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Samsung SDM Assignment
Samsung SDM Assignment
Samsung SDM Assignment
SAMSUNG
SUBMITTED BY
MOHAMMED FARSAN S
18EPMB056
DISTRIBUTION CHANNELS
Firstly distribution channels is defined as a “set of independent organisations involved in the
process of making a product or service available for use or consumption by the consumer or
industrial user” Kotler, Armstrong (1994, p. 395).
More over distribution channels come in 3 different forms;
Apple sells their products through Telcos, Apple Stores the Apple website, and their retail
distribution channels. Samsung sells their product anywhere they want as long as retailers are
willing to take stock.Therefore Samsung can sell directly or indirectly to consumers.
Further compared to Apple, Samsung has the ability to quickly expand and saturate the market
with their products anywhere in the world except America – as the telco relationship in the
USA require that Samsung create different versions of their phone(s). Apple on the other hand,
sells according to the country tiers where as in tier 2 countries such as Malaysia there are
rumors that Apple is selling refurbished iPhones instead of new ones hence why Samsung is
dominant in these markets.
In addition Samsung also has an existing distribution network from their existing businesses.
This is of tremendous value because unlike Apple, Samsung does not need much in the way of
resources to bring their phones and tablets to new markets and more importantly unlike Apple.
These distribution channels will also be there for the future dissemination of other Samsung
products. This means that if they want to, it’s easy for them to market more than just electronics.
In some regards, Samsung’s new channel effort could be called a “channelification” of the
company. By nature Samsung does much of its business through partners, but in a fractured
way. Thus STEP and its complementary support programs are designed to not just simplify and
expand support, but make Samsung more approachable.
In essence STEP is Samsung’s effort to consolidate its channel resources and also serve as a
launch pad for expanding its re seller network in the North America market of 13,000 partners
by launching a recruitment campaign, which will be followed by a return to the channel
program providing greater clarity to partners on product and services opportunities.
References
Chand, S 2015, Types of Distribution: Intensive, Selective & exclusive distribution, Smriti
Chand Distribution, retrieved 14 May 2016,
<http://www.yourarticlelibrary.com/distribution/types-of-distribution-intensive-selective-
and-exclusive-distribution/5780/>.
Iacobucci, D 2014, Marketing Management (MM), 4th edn, South Western, Cengage
Learning.