Introduction to International Marketing Management
Marketing management is play a vital role in every business organisation. Walmart is the most leading and successful multinational retailing corporation company across the world. According to different pricing philosophy, this firm offers various mixture of products and services. They use very low price strategy in their retail store. Their basic aim is to attain high profit so that the position of company is increased at the market place.
The total profit level of the firm explains its place in at the market. It is the most leading internation brand which affect the behaviour of consumer at different level. Walmart effectively manage their market because it is important and beneficial for the sustainability of the firm (Czinkota and Ronkainen, 2013). The company use various marketing strategies for reach at the profitability situation such as segmentation, targeting, positioning.
The firm segment there market in different levels. It is helpful in identifying or understanding the customers and their continuous changing need and wants. Walmart use mainly psycho graphic and demographic marketing strategies. The company understand the need of the buyer and knows that they want high quality product at very low and possible price. They widely use every day low price strategy for promoting their products.
Targetting strategy is used by the organisation for capture the huge amount of market across the world. Walmart is well knowing company and every person is knows about the quality brand, so there is no need to use differentiation and it is the major advantage of the firm. The price of product is based on the market price so they offer products at very low price then the competitors. The company use low price strategy for complete the want of the people at different level.
The firm target those people who are more interested to taking advantage of the product. Before developing a new product the organisation conduct marketing survey from different and knowing the opinion of the people from different segmented areas. It is the best way to knowing the need and want of different people (Berthon, Plangger and Shapiro, 2012.)
Positioning strategy play an important role in organisations growth and success. Te market position of Walmart is very high. They offer products at very low price because of it has positioned it self at top level. Some time low price consist loss for the firm, so it has destroyed several small retailer shops over the period of its activity. Here is the strategic marketing management of Haier to get a better idea of marketing management.
The firm use different strategy to attract large number of customers just to attain goal and objectives of the organisation. Some strategies are as under:
They use low price for the product because large number of people are attract towards the low price.
The firm provide online shopping facility to the customers because some are live far to the retail stores and this make easy for them to do purchasing.
The Walmart use social media tools for attract large number of buyers because this is the most leading strategy for promote their products (Chung and Huang 2012).
The company use various marketing strategies to maintain their marketing position. Walmart use price leadership, cost effectiveness, low price, best and effective offers. to attract large number of buyers. The basic aim of company is to make a comfort zone, so that the buyers think that the firm only work for customers benefit.
1 Background of The Company
Walmart is the most leading and popular multinational retailing corporate company which is placed across the world. It is mainly focused towards fulfilling the needs and demand of the person. They adopt various marketing strategies for creating awareness about the products. Environmental analysis is the important strategic tool which is helpful in identifying the internal and external aspects, those affect the performance of an organisation.
Changes are happen at very regular basis the market faces the changes at regular. Different organisations are focused towards developing new and innovative products for attracting huge number of buyers to attaining large number of profit. The firms putting their affords to join international marketing for the purpose of individual organisation or countries benefit.
1.1 Vision of Walmart
“To be the best retailer in the hearts and minds of consumers and employees.”
1.2 Mission of Walmart
“Saving people money so they can live better.”
The global revenue of Walmart crossed approximately $350 billion in 2009. The annual net income hit almost $ 22 million.
Walmart increase price of share from 12.25$ to 90.97$ in November 2014.
In 1970 Walmart went in public and listed into the New York Stock exchange in 1972.
The founder of this firm is Sam Walton.
1.4 Core Competencies
The core competencies of cited company are buying power, logistical superiority and supply chain management. This company sell the products at lower price as compare with their competitors.
1.5 Current International Markets
There are some of the markets where Walmart perform their operations:
united kingdom, Canada, Brazil, china.
2. Application of Theories To Practice
2.1 Marketing Process
Marketing is the planning process that implement a clear direction and coordinated purpose for all marketing efforts. The organisation focuses to identify the needs and wants of the customers and bring a product related to their preference, so their need can be satisfied by these products. The marketing process is described as below:
It is the first and basic step of marketing process. Situational analysis is done for identify the unfulfilled needs and wants of the customers. For understand the preferences of the buyer the organisation need to identify their own capabilities and environment in which it is operating (Fletcher and Crawford, 2013). The situational analysis can be done in two terms such as internal and external environmental analysis. External can be defined as the macro environment factor that widely affect many organisation, and internal analysis can be determined as the micro environment factor. It is closely related to the particular situation of the company. It includes past, present and future elements.
It is the second and most important point of marketing process. This is comes after situational analysis. Once the organisation analyse then they make marketing strategy for developing high quality products. Walmart mainly focuses towards implementing best and effective marketing strategy, so that they can plan for pursuing the opportunity can be developed. The company conduct a market research for knowing the specific market information that will helpful in select the target market segment and position the offering within that selected segment. The marketing strategy involves some aspects (Czinkota and Ronkainen, 2013).
In this the Walmart industry segment their market in different levels, so that they can easily satisfy the actual need and want of the customer.
The company segment their market at demographic level because they select the clothing product which is related to the men wear. This segmentation is based on the age, gender, sex etc. Walmart segment their market for providing satisfactory service to the selected customers.
Every organisation including Walmart select people among the population those who are interested towards the product that can be offered by the firm. For better growth and success the organisation doing a market research before developing a new product.
The Walmart target the young people for sell their products as per the market segmentation. Before select the target market they conduct a marketing survey for knowing the need and want of the customer. They use various strategies for attract their targeted customers for earning huge amount of profit.
The basic aim of the organisation is to position the product within the target market. So the buyers can take the advantage of the product easily. Walmart is the most biggest company so buyers having trust and faith on it, and it is the important advantage of the firm.
Even after being a multinational or biggest consultancy it is positioned as to attract large number of buyers towards the organisation for earning huge number of profit. They increase their profit level through clothing industry. They sell men wear (Polo T-shirt) at very low price just to attract huge number of customers. For example walmart sell 3 Polo T-shirts at 2 Pond, which is less as compared to the other market rate. They try to positioned their market at very high level through increase their sales across the world.
The Walmart offer their products at low price then its competitors. The firm develop innovative and effective products so that large number of consumers are attract towards the product. It is beneficial for the buyer to purchase low range product with high quality.
Marketing Mix Decision
It is the most important decision for the organisation. The firm should kept in mind that the decision are made for the controllable and adjustable parameters of the mix. Some items are include in this:
Product development: It is the basic decision which is taken by the firm, in this they develop a product on the basis of need and want of the customers. The organisation doing a market survey for identifying the major need of the buyers and then implement new product, that can provide satisfaction to the consumers (Ringle, Sarstedt and Straub, 2012).
Pricing decision: It comes after selecting the product. It plays an important role in marketing decision. The price of the product is based on the market price of the product.
Distribution contracts: The basic aim of Walmaet is to distribute the product at the target market, so that buyers can take the benefit of the product and service.
Promotional activities: For creating awareness about the product the firm use various promotional activities such as advertising through television, radio, newspaper, magazines etc.
Implementation and Control
It is the final step of marketing process, in the the product has been developed and launched. The product is the major tool of any organisation, after launching the product they need to maintain the position of the good at the market place. Walmart use various tools and techniques to control and maintain the profit situation of the firm. In this the basic work is how to implement the created plan. The firm direct and monitor the plan in proper way so that they can easily attain organisational goal and objectives. If the implement ion process is in the right direction then the company achieve high range of profit (Fletcher, 2012).
2.2 Marketing Strategies
The Walmart use various marketing strategies which are as follows:
This is the most important and effective way of managing market, the firm offer their products at very low price. When the customers are firstly go for towards the Walmart they found very low and reasonable price of the products than the other markets. Every person is always looking for the low price and they found that in the Walmart.
The company provide online shopping facility for their buyers and they give proper and accurate detail about the offering product. Once a person sees advertisement or hear about the best quality of the product they will surely visit the stores and website, they will become permanent customer since they will be able to find the best transfection (Akaka, Vargo and Lusch 2013).
Walmart having its stores all over the world if the person is not staying near any one shop than they can take advantage of online shopping. This accessible make marketing more reliable and easy, and customers doesn't need to work hard to do transaction with them.
Appeal to As many people as possible: Walmart is a big firm it has its own manufacturing concern. They offer all type of products such as beauty, home cleaning, toys, electronic, groceries and general products. Every person having their own set of interest and they want products as per their living standard. The firm appeal to all personality type people who are attracted towards the Walmart products.
Social media campaigns: Every big business organisation is focuses on social media campaigns. Walmart is also concern with the social media because it is the best way of marketing which consist best result. Blogging and video sharing is widely used strategy by the company. The firm link those videos and blogging with the social networking profile, so that is is easy for the customers to check the detail and information about the product.
2.3 The Role 0f Marketing Model, Tools and Techniques
These three elements play a vital role in developing a new product at the market place. Every big as well as small firms are also use marketing strategy , tools and techniques for making the product more valuable and effective.
- Marketing models provide blue print for selling the product in proper formate.
- Tools are providing support to knowing the needs and wants of the consumers.
- Walmart use various techniques for creating awareness among the public abut the total detail of product.
- Company use marketing mix strategy to develop an effective products , and in which the selection of product, price , place are included. They use different promotional strategy for attracting large number of buyers.
- These three elements provide basic market knowledge. They helpful in identify the present need and want of the customer.
2.4 Porters Model
Walmart's strategic direction is depend on the firms result to the fiver forces in its commercial enterprise environment. The organisation has succeeded in establishing the high and most leading position in retail industry (Mahapatra and Narasimhan, 2012). Now the walmart known as the biggest retailer across the world. The detailed description about the five force model is as under:
1.Strong Competitive Rivalry Or Competition
In the retail industry the competition is very much high. There are various small and big enterprises competing in the business environment. Some internal and external factors are important for Walmart to consider with consist to competition:
- The strong force is large number of companies present in the retail markrt.
- Retail industries are categorised in large variety.
- Huge amount of driven forces of retail market.
The retail industry is more competitive because there are several players are available in the industry. Walmart is competing on the basis of its basic strength which is cost leadership. Metro, Carrefour, AG and Tesco are the most competitors of the company (Ringle, Sarstedt and Straub 2012).
2.Threats of New Entrants
There are very much less threats available for new entrants in the retail industry. The price, product and quality is same in retail firm because of huge number of competition available at the market place. The requirement of finance, brand name, outstandingv distribution channel are responsible for new entrants. It is important for walmart to increasing its revenues by pull in large number of customers with the use of their strategy. They use various methods, tools and techniques for maintain competitive position in the market.
3.Bargaining Power of Suppliers
In the retail industry there are various suppliers available at the market place. Distributors are the person or industry who helpful in providing products to their potential buyers. Some time there is no competition exist for a single product, and the demand of the product is high then the organisation putting the high price. At this situation the suppliers are the king of the market and they not reduce their prices for any consumer. It is the beneficial for the firm to getting more success (Tan and Sousa, 2013).
4.Bargaining Power Of Buyers
The buyer is the king of the market, every organisation is mainly focuses towards fulfilling the need and want of the consumers. There are lots of substitutes are available for a single product, so the consumers want their product at most possible and low price. The bargaining power of a single person is low but with the increasing in the competition its developing as its forcing the Walmart to keep the price of product at low. If the consumers are not satisfied then they can easily switch towards the other brand or product.
5.Threats of Substitutes
Due to lack of retail stores the threats of substitutes are very low. Walmart mainly provide low price and convince for their potential buyers. The company includes wide range of products, which are helpful in reducing threats of substitutes. As a well reputed organisation customers having trust and faith on Walmart and this is big advantage to be more competitive with its price and quality aspects.
The company use porters model because it is helpful in determining number of customers for the particular product and the ability of the suppliers to make the product available. The availability of the substitute helps in determining various choices that are available for the buyer.
2.5 Product Life Cycle Model of Walmart
This model is helpful in development of new product at the market place. The company try to make their product more innovative and attractive. Introduction: This is the first and basic step in this the product is introduced to the market place. The organisation spend more in this stage because it is the fundamental step. For making introduction effective the firm conduct a marketing survey, promoting and setting up distribution channel.
In this the product is evaluated in every sector, if the product is not able to provide satisfactory result then it is withdraw form the market. If the product is liked by the large number of population than it goes to the next stage (Ringle and Straub, 2012). Before launching a product the Walmart conduct a marketing survey for getting aware about the need and wants of the potential customers.
They add those feature in the product at the time of production which is mainly focused by the buyers. After operation function the firm use various marketing strategies to attract consumers towards the product. The company use price leadership, low price, cost effectiveness or many other strategy. If the product is known by the large population or helpful in earn huge profit. This situation shows that the new product development is beneficial for the growth and success of the organisation.
It is the second stage of product life cycle, in this the product experiences a fast growth in profit and sales. If the demand of product is high then it will directly cause to the profit situation for the firm. The Walmart will often discover it lesser to spend in developing their market share and promoting their successfully growing goods. It consist the overall growth of the market.
This stage is comes after introduction and growth. This is the most important and common stage for all markets. In this the Walmart doing more affords to maintain their market share because the competition is most intense in this stage. Marketing and finance are the key activity of any business organisation. The maturity stage is the stage in which the market is focused to earn huge amount of profit. Marketing strategies are helpful in monitoring the function and operation of Walmart.
It is the final stage of in product life cycle. In this the market is decrease, reducing overall profit. The amount of profit can be shared among the leftover competitors, thus the good and service has to be managed in a proper formate. The large amount of stock has to be well controlled. If the product is not consumed by large number of consumers and not reach at the profitable situation then the firm decide to end the product (Terpstra and Sarathy, 2012).
The Walmart use product life cycle method because it is most relevant for developing a new and effective product at the market place. It helps in depicting various stages of the product from introduction to decline stage. This helps to determine the actual condition of the product.
As per the above project it has been founded that international marketing a very wide term. It is helpful in growth and success of an individual as well as the country. Walmart is the most leading retailer industry which is focused towards fulfilling the need and wants of the consumer across the world. They use various marketing strategies for developing a new product in the market. For maintaining market position the company use different techniques of marketing.
The firm apply porters five force model for better and effective maintenance of supply chain of the organisation. They use product life cycle model for introducing a new product to the market place, and then the product reach at growth, maturity stage. Every small and big businesses organisation want to join internation marketing for making high level of profit for individual, organisation or for the country. This marketing management is providing support to success and growth of country.
International marketing management signifies to maintain a proper marketing strategy which is helpful for a firm to attain all of their goals and targets. In this scenario an entity have to use some techniques on which they should have to work so that all of their working become effective. According to cited firm they have to analyse their key areas which are really necessary and want changes to get improved. As per the suggestion for this concern they have to improve their marketing strategies for which they have to effectively use porter five forces analysis.
According to this context if an organisation want to set up their business at global level they have top first found out the number of competitors because wall mart is one of a largest retail sector. Its revenue generation is more than others. Along with that cited firm also have to use marketing mix tools in an efficient manner. For this first they have to identify their various customers nature and groups. After this analysis management have to sale out only those products which have appropriate profit margin.
Moreover also managers have to look over on those issues like reduction in supply of products. This delay in supply lead to decline the customer satisfaction point. This become the main reason behind reducing in profit margin. Hence an organisation have to use only such techniques through which their survival in many new countries become easy. Along with this their profit generation also get rises which is one of the must thing for them. Another major method which they can use if product life cycle. This is an essential thing. In this concern management have to just sale out only those products which get replenish early. In this scenario their profit margin went increase and their survival become more easy.
- Akaka, M.A., Vargo, S.L. and Lusch, R.F., 2013. The complexity of context: a service ecosystems approach for international marketing. Journal of Marketing Research.
- Berthon, P.R, Plangger, K. and Shapiro, D., 2012. Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy. Business horizons.
- Chung, H.F., Lu Wang, C. and Huang, P.H., 2012. A contingency approach to international marketing strategy and decision-making structure among exporting firms. International Marketing Review.
- Czinkota, M.R. and Ronkainen, I.A., 2013. International marketing. Cengage Learning.
- Fletcher, R. and Crawford, H., 2013. International marketing: an Asia-Pacific perspective. Pearson Higher Education AU.
- Gordon, R., 2012. Re-thinking and re-tooling the social marketing mix. Australasian Marketing Journal (AMJ).