Siemens Marketing Strategy & Marketing Mix (4Ps)

Published by MBA Skool Team, Last Updated: March 26, 2017

Marketing Strategy of Siemens analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Siemens marketing mix, help the brand succeed.

Siemens marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.

Let us start the Siemens Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:

Siemens Product Strategy:

The product strategy and mix in Siemens marketing strategy can be explained as follows:

Siemens is one of Europe’s top electronics organizations. Siemens focuses in the field of electrification, automation and digitalization. They have eight divisions beside the Siemens Healthneers and Siemens Wind Power which are separately managed businesses. The building technologies division provide products, services and solutions in its marketing mix that optimizes the performance, energy costs and infrastructure of buildings. Siemens provides consulting services for energy management, fire safety, heating, ventilation and air conditioning (HVAC).

A comprehensive portfolio of hardware and software is provided by the Digital Factory Division of Siemens. It integrates the data across entire value chain which helps the manufacturing companies to develop and survive. Siemens has a large and unique mix of powerful product lifecycle management software tools to meet their customer requirements in various industries.

The Energy management division in Siemens offers systems for the low voltage and distribution power grid level to smart grids and energy automation solutions to their clients. It provides power transformers, reactors, Traction transformers, Phase shifting transformers etc.

Siemens’ power and gas division serves public utilities and independent power producers; companies in engineering; international and national oil companies. It offers them a wide range of portfolio of products like generators to be applied to gas or steam power plants, gas turbines, steam turbines, compressor trains, instrumentation and control systems for power generation.

Healthineers from Siemens is a leader in medical imaging and laboratory diagnostics. They are further divided into six businesses areas like Diagnostic imaging, ultrasound etc. They provide medical technology, software solutions, clinical consulting services. The medical solutions range from the prevention and early detection to diagnosis and follow up care.


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Siemens Price/Pricing Strategy:

Below is the pricing strategy in Siemens marketing strategy:

Siemens is present across various sectors and hence the pricing policies in its marketing mix are widespread.

The power and gas businesses gives Siemens a profit margin of 11-15%; Wind power and Renewables 5-8%; Energy management 7-10%; Digital factory 14-20%; Building Technologies 8-11%; Mobility 6-8%. Heathineers which is separately owned gives Siemens a profit margin of 15-19% and the Financial services division provides a 15-20% return on equity.

Siemens Power and gas segment generated a revenue of €16,471 million in the fiscal year 2016. There was strong profitability in fiscal 2016 due to a favorable revenue mix which included a higher share from the offshore and service businesses accompanied by lower production and installation costs, and positive effects from project execution and completion. Siemens spent around € 4.7 billion in R&D.


Siemens Marketing Strategy comprises of not only its Marketing Mix, but also segmentation, targeting, positoning, competition and analysis like SWOT. Also read Siemens SWOT Analysis, STP & Competitors

Siemens Place & Distribution Strategy:

Following is the distribution strategy in the Siemens marketing mix:

Siemens operate in 280+ manufacturing and production plants worldwide. Siemens have more than 350,000 employees working for them in more than 200 counties. Siemens have office building, warehouses, research and development facilities and sales office around the globe in countries like Algeria, Austria, Australia, Belgium, Belarus, Brazil, China, Chile, Denmark, Egypt, Finland, India, Ireland, Japan etc. In India, Siemens has 22 manufacturing plants which employees about 16,000 people.

At Siemens they make mutually beneficial partnerships with their suppliers who should be committed to high quality, timely delivery and appropriate cost.


Siemens Promotion & Advertising Strategy:

The promotional and advertising strategy in the Siemens marketing strategy is as follows:

Siemens have come up with TV ads, online videos and print ads from time to time. Siemens has an aggressive approach in its marketing mix strategy to advertise itself. Siemens produce documentaries to promote and make people aware about their different businesses. Ogilvy has created a lot of campaigns for them in different countries. “Answers” was one such successful campaign launched in 2007. Some of the famous TV ads are “Face the nation”, “Good Morning America” and “meet the press”.

Siemens campaign “Ingenuity for life” showcases Siemens impact on business as well as on society as large. The print ads are run in business publications such as Bloomberg, Forbes and Fortune etc. Social media is the need of the hour and pretty much every company is present on Facebook, Twitter etc. Siemens too uses social media to promote their campaigns. Hence Siemens marketing mix is completed.


About Siemens:

Incorporated in Germany, Siemens is a technology company with business divisions in various segments like Power and gas; Wind power and Renewables; Mobility; digital Factory; Energy Management and Healthcare. It was founded in 1847 and is named after its founder Werner von Siemens who was a great inventor and a visionary. Its headquarter is in Munich, Germany. It generated a revenue of € 79,000+ million as of 2016. Siemens employs 350,000 employees who develop and design projects and provide with a wide range of products and services to the world. To give innovative and sustainable solutions to the customers Siemens has excellent R&D facilities. They hold approximately 59,800 granted patents worldwide. Their drive and promise to create value for their stakeholders can be seen in their slogan “ingenuity for life”.

Siemens’ vision is to excel and differentiate their offerings while optimizing their operations. They want to tap growth fields and sharpen their business focus by expanding their global management.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse marketing strategy and 4Ps analysis of more brands similar to Siemens. The Marketing Strategy & Mix section covers 4Ps and 7Ps of more than 800 brands in 2 categories.

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The names and other brand information used in the Marketing Strategy & Mix section are properties of their respective companies. The companies are not associated with MBA Skool in any way.

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