Marketing Plan: Phase I - Essay Example

d) Discuss the importance of marketing to your selected organization’s success using three (3) specific examples: The phenomenal success of the retail giant is largely attributable to its marketing strategies that focus on attracting and retaining customers so that they capture a wide market share. Being in the service industry the importance of marketing to the company is unquestionable. As a part of their marketing strategy, the company offers a wide variety of products and services which are appealing to a wide strata of the society.

The company offers extra value to its customers through various “value offers” and free services. An example is their "everyday low prices" marketing campaigns, where the company offers certain products at 25-30% less than the normal market prices. These low prices are achieved through the increased efficiency levels of Wal-Mart suppliers who are driven hard by the company to reduce costs and reduce supply prices. Part of these cost savings is then passed on to its customers as low prices.

Attracted by these “loss-leader” products the consumers who visit the Walmart for buying those products on low price offers are compelled to buy other products as well as become repeat customers, making their marketing activities highly effective and essential for the aggressive growth strategies pursued by the company. “Smiley’s Fun Center” the day care facilities for toddlers and children for shoppers will be another important addition to this strategy of value addition to the customer’s shopping experience at Walmart.

Another example of how marketing is important to the company is the in store, promotional and marketing communication activities which the company carries out to create customer awareness. The company operates its in store television network airing product ads, music and news. This network is viewed by over 130 million people a month placing it as the 5th largest network in America. The channel provides information on new products, products on special offers, etc. which is useful to the consumers in their purchase decisions.

The new child care service being launched at the outlets to facilitate the shopper’s convenience can be extensively aired so that customer awareness can be brought up to a high level within a short time span and at low cost per reach. Yet another example of how important marketing is to the company is reflected in the massive budget allocations which it makes for advertising purposes. Wal-Mart spends approximately $500 million on its advertising annually. In 2003, “Wal-Mart’s tab was $456 million” (Mandese 2004).

Its advertisements in TV carry the famous “people greeters” and highlights Walmarts social activities as well as high level of minority representation in terms of African Americans and Hispanic Americans. Such advertising communications contribute positively to the corporate image of the company as they are portrayed as socially responsible corporate entities. The company can include the free day care facilities in their advertising not only to attract the customers but also communicate the commitment and dedication of the company to provide convenience to their customers as well as a caring and safe environment for the children while their caregivers or parents engage in shopping activities.

As the facility is provided free of charge, it will be perceived as a social contribution than a marketing gimmick which adds value to the overall image of the company and its goodwill. Walmart being the leader in the highly competitive retail services industry, the special challenges of marketing services have to be effectively managed. Service marketing involves the effective managing of all the marketing elements such as Product elements, Place and Time, Process, Service Quality, People, Promotion, Physical Evidence and the Price (Lovelock, 2001).

As Service quality is a subjective concept, which is dependent upon the customer’s perceptions of the service encounter, adding free service augmentations such as the Smiles Fun Center where the shoppers children will be taken care of in a safe environment will boost the overall perception of the shopper especially since children are of special priority to them. References:Lovelock, C. 2001, Service Marketing: People –Technology –Strategy, 4th ed., Pearson Education Inc, Singapore.Mandese, Joe.. “Comparison Shopping: How the Kmart/Sears merger will impact TV and its ad agencies” 22 Nov 2004.

Broadcasting & Cable. 20 Feb 2006