Aim
This unit provides the learner with the understanding and skills to support active engagement in the process of strategic marketing management.
Summary of Learning Outcomes
To achieve a pass learners must demonstrate the ability to deal with each of the following outcomes and present these in report form – scripts will be checked against each of these:
LO 1. Understand the principles of strategic marketing management
LO 2. Understand the tools used to develop a strategic marketing strategy
LO 3. Be able to use strategic marketing techniques
LO 4. Be able to respond to changes in the marketing environment
SCENARIO:
SAMSUNG MAKES HISTORY
Unlike other electronic companies Samsung origins were not involving electronics but other products. In 1938 the Samsung’s founder Byung-chull Lee set up a trade export company in Korea, selling fish, vegetables, and fruits to china. Within a decade Samsung had flour mills and confectionary machines and became a corporation in 1951. It is a humble beginning.
From 1958 onwards Samsung began to expand into other industries such as financial, media, chemicals and ship building throughout the 1970’s. In 1969, Samsung electronics was established producing what Samsung is most famous for, televisions, mobile phones (throughout 90’s), radios, computer components and other electronics devices.
In 1987, founder and chairman Byung-Chull Lee passed away and Kun-Hee Lee took over as chairman. In the 1990’s Samsung began to expand globally building factories in the US, Britain, Germany, Thailand, Mexico, Spain and china until 1997.
In 1997, nearly all Korean businesses shrunk in size and Samsung was no exception. They sold businesses to relieve debt and cut employees down lowering personnel by 50000. But thanks to the electronic industry they managed to curb this and continue to grow.
In 1993, Samsung developed the lightest mobile phone of its era, the SCH-800 and it was available on CDMA networks. Then they developed smart phones and a phone combined MP3 player towards the end of the 20th century making video, camera phones at a speed to keep up with consumer demand.
It is in telecommunications that Samsung really did excel. In the year 2013, it became the world’s largest phone-maker by unit sales, overtaking long term market leader Nokia (now Microsoft). Its ambition is beyond doubt: the company, one of the major sponsors of the Olympics, has recently had a fleet of London buses painted white to promote its latest Galaxy phones. It is clear that Samsung now has its California based rival in its sights. Apple is the largest technology company in the world by revenue and profit, more than Google and Microsoft combined. Briefly, in July 2011, due to the debt ceiling crisis, its financial reserves were greater than those of the US government and yet the company has set about intimidating anyone who tries to come close to their designs.
Apple finally signed a deal with Taiwan semiconductor manufacturing company to make some of the chips starting in 2014, according to a TSMC ( Taiwan Semiconductor Manufacturing Company ) executive. The process had been beset by glitches preventing the chips from meeting Apple’s speed and power standards. Despite the deal, Samsung will remain the primary supplier and Apple is one of Samsung’s biggest customers for processors and memory chips. But the two firms compete directly in the mobile phone market and have spent the better part of the past two years suing and countersuing over the look, feel and features of their gadgets. Samsung has reason to keep the Apple relationship alive. The Apple processor, where Samsung is currently the sole supplier, accounted for $5 billion of purchases in 2012.
According to the latest report by market intelligence firm IDC ( International Data Corporation ), Samsung has become number one player (in the first quarter of 2013) in overall mobile phones sales in India, beating the erstwhile Nokia for the first time. Micromax and Karbonn maintained second and third positions respectively, in the overall sales of 60.73 million mobile phones during the period.
Top-five smart phone vendors in India
Samsung 32.7%
Micromax 18.8%
Karbonn 10.9%
Nokia 5.9%
Sony 5.9%
Others 25.7%
Source: IDC Asia pacific mobile phone tracker, 2013 (Q1)
In sheer volumes, the feature phone segment still dominates and is growing at a higher pace. The success for Samsung is coming from the positive consumer acceptance of its products from both of these segments. Samsung rose to the top spot in the Indian mobile phone market and the rise can largely be attributed to its gains in the smart phone market over the past two years
Source(s)
1. Apple – vs – Samsung – Battle of the technology giants. Retrieved From : http://www.telegraph.co.UK/technology/apple/948879/,(accessed on 20/10/13)
2.www.thehindubusinessline.com
3.www.online.wsj.com ( accessed on 18/10/13 )
4.Deccan Chronicle.(2012) Samsung told to pay $ 1.05 Billion for Apple Bytes, p-1
5.Chris Fill. ( 2009) Marketing Communications, Prentice Hall Publications,p-257

References:
1. Philip Kotler(2008), Principles Of Marketing, Prentice Hall Publications, Fifth European Edition.
2. Shajahan ( 2009), Strategic Marketing, Viva Publications.
3. Nirmalya Kumar(2004), Marketing as strategy, Viking, published by the penguin group.
4. Mc Daniel, et al,(2008), Principles of Marketing, Cengage learning India edition.
5. International Marketing Strategies (2010), Jaico Publications.
Assignment Brief:
Learning outcome-1 : Understand the principles of strategic marketing management
1.1) Define and explain strategic marketing management. Discuss the role of strategic marketing in Samsung Telecommunications. (LO-1.1)
1.2) Explain the processes involved in strategic marketing. Discuss them in relation to Samsung Telecommunications. (LO-1.2)
1.3) Explain how Strategic marketing is linked to corporate strategy. Evaluate the linkage between the two with respect to Samsung Telecommunications and discuss the synergy between the two. (LO-1.3)
Learning outcome-2 : Understand the tools used to develop a strategic marketing strategy
2.1) Explain three models used in strategic planning. Assess the value of models used in strategic marketing planning in relation to Samsung Telecommunications. [Ex: Porter’s five force model; STEEPLE analysis; BCG matrix; Product life cycle model; Ansoff Matrix] (LO-2.1)
2.2) Discuss the links between strategic positioning and marketing tactics. How are the marketing tactics related to strategic positioning decisions with respect to Samsung Telecommunications? (LO-2.2)
2.3) Explain the nature of relationship marketing. Analyse the merits of relationship marketing in a particular strategic marketing strategy of Samsung Telecommunications. (LO-2.3)
Learning outcome-3 : Be able to use strategic marketing techniques
3.1) Use appropriate marketing techniques to ascertain the growth opportunities for Samsung Telecommunications in the mobile phone market. (LO-3.1)
3.2) Draw out an appropriate plan for Samsung Telecommunications on how to use marketing strategy options in the mobile phone market. (LO-3.2)
3.3) Explain strategic marketing objectives. Create appropriate strategic marketing objectives for Samsung Telecommunications in mobile phone market. (LO-3.3)
Learning outcome-4 : Be able to respond to changes in the marketing environment
4.1) Report on the impact of changes in the external environment on the marketing strategy of Samsung Telecommunications with examples. (LO-4.1)
4.2) Conduct an internal analysis to identify the current strengths and weaknesses in the marketing strategy of Samsung Telecommunications. How could the identified weaknesses be overcome? (LO-4.2)
4.3) Propose strategic marketing responses to key emerging themes in a marketing strategy of Samsung Telecommunications. (LO-4.3)