Walmart has been one of the World’s most successful corporations. For many years (including this year) it has been ranked top since Fortune Magazine began classifying companies according to their sales and revenue in 1954 (Fortune, n.d). This dominance of the Fortune 500 list has drawn scrutiny to the company’s Integrated Marketing Communications (IMC) tactics. Many other companies have tried to challenge this corporation for the top spot in the Fortune 500 list with little success. Ogden and Ogden (2014) define IMC tactics as the framework for product positioning, pricing, regulating the supply chain, and decision-making.
These tactics determine with whom, where, when, how, and why the company conducts its business (Ogden & Ogden, 2014). Modern managers should be careful when creating these marketing communication tactics because they deliver the advertising message to the public. For successful companies, the tactics should be research-based, innovative, and highly specific (Payne et al., 2017). This paper evaluates Walmart’s IMC tactics and the reasons behind its effectiveness.
Large companies often integrate product promotion, direct sales, public relations, branding, and online marketing, among others, into their IMC tactics. One traditional tactic that Walmart’s marketing team uses to increase its market share and sales is targeting people living in densely populated inner cities of the United States (Banerjee, 2015). This tactic can be perceived as partly driven by aggressive marketing and partly by the company’s desire to redeem its public image (Arthur, 1994). Walmart often improves its corporate responsibilities by promoting local businesses and creating employment in the communities where it has operational stores.
Since Walmart is famed for driving small establishments out of business, it has adopted the following strategies in densely populated but underprivileged inner cities. First, the corporation identifies small business spotlights which have more than five local business initiatives. Second, it engages its Walmart Business Development Department to conduct market research (Banerjee, 2015). Finally, Walmart builds brick and mortar stores in the selected inner cities (which have high unemployment and crime rates) and employs the locals in its stores.
According to Walmart’s executives, where other companies find difficulty, they see opportunities. The main objectives are to reach out to people in these communities and positively impact their lives (Ogden & Ogden, 2014). The company sets up new stores where they are needed most as an IMC tactic. Consequently, more shoppers will create an attachment to the company beyond its products, which effectively boosts sales and cements the company’s position in the Fortune 500 list.
Another digital IMC tactic that has worked effectively for Walmart over the years is the in-store digital marketing communication experience. The firm seeks to improve the shopping experience for its customers and to deliver its marketing messages. For instance, the company usually lets consumers know about the best seasonal offers that they can exploit. The company partnered with MediaVest to create the Walmart Smart Network to advertise the firm’s products to the consumers during their physical visits to their stores (Banerjee, 2015). This tactic has driven up the company’s sales over the years and has been effective in its marketing strategy.
In summary, Walmart is performing well in the corporate world, and its IMC tactics are robust. However, the company can make the in-store digital advertising tactic more interactive by using simple user interfaces to operate independently. Not only will this improve the company’s sales, but more customers will be attracted to the stores, and sales will increase. Customers could choose their favorite products and easily find their way around the stores. In that case, continued effective management of IMC tactics will ensure that Walmart remains the world’s largest retailer for years.
References
Arthur, W. B. (1994). Inductive reasoning and bounded rationality. The American Economic Review, 84(2), 406-411.
Banerjee, D. (2015). Walmart stores Inc.-a strategic analysis. International Journal in Management & Social Science, 3(12), 202-225.
Fortune. (n.d). Fortune 500: Walmart. Web.
Ogden, J. R., & Ogden, D. T. (2014). Integrated marketing communications: Advertising, public relations, and more. Bridgepoint Education, Inc.
Payne, E. M., Peltier, J. W., & Barger, V. A. (2017). Omni-channel marketing, integrated marketing communications, and consumer engagement. Journal of Research in Interactive Marketing, 11(2), 185-197. Web.