Wal-Mart Marketing Strategy
Just as students do their homework for a good grade, so must companies by developing sound strategic marketing plans. In business the bottom line is about revenue and how to increase revenue for the shareholders. However, your market strategy and plan can be the difference between success and failure. Let me start by defining two of the more popular marketing strategies, mass and targeted. Mass marketing is a marketing philosophy which the seller views the market as a homogeneous whole, and, therefore, has only one marketing program (the same product, the same price, the same promotion and the same distribution system) for everyone. Whereas, a target market is that particular segment of a total population on which the retailer focuses its merchandising expertise to satisfy that submarket in order to accomplish its profit objectives. Target marketing is also known as “niche” marketing. I am asked whether, instead of or in addition to the markets it currently serves, should Wal-mart serve the following markets: African Americans, the Affluent, Empty Nesters, Hispanics, Suburbanites and Rural Residents? My short answer to this question is yes, with a continued focus on their niche customers the suburbanites and rural residents. Moreover, the African American, affluent empty nesters, Hispanics populations would require focused target strategies (differential) to satisfy their specific wants/needs. ACNielsen defines micromarketing as, "the art of targeting customers at the account and store levels by matching marketing efforts to the characteristics of shoppers at specific stores." In other words, micromarketing is all about tailoring and customizing product assortment, shelf placement, pricing, services, trade promotions, even store layout and design to appeal to and satisfy the needs, demands, and expectations of consumers in a store's trading area (the area around a store in which it competes for business). (Copper, 1997). I will prove my argument by demonstrating
Cited: Cooper, Julie. "The power of micromarketing: an effective new way to maximize sales and profits.” Canadian Grocer: [111(4)] 1 May 1997: S1. ABI/INFORM Trade & Industry. ProQuest. 21 Oct. 2007 <http://www.proquest.com/> Jones, Sandra. "Wal-Mart strategy stumbles; Big-city expansion, and stock, falls short: [Chicago land Final Edition].” Chicago Tribune [Chicago, Ill.] 7 Oct. 2007,1. Chicago Tribune. ProQuest. 21 Oct. 2007 <http://www.proquest.com/> Sitaramiah, Gita. "Target loses a round: September sales disappoint as rival Wal-Mart shows signs of life. " Knight Ridder Tribune Business News 12 October 2007 ABI/INFORM Dateline. ProQuest. 21 Oct. 2007 <http://www.proquest.com/> Staff of Shopping Centers Today (2006, September 7). Wal-Mart alters retail approach, targets specific groups. SCT Newswire. International Council of Shopping Centers ProQuest. 21 Oct. 2007 <http://www.proquest.com/> VanRiper, Tom (2006, Aug. 30). Wal-Mart goes upscale, targets urban growth: Low-price specialist experiments with plasma TVs, expensive jewelry. Van_Riper-walmartupscale-20060830-Forbes. 21 Oct. 2007 <http://www.proquest.com/>