Marketing Mix

Topics: Mobile phone, Marketing, LG Electronics Pages: 5 (1303 words) Published: March 24, 2013
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Market segmentation and marketing mix of LG and SAMSUNG
This Korean company, which was founded in 1958, combined other two Korean companies named Lucky and Goldstar. Therefore, LG was defined as the two companies, but currently, it means Lifes good. LG Electronics is one of the leaders and innovators of technology in the world, and it focuses on consumer electronics, mobile communications and home appliances (OPPapers, 2010). SAMSUNG

Founded in 1938, SAMSUNG has become one of the largest electronics companies in the world. As the most popular electronics company among consumers in the world, Samsung owns a good reputation. Moreover, Samsung occupies more than 20% of total export in South Korea (Samsungish, 2010). Currently, the innovation and high quality of Samsung’s products are recognized by the whole world (SAMSUNG, 2010a). 1.2 Theory

1.2.1 Market Segmentation
Market segmentation means that businesses divide their markets into a few sections with similar features, so that they can target different groups of consumers and produce merchandise or service for them. Market segmentation is classified into four methods which are geography, demography, psychology and behaviors (Hall et al, 2008). Marketing mix

Marketing mix is defined as “those elements of a firm’s marketing strategy which are designed to meet the needs of its customers”. There are four factors which are called 4Ps, and they are product, price, promotion, and place (Hall et al, 2008:75). Aims

The objective of this report is to analyze the differences of the market segmentation and marketing mix of LG and SAMSUNG. Findings
LG, a well-known brand around the world, is to sell TVs to rural areas in China (Articlesbase, 2010). Home appliances such as TVs, washing machines, and refrigerators are LG electronics’ major products (LG Electronics, 2010). In addition, LG is adept in using advertisements to attract shoppers (Pakistan & Gulf Economist, 2005). SAMSUNG

Similarly, Samsung sells its products in the world. It not only sells to cities but also rural areas. In order to privilege consumers, Samsung holds promotional events to attract shoppers. However, Samsung has some products which LG does not produce, such as PC peripherals, print solutions, and memory cards (SAMSUNG, 2010b). Discussion

Market segmentation
An obvious way of segmenting market is geography. LG Electronics sells its merchandise spread all over the world, especially well-known countries, for example, LG digital television in China. Yucheng Zheng (2010), the CEO of LG Electronics (China) Co., Ltd., reported that LG launched a project to promote digital television in rural area in China. LG targets at the rural market and provides digital TVs and home applicants for rural consumers. The emphasis of rural segment is “price competitiveness”. LG is going to reduce the price of its products so that it can develop well (Articlesbase, 2010). SAMSUNG

Samsung focuses on rural area as well, for example, the Samsung color TV in rural area and urban area of China. This segment involves “mass market, low- and medium-end units to rural customers or high-end products to urban customers” (EssayForStudent, n.d). To deal with an extensive product line, a mass market capacitates Samsung to satisfy consumer needs. Because Samsung enters China market late, it faces challenges to be succeeded in mass market. Furthermore, the rural market, which is approximately 80% of the whole market, is aimed by Samsung via the “low-end units”. However, because of the previous businesses of “low-cost, low-end color TVs”, Samsung had to exploit a new “high-end TVs” in urban market. With the remarkable improvement of people's living standard, the quantity of high-end TVs in urban market in China is increasing though the segment is not big (EssayForStudent, n.d). Marketing Mix

LG pays attention to upper and upper...
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