P1 – describe how marketing techniques are used to market products in two organisations
In this piece of work I will be describing how marketing techniques are used to market products in two organisations. I will be talking about the techniques, role and objectives of the two products that I have chosen. The two products that I have chosen to talk about are the Samsung galaxy s3 and Red bull. Marketing means the action that a business does to promote their products and services. Market research involves the collection of data to obtain insight and knowledge into the needs and wants of customers and the structure and dynamics of a market. The Samsung galaxy s3 is the world’s most popular smart phone model, holding 10.7% of the global smart phone market in the third quarter. Samsung shipped 18 million Galaxy S3 units in the third quarter, up from 5.4 million in the second quarter, an increase of 230 percent. Samsung’s CEO is Byung – Chull Lee and the Samsung headquarters are in South Korea. Red Bull is an energy drink sold by Austrian company Red Bull GmbH, created in 1987. Red Bull is the most popular energy drink in the world, with 4.6 billion cans sold in 2011. The company slogan is Red Bull gives you wings and the product is marketed through advertising, events such as the Red Bull Air Race and Red Bull Crashed Ice. With all these events and adverts it is bringing them more money into the company. Red bull is meant to be the next coco-cola as the company is worth £5billion after Felix Baumgartner did a record breaking skydive. Techniques
The Ansoff Growth matrix is another marketing planning tool that helps a business determine its product and market growth strategy. The output of Ansoff’s matrix is series of outputs that can help a business grow which can also help the business get more sales. If the business gets more sales they will be getting more money into the business. There are four types’ strategies that the business can do. These are market penetration, product development, market development and diversification. All business does at least one of these strategies to survive. Samsung have different growth strategies to make their products worldwide so more people know about them. One way in which they can do this is diversification. This means instead of the business putting all their money on one product they would spend it on other things as well. This is thought to be a good thing because they don’t have much risk of losing a lot of money. This is advantageous because if one area of the business fails at least they would have the other area they put money into as well. In 2010, Samsung recognised Samsung Biologics with 40% investment from Samsung Electronics, 40% from Samsung Everland, 10% from Samsung C&T, and 10% from Quintiles Transnational. This means that they have invested in more areas of their business; this is so when one area fails the others will be there getting money into the company. Another way in which a business can grow is product development. This is when a business develops a product so that it is more powerful and better than its competition. A company that makes smart phones like Samsung need to do product development, so that the business can grow. There are 42,000 people that work in research and development for Samsung. A business should develop their product as this can expand their consumer exposure and also their product names will be more recognisable in the marketplace. Effective market and product development strategies rely on input from the businesses existing customers. A business will need to find willing satisfied customers to test out their products before they sell it to the general public. Businesses can also send surveys out to determine what products and methods are most effective for opening marketing programs for new territories. Samsung Electronics plans to hire 26,000 workers and invest $41 billion this year in new product development. Samsung, the...
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