Market Skimming Pricing Strategy At Samsung

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Market Skimming Pricing Strategy This is a strategy that is executed when launching highly priced commodities. It is aimed at maximizing profits by charging a higher price initially to the first customers. With time the price is lowered gradually to attract more consumers to purchase it. Companies will use this strategy to capitalize on those consumers that have the will of spending on a product that has cutting edge technology. Samsung products in the market are fairly competitive and are one of the best in the market. That being the case, Samsung uses a price skimming pricing strategy to get the best value for its products. In almost all cases, it is the first to launch new smart phone products. Samsung does this at an initial higher price before the competitors actually catch up. The company will eventually lower the price when competition for the product sets in (Kotler & Keller, 2012). Place in the Marketing Mix of Samsung This strategy denotes making the product accessible or conveniently providing easy access of the product to the consumer. According to Ballasecu, (2014), the role of marketing channels does not only include participating in satisfaction of demand by offering goods, but also customer promotions, information awareness and creating proximity. The various strategies that can be used to market, such as intensive distribution, selective distribution, exclusive distribution and franchising, alongside of other aspects of the marketing mix. Samsung products are made available in the market through a varied means of distribution. Samsung executes the distribution by working on a concept of channel marketing with the following segments; sales and services dealers, modern retail and distributors (Kotler & Keller, 2012)... ... middle of paper ... ..., it is preferred to do a mix of promotional strategies by advertising on billboards and using both traditional media. However, internet marketing, mostly social media networks, as the youth spend most of their time on the social networks. Strategy on Place The effectiveness of the channels of distribution plays a huge role on the accessibility of the product to the end user. The preferred channel of distribution would be the intensive distribution. The reason behind this is to make the product more accessible to as many customers as possible. However, this would go hand in hand with other strategies, like use of modern retailers. Strategy on Product Since the Galaxy is a new product in the market, it has an edge over its competitors due to its distinctive characteristics and features. This will position the product over its competitors, giving Samsung an advantage.

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