Chap. 8 Segmenting and Targeting Markets

Chap. 8 Segmenting and Targeting Markets

Market segmentation is a strategy that involves dividing a larger market into subsets of consumers who have common needs and applications for the goods and services offered in the market.Walmarts segmentation  consits of the different departments located within the store apparel and clothing,electronics,music,office and grocery.They have a total of  31 departments to meet almost every need of the consumer.

For example if specific customers want to buy food they no longer have to go to the supermarket  they can get healthier food from their local walmart.Target market involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments.Walmart not only concentrates on one or a few segments they basically trying to use all of the segments that are availible in today's market.

Examples of  a Target Market

Electronics Cost Less at Walmart
From compact digital cameras to high-powered desktop computers, we've got all the brand-name electronics you're looking for at Walmart.com. Our extensive electronics assortment includes DVD and Blu-ray players, GPS units, HDTVs, netbooks and laptop computers. Plus, you can save a bundle with our electronics value bundles — take your choice of a camera, iPod or computer bundled with a variety of those essential electronics accessories. Best of all, you can purchase extended service plans for extra peace of mind. Stock up on your favorite electronics brands, including Apple, HP, Samsung, Sony and Vizio — and save.

Chap.7 Business Marketing

Chap.7 Business Marketing

Walmart's Business marketing

Walmart's business marketing takes on a whole new meaning upon operating on a global scale.. In Walmart’s marketing group, they keep the message simple and remember the mission: to save people money and help them live better.


The marketing department at Walmart connects with the American consumer on an  as what they truly value. As primary stewards of our Walmart brand promise, "Save Money. Live Better,” they communicate with more than 140 million customers who shop at the  stores every week. And they operate on a world-class level while paying attention  to the values and culture of respect on which the  company was founded.They usually communicate to the consumer via the television,internet or paper circulars.

The people have expertise in a diverse range of advertising and marketing specialties, from brand strategy to creative services and everything in between. We bring unique customer insights to life through a wide range of seasons, categories and brands. From research and insights to brand strategy to advertising, they offer many types of marketing careers.

Chapter 11 Developing and Managing Products

Chapter 11 Developing and Managing Products

     Walmart develops and Manages Products through their marketing Objective of competition,product,price,promotion,place.New product development is also a part of  development and Managment of products.New product development (NPD) is the term used to describe the complete process of bringing a new product to market. Walmart products are a set of benefits offered for exchange and can be tangible or intangible . 

      This process consist of  the idea generation, product design and finally detail manufacturing of the product ; the other involves market research and analysis. Walmart uses the new product development stage as the first approach in generating and commercializing new products .This process consist of Idea generation,Idea screening,concept development and testing,Business Analysis and technical implementation.Walmarts Idea generation(also call ideation) consists of the new innovation of products ,i.e. products made for problem solutions these products allow the consumer to buy a product that will solve a problem.A lawn mower is goo problem solution  for a homeowner's or a business that needs to cut grass.

Chap. 16 Integrated Marketing Communication

Chap. 16 Integrated Marketing Communication

Walmart's Integrated marketing communication is their  approach to achieving the objectives of a Marketing campaign , through a well coordinated use of different promotional methods that are intended to reinforce each other.Integrated marketing includes discipline communications advertising, public relations personal selling  and sales promotion.

These methods help the corporation bring a better understanding to the consumer  this way they we will know which products best fits the consumers needs.Walmart usually does this through the tv commercials,online website,and weekly circular. Their tv commercials usually show items that are popular and are at a cheaper price then their competition this helps them to get better sales.

Chap. 18 Sales Promotion and Personal Selling

Chap. 18 Sales Promotion and Personal Selling


Walmart usally promotes sales through lowering prices and by selling the healthiest food brands,their  slogan of choice is shop  and save money to live better.They made an agreement for a five year plan that will make  thousands of its packaged foods lower in unhealthy salts, fats and sugars, and to drop prices on fruits and vegetables. This includes  rice, soups, canned beans, salad dressings and snacks like potato chips — packaged under the company’s house brand, Great Value.This promotion targets consumers that are into healthy eating and are against childhood obesity.They also use promtions through selling top name brands at lower  price than their competition.

Chap.17 Advertising and Public Relations

Chap.17 Advertising and Public Relations


Advertising is the activity or profession of producing advertisements for commercial products or services.
Public relations is considered the opposite of advertising it is the marketing funtion usally through technology that communicates to the public.






Walmart uses advertising, to persuade consumers to buy ,they recieve help through  marketing  agencies.Their statergy usally is to give lower prices then their competition ,with the help through amarketing agency. For example ,The martin agency , this agency generate ideas for their clients the ideas that they come up usually " transform categories, consumer perceptions, and the cultural landscape in their pursuit of dramatic growth ".they not only work for Walmart but they also work for ,Geico Ups, and Hanes  their head quarters is located in Richmond Virgina and New york city .They use a technique called consumer forensics it is similar to criminal forensics  they use reserch to provide "data driven communication and business soulutions to clients".They offer a variety of robust analytical tools, from broad-based cultural trend analyses to consumer segmentations, persona development and optimization modeling. They also provide data integration, modeling and analytic resources and solutions for public media programs.


Walmart uses public relations through their press room and other websites.There press room has data stored in their press relases section from 1996 ,this shows customers walmarts annual report,awards and accolates,company statements and etc

Chapter 15 Retailing

Chapter 15 Retailing

Walmart has five retail store division Wal-Mart Discount Stores ,Wal-mart Super centers ,Wal-Mart Neighborhood Markets,Sam’s Club,International Operations.

Wal-Mart mart discount stores

Wal-Mart mart discount stores was first opened by Sam Walton in 1962 there are currently over 1,000 walmart stores in the United States only.The stores offer items in family apparel, automotive products,pharmacy, health and beauty aids, home furnishings, electronics, hardware, toys, sporting goods, lawn and garden items, pet supplies, jewelry, and housewares.

Wal-Mart Super centers

Wal-mart supercenters have more then 2,300 stores nationwide and most of them are open 24 hoursSupercenters feature bakery goods, deli foods, frozen foods, meat and dairy products, and fresh produce. Supercenters also are home to many specialty shops such as vision centers, Tire & Lube Expresses, Radio Grill, McDonald’s or Subway restaurants, portrait studios and one-hour photo centers, hair salons, banks, and employment agencies. Supercenters  employ 350 or more associates on average and offer 142,000 different items.



Sam’s Club

The nation’s leading members-only warehouse club has general merchandise and large volume items at value prices. Since 1983, Sam’s Club has been the preferred by small businesses, families or anyone looking for great prices on name-brand products. Sam’s Club  exist solely to help small business owners succeed nationwide. Each day more than 584 Sam’s Club locations, , help small business owners and operators live the American Dream – the same dream Sam Walton lived when he started Wal-Mart and Sam’s Club.

According to the U. S. Small Business Administration Office of Advocacy, small businesses represent 99.7 percent of all employers and have generated 60 to 80 percent of net new jobs annually over the last decade. Owners and operators of local businesses – such as offices, child care, schools, restaurants, motels, vending companies, churches, contractors and beauty shops – stand to gain the most from Sam’s Club, which offers a convenient and cost-efficient warehouse for these businesses to purchase materials and supplies.
Each Sam’s Club employs an average of 160 to 175 associates and offers approximately 5,500 different products. A nominal membership fee ($35 annually for businesses/$40 annually for individuals) helps defray operating costs and keeps prices exceptionally low.

International Operations
Wal-Mart operates stores and clubs in 13 markets outside the continental U.S., serving more than 176 million customers around the globe each week. We believe our international stores have been successful because they are committed to offering working families overseas the things they need at prices they can afford – but we also go to great lengths to ensure our international stores reflect the local needs and want of our customers.

We also work hard to ensure our stores are seen as vital partners in communities. This approach is the reason Wal-Mart is being welcomed into country after country around the globe, and it’s also why for the tremendous potential that helps to continue rapid growth internationally.

Chapter 6 Consumer Decision Making

Chapter 6 Consumer Decision Making

Decision making consists of  functions, such as planning, coordinating, and controlling.

Suppliers who wish to initiate a business relationship with Walmart (The consumer) must complete an online product submission. If your application is filled out correctly, they will forward your information to the consumer resource team  who will review the product and provide you with either an email outlining next steps or an explanation of why it's being rejected.
If your application is not complete, you will receive an email explaining what is needed and a request for you to resubmit your application.

Part of  Walmart's decision making process is to fill out  Proposal package which introduces the company and provides simple facts about their business philosphy.There goal is establish close relationships with many new businesses .They have a national supplier program,Local purchase program,Services/Non-resale and direct imports program.These programs help the consumer descison making process after the submits appliction is submitted the supplier development team will review the application, once it is determined qualified the decision will be sent back to the supplierThe supplier would then schedule a meeting to discuss business oppurtunities.

Chap. 1 Walmart's History

Chap 1 Walmart's History

"We save people money so they can live better"

Sam Walton opened his first store in 1950. His vision was to keep prices as low as possible. Even if his margins weren't as fat as competitors, he figured he could make up for that . 

In the early 1960s, Walton opened his first Wal-Mart in Rogers, Arkansas. The company continued to grow, going public in 1970 and adding more stores every year. In 1990, Wal-Mart surpassed key rival Kmart in size. Two years later, it surpassed Sears.

Walton continued to drive an old pickup truck and share budget-hotel rooms with colleagues on business trips, even after Wal-Mart made him very rich. He demanded that his employees also keep expenses to a bare minimum -- a mentality that is still at the heart of Wal-Mart culture more than a decade after Walton's death. The company has continued to grow rapidly after his death in 1992 and now operates four retail divisions -- Wal-Mart Supercenters, Wal-Mart discount stores, Neighborhood Market stores and Sam's Club warehouses.

Michael Terry Duke currently is the   Ceo of Walmart. He became the Ceo in 2009.

Wal-Mart employs 1.6 million people. Wal-Mart had sales of 421.849 billion in its most recent fiscal year, which ended January 31, 2011. By comparison, the second-largest retailer in the country, Home Depot, posted sales of  $67.997 billion , and sears 22.937 billion .

• Wal-Mart employ's 2.1 million people. In contrast, Home Depot has 321,000  employee's.

Walmart mission statement

Walmart  mission statement

 "We save people money so they can live better."

A mission statement is considered a statement of the firm's business based on a careful anaylsis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions.

“If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see what it’s like to save and have a better life.”

These are rules that Walmart made up to help establish their mission

1) Open Door Policy - Managers doors are open to employees for help at all levels .

2) Sundown Rule - Answering employee, customer, and supplier questions on the same day the questions are received

3) Grass Roots Process - Capturing suggestions and ideas from the sales floor and front lines

4) 3 Basic Beliefs & Values - Respect for the Individual, Service to our Customers, Striving for Excellence

5) 10-Foot Rule - Making eye contact, greeting, and offering help to customers who come within 10 feet

6) Servant Leadership - Leaders are in service to their team

7) Wal-Mart Cheer - An actual structured chant that was created by founder Sam Walton to lift morale every morning

Chap. 2 Strategic Planning for Competitive

Chapter 2 Strategic Planning for Competitive


Walmarts Strategic planning is the managerial process of creating and maintaining a fit between the organizations objectives and resources and the evolving market opportunities.

Save Money. Live Better.

The first of the three initiatives is called Save Money, Live Better. This initiative has a number of components that Wal-Mart is following.

• Price Leadership – The Company is well known for its “Every Day Low Pricing”, but Wal-Mart is aiming to give the consumer greater value for each product category. By achieving price leadership Wal-Mart hopes to ward off attempts by other retailers such as Target from gaining market share.
• Consumables – This component is an area where Wal-Mart are looking to reduce outlay. Changes will be made in promotional cadence, seasonal advertising and in store signage.
• Private Label – One area where Wal-Mart can increase revenue is to expand their private label categories. The current economic climate has consumers looking to save money and the value of Wal-Mart’s private label products should be good for the consumer as well as the company.
• Integrated Brand Communication – Although Wal-Mart is looking to reduce the overall number of suppliers and products, the company will be looking to remaining vendors to increase co-branded advertising campaigns.
• Leverage Selling General and Administrative Expenses (SG&A) – The Company can ask suppliers to introduce efficiencies in the transportation of items. This can be the supplier to the distribution center, distribution center to the store and also within the store.

Win. Play. Show.

This initiative sees Wall-Mart optimizing the products in each of its stores. Reducing the number of products, and perhaps reducing the number of overall suppliers, Wal-Mart can encourage suppliers to reduce prices. It also produces an opening for private label products and subsequently increased revenue. With regards to product optimization, the plan is to put each of the product categories into one of three buckets; win, play or show.

• Win – This is the top priority categories for Wal-Mart. With these products the company aims to gain market share, be first to market on all new products, lead with price and value, as well as stocking an assortment of items.
• Play – These are strategic categories. Wal-Mart will be aiming to grow these categories, but using a balance growth and profit in the context of overall market performance. Vendors who find themselves with products in this area should be looking to aggressively market to Wal-Mart so that their items are not removed from store shelves.
• Show – This category is where Wal-Mart can reduce the number of products they stock, but not exit the category all together. For example, Wal-Mart has decided to go from four plastic food storage bag brands in its stores to only two. Pactiv Corp.'s Hefty and Clorox's Glad brand products have been removed from store shelves, leaving SC Johnson's Ziploc and Wal-Mart's own Great Value private label the only products to be displayed.

Chap. 3 Ethics and Social Responsibility

Chap  3 Ethics and Social Responsibility

Walmart has a Global  Ethic Office it was formed for stakeholders (associates,customers,suppliers and other companies that they do business with) to make sure that the companies moral principles or values generally govern the conduct of Walmart's standard.They provide a confidential  reporting system for violations of their staetment of ethics.

To see Statement of Ethics Click link below:
Walmart's Statement of Ethics

Guiding Principles

• Always act with integrity.
• Lead with integrity, and expect others to work with integrity.
• Follow the law at all times.
• Be honest and fair.
• Respect and encourage diversity, and never discriminate against anyone.
• Work, actions, and relationships outside of your position with the company should be free of any conflicts of interest.
• Ask your manager or the Global Ethics office for help if you have any questions about our Statement of Ethics, or if you face an ethical problem.
• Inform the Global Ethics office about any suspected violations of our Statement of Ethics.
• Reveal and report all information truthfully, without manipulation or misrepresentation.
• Cooperate with and maintain the private nature of any investigation of a possible ethics violation.
• When involved in an ethics investigation, you should reveal and report all information truthfully. You should present all the facts you are aware of without personal opinion, bias, or judgment.

Chap. 4 Marketing environment

Chap 4 Marketing environment

The Marketing environment refers to the factors for  environmental managment when a company implements straergies , that attempt to shape the external environment ,within which it operates, through ethics ,pricing,competition,and expansion...


Strategic
Walmart marketing environment uses the five force Analysis that was first created by Harvard Professor Micheal Porter...

1. Intensity of rivalry amongst existing competitors
2. Threat of entry by new competitors
3. Pressure from substitute products
4. Bargaining power of buyers (customers)
5. Bargaining power of suppliers 

 Walmart uses rival methods against their competitors, like the fixed cost method this casues companies to sell more products, to cover cost this increases market competition. Product differentiation, a method the company uses by, making the product more attractive for a particular target market,.having new competitors in the market rivalry usually increases and profitability falls .Having new competition, can be a good or bad thing for Walmart right now they are competing ,with Target and Kmart stores, there are  new competitors.Walmart builds it marketing environment mostly  through their discount prices and their quality goods and services.

Chap. 5 Develpoing A Global Vision

Chap 5 Develpoing A Global Vision

Walmart's President and CEO Mike Duke has laid out four.r strategies .He said Walmart is poised to deliver on Sam Walton's vision of giving "the world an opportunity to see what it's like to save and have a better life." The strategies are:

1. Become a truly global company
2. Understand the business challenges that retailers will face and solve
them
3. Play an even bigger leadership role on social issues that matter to our
customers
4. Keep our culture strong everywhere.


"Our results demonstrate the underlying strength of our business and our strategies of growth, leverage and returns," said Duke. "But as proud as we are of our recent performance, future success is never guaranteed. I want all of you to be able to say that at this moment Walmart committed to being a truly global company and began building the Next Generation Walmart."

In order to be a more global company, Duke discussed the need to serve customers as a local store, share best practices and leverage Walmart's global supply chain. He also stressed the importance of talent: "Just over the next five years, we'll create 500,000 jobs around the world. We need to recruit the best talent and identify the best talent in our ranks. Then we need to develop leaders and help them become global citizens."
With the company's plans for future growth,He said. Duke sees Walmart's culture as a competitive advantage and one that needs to stay strong globally. "Our culture is who we are. It isn't just words written on a wall at the Home Office or stapled to the bulletin board in the back room of a store. It makes us special. It sets us apart from the competition. And it appeals to people everywhere. So wherever we go and whatever changes we may make, we must keep our culture strong," said Duke. "I truly believe the retailer that respects individuals, that puts customers first, that strives for excellence, that is trusted will win the future."

Walmart announced that its Board of Directors approved a new repurchase program that authorizes the company to repurchase $15 billion of its shares. This program replaces the previous $15 billion program, which was announced , and had approximately $4.7 billion of remaining authorization. Under the program, repurchased shares are constructively retired and returned to unissued status.