Module: Marketing Strategies;1. Discuss how the demographic and lifestyle variables can be used to segment the consumer market using Living Standards Measure Methods. Samsung's marketing strategy focuses on developing new innovative products that are supported by strong branding andpromotional campaigns. Mr. Yun initiated a new competitive strategy with the goal of developing and marketing superiorproducts while also building an image of Samsung as a stylish, high-quality brand worthy of a premium price. The objectivewas to establish a unique position using technical innovation while designing more appeal to a younger generation, as wellas upscale customers around the world. Yun argued that to continue to compete on price would eventually be their downfall.The company recognises the importance of environmental scanning not only to analyse the present state of theenvironment but to plan for the future.Samsung chose to invest heavily in technical innovation and R&D. In order to have a competitive advantage driven byinnovation, Samsung had to become a pioneer in developing new technology. During the 90's, Sony had an advantage inconsumer-electronics, but it was rooted in analogue technology. The digital world required new products and consequently,the firm shifted substantial resources into developing large-area LCDs, chipsets, and cell phones. Fast forward to theeconomic crisis of 2008-2009, Samsung spent over 7 Billion dollars for nearly 6% of the unit's revenue into research anddevelopment, and at the time, more than 25% of the company's workforce engaged in R&D.Product Development & DesignUnderstanding that cutting-edge technology does not always guarantee market success, Samsung also focused on productdevelopment and design. Their goal was to create products that deliver benefits that at least some segment of consumerswill consider to be worth the price. Since many product benefits may be subjective attractive styling, say, or a cool image, ormaybe the quality of camera new product development at Samsung usually involves a team of designers who collaborateclosely with the firm's engineers, manufacturing teams, and marketers.Living standards measure of Samsung products:LSM 8-10High school and higher schooling.. Mostly Urban and Suburban.• Salary ranges from R13, 210 to R32, 521 per month (approximately US $825 - $2,000).· Media: Wide range of commercial and community radio, wide range of TV channels, daily or weekly newspapers,magazines, accessed internet, cinema and outdoor life. General: Full access to services and bank accounts, fullownership of durables such as cars, furniture, and appliances; participation in any leisure activities of interest and access toall economic activities.Brand Building CampaignsLast and certainly not least, Samsung's marketing strategy focused on creating a promotional campaign to build Samsung'sbrand image. Revamping their marketing efforts was just as critical to the success of a new competitive strategy becauseeven the most technically sophisticated and well design products are likely to fail unless customers know they exist, canacquire them easily, and think they are worth the money.Eric Kim was brought in to head a global marketing effort. One of his first moves was to reorganize the firm's distributionchannels to be consistent with the strategic objective of establishing Samsung as a high-quality brand. To start, many of thecompany's products were pulled out of the low price discount chains and shifted distribution through big-box electronicsstores like Best Buy and online shopping through Amazon.To ensure consistent marketing communications across all markets, they also consolidated their roster of advertisingagencies from 55 down to one global advertising group, who launched the organisations' first brand-building campaign.Using fashion-forward TV commercials, they created a contemporary sense of style while also promoting the technicalsophistication of their products. The revamped competitive strategy and marketing programs that Samsung designed andimplemented have been a huge success. The global value of Samsung's brand increased by more than 200% from 2003 to2008, and it took over Sony as the most valuable consumer-electronics brand. 3.5 Living standards measure (LSM)In order to develop marketing strategies, marketers need to combine socio-economic indicators with demographicsto gain enough market insight. LSM measure provides a unique means of segmenting the South African market(Jourbet, 2014:40). It cuts across race and other outmoded techniques of categorising people, and instead groupspeople according to their living standards. The analysis involves a comparison of certain demographics and lifestylevariables.Here is how demographic and lifestyle variables can be used to segment consumer market using Living StandardsMeasure (LSM) methods (Jourbet, 2014:40cf):Age and lifecycle stage. For example, consumer needs change with age. A typical company example isthis one of Pampers Baby Products which divided its market into:Newborn (0-1 month}OInfant {2-5 months}Cruiser (6-12 months}Toddler {13-18 months}Explorer (19-23 months}Life stage: People in the same path of life cycle may differ in their life stage. Life stage defines a person'smajor concern. For instance, marketers should identify opportunities presented in life stages like whereone finds themselves going through a divorce, and/or transitioning into a second marriage, or deciding tocohabit with another personOOO

Question

Accepted Answer

Consumer market segments are frequently created using demographic and lifestyle factors. The Living…