Marketing Tools


Fall2016 MKTG-5006 – Assignment 1 Description

Fall2016 MKTG-5006 – Assignment 1 Description

Marketingis a managerial and social process by which groups and individualsget what they want and need through exchanging and creating productsand value with other people. There are five key marketing conceptswhich are needs, demands and wants, products, value quality andsatisfaction, transaction exchange and relationships and finally,markets. This essay will discuss the Samsung Galaxy smartphone wherethe concepts of customer analysis, the positioning of competitors,targeting and segmentation will be presented.


Consumersare faced with endless purchase decisions that are supposed to bemade on a day to day basis. However, all buying decisions are nottreated the same, as some of them are very easy to make while othersare very complex in nature. The product that is up for customeranalysis is the Samsung Galaxy phone which is one of the brands ofsmartphones produced by Samsung which is one of the leadingtechnology companies (Butler, 2014). For new customers who have notused the Samsung Galaxy, the purchase decision is a significant newinvestment, and this is considered to be one of the most difficultdecisions to make. The customer is involved in a high decision-makingprocess because a phone is an important aspect of their lives andshould buy one that suits their personality. It is critical formarketers to know how customers treat the decisions to purchaseproducts so as to know what marketing efforts to employ.

TheSamsung Galaxy smartphone is an involvement product because there aremany smartphones in the market. Therefore, the customer has manyalternatives to choose from. A client will purchase the SamsungGalaxy phone at the expense of an iPhone or a Blackberry depending onthe word of mouth they have heard from friends (Butler, 2014).Another reason as to why the Galaxy would be purchased is if they sawan advertisement on the television considered the phone as somethingthat would solve their want at the time.

Themotivation that a customer buying the galaxy trend would haveegoistic, purchasing of the smartphone would be a symbol of statusfor them as they would be seen as having one of the sleekestsmartphones and at the same time, the phone would be solving thecustomer`s need for communication. The Galaxy phone would addressseveral customer needs such as if the client likes playing games onthe phone, he will download them from the Google play store,considering the fact that galaxy phones can access Google play storebecause of its android nature. If a customer likes taking photos, hecan do so because the galaxy phones are camera phones as well.


Oneof the most important marketing principles is the market`ssegmentation. Segmentation is defined by Butler (2014) as theseparation of the market into a group of end users who may includemaximum difference between groups, and maximum similarity in eachteam. There exist several attributes that brands use for segmentingmarkets. In this context, Samsung uses attributes such as demographicsegmentation, psychographic segmentation, benefits segmentation andusage-rate segmentation.

  1. Demographic Segmentation


Inessence, smartphones are not definite regarding gender. However,because men shop fewer times as compared to women, it is evident thatmore women also buy the Samsung Galaxy, as compared to men. Women arenaturally expected to buy more than men.


Samsung’starget age segmentation is young adults, teenager, and adults who arein their early or mid-30’s.

FamilyLife Cycle Segmentation

Theirfocused family life cycle is the young married/divorced, youngsingle, and the divorced either with children or without.


Thetargeted segment of the market regarding income is the people who arein the high class and middle-class income level.

  1. Psycho Graphic Segmentation

Thepsychographic segmentation of Samsung includes people from teens toyoung people who are in their mid-30s who want to experiment with newtechnologies, have the ability to buy the products considering theirprices, and those who are tech savvy as well.

  1. Benefit Segmentation

Aftercustomers purchase products from a brand, they all expect to benefitfrom it. When customers acquire the Samsung Galaxy from Samsung, theyhope to gain. For instance, they expect benefits from its &quotfresh&quotappearance, updated and new features, and from the way it is pricedin a reasonable sense.

  1. Usage-Rate Segmentation

Themarket of smartphones has several users because they are highlyconvenient whereby people can play games, text, call, surf theinternet, send pictures and videos. There are a big percentage ofcustomers who purchase their latest phones. Samsung also offersupgrade plans, and this motivates the customers to buy the latestphones.

Benefitsof Segmenting to Samsung

Samsungbenefits from segmenting customer markets because they avoid wastingtime which would have been used for other beneficial endeavors. Forinstance, convincing sections of people who are not interested insmartphones would be a waste of time. Customer retention is also abenefit to the brand, through the client`s life cycle. Because itsaves time and enables the retaining of customers, it increasesprofitability as well.


Afterthe market is segmented, the marketers choose a few of the segmentsto target. The companies select the target markets, which fit wellwith it and possess the real potential of driving in profits. Samsungmarket has chosen target customers who include young people, bigbusinesses, the average smartphone users, and professionals who wantto keep up with their emails. Butler (2014) notes that 84% of thepostpaid subscribers use smartphones in Canada in addition, Samsungaims at targeting those who do not use their Samsung smartphones yet.

Positioningof competitors

SamsungGalaxy phone’s competitors include the iPhone, Blackberry, Huawei,windows phone and Sony. The Samsung Galaxy targets part of thesegment because the smartphone industry is segmented and there is noway the galaxy phone can be everything to all people. The SamsungGalaxy has a high positioning in the mobile phone industry because ofits low price, and high-quality phone (Butler, 2014). The perceptualmap of the Samsung Galaxy smartphone shows that the mobile phone`sclose competition is the iPhone because the iPhone has higherpercentages on the market segment therefore, there is a need for arepositioning strategy.

Fig1. An image of Samsung Galaxy perceptual map (Butler, 2014)


Itis quite evident that segmenting brings about several benefits to afirm. For instance, segmenting helps Samsung to focus on the marketsegments, retain customers, and eventually, increase profitability.Positioning also has its advantages, which include making the wholefirm market-oriented, to effectively deal with the changes in themarket, and to meet the customers` expectations. . Samsung has been asuccessful business because of all their marketing strategies, andthis should be emulated by companies, which aim at being successful.


Butler,M. (2014). Android: Changing the mobile landscape.&nbspIEEEPervasive Computing,&nbsp10(1),4-7.