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Retail Business Analysis: Wal-Mart Marketing Tactics Why Essay

Retail Business Analysis: Wal-Mart Marketing Tactics Why does a business need a marketing strategy? The basic answer is simple: to generate sales. However, the manner in which a business goes about developing its marketing strategy can differ significantly from one business to another. In order to understand what type of marketing strategy works best for a certain company, one must first understand the basics of each specific strategy along with viewing examples of how these types of strategies have worked for companies in the real world. In order to view how the major marketing strategies are at work in a real-world scenario, one can look at the company Wal-Mart to see how both the generic marketing strategy and the segmentation strategies have been implemented in order to garner more sales, and in viewing this implementation, one can assess room for improvement in terms of marketing the retailer's product line.

Marketing Strategies within Wal-Mart

Wal-Mart operates with the use of two of the three main generic marketing strategies, both of which have proven successful. These generic strategies in marketing outline the three main strategic paths for a company to achieve and maintain a competitive advantage, including: "cost leadership (low production costs), differentiation (providing...

62). First, Wal-Mart stands out in utilizing cost leadership, or maintaining its place as low cost leader amongst competitors. Wal-Mart is able to manufacture or import its products at prices significantly lower than competing retailers, and the company is then able to sell these products at low costs in order to generate a profit. Dartmouth's Tuck School of Business (2002) notes that since Wal-Mart's onset as a company, its marketing strategy was to "guarantee everyday low prices as a way to pull in customers, while traditional discount retailers relied only on advertised 'sales'" (p. 2). This strategy has remained much the same as time has gone on, and Wal-Mart has never wavered in its dedication to keep prices below those of other retailers.
Next, Wal-Mart has succeeded in operating in its focus strategy of choosing to compete in a broad scope in the mass market. Whereas some companies choose to "compete in a more narrow targeted or niche market," Wal-Mart has become highly successful in expanding its product line and customer-focus to a much larger scale (Mattson, 1997, p. 449). Wal-Mart further utilizes segmentation strategies or those that "design a marketing program to appeal to a specific existing…

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References

Dickson, P. And Ginter, J. (1997). Market segmentation, product differentiation, and marketing strategy. Journal of Marketing. 51, 1-10. Retrieved from: ProQuest database.

Haley, R. (1995) Benefit segmentation: A decision-oriented research tool. Marketing Management. 4:1, 59-62. Retrieved from: ProQuest database.

Higham, P. (2008). Simple marketing hits the mark: Wal-Mart. Discount Store News. 2-

6. Retrieved from: ProQuest database.
Leadership. (2002). Wal-Mart Stores, Inc. Retrieved from: http://mba.tuck.dartmouth.edu/pdf/2002-2-0013.pdf.
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