Samsung Segmentation and Target Market Paper

Samsung Segmentation and Target Market Paper
Positioning Statement The world has started to take on a healthier lifestyle. Watching what we eat and making sure to incorporate physical activity daily. In order to maintain these numbers many people have started to use technology to record the calories burned as well as monitor their heart rate while working out. Most people have a heart rate monitor and then have to record their information manually to another program in order to keep track of how well they are doing.
Samsung has met with this issue by including a Smart watch called the Gear and the Gear Fit in which connects to its Samsung Galaxy 5 and automatically records information from your work out. The company has also included many other features that go along with the use of both its smart phone the Galaxy 5 and its Smart Watch the Gear and Gear Fit. Samsung has cornered the market with this innovative smart watch introducing a new way to stay fit and get healthy and making it easier to maintain records of all of your fitness endeavors. “Introducing Samsung’s first network-connected wearable.** So now you can make and answer calls when your phone isn’t nearby. You can also check texts, emails, updates— even stream and listen to music, right from your wrist.” (Samsung, 2014)
Background
“At Samsung, we follow a simple business philosophy: to devote our talent and technology to creating superior products and services that contribute to a better global society. (Samsung, 2014).” Samsung is one of the leaders in the mobile technology world. Offering one of the best in the Android line the Samsung Galaxy. The company has found a niche in the technology world including mobile accessories that are wearable. Samsung offers many wearable devices in which connect to their other Samsung tablet and smartphones that allow you to keep record of your fitness activities as well as answer phone calls. “Now you can map your run, track your steps, monitor your heart rate, count calories burned and get vital health information over time.✝ Exercise apps like S Health™ and Nike+Running are designed to help you track your workout progress.” (Samsung, 2014) This new technology brings on a sort of James Bond Era. Where you are able to communicate with others via what others would deem as just an accessory. The Gear S can also connect to the internet. As well as allow you to answer phone calls, look at Facebook posts, and add apps to its 2 inch wide display.
Demographic
Samsung’s target market includes ages 18 -45 years old with an active lifestyle. The company can further segment its marketing each of its smart watches by Gender. The Gear Fit is smaller and allows you to do all the fitness tracking as well as answer phone calls and look at some information. This thinner version can be marketed to women due to its size. This device would work best for athletes and those on the go who would find the Smart watch useful when not trying to ruffle through their things for their phone.
The Millennial and Generation Xers would be perfect for this item. Generation Y are already technologically background because they grew up in a time of video games and the huge boom of computers and cell phones. “Also known as the Echo Boomers, these consumers have been “wired” almost from birth—playing computer games, navigating the Web, downloading music, connecting with friends via instant messaging and mobile phones. They have a sense of entitlement and abundance from growing up during the economic boom and being pampered by their boomer parents. Yet they are highly socially conscious and concerned about environmental issues. They are selective, confident, and impatient.” (Kotler & Keller, 2011)
“Gen Xers feel self-sufficiency and the ability to handle any circumstance are key. Technology is an enabler for them, not a barrier.” (Kotler 221) The smart watches are water resistant and Also athletes can use this to see how many calories they have burned and how long they have been work out as well as how intense their workout was. The Gear S also allows the customer to listen to music and look at text, emails, and any updates that may be hitting your emails and social network accounts. “You’ll get a handful of great apps out of the box, plus plenty more to download. Enjoy preloaded apps like Milk Music™, which lets you stream music directly to your Gear S, and Here Maps, which gives navigation when you need it.” (Samsung, 2014)
Psychographic
“One of the most popular commercially available classification systems based on psychographic measurements is Strategic Business Insight’s (SBI) VALS™ framework.” (Kotler 226)The Gear S would be perfect for all four groups of the higher resources this includes the innovators in which live a successful and active life because the smart watch will help them in their active life as well as allow the innovator to maintain order in their day to day life by allowing them to look at messages and answer phone calls through the smart watch without having to find or reach for their phone. This product would also work well with the thinkers group because this groups looks for durability and functionality in the products they purchase.
The achiever group are extremely goal oriented and can use the Gear S or any of the Gear series in order to keep on track with their goals especially checking to do list and following up with their fitness goals. The experiencer group should also be targeted for this product line. Because they love to purchase and enjoy new innovative products. There is also one group in the lower resources group called strivers in which like to emulate those who have more wealth and try to stay on trend with new technology and fashion.
Behavioral characteristics “In behavioral segmentation, marketers divide buyers into groups on the basis of their knowledge of, attitude toward, use of, or response to a product.” (Kotler & Keller, 2011) The company should look at all of its users, ex users, potential users and nonusers in order to get an idea how to market and keep customers as well as bring in more customers. Samsung’s customers appreciate the company’s innovative ideas and constant introduction of new technology and services available in its product line. As long as the company maintains this dynamic it should be able to keep this rapport with current customers. When the company looks over ex-users and nonusers the questions should include why do you not use the products or services any longer? Is there anything that should be improved? The company will have to look at a marketing funnel this is to see buyer readiness for the company’s products and services. There are four groups of loyalty statuses According to (Kotler & Keller, 2011) “1. Hard-core loyals—Consumers who buy only one brand all the time, 2. Split loyals—Consumers who are loyal to two or three brands, 3. Shifting loyals—Consumers who shift loyalty from one brand to another, 4. Switchers—Consumers who show no loyalty to any brand” When a company looks over its levels of brand loyalty within its customer it can figure out what to target and market the products in a way that attracts more customers to becoming hard-core loyal. Right now the company’s biggest competition is the Apple IPhone. Many customers are switching back and forth between the two Samsung will have to listen to its customers that are shifting loyal and switchers to see what would make them stay with the Samsung brand.
The company should also give survey just to have a view of the attitudes that 3most people have about the company, this can also give insight into how the company is viewed and what changes could be implemented to make it better or what products and services are praised by its consumer base. “Five consumer attitudes about products are enthusiastic, positive, indifferent, negative, and hostile.” (Kotler & Keller, 2011)
Conclusion
Samsung has built a company that fulfill its philosophy of being a leader in the digital world. The company has created a wearable mobile device that replaces an everyday accessory such as the watch. It is called the Samsung Gear series. This series is a digital watch in which allows the user to monitor their fitness levels , as well as answer phone calls, look at apps, and do many other features in which you could only do on your phone or computer. The company’s target market would be the generation y and generation’s xers in which have used technology for majority of their life and will invest an item that is both functional and also trending. When trying to tap into the company’s consumer psychography the company’s main customers would include the innovators, the thinkers, the achievers, the experiencers, and the believers. The company’s should monitor its customer behavior to ensure that it maintains a positive rapport with the company’s base customers and the marketing team should also look into the brand loyalty by using the marketing funnel. This is to try to get more customers in its hardcore loyal group and figure out what the customers in the switcher and the shifter group really are looking for so the company can obtain it.

References
Kotler, P., & Keller, K. (2011). Marketing Management (14th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Samsung. (2014). Values & Philosophy. Retrieved from http://http://www.samsung.com/us/aboutsamsung/samsung_group/values_and_philosophy/

Samsung Segmentation and Target Market Paper
Positioning Statement The world has started to take on a healthier lifestyle. Watching what we eat and making sure to incorporate physical activity daily. In order to maintain these numbers many people have started to use technology to record the calories burned as well as monitor their heart rate while working out. Most people have a heart rate monitor and then have to record their information manually to another program in order to keep track of how well they are doing.
Samsung has met with this issue by including a Smart watch called the Gear and the Gear Fit in which connects to its Samsung Galaxy 5 and automatically records information from your work out. The company has also included many other features that go along with the use of both its smart phone the Galaxy 5 and its Smart Watch the Gear and Gear Fit. Samsung has cornered the market with this innovative smart watch introducing a new way to stay fit and get healthy and making it easier to maintain records of all of your fitness endeavors. “Introducing Samsung’s first network-connected wearable.** So now you can make and answer calls when your phone isn’t nearby. You can also check texts, emails, updates— even stream and listen to music, right from your wrist.” (Samsung, 2014)
Background
“At Samsung, we follow a simple business philosophy: to devote our talent and technology to creating superior products and services that contribute to a better global society. (Samsung, 2014).” Samsung is one of the leaders in the mobile technology world. Offering one of the best in the Android line the Samsung Galaxy. The company has found a niche in the technology world including mobile accessories that are wearable. Samsung offers many wearable devices in which connect to their other Samsung tablet and smartphones that allow you to keep record of your fitness activities as well as answer phone calls. “Now you can map your run, track your steps, monitor your heart rate, count calories burned and get vital health information over time.✝ Exercise apps like S Health™ and Nike+Running are designed to help you track your workout progress.” (Samsung, 2014) This new technology brings on a sort of James Bond Era. Where you are able to communicate with others via what others would deem as just an accessory. The Gear S can also connect to the internet. As well as allow you to answer phone calls, look at Facebook posts, and add apps to its 2 inch wide display.
Demographic
Samsung’s target market includes ages 18 -45 years old with an active lifestyle. The company can further segment its marketing each of its smart watches by Gender. The Gear Fit is smaller and allows you to do all the fitness tracking as well as answer phone calls and look at some information. This thinner version can be marketed to women due to its size. This device would work best for athletes and those on the go who would find the Smart watch useful when not trying to ruffle through their things for their phone.
The Millennial and Generation Xers would be perfect for this item. Generation Y are already technologically background because they grew up in a time of video games and the huge boom of computers and cell phones. “Also known as the Echo Boomers, these consumers have been “wired” almost from birth—playing computer games, navigating the Web, downloading music, connecting with friends via instant messaging and mobile phones. They have a sense of entitlement and abundance from growing up during the economic boom and being pampered by their boomer parents. Yet they are highly socially conscious and concerned about environmental issues. They are selective, confident, and impatient.” (Kotler & Keller, 2011)
“Gen Xers feel self-sufficiency and the ability to handle any circumstance are key. Technology is an enabler for them, not a barrier.” (Kotler 221) The smart watches are water resistant and Also athletes can use this to see how many calories they have burned and how long they have been work out as well as how intense their workout was. The Gear S also allows the customer to listen to music and look at text, emails, and any updates that may be hitting your emails and social network accounts. “You’ll get a handful of great apps out of the box, plus plenty more to download. Enjoy preloaded apps like Milk Music™, which lets you stream music directly to your Gear S, and Here Maps, which gives navigation when you need it.” (Samsung, 2014)
Psychographic
“One of the most popular commercially available classification systems based on psychographic measurements is Strategic Business Insight’s (SBI) VALS™ framework.” (Kotler 226)The Gear S would be perfect for all four groups of the higher resources this includes the innovators in which live a successful and active life because the smart watch will help them in their active life as well as allow the innovator to maintain order in their day to day life by allowing them to look at messages and answer phone calls through the smart watch without having to find or reach for their phone. This product would also work well with the thinkers group because this groups looks for durability and functionality in the products they purchase.
The achiever group are extremely goal oriented and can use the Gear S or any of the Gear series in order to keep on track with their goals especially checking to do list and following up with their fitness goals. The experiencer group should also be targeted for this product line. Because they love to purchase and enjoy new innovative products. There is also one group in the lower resources group called strivers in which like to emulate those who have more wealth and try to stay on trend with new technology and fashion.
Behavioral characteristics “In behavioral segmentation, marketers divide buyers into groups on the basis of their knowledge of, attitude toward, use of, or response to a product.” (Kotler & Keller, 2011) The company should look at all of its users, ex users, potential users and nonusers in order to get an idea how to market and keep customers as well as bring in more customers. Samsung’s customers appreciate the company’s innovative ideas and constant introduction of new technology and services available in its product line. As long as the company maintains this dynamic it should be able to keep this rapport with current customers. When the company looks over ex-users and nonusers the questions should include why do you not use the products or services any longer? Is there anything that should be improved? The company will have to look at a marketing funnel this is to see buyer readiness for the company’s products and services. There are four groups of loyalty statuses According to (Kotler & Keller, 2011) “1. Hard-core loyals—Consumers who buy only one brand all the time, 2. Split loyals—Consumers who are loyal to two or three brands, 3. Shifting loyals—Consumers who shift loyalty from one brand to another, 4. Switchers—Consumers who show no loyalty to any brand” When a company looks over its levels of brand loyalty within its customer it can figure out what to target and market the products in a way that attracts more customers to becoming hard-core loyal. Right now the company’s biggest competition is the Apple IPhone. Many customers are switching back and forth between the two Samsung will have to listen to its customers that are shifting loyal and switchers to see what would make them stay with the Samsung brand.
The company should also give survey just to have a view of the attitudes that 3most people have about the company, this can also give insight into how the company is viewed and what changes could be implemented to make it better or what products and services are praised by its consumer base. “Five consumer attitudes about products are enthusiastic, positive, indifferent, negative, and hostile.” (Kotler & Keller, 2011)
Conclusion
Samsung has built a company that fulfill its philosophy of being a leader in the digital world. The company has created a wearable mobile device that replaces an everyday accessory such as the watch. It is called the Samsung Gear series. This series is a digital watch in which allows the user to monitor their fitness levels , as well as answer phone calls, look at apps, and do many other features in which you could only do on your phone or computer. The company’s target market would be the generation y and generation’s xers in which have used technology for majority of their life and will invest an item that is both functional and also trending. When trying to tap into the company’s consumer psychography the company’s main customers would include the innovators, the thinkers, the achievers, the experiencers, and the believers. The company’s should monitor its customer behavior to ensure that it maintains a positive rapport with the company’s base customers and the marketing team should also look into the brand loyalty by using the marketing funnel. This is to try to get more customers in its hardcore loyal group and figure out what the customers in the switcher and the shifter group really are looking for so the company can obtain it.

References
Kotler, P., & Keller, K. (2011). Marketing Management (14th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Samsung. (2014). Values & Philosophy. Retrieved from http://http://www.samsung.com/us/aboutsamsung/samsung_group/values_and_philosophy/