Marketing channels
A marketing channel is a system of distribution that allows the customer to choose the product and buy it. The creation of an efficient marketing channel is essential for the overall success of the marketing strategy of the company. Samsung is a global corporation, and it has numerous marketing channels. There are such marketing channels as: Samsung manufacturing unit –> C&F agent –>distributor –> small retailer –> customer. Also there is another one: Samsung manufacturing unit –> C&F agent –>franchised outlets –> digital plaza –> customer. However, Samsung does not have any direct marketing channels just like other multinational companies that produce customer electronics. Marketing channels are expected to provide numerous choices for the customers (Rosenbloom 6). Current marketing channels of the company were precisely planned, and current channel strategy is extremely effective.
Marketing channel strategy
Samsung uses all three types of the distribution for different electronic products. This corporation is extremely transparent with their marketing channel strategies. A company heavily relies on the intensive distribution. Products of the company can be seen in almost all of the electronics stores. Samsung opts for selective distribution when it comes to some models of the product. When such strategy is chosen, the company tries to focus on a particular demographics rather than overwhelming the customers with a number of products. The corporation often signs international exclusive distribution contracts that are often relatively short-term but provide benefits to both parties. E-marketing can now be called a part of the marketing channel strategy (Tamilarasan 5). Samsung is also extremely active when it comes to sales on the Internet. This company is able to utilize the advantages of all of the types of distribution to their full potential.
Value chain
The value chain is a series of processes that are performed to make sure that the product of high value is provided to the customers. Presutti, Jr. and Mawhinney state that “with the development of the concept of supply chain management over the decade, procurement, now more descriptively called supply management, is much more than a support activity” (149). This means that supply management is necessary for the success of marketing strategy. Samsung manufacturing unit is the most important part of the supply chain because it produces valuable electronic products that hold the most value for the customer. C&F agent sends the stored products upon request of distributors that offer a set of important services, help with promotion and deliver the product to retail stores. Retailers bring value to the customers by making special offers and discounts on the products.
Pricing strategy
Samsung currently uses the High-Value Strategy for flat-screen TVs. The quality of the products is extremely high, and they are not overpriced. Some competitors offer similar products that are much cheaper. However, those products do not possess the qualities that make Samsung products unique. The corporation also practices Superb Value Strategy with some models of the products. There are numerous ways to gain an advantage over competitors with different pricing methods. Increased price of a new product from the same company is a sign of a higher quality for the customers (Utaka 409). This means that a company may make newer models of the flat-screen TVs more expensive, even though they are not that better. Samsung could try out other strategies by producing other models of the product. However, the company does not want to ruin the reputation of a producer of high-quality electronics.
Works Cited
Presutti, Jr.William D., and John R. Mawhinney. “The Value Chain Revisited.” International Journal of Value Chain Management 3.2 (2009): 146-167.
Rosenbloom, Bert. Marketing Channels. 8th ed. Boston, Mass.: Cengage Learning, 2011. Print.
Tamilarasan, R. “E-Marketing – Is it Indispensable for Today’s Marketing?” Journal on Management 9.1 (2014): 1-5.
Utaka, Atsuo. “High Price Strategy and Quality Signalling.” The Japanese Economic Review 66.3 (2015): 408-420.