The Effectiveness of Various Marketing Strategies - Assignment Example

? Individual Project Principles of Marketing This paper is an assessment of the effectiveness of various marketing strategies that can be adopted by implementers of any effective marketing mix plan. These include product distribution strategies, pricing strategies, promotion strategies, communication strategies and strategies related to the product quality. The paper also evaluates various strategies used by business companies in order to survive in the face of their competitors in hot pursuit of potential target markets. The paper is based on Walmart-an international company with its headquarters in the United States. Walmart Company Introduction Walmart Company was founded in 1962 by Sam Walton. It officially entered the New York stock exchange in 1972. Walmart has its headquarters in Bentonville, Arkansas state. It is an international company specializing in grocery business. The company also owns Sam’s club retail warehouses which are widespread in most parts of North America. Currently, Walmart is located in more than 8000 locations worldwide. It is the largest private employer company in the world with more than 2 million employers. Walmart is headed by a president who is also the CEO. The company generates more than 400 hundred billions of revenue every year (Doole & Lowe, 2005). 1. Describe the main line of business of the company. Walmart is an international company mainly specializing in grocery business in several countries of the world. At initial stages, Doole and Lowe report that Walmart specialized mainly in clothes and a few food items (Doole & Lowe, 2005). However, some years later, Taylor observes that the company added electronics and few grocery items (Taylor, 2009). Nowadays, Walmart is a versatile company specializing in food supplies, iPods game stations, children toys, computer parts, school supplies, kitchen supplies, jewelry, shampoo, hygiene products, beddings, vitamins supplements, family apparel, healthy and beauty aids, lawn and garden items, automotive products, home furnishings, hardware, sporting goods, pet supplies and house wares among other products (Evans & Wurster, 1997). 2. Names four of the countries in which the company operates. Walmart has more than 8000 stores in more than 10 countries in the world. Apart from in the United States, Walmart operates in other countries like the United Kingdom, Japan and India among others (Kerin, Hartley & Rudelius 2011). It is only in the United States where Walmart operates under its own name. In other countries, it operates under different names. For instance, it is referred to as “Asda” in the United Kingdom, “Seiyu” in Japan and as “Best Price” in India (Doole & Lowe, 2005). Walmart was introduced in the United Kingdom and other European countries in 1999. It entered India in the same year (Taylor, 2009). By the year 2000, Walmart had been introduced in Japan and it spread to other Asian countries during the same period (Evans & Wurster, 1997). 3. Explains, in detail, the implementation of the 4P's marketing mix concept by the company. There are four main marketing considerations, referred to as 4Ps that can be embraced by any business company. These are product, price, promotion and distribution. Walmart has adopted all these considerations in ensuring that it operates effectively. To begin with, Walmart has ensured that it sells products of high quality-well designed, packaged, branded and labeled. This has helped in building brand loyalty (Kerin, Hartley & Rudelius 2011). Secondly, Walmart has adopted various pricing strategies for its product. Pricing is based on demand, value of goods and cost of production among other considerations (Taylor, 2009). Thirdly, Walmart ensures that its goods are distributed both directly (without using intermediaries) and indirectly (using intermediaries such as wholesalers and retailers) from the point of manufacture to that of consumption (Doole & Lowe, 2005). Lastly, Walmart uses effective promotion strategies in popularizing itself and attracting more customers. These include appropriate advertisements, giving huge discounts and allowances among other forms of promotion (Evans & Wurster, 1997). 3. A. Implementation of competition. Walmart uses various strategies to outdo its competitors. To begin with, the company embraces the building of strong brand loyalties for its products through well organized advertisements (Doole & Lowe, 2005). Secondly, effective communication between the company’s management and the workforce enhances motivation (Taylor, 2009). Thirdly, the company’s employees give personal attention to customers and help them in shopping (Evans & Wurster, 1997). Lastly, in terms of service provision, Walmart provides a quality service beyond the expectation of its customers. Customers are showered with gifts and are given huge discounts and promotions (Kerin, Hartley & Rudelius 2011). 3. B. Implementation of Target Market. In marketing its products, Walmart targets several potential markets. To start with, the company aims at an age target market by designing products suitable for different age brackets (Evans & Wurster, 1997). This is due to the fact that customers of different ages go in for different products. Secondly, since men and women have different purchasing preferences, a gender specific is of greater significance to Walmart (Kerin, Hartley & Rudelius 2011). Thirdly, Walmart pursues income-sensitive markets. This is a case whereby goods are sold to customers according to their income level and the general economic status (Evans & Wurster, 1997). Walmart also targets geographical markets due to the fact that the needs of customers from different geographical regions differ (Doole & Lowe, 2005). 3. C. Implementation of Product Strategy. The first strategy that Walmart uses in marketing its products is by ensuring that it produces quality products that are beneficial to the customers (Taylor, 2009). Secondly, Walmart uses appropriate and relevant brand names for its products and this has helped in creating brand loyalty (Doole & Lowe, 2005). Thirdly, Walmart has taken the issue of packaging its products seriously. Size, shape, color and texture have all been considered in packaging of the company’s products (Evans & Wurster, 1997). Fourthly, Walmart uses suitable tags and other valuable graphics in labeling its products (Doole & Lowe, 2005). Lastly, appropriate product support services such as transportation, communication, advertisement and insurance among others are used by the company in marketing its products (Kerin, Hartley & Rudelius 2011). 3. D. Implementation of Distribution Strategy. Walmart uses various distribution strategies in marketing its products. In some cases, goods are delivered directly from producers to consumers without using intermediaries (Kerin, Hartley & Rudelius 2011). However, in most cases, goods are distributed indirectly through the assistance of intermediaries. Thus in this case, producers use a third party in selling their products in the market. Here, wholesalers, sales representatives, sales agents and retailers are used in distributing goods from the point of production to that of consumption (Doole & Lowe, 2005). This distribution is done intensively, selectively and exclusively. Intensive distribution involves distributing products over a large area using all the available channels. Exclusive distribution entails distributing products using one particular wholesaler, sales agent or retailer in a given area. In selective distribution, products are distributed through a limited number of outlets (Evans & Wurster, 1997). 3. E. Implementation of Communication Strategy. Doole and Lowe argue that effective communication is important in business due to the fact that it fosters customer relationships (Doole & Lowe, 2005). Walmart uses both online and offline channels to ensure that there is effective communication with its customers. Online channels used by Walmart include the e-marketing programs and campaigns, micro-blogging, podcast, internet TV and internet radio. Offline marketing channels used by Walmart include print (magazines and newspapers), public relations, bill board, traditional TV and traditional radio. All in all, Walmart’s marketing communication strategies are integrated to all the four elements of market mix (price, promotion, price and place). Moreover, Walmart gives communication channel power to all its distribution channels-wholesalers, retailers and consumers (Evans & Wurster, 1997). 3. F. Implementation of Pricing Strategy. Walmart Company uses several pricing strategies in marketing its products. To start with, Evans and Wurster report that in order to survive competition, the company has adopted a competition-based pricing strategy by giving discounts and promotions (Evans & Wurster, 1997). Secondly, Walmart uses a cost-based pricing strategy in order to ensure that the cost of production does not exceed profits (Kerin, Hartley & Rudelius 2011). Thirdly, Walmart uses a demand-based pricing strategy to ensure that the level of production does not exceed the market demand (Doole & Lowe, 2005). Another pricing strategy used by Walmart is value-based pricing since the purchasing behavior of a customer is influenced by his or her perception about the quality of a product (Taylor, 2009). 4. Describes any differences observed in the implementation of this concept, from one country to another. Initially, when Walmart started operating in other places outside The United States, Kerin and his colleagues note that the company’s critics argued that it was on the verge of collapsing (Kerin, Hartley & Rudelius 2011). However, the company has picked itself as all the above marketing strategies have worked well in other countries for the advantage of the company. There is no major difference in how these marketing strategies have been implemented in other countries. However, in places like the United States and United Kingdom, there is still high competition from companies such as Kmart and Pizza (Doole & Lowe, 2005). In Japan, the major challenge is the cheap and quality Japanese products that are giving Walmart’s products an unhealthy competition. India remains a fertile ground for Walmart to thrive well due to availability of several distribution channels. Conclusion For any business company to thrive well in the face of business competition, it must adopt effective marketing strategies. This can be effected through adopting a good marketing mix plan. An effective marketing plan is one which takes into account the four main marketing considerations (4Ps). These are price, promotion, distribution and product. For any company to succeed, it must implement effective pricing strategies and sell products of high quality. These goods need to be distributed through effective channels and business companies should ensure that they attract more customers through effective product promotion strategies. Moreover, a company should adopt an effective communication strategy in its pursuit of potential target markets. References Doole, I. & Lowe, R. (2005). Strategic Marketing Decisions in Global Markets. London: Thomson Learning. Evans, P. B. & Wurster, T. S. (1997). Strategy and the New Economics of Information, Harvard Business Review, 75(5):70-82. Kerin, R. A., Hartley, S. W. & Rudelius W. (2011). Marketing (10th ed.). NY, NY: McGraw-Hill Companies, Inc. Taylor, J. (2009). Developing an Effective Marketing Mix Plan. New York: Cambridge University Press. Read More