HC1082 Marketing Analysing Target Market and Customer Buying Behaviour: Samsung Assessment Answer
In the words of Lancaster & Massingham (2017), microenvironment signifies the direct environment in the daily life of an organisation. Considering the microenvironmental factors help in preparation and planning for business more effectively by developing long-term business strategies. The most influential microenvironmental factors include customers, competitors, suppliers, employees, shareholders and media.
Customers of Samsung have an immediate effect on the business. For running the business successfully, the company must attract its target customers by knowing the best types of customers, formulating and presenting suitable marketing campaigns essential to developing a customer base and creating revenue streams. Todays’ customers possess several devices, which are continuously linked, and they can access to the executive of tech companies for solving their support questions and others. Considering this attitude of customers and changing technology world, Samsung has also changed its approach toward improving the consumer experience. Now, the firm is focused on creating meaningful and lasting relationships with the customers, which go the individual service fixes afar. The concept is that as buyers become more linked to their devices, they can become more connected to the company as well. More tools give more chance to Samsung gaining customer loyalty for life (Morgan, 2018). However, recently, the company is alleged to mislead its Australian customers by advertising the Galaxy phones as water-resistant and charged high price from customers for this feature. However, the Australian Competition and Consumer Commission accused that the company made the advertisement without testing the product adequately and thus, it breached the Australian Consumer Law. Although Samsung Australia repudiated the accusation, the company needs proving itself in the court for regaining customer trust (Ryall, 2019).
Competitors are companies that sell similar products (Lancaster & Massingham, 2017). In Australia, smartphone sales are projected to soften in 2019, as customers refrain purchasing a new phone until 5G is available. In the last two quarters of 2018, 4.6 million smartphones were vended decreased by 3% comparing to 2017. Currently, there are 9.1 million iPhone users and 11 million Android users. Thus, Apple lost the competition in 2017 to Android. The major rivals of Samsung include Huawei and Oppo, leading the Android smartphone market. However, in spite of lower sales rate, Apple lingers to maintain the highest repeat purchase behaviour rate at over 85%, followed by Samsung at near about 70%. In 2018, smart speakers and smartwatches also attained popularity. 1.6 million users were there of intelligent speakers, including Amazon Echo, Google Home and Apple HomePod as of December 2018 increased from 538000 in the previous year (Dickinson, 2019). Thus, the competitive landscape shows that Samsung needs focusing on bringing 5G smartphones and other smart devices such as a smart speaker and smartwatches to beat the competition vigorously.