Wal-Mart Marketing Strategy

1430 WordsApr 17, 20086 Pages
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…show more content…
Wal-Mart upped its earnings guidance for the third quarter, bolstered by cost cutting. Target eased its full-year earnings guidance back a notch.” (Sitaramiah, 2007). Wal-Mart is committed to socioeconomic diversification and has backed it up with tangible change. “Wal-Mart is effectively breaking its 3,400-unit U.S. division into six smaller chains that will target specific consumer segments: affluent, African-Americans, boomers, Hispanics, rural residents and suburban residents. For example, stores aimed at African-Americans will feature more urban-style apparel and ethnic hair care products in addition to expanded gospel and rap music selections. The chain is renovating units at the rate of about 300 stores per year to reflect the new merchandising strategy, Wal-Mart U.S. president and CEO Eduardo Castro-Wright told investors at a conference today. Most of the chain’s rural units will see little change, while suburban and urban locations will change the most, he added.” (Shopping Centers Today, 2006). Wal-Mart will continue a sustainable competitive advantage with its new strategy of providing the proper exchange with its customers. Wal-Mart continues to make sound marketing decisions especially in pharmaceuticals. However, stockholders are still not convinced, “Wal-Mart reported earnings of $11 billion on revenue of $312 billion for the year ended Jan. 31, a 10% rise in profit from the previous year. But the company's stock is down 35% from its

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