regarding the marketing of a product. Accordingly, the 4Ps helps in picturing and evaluating the marketing strategies that Apple and Samsung adopt in marketing their products Apple iPad and Samsung Galaxy Tab. Below is a comparative analysis of the marketing strategies of Apple iPad and Samsung Galaxy Tab under the 4Ps: product, price, place, and promotion strategies.
- Product
Product strategy involves differentiation, product lines, branding, and image position of a product in the market. Considering the two products, it is noteworthy that significant differences exist. Whereas Apple iPad enjoys a monolithic brand identity, Samsung Galaxy comes on the strategy of product diversification. The “I” prefix is an icon in the brand imaging of Apple’s product. The company uses this prefix “I” for market positioning among its consumers. It is worth noting that Apple iPad comes through product development strategy where the company continually improves its technology in creating new series of the iPhone products. Similarly, Samsung Galaxy also comes in a series of tablets that come with advanced features that offers consumers, especially the business class to optimize efficiency while providing security and business continuity.Samsung Company continues to generate advanced models of tablets that exhibit professional style. There is a higher brand knowledge of the Apples iPad than the Samsung Galaxy.Peiffer E. et al. (2013, p. 41) alludes that Apple iPad is a revolutionary product that integrates technology with functionality. It has features that make it act both as an entertainment device and as an educational tool.
In terms of design, Apple iPad only weighs 1.5 pounds with a 1024-by-768 pixel resolution on a 9.7-inch LED backlight shiny multi-touch widescreen. Samsung Galaxy Tab on the other hand is an android-based technology powered by a 2.2 android with full support Adobe Flash Player 10.1. Just like the Apple’s iPad, the Samsung Galaxy Tablet also has a large screen with an immersive brand message. HTML5 is common for both the iPad and Samsung Galaxy Tablet. Adobe Flash is only in the Samsung Galaxy Tablet.Considering the brand imaging and emotional impact, iPad is the emblem in the market. Nevertheless, the arrival of Samsung Galaxy Tablet operating on an Android OS gives Apple a run for its money.
- Price
While making purchasedecisions, price is an essential consideration among the consumers. Most consumers associate prices withquality. In other words, consumers expect price to be commensurate to the quality that a product offers. Apple does not compete on price strategy. The company uses skimming and premium pricing strategy. Conversely, Samsung has a wide range of products, and uses different pricing strategy for various products. Samsung, like its counterpart Apple uses skimming strategy for new products with advanced technology. For instance, upon the launch of a new Samsung Galaxy Tablet, the company sets a high value for its product before competition hits the market.The moment the product faces a clash with other similar or alternative products, Samsung reduces its prices to remain competitive. While Samsung practices competitive pricing strategy as well, Apple on the other hand is a premium brand that uses premium-pricing strategies.Apple prices are relatively stable and rarely fluctuate. The reason for this pricing strategy is that Apple products, especially the iPads have low depreciation value. Samsung on the other hand sets lower prices for its products to give its rivals a run for their money in the already dominated market.Apple iPad prices at around $499, which is a relativelycompetitive price for its target consumers ranging from gamers to students to movie junkies. It is worth mentioning the pricing at Apple targets a completely new market. Unlike Samsung Galaxy Tablet that enters an already established market, Apple iPad came before its demand. As such, the premium-pricing strategy of Apple iPad relies on the high brand loyalty and image in the market.
- Place
Place as an aspect of marketing mix entails decisions regarding the distribution channels used availing the products to the target market. It encompasses location outlets, method of transportation,and the inventory levels. Place strategy is very essential as it ensures that right product is available at the right place at most convenienttime. Considering Apple products and Samsung, both companies have stores in various countries as well as online access. For example, Apple stores are located in different countries globally with a number of consultant networks that include independent professional service providers and technology consulting firms. These consultant firms specialize in third party solutions to ensure on-site technology services and support home users and businesses. Both companies have retail outlets that avail the products to the consumers in different countries globally. In both Apple and Samsung, there is hybrid distributional channel with online stores, physical outlets, and retail points.
Maha H. (2012 slide 11) alludes that one of the most iconic initiative in Apple is the opening of retail outlets in different countries across the globe. Likewise, Bhasin H. (2014) asserts that Samsung Company has retailers that sell products through chains of supermarkets and other retail outlets that increase the in-store share. The Apple retail stores offers the consumers and opportunity to experience the value and variety that Apple presents. Arguably, both companies have expended their distribution networks to cover all countries globally. Customers even obtain help from these concerning the products of these companies.Another common trend that these two companies have adopted in their marketing is the idea of availing their products in various stores that sell electronics. As such, consumers do not have to visit their stores to get their products. Moreover, the two companies are also using e-commerce platform such as Amazon, Apple’s website, and Samsung website. As such, it is worth noting that these companies have made the buying and access to their products much easier and faster.
Moreover, it is notable that Apple and Samsung Companies also distribute their products through sales dealers and service dealers. They involve these groups in corporate selling and even allow them to open their own exclusivedisplay and showrooms. There are also some companies affiliated to Apple and, therefore, offer their products. Websites such as EBay also give consumers an opportunity to access Apple products.
- Promotion
Promotion is the means of communicating the value, of product to the target consumers.Through promotion, an organization is able to reach out to the target consumers. It is noteworthy that both Samsung and Apple have invested significantly in promotional strategies.Both companies use an array of promotional strategies including advertising, personal selling, sales promotion, public relations, direct marketing, and online promotion. In both Apple and Samsung retail outlets, the staff utilizes personal selling in communicating the worth of their products to their consumers. Both staffshave a high level of knowledge on their respective products and effectively communicate the value of the products to the consumers. Both companies use various advertising mediums to reach out to the consumers. For example, the Apple iPad messages and ads flooded the digital media at the time of its launch. In fact, it is arguable that nearly everyone whether a consumer or not has adequate knowledge of Apple and its products.In comparison to its counterpart, Samsung updates its new product launches and schemes on the local media. Samsung invests billions of dollars in promoting its new launches as well as communicating to the consumers the about the products and their goals.
Samsung uses almost 5% of revenues from sales in promotion of their products. Samsung has brand ambassadors such as Amir Khan and Priyanka Chopra. In promoting the new Samsung Galaxy Tab, Samsung significantly writes articles for trade publications. In most cases, brand ambassadors are present during the launch of new Samsung products.Likewise, Apple pays close to half a billion dollars every year in paid media for promotional purposes. Apple usually reinforces the launch of its iPads with blogs, and websites. Compared to its rivals, Apple spends less money on advertising due to its brand image and memorability among its loyal consumers. Unlike Samsung, Apple promotes online selling by offering free shipping for orders over $50 alongside iTune gift cards. Apple offers credible after-sales services. As a result, it is notable that Apple customers have a high level of loyalty to the company and its products. In fact, Apple is positions itself as a premium brand in the minds of the consumers. The price premium is evident across Apple products targeting mainly the less price sensitive consumers.Apple sets itself as a distinct company with unique value compared to its competitors like Samsung.
Conclusions
Bibliography
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Appendix
Source: Pfeiffer E. et al. (2013, p. 11).
Source: Pfeiffer E. et al. (2013, p. 10).
