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Free «Smartphones Distribution» Essay Sample

Constant changes in the market share among the companies designing and marketing smartphones is one of the crucial challenges facing these companies. Currently, Apple and Samsung companies are the leading market share holders in smartphone distribution. The two companies have edged out the other companies such as Nokia, HTC and ZTE both in production and consumer loyalty (Bombourg 2012).

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Apple and Samsung companies majors on online promotion strategies and marketing to reach an extensive market all over the world. The population of individuals accessing the internet through computers or phones has significantly boosted marketing products online. Companies create product awareness, promote the products through displaying additional features of the products, and propagate information at a faster rate than physical store distribution. Through online stores, customers are able to make their selection for the various products available; thus, offering a convenient promotion and distribution strategies. Apple and Samsung companies’ online strategies have attracted the other companies to follow suit. Huawei Company launched a company blog that lead to 100% increment in sales after a profound online promotion and distribution campaign (Tomi and Moore 2012)

In addition to the online store, smartphone companies have ample vendor store in their core market areas. Shopping in physical shops offers customers the benefit of touch value of the product as opposed to online buying. The display aspect of these products also enables customers to have immediate access to their products since it is more one on one interaction, where customer can also bargain for the product.  Vendor stores have also enabled the companies to bring in retailers who have a profound role in Smartphone promotion and distribution. The wireless companies are also core partners in promotion and distribution of the Smartphones.

Effective competition in smartphone marketing will depend with the ability of the individual companies to integrate click and brick strategies for promoting and distributing their products. Customers can either use the online (click) store to select and analyze the products, then use the physical vendor store to pick their products or vice versa. Consequently, companies will skyrocket their sales, improving revenue generated. This approach will help the minor companies compete effectively with the two giant companies in smartphone sales (Bombourg 2012)

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 Smartphones Economics

Market for smartphones is largely dependent on the ability of the population to purchase the product consistently. Smartphones markets traverse worldwide targeting every generation. Macroeconomics factors play a crucial role in shaping the products and sales of smartphones. The stiff competition in marketing smartphones among the core companies has elicited diversification of products with the aim of meeting the need of consumers in different parts of the globe.

 
 
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A common feature with smartphones is escalated prices. The production strategies employed by Apple and Samsung Companies differentiate their targeted markets. The Apple Inc. products are leading in expensiveness while Samsung produces several models sold at different prices. Therefore, it is only those individuals able to meet these prices that enjoy the products. This can be affected by the employment rate in different countries that the companies targets. For instance, Apple products are common among the rich population, due to its pricing approach, that is higher that of the other companies. The market share will also be affected by the inflation rates in different countries. With inflations, the companies may end up lowering their products prices in different localities to avoid heavy losses (Llamas, Restivo and Michael 2012). The customer will have to be provided with the affordable products, or else the turn to those, of the competitors.

The amount of income generated by the product will determine the company’s ability design updated products to meet the preferences of the customers. For instance, Samsung Company has managed to outshine Apple Company in the marketing since it produces several products with different features and different prices. This suit the fragmented consumers’ taste, purchasing power, thus boosting returns. When the products are unaffordable to customers, the company has to strategies of the moves lower the cost. The wireless technologies can also affect the pricing of the smartphones; thus influencing income for producer company (Marketsandmarkets.com 2012).

The marketing positioning employed by the smartphone companies plays a crucial role in determining the market share for the products. Apple Company usually advertises new phones before releasing them, which creates suspense to the customer who long to have the product, which promote the company’s customers equity. This approach enables customers to research and analyzed the product, which meet their (customer) satisfaction and needs, thus,increasing the push promotion market strategy.

   

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