Page 94 - DMGT550_RETAIL_MANAGEMENT

Unit 5: Retailing Strategy

Self Assessment Notes

Fill in the blanks:
13. ........................ are the means by which a firm creates value in its products.
14. ........................ are those activities involved with receiving, handling and storing inputs to
the production system.
15. ........................ refers to those activities which acquire the resource inputs to the primary
activities.

16. A company’s value chain is connected to what Porter describes as a ........................ .



Case Study Wal-Mart’s Marketing Strategy

al-Mart is not particularly known for their impeccable customer service. Even
further, Wal-Mart lacks in cleanliness and breadth of product lines. But what
Wthey lack in aesthetics, they make up for with an absolutely unparallel
convenience and price competitiveness. Wal-Mart has redefined the art of online marketing,
using techniques at grand and impressive scales to become one of the top company’s in the
wide history of corporate America.
Wal-Mart’s online marketing campaign covers all facets of strategy, but through all the
apparent strategies, it is their aggressiveness that has highlighted and broadened their
need to succeed and remain at the top of the industry in retail. But an aggressive campaign
inevitably garners controversy, and through the years, Wal-Mart has been involved with
a fair amount of negative publicity directly involving their specific marketing strategies.
Their bullying nature has caused many to deem them unreasonable and unfair- Wal-Mart
still remains number one despite the negative attention.
Wal-Mart’s marketing consists of flooding the market with their presence. This is alarming
for individuals who find Wal-Mart’s business practices alarming. But with such a massive
quantity of stores, intensely competitive pricing, and such a large market share, their
marketing strategy has entailed an overall takeover of all the appropriate markets.
They offer many types of products, with a relatively comfortable list of options. As well,
Sam’s Club offers an alternative for those who prefer bulk. And with such a strong base of
customers, they are able to set the prices for what they pay for. If you want your product
in Walmart, you are at the mercy of them setting the price they will pay. If it is below cost,
then so it is. The truth is, Wal-Mart can offer a company a prime opportunity to get their
product to the masses– even if they lose money doing so. Their online marketing has them
being as transparent as possible in an attempt to dissuade the controversy to their name.
You can purchase their entire collection of products through the web. You can read customer
reviews, sign-up for a newsletter, and get options for special deals available only through
the website. Despite this, such a business relies strongly on their physical location– exactly
why a store finder is located right at the top in bright yellow.
This competitive nature has allowed controversy to flourish under their name. But their
marketing has focused on quantity, and delivering variety in one location. Their extending
hands to Subway and McDonalds for placement of restaurants in Walmart’s, further
validates this claim. As well, a typical customer can get glasses prescription, get their
haircut, and oil changed under their building. You can purchase jewellery on one side, and
Contd....

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