pricing is one of the trickiest issues in marketing as it requires understanding the product and understanding the market. to curb this competition and in order to be competitive, samsung undertakes a pricing strategy which is winning. as a result of its strategies, the company has been able to acquire a position a major competitor for apple inc. further in regards to brand, it is the seventh most valuable brand currently and the largest tech business with regards to revenue. in order to acquire a competitive edge for a company it requires to have a marketing strategy that is optimal and unique, samsung followed and developed a marketing strategy which enables it to become an industry leader in the technology sector. the samsungâs pricing strategy undertakes two components with the first being the skimming price and the second the competitive pricing. skimming price â skimming pricing is used when a product, which is new in the market or just launched, is sold at a relatively high price because of its uniqueness, benefits to customers or its current wow factor.
skimming allows the firm to adjust and update its prices with increased competition resulting to a decreased price in order to attract more consumers. as apple, samsung also uses skimming price to gain the upper hand over their competitors. for instance, in october samsung galaxy c9 pro, the company’s first smartphone with 6gb ram, has received price cut in india it is now retailing at for rs. 36,900. samsung will follow its price revision strategy to remain competitive in market. competitive pricing – competitive pricing is setting the price of a product or service based on what the competition is charging. thus,samsung provided better features and played cost competition to make its market. this is particular in the cases where consumers use the price set to judge and make a decision on the value of a particular product.
so, too, is the marketing function of pricing. one of the most important tools you have for building and monetizing your customer relationships is thoughtful pricing and packaging – and marketing needs to take an active role in this pricing exercise. and the importance of your pricing strategy in marketing cannot be ignored. samsung has a vast product portfolio and its presence is in several different product categories. overall, samsung is present majorly in the following product categories: because of its presence in different product categories, samsung uses various pricing strategies. skimming price â samsungâs smart phones are one of the best in the market and are the global market leaders in terms of market share.
samsung uses skimming price strategy for these products wherein it tries to get a high value for its phones in the beginning before competitors catch up. televisions, air conditioners, refrigerators and other products have competition in the form of panasonic or lg. similarly in washing machines â whirlpool, and in cameras â cannon, are the brands to be beaten. samsung hardly uses penetrative pricing strategy because it never enters late in the market. pricing is very crucial for samsung as it ensures that the company communicates to the consumers the value which they attach to the product. this is particular in the cases where consumers use the price set to judge and make a decision on the value of a particular product. however, before introducing a new brand or product in the market, it is important for samsung to undertake market research in order to ensure that the product being introduced in the market meets the needs of the consumers.
it’s strategy has been argued to be the most effective marketing strategy ever undertaken by a company. the samsung’s pricing strategy samsung uses skimming price strategy for these products wherein it tries to get a high value for its phones in the beginning before competitors the second pricing strategy utilized by samsung is the competitive pricing whereby unlike other smart phones in the market such as apple which, .
it uses two pricing schemes which are explained as follows. pricing strategy based on competition is a part of samsung marketing 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 samsung uses the competitive pricing strategy on televisions by making sure their pricing is in line with their competitors. samsung doesn’t, . what pricing strategy does samsung use? what strategy does samsung use? does samsung use promotional pricing? what is the pricing strategy samsung mobile and how it is different from apple phone’s?
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