MKT501 MODE4 SLP4-The Role of Promotion in Marketing (Walmart)

MKT501 MODE4 SLP4-The Role of Promotion in Marketing (Walmart)

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Running head: SEGMENTATION AND TARGETING 1 Segmentation and Targeting: Wal-Mart Mikel A. Stovall TUI University August 18, 2011
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SEGMENTATION AND TARGETING 2 Segmentation and Targeting: Wal-Mart (SLP01) Today Wal-Mart is a big name in retail industry with headquarters in Bentonville, Arkansas. Established in 1962 by Sam Walton, the company became incorporated in 1969. Publicly traded and employing more than 2.1 million employees, Wal-Mart has 9,667 retail stores, including Sam’s Club warehouses, in more than 28 countries. Wal- Mart’s objective is to offer products at low prices so that consumers can enjoy a better quality of life. Fortune Global 500 has listed Wal-Mart as the world’s largest public corporation on the basis of revenue of 2008 (About Us: Wal-Mart). Every year, more than 200 million customers throughout the world are served by its two million associates (About Us, 2009). Fortune Global 500 has listed Wal-Mart as the world’s largest public corporation on the basis of revenue of 2008 (About Us: Wal- Mart). Wal-Mart ranked #1 among private employers and #4 in the commercial industry. Operating as a retailer as well as distributor (Bianco & Zellner, 2003), Wal-Mart’s strategy is simply to overcome the competition by keeping prices low to attract and maintain its customer base. Wal-Mart’s aim is to save its customers money and enable them to live better. The root cause of its growing popularity is the easy availability of its stores (About Us: Wal-Mart). Wal-Mart’s low pricing strategy contributed much in paving its success. The conglomerate is committed to maintaining low overhead costs and expenses and depends more on quantity versus quality toward profitability (Bianco & Zellner, 2003). Moreover, Wal-Mart keeps customer psychology in mind by drawing his or her attention through
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SEGMENTATION AND TARGETING 3 such advertisements as “Rollback Prices” (Wal-Mart Stores, Inc., 2011), giving customers the impression that they are receiving the best price. The company’s positioning strategy also included running ad campaigns in various high fashion magazines such as Vogue and the like to introduce its higher quality apparel and merchandise. Additionally, Wal-Mart increased its customer base by using Internet marketing. The company initially launched its website storefront in June 1995 and has positioned itself as ecommerce for the masses. Essentially, Wal-Mart is successfully using the combination of off-line and online promotional activities (Wal- Mart Stores, Inc., 2011). Wal-Mart’s Product Line Makes Sense The company appeals the basic needs of consumers by selling basic household appliances, hygiene products, grocery items, and the like. Essentially, Wal-Mart’s products are the basic needs of individuals. The company tries to satisfy their customers by providing quality goods at reasonable prices. Other products consist of apparel for men, women, and children, books on most subjects including politics and social sciences,
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MKT501 MODE4 SLP4-The Role of Promotion in Marketing (Walmart)

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