ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

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Unit 2 Marketing Essentials
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 1. Introduction
In order to have an effective and profitable business campaign, our
smartphone company- DPHONE will have to compete with many different
competitors in the smartphone market. Targeting at the age of 18 to 35 years
old in the national area of Vietnam, especially the university students and
office workers, we need to come up with a perfect and suitable campaign to
promote our products. In a market with countless competitors like Apple and
Samsung (our two biggest competitors), they are the companies that thrive
on technology. Mobile technology, personal software, we need to understand
how to operate and apply their tactics in the Vietnamese market. So in this
study we will explore and analyze the factors and marketing strategies of
regional competitors in order to generate a expenditure the best strategy for
our company.
2. Analysis
I. Our company

Our telephone company in recent years has had many outstanding achievements
and successes, millions of products are sold to many loyal customers. Besides,
the company also focuses on developing technology to catch up with the world,
creating many useful products and reasonable prices. In the coming months, this
will be a time for the "bomb" "SDphone" to create a great influence on the
smartphone market.
 II. Our competitor
APPLE

Apple Inc. is an American multinational technology company headquartered

in Cupertino, California, that designs, develops, and sells consumer
electronics, computer software, and online services. It is considered one of the Big
Five technology companies, along with Amazon, Alphabet, Facebook,
and Microsoft

The company's hardware products include the iPhone smartphone, the iPad tablet
computer, the Mac personal computer, the iPod portable media player, the Apple
Watch smartwatch, the Apple TV digital media player, the AirPods wireless
earbuds and the HomePod smart speaker. Apple's software includes
the macOS, iOS, iPadOS, watchOS, and tvOS operating systems,
the iTunes media player, the Safari web browser, the Shazam acoustic fingerprint
utility, and the iLife and iWork creativity and productivity suites, as well as
professional applications like Final Cut Pro, Logic Pro, and Xcode. Its online
services include the iTunes Store, the iOS App Store, Mac App Store, Apple
Music, Apple TV+, iMessage, and iCloud. Other services include Apple
Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card

Apple is well known for its size and revenues. Its worldwide annual revenue totaled
$265 billion for the 2018 fiscal year. Apple is the world's largest technology
company by revenue and one of the world's most valuable companies. It is also
the world's third-largest mobile phone manufacturer
after Samsung and Huawei.[10] In August 2018, Apple became the first public U.S.
company to be valued at over $1 trillion.[11][12] The company employs 123,000 full-
time employees[13] and maintains 504 retail stores in 24 countries as of 2018.[14] It
operates the iTunes Store, which is the world's largest music retailer. As of
January 2018, more than 1.3 billion Apple products are actively in use
worldwide.[15] The company also has a high level of brand loyalty and is ranked as
the world's most valuable brand. However, Apple receives significant
criticism regarding the labor practices of its contractors, its environmental practices
and unethical business practices, including anti-competitive behavior, as well as
the origins of source materials.

Samsung

SamsungGroup isa SouthKorean giant multinational corporation with headquarters

located in Samsung Town , Seocho-gu , Seoul . The group currently owns
many subsidiaries , most of which are operating under the Samsung brand , which
is the group Multi-industry tycoon ( Chaebol ) has the largest scale and influence
on the economy in Korea and is also one of
the most expensive technology brands in the world today.

Samsung Electronics is a multinational electronics and information technology

company based in Suwon and a flagship company of the Samsung Group. Its
products include air conditioners , computers , digital televisions , liquid crystal
displays (including thin film transistors (TFT) and organic light-emitting diodes
(AMOLED), electricity. mobile phones ,
monitors, printers , refrigerators , semiconductors and telecommunication network
equipment . It was the world's largest mobile phone manufacturer by orders for the
first quarter of 2012, with a global market share of 25.4%.]It was also the world's
second largest semiconductor manufacturer in 2011 (after Intel).

Samsung Electronics is listed on the Korea Exchange stock-exchange (number

005930)

In many company include Apple and Samsung , they are all use marketing
mix on their strategic so what is marketing mix?
Simply put the Marketing Mix is a tool used by businesses and Marketers to help
determine a product or brands offering. The 4 Ps have been associated with the
Marketing Mix since their creation by E. Jerome McCarthy in 1960 (You can see
why there may have been some need to update the theory). In the late 70’s it was
widely acknowledged by Marketers that the Marketing Mix should be updated. This
led to the creation of the Extended Marketing Mix in 1981 by Booms & Bitner
which added 3 new elements to the 4 Ps Principle. This now allowed the extended
Marketing Mix to include products that are services and not just physical things.

The Marketing Mix 7 Ps:

 Product - The Product should fit the task consumers want it for, it should work
and it should be what the consumers are expecting to get.
 Place – The product should be available from where your target consumer finds
it easiest to shop. This may be High Street, Mail Order or the more current
option via e-commerce or an online shop.
 Price – The Product should always be seen as representing good value for
money. This does not necessarily mean it should be the cheapest available;
one of the main tenets of the marketing concept is that customers are usually
happy to pay a little more for something that works really well for them.
 Promotion – Advertising, PR, Sales Promotion, Personal Selling and, in more
recent times, Social Media are all key communication tools for an organisation.
These tools should be used to put across the organisation’s message to the
correct audiences in the manner they would most like to hear, whether it be
informative or appealing to their emotions.
 People – All companies are reliant on the people who run them from front line
Sales staff to the Managing Director. Having the right people is essential
because they are as much a part of your business offering as the
products/services you are offering.
 Processes –The delivery of your service is usually done with the customer
present so how the service is delivered is once again part of what the consumer
is paying for.
 Physical Evidence – Almost all services include some physical elements even
if the bulk of what the consumer is paying for is intangible. For example a hair
salon would provide their client with a completed hairdo and an insurance
company would give their customers some form of printed material. Even if the
material is not physically printed (in the case of PDFs) they are still receiving a
“physical product” by this definition.

So, how have Apple and Samsung applied the marketing mix to their
products to achieve high sales and popularity ? Let's find out in the section
below

Apple
1.Product

In 2010, before becoming Chief Executive Officer, Tim Cook said that all Apple
products could fit into a single table.

Since then, however, Apple has steadily expanded its product range and models.
It was noted that "the barista and the corporate executive no longer use the same
iPhone — now there are high-end versions, commercial models, and a long line of
old products that the company keeps running to fill every market and price point."

Currently, Apple designs, produces and markets computing products such as

IPhone smartphones, IPad tablets, Mac desktops and laptops, and iPod digital
music and media players. In addition, the business generates revenue through
iTunes and iTunes Store, Mac App Store, iCloud and Apple Pay. Apple also
develops iOS and OS X operating system software and a range of application
software such as iLife and iWork.

Eventually, Apple Inc develops, produces and markets its own and third-party
Mac-compatible and iOS-compatible accessories, including Apple TV,
headphones, covers, monitors, storage devices and numerous other networking
and computer items and supplies. Apple also offers digital content and software to
third parties through the iTunes Store , App Store , Mac App Store, TV App Store,
and iBooks Store and Apple Music.

The brand portion of Apple's marketing mix is marked with simplicity in design and
ease of use. Apple products are also known for their durability and high quality in
general, and the company regularly upgrades its products. Apple products
typically integrate innovative technologies and capabilities. Although the product
range is limited, the products come in different sizes and colours. Moreover, the
multinational technology company regularly upgrades its products and services.
On the negative side, Apple’s unique hardware and system can only be used with
company’s own products.

2.Place

Apple Stores. The world’s largest IT company by revenue operates 499 retail
stores in 22 countries worldwide. Apple retail stores are typically located at high-
traffic locations in quality shopping malls and urban shopping districts. The retail
stores are spacious and creatively designed place where consumers can use
products and get friendly assistance from customer service representatives.

Online stores. Customers can purchase Apple products from its official website
https://www.apple.com/

Direct sales force. The multinational technology company also uses direct sales
force in certain markets to promote and sell certain products. For example, Apple
relied on direct sales support for its advertising business, iAd in 2016. During
2018, the company’s net sales through its direct and indirect distribution channels
accounted for 29% and 71%, respectively, of total net sales.

Third party cellular network carriers. Major cellular network carriers such as
AT&T Inc., Verizon Communications Inc., Vodafone Group plc and others also sell
Apple products and services as part of their own packages.

Wholesalers. Apple partners with many wholesalers to distribute the substantial

part of its products and services.

Retailers. There are many local Authorised Retailers such as Carphone

Warehouse and Argos in London and Mobile Guru and T-Mobile in New York.

Value-added resellers. These refer to professionals authorized by Apple to

deliver customized, market-specific solutions to customers.
3.Price

Premium pricing. Apple uses premium pricing strategy putting the highest price
tags on its products and services. Accordingly, “Apple has a firm grip on wealthy
countries where the majority of citizens can afford to spend over USD750 on a
smartphone each year.” The world’s largest IT company by revenue has a long-
held belief that “consumers will pay more for products that are so well designed
they can’t fathom living without them.”

Price skimming. Apple uses price skimming strategy frequently. Opposite to

penetration pricing, in price skimming companies set very high prices for new
 products, consequently lowering prices at a later time after competitors introduce
similar products. This has been the case with IPhones, iPads and other products
belonging to Apple portfolio, as well as specific models of Apple products.

Geographical pricing. The use of geographical pricing strategy by Apple Inc.

involves setting different prices for products in different parts of the world. The
need for geographical pricing for the global IT company is justified due to
differences in exchange rates between local currencies and USD.

4.Promotion

 Apple, Inc offers special discounts on refurbished MacIntosh computers, iPod

Nanos, and the 8GB iPod Touch. In each case a 1 year warranty is included on
the all products.
 Apple, Inc authorized Training Centers are located throughout the U.S. each
provides instruction in Mac systems, Mac OS X, and Apple’s professional
applications. A wide range of certification exams and courses offer innovative
learning opportunities for IT and creative professionals, educators, and service
technicians—delivered exclusively by Apple Certified Trainers.
 The Apple Consultants Network website provides a search tool allowing visitors to
locate nearby certified Mac product consultants in the U.S, Canada, and a number
of international locations.
 The online Apple Store offers free shipping for orders over $50.
 The online Apple store offers iTunes gift cards.
 Apple provides a $100 rebate when you purchase a Mac or specific printers from
the online store.
 Apple has packaged back-to-school offers, including some aimed at college
students.

5.People

Apple is promoting its company vision also through its employees. It’s important
that they have a perfect knowledge of the product, they have to follow a very strict
training.

6.Process

 Apple converts new customers and secures their loyalty through a corporate
emphasis on customer service.
 Apple seeks to attract its target market through bold public relations events (such
as the MacWorld Expo) as well as advertising imagery which borrows from
contemporary modern art.
 Apple has expanded its distribution channels in recent years including the addition
of Wal Mart.
Disclaimer:
This case study has been compiled from information freely available from public
sources. It is merely intended to be used for educational purposes only.

7.Physical evidence

Apple manage during the years to create its own “culture”. Its brand is immediately
related to innovation and technology.
Samsung

Price

Price refers to the value of a product. Price can be set by depending on the cost of
product, segment target, and affordability of market and many more. It can also be
set by the supply and demand of the market. Samsung apply various pricing
strategy in the company and they are pricing competitive and price skimming.
Price competitive is company set a price of a product based on what the
competitor is selling in the market. This strategy is often used by businesses that
are selling similar product in the market. Other than smart phones, Samsung apply
the competitive pricing on television, air conditioners and refrigerators due to there
are stronger competitors in the market. With competitive pricing, Samsung is able
to compete against the stronger competitors in the market. For example, LG’s
washing machine is at a price of RM3,499. Samsung sell it at RM3,199 in order to
compete against LG (Citibank, 2014). On the other hand, price skimming is a
company set the highest price that a customer is willing to pay. Moreover, as the
demand is met, company will set a lower price in order to attract more customer to
purchase the product in the market. Samsung smart phones are considered as
one of the best smart phones in the market. Thus Samsung apply the price
skimming to set a high value on the new product and once the product is old or
similar product catch up, Samsung drop the price immediately. For example,
Samsung S7 Edge first launched with a price of RM3,199 until there are similar
product such as Huawei P9 launched, Samsung immediately drop the S7 Edge
price to RM2,499 in order to attract more customers.
Product

Product can be tangible and intangible. Tangible can be physically see/touch such
as food, drinks, cloth and intangible cannot be see/touch but to feel the service
such as salon, insurance and many more. Samsung have tons of product in their
company such as smartphones, television, home theatre, tablet, washing machine
and many more. One of the most top selling product in Samsung is smartphones.
The reason that Samsung smartphones is so good in the market is because
Samsung give customers guarantee product, high end technology, reasonable
price and good service. And few of Samsung’s top selling smartphones are;
Samsung Galaxy Note 7. It is a smartphones that support Android 7.1. Samsung
Galaxy Note 7 also comes with glass aluminium body which look elegant from the
bottom to the top. Moreover, it has a high technology of fingerprint and water
resistance built in features which attract customers the most. Samsung Galaxy
Note 7 also have the sharp and clear 12 megapixel camera that help the
customers to snap all the memories clearly. Lastly, Samsung Galaxy Note 7
comes with various colours and they are black, gold, silver, pink and white (MILL,
2017). On the other hand, Samsung Galaxy S7 Edge is also one of the top selling
smartphones in the market. Samsung Galaxy S7 Edge support Android 6.0. It has
a high technology of iris scanner, stylus and dust resistance built in features to
attract the customers. USB 4.0 is one of the new technology that attract the
customer too. Which is faster transfer rate between smartphone towards other
devices. Furthermore, Samsung Galaxy S7 Edge has an impressive battery life
which can last 36 hours of standby mode. Lastly, Samsung Galaxy S7 Edge come
with various colours such as black, gold, blue and white.

Place
Place refers to the product or service that is going to be located at. Place act as
important role in the marketing mix. A good and right place will lead a business to
success such as facing the road or located in a right demographic area.
Oppositely, a bad and wrong place will lead a business to face failure and loss.
Samsung locate their business through various channels in the market to sell their
product and service and they are online and offline channels. In online channel,
Samsung sell their product on their official website such as www.samsung.com.
Customers are able to make reservation and online booking of their product such
as smartphones, television or other products through the internet. This will help the
customer to save time instead of directly walk into the shop. On the other hand,
instead of directly sell the products to the customer, offline channel refers to the
B2B model such as selling the products to retailers and sub dealer in the market.
For example, Samsung sell their product with large volume of quantity towards the
retailer in the market such as SenQ, mobile shop and telecommunication shop
(Maxis and Digi). Furthermore, distributor also sell Samsung products to e-
commerce site such as Amazon, Lelong and Lazada in order to help Samsung to
sell their product to their customer. Which indirectly help Samsung to sell their
products in the market (O'Leary, 2016).

Promotion

refers to informing the upcoming product and promotion such as new product or
discounts to the market. It can be promote through online such as internet or
offline such as banner, newspaper and many more. Samsung is known as a very
attractive and mega product in the market. Samsung is also very active in
promotion such as launch a new product with million followers across the globe. In
online, Samsung provide online promotion such as online advertisement. For
example, Samsung advertise its promotions and new product with online banner in
every website. Moreover, Samsung also use video advertisement in Youtube
website such as advertise Samsung product before the actual video is going to
play. On the other hand, in offline, Samsung provide offline promotion such as
distributing flyers at the store in order to promote the upcoming offers and
discounts to the customers. Moreover, Samsung also set up booth with some
activities in the mall to attract customer

People

People refers to service. People that serve the customers in the frontline. Which
means staff and employees in a company. A good people in the company will lead
a business into success because they know what are the want and need or
problem of customer. Samsung trained its staff and employee well especially the
frontline position. Samsung focus more in its staff and employee’s interpersonal
skills and customer service towards customer’s satisfaction such as problem
solving, stress handling, customer complaints and many more. For example,
Samsung provides excellence training for all the new staff and employee such as
stress handling, personal development, schemes, strategies and many more.

Process

Process refers to the service that is delivered to the end customer from the steps
of ordering, registering, purchasing and to delivering. Moreover, process also
refers to the efficiency of a company such as problem solving process. Samsung
always provide good and efficient process towards its customer. Samsung also
keep their promise to have efficient process in order to let customer to have trust
and reliability towards Samsung. For example, Samsung provide an efficient
process of reclaim warranty goods such as warrantied smartphones, television and
many within two weeks. Furthermore, Samsung also provide a convenient service
such as a process of delivering product to the customer. For example, Samsung
provide convenient process of delivering goods from Samsung to customer house.
It can be through online delivery or physical delivery such as van and car.

physical evidence

Physical evidence can be used as a differentiator in service marketing. It refers to

the enhancement of a business quality. Physical evidence plays an important role
in marketing mix because when customers are able to feel and experience the
service, future purchase may occur. Samsung always enhance its physical
evidence with new products such as new smartphones, television and other
electrical devices. Samsung enhance it by adding new technology, colour, and
quality in order to impress the customers in the market. With physical evidence,
Samsung is able to make customer feels reliable and confidence towards its
business (King, 2016). On the other hand, Samsung also enhance it service with
physical evidence such as cosy lighting, friendly staff, and cool environment in
order to make the customers feel comfortable towards the environment. With this,
it will affect customers purchase decision and future purchase may also occur.

3. Conclusion

Through the above studies, we can see that the two competitors apply very well 7
elements of marketing mix to run a product promotion program. Each year, both
companies launch an outstanding product at a high price, competing with each
other. Not only that, they also expand sales channels from online to offline, from
people. retail to store locations everywhere, and every product comes with a 1-
year warranty for every product sold. and ultimately all towards the strong
development of technology and create a unique feature for their products.

In order to have a successful and competitive marketing campaign for new

products, to learn from the lessons learned above, we need to expand the product
supply model (especially online sales channels), strengthen shipping and delivery
teams nationwide as well as multinational. Not only that a convenient product with
full features targeted at middle-class customers with an average income like our
company's, we should offer a reasonable price so that consumers can continue.
Access products more easily. Finally, create a campaign to drive our customer
group to use a modern, high-tech product that is affordable, consistent with global
needs and trends.