Introduction
This essay seeks to present a case study on Wal-Mart. The company is faced with a marketing challenge. From a professional point of view, below are some of the marketing objectives derived out of the company’s situation. In addition, a solution is suggested to end the marketing stalemate in which the company finds itself.
As it has always been known, marketing is the process of making known the existence and presentation of goods and services to target customers. Target customers are those to whom the goods and services are intended. Targeting customers, as has been made easy through market segmentation, is a marketing advantage (Rosenbloom 2009, p. 1-20).
The process facilitates production of goods and services that perfectly meet customers’ needs. Segmentation promotes tailor-made goods and services that meet all customers’ requirements. Targeting a particular market segment help create a solid customer-company relationship thus strengthens customer loyalty (Rosenbloom 2009, p. 1-20).
Marketing activities to promote goods and services to target customers are considerably cheaper since customer influence is easily triggered. The scenario indicates that Wal-Mart’s core mission is to provide goods and services to low and middle income earners. In order to achieve this core mission, all the marketing activities are focussed on attracting and maintaining both lower and middle class shoppers.
However, this retail Company has been a midpoint of attraction to upper class customers alongside lower and middle class. For the company, the shopping turn up of the upper class is more than that of lower and middle class. From the events in the scenario, the company faces a problem of unintended target customer.
That is, the company’s marketing activities are focussed on attracting more low and middle-income earners but instead, the upper class is attracted more. The company’s marketing team therefore, feels like making a marketing mistake.
Management decision
The most appropriate management decision for the retail company’s marketing department is to maintain in the course of their current marketing strategy. The current marketing strategy targets low and middle class according to the company’s core marketing target but more upper class customers are attracted in stead. To clarify more on the preferred decision, take for instance two marketing elements, that is, price and positioning.
Product prices are costs to the customers. The current Wal-Mart’s pricing strategy is intended to be friendly to both lower and middle class income earners. The upper class has identified that Wal-Mart’s pricing is more pocket friendly compared to its competitors and therefore have decided to switch shopping areas.
The previously mentioned rationale is to support a short-term decision of maintaining the previous marketing strategy of the company. From a long-term point of view, if on average, the number of lower and middle class shoppers decline and those of upper class shoppers constantly increase, a different marketing strategy will be necessary.
The long-term situation could be due to high product prices thus making products and services more expensive for the average shoppers. A long-term solution if less average shoppers are experienced is to reduce the products’ prices in order to attract more average shoppers.
Setting research objectives
Between the long and short-term period, the following research objectives should be set in compliance with the ideas of Bradley (2013, p. 1-10)
- To investigate if the current pricing strategy will discourage more average shoppers
- To assess whether the positioning strategy is suitable for average shoppers
- To evaluate whether the promotional activities target the average shoppers
- To assess whether the packaging strategy is suitable for average shoppers
Conclusion
To conclude, the marketing problem faced by Wal-Mart is unexpected marketing results. A short-term solution is to maintain their marketing strategy while a long-term solution following a market research is to change marketing strategy in favour of the Company’s core target.
List of References
Bradley, N. 2013. Marketing research: tools & techniques, McGraw Hill, Chicago.
Rosenbloom, B. 2009. Marketing channels, South-Western, [S.l.].