Whether The Marketing Mix Contributes on the Success of Wal-Mart

Whether The Marketing Mix Contributes on the Success of Wal-Mart Introduction The marketing mix, as a paradigm, has been keeping applied in business since it was merged more than 50 years ago. Many companies are still using it as a guide in marketing (Zineldin, 2007) to gain more competitive power in the market. The activities integrated in marketing programmes to create, communicate, and deliver value for consumers were classified into product, price, promotion and place in marketing mix tool by McCarthy (cited in Davies et al., 1995) in 1960, and Kotler et al. (2009) defined the sub activities of each element of the 4Ps: product variety, quality, services, etc for Product; list price, discounts, allowances, etc for Price; sales promotion, advertising, public relations, etc for Promotion; and channels, coverage, locations, transport etc for Place. By using the guide and adjusting the elements and the sub activities of them, companies can find a marketing strategy suitable for both the industry and the organizations. Although the application of the marketing mix seems to be different among industries, it still has influences on the businesses in extents. To see whether the marketing mix can work to the achievements of the organizations, the strategies and the application of the marketing mix of Wal-Mart, the largest retailer in the world, can be a great choice to analyze. As a well known hypermarket business leader, Wal-Mart serves customers and members more than 200 million times per week at more than 8,650 retail units under 55 different banners in 15 countries (Anonymous, 2010), and it is still extending its business globally. This essay will analyze the contribution of the marketing mix on the success of Wal-Mart, and a brief scheme of improvement will also be looked at. Product As a retailer, the term product can be divided into two parts, the retailing service to suppliers, and the products and services to customers. Since both suppliers and retailers are pursuing a low-margin, high-volume strategy (Kotler et al., 2009), the stable and high-volume orders from Wal-Mart can meet the needs of the suppliers. However, only large orders are not enough in current business, according to Hansen (2009), a service-centered philosophy and service quality are crucial for building long-term relationship with suppliers. To keep a high quality of service, Wal-Mart is innovative and a pioneer in technology development. It is among the first retailers using computers to track inventory (1969), adopting the bar codes (1980) and wireless scanning guns (late 1980s), and introducing EDI for better coordination with suppliers (1985) (Johnson, 2002), which developed the efficiency of distribution and turnover of goods so that it can meet the requirements of suppliers. To individual customers, not only selling products of suppliers, Wal-Mart has private-labels such as Great Value, OlRoy, Partents Choice etc, which provides products in wide fields. Kumar et al. (2007, cited in Geyskens et al., 2010) argued that private-label products are positioning at mid-quality, and they are as good as national brand offerings but cheaper. However, Wal-Mart focuses on the quality rather than only mimic other brands (Neff, 2009), trying to meet the needs of most customers focusing on cost performance. Because of the efforts Wal-Mart made, customers are increasingly relying on the private labels (Rae, 2009). Also, according to Min (2010), customers evaluate the service with product quality, which is followed by cleanliness of the store, competitive price, product variety and fast checkouts. By making collection of customer information and IT innovation, these factors are getting focused on by Wal-Mart, which keeps the service quality and satisfaction of customers. Price The price factor of Wal-Mart can be looked at by the view of both B2C and B2B businesses. For the pricing strategies towards individuals, a lower price can capture more market share even competitors build price wall to fight in the market (Chiu et al., 2009). Wal-Mart has a great advantage in the competition among retailers because of offering a lower price and promising it the lowest among all, but lowering the price does not definitely lead to a cut in the profit. Wal-Mart uses a broad line and low value added product lines to keep prices low and raise the volume that is increased greatly enough to make up for the low margin (Kotler, 2009). However, there is always a risk: if the added revenues from the increased demands cannot cover the loss of margin, it will diminish the profit (Nijs et al., 2007). By using and collecting a huge database of consumption of products in large regions and super centers, according to the law of large numbers, the demands of the products could become stable and predictable. With a prediction of consumer behavior and risks, an aggressive pricing strategy helps Wal-Mart gain huge advantages and profitability. Place For Wal-Mart, a company that has been focused on discount merchandising and growth (Graff, 1998), cost is always a key to it. With mature management and decisions on places the products available to customers, distribution and channels, Wal-Mart gets phenomenal growth and excellent performance. First of all, considering the size, majority of Wal-Mart supercentres are located in nonmetropolitan counties and get around the distribution centers (Graff, 1998), which can make Wal-Mart benefited from a low land-rent cost and a more efficient distribution. However, a great negative impact on Wal-Marts market share occurred because of the factors of the growing maturity of internet retailing industry and lower prices offered by on-line retailers (Bock et al., 2007). In order to keep the market share and the customer satisfaction, Wal-Mart launched its own retailing websites and planned to build multichannel. This shall benefit the giant retailer as researchers found that the adoption of inte rnet and a multichannel strategy will be more profitable for retailers than traditional strategies (Zhang, 2009; Bock et al., 2007). Other than the location of supercentres, the performance of distribution of Wal-Mart is outstanding. Firstly, by geographical segmentations, distribution centers, around by supercentres, are located in appropriate regions. Suppliers make most deliveries to distribution centers, and retailer then ferry goods between the regional centers and individual stores using its own trucks (Burritt et al., 2010), which reduces the cost of transportation and enhances Wal-Marts control on the whole inventory and process of delivery. Also, a mature IT system weighs greatly for Wal-Mart: hand-held computers used by employees can collect the information of products such as storage, packaging and shipping, and a satellite communication system set up in 1983 helps managers to track sales and inventories in stores across the country (Chandran et al., 2003), which keeps the distribution under control and improves the efficiency. In addition, Wal-Mart puts a great concern upon the suppliers and the integration of supply chain. Because great volumes of products are sold through Wal-Mart, suppliers are delighted to do business with the retailer at a lower price because of the large orders, which increases the bargaining power of Wal-Mart. As what Davies et al. (1995) found: strength in bargaining power positively relates to commercial success. It seems that Wal-Mart keeps a superior power upon its suppliers to squeeze the cost. However, Even suppliers treat Wal-Mart as a primary customer perform worse financially (Bloom, 2001), there may still be benefits for suppliers to keep a long-term relationship with a higher performing channel member being efficient and aggressive to attract consumers to suppliers products, because the revenue with a high volume sold might cover the squeeze, and some suppliers hope it might help them expand their market share (Bollm, 2001; Erdem et al., 1997). By cutting the cost in the B2B part, the prices of products could be lower and more advantages Wal-Mart can gain in the market. Also, with a thought that putting the volume together of both itself and its suppliers are buying from one supplier can reduce costs (Muntaner, cited in Boyle, 2010), Wal-Mart has been trying to team up with suppliers to purchase the raw materials, like teaming up with Pepsi to purchase sugar together from one sugar supplier at a lower price, in order to reduce the cost of private labels so that more attractive prices can be offered to customers. A good management of the place factor improves the efficiency of distribution and lowers the cost of the company. Promotion The element of Promotion was divided into sales promotion, including reduction of price, discount etc, and communication, including advertising, public relations, store design etc (Van Waterschoot et al., 1992; Davies, 1995). In sales promotion, Wal-Mart uses reduced prices to increase the sales of the inventory in order to keep a high turnover rate and release the problem of stocking of inventory. Also, as it was found that a slight change in the price will lead to great improvement of business performance in a high price-elasticity product (Driussi, 2007), Wal-Mart uses short-term discounts on particular products to stimulate the consumption of products. Concerning about the communication of Wal-Mart, with an increasing budget on advertising from $405 million in 1999 to $2.3 billion in 2008 (Norman, 2009), the brand name and the slogan of save money, live better, formerly always low prices are getting widely known, which leads to a greater awareness of public and an increase in brand equity (Keller, 1993). Also, it uses diversified advertising methods such as TV, websites and newspaper, which is crucial to the success of any advertising campaign (Scott, 2009). In addition, according to Ataman (2010), by making efforts on advertising can improve the customer loyalty to the companies, which might also be an important reason for Wal-Mart being attractive and well accepted by publics in either new or existing market. It seems that Wal-Mart focuses greatly on communication with customers and trying to get more strength of brands. However, there are still some factors that Wal-Mart needs to take into consideration. First of all, although Wal-Mart is widely accepted by the public, the public relationship and the social image from the public tell a different story. With a history of anti-union tactics and worker disputes, including an ongoing gender discrimination lawsuit (Bustillo, 2010), Wal-Mart is getting into a social issue negatively affects its social image. Society worries about Wal-Marts lacking of consideration to health, life and rights of employees. However, Wal-Mart has been trying to making efforts on its CSR while the public does not realize. It offers a better health care plan than the retail average, in which 80% of its US workers can get health coverage while only 58% for the retail sector as a whole (Bustillo et al., 2010). This phenomenon shows that Wal-Mart needs to make effort o n PR to change the biases made by the society. In addition, with a development of customer perspectives, physical environment and social cue, factors influencing customers feelings and satisfaction (Bitner, 1992; Hu et al., 2006) are getting more focused. Wal-Mart can try to collect more customers preference to the store environment such as store designing and employees behaviours in order to build a welcoming feeling to customers and serve customers better. Integration of The Marketing Mix Although each element of the marketing mix Wal-Mart focuses is analyzed, the marketing mix should be treated as a whole. An application of the marketing mix upon the business needs the coordination among departments of a company, not only marketing department, and part-time marketers who are not working for marketing department but have connect with customers need to be greatly relied on to generate and disseminate the market intelligence (Davies et al., 1995; Grà ¶nroos, 1994). It can be shown from the above analysis that the elements of the paradigm influence each other such as price and PR, supply chain and price, cost and distribution etc, and Wal-Mart controls them in a macro vision. With an interaction among the departments, Wal-Mart can get advantage in each element of the marketing mix by using resources widely and efficiently. Conclusion By analyzing the concentration of Wal-Mart upon the marketing mix, it not only treated the paradigm as a guide, but also applies it upon the strategy and management of the company. It is not unfair to say that with a proper application upon the business and a great interaction in the marketing mix, Wal-Mart gets benefit from the classic theory. The application of the marketing mix could be seen as a key positive factor of the success of Wal-Mart. However, to improve the business performance of the giant retailer according to the paradigm, some soft factors such as the flexibility of distribution, PR and consumers emotion can be concerned by Wal-Mart.

Private Schools vs. Public Schools Essay -- Public Education vs Private

Plato said, "You must train the children to their studies in a playful manner, and without any air of constraint, with the further object of discerning more readily the natural bent of their respective characters" (Plato). Education has increased as a topic of conversation among parents in America today. The importance of a good education has increased in value, and parents are searching for the best possible school for their child in preparation for college. Many believe the most opportune way for their child to succeed in studies is by attending a private school. On the other hand, another group of parents thinks that public schools are the better route. Nevertheless, public schools have been proven to be more successful in the education of a maturing child. Students who attend public schools are faced with many different challenges that differ in comparison to a private school student. Whereas, many private schools are small in population, public schools usually have a larger number of students resulting in a great diversity of pupils. Students from every race, culture, and religious background come together in one school system. This diversity allows students to develop ways of associating with many different people that would not typically be found in a private school. Learning how to deal with others, no matter what their race, culture, or religion, is a vital asset to learning how to work with others in the future. Private school teachers have been shown to be less qualified teachers that many public school teachers. Some of the most interesting contrasts explain private schools have fewer minority teachers and principals, public school teachers appear to be more education than private school teachers, a... ... agrees with Mrs. Dyckman explaining, "I don't think that just because you pay money for something makes it better. There isn't a better place for my daughter to be going to school than here" (Wilkenfeld par. 13). In fact, on average, private schools aren't any better than public schools, or so says a new book on the subject, All Else Equal: Are Public And Private Schools Different. In conclusion, several points could be drawn on the issue of public schools versus private schools. Nevertheless, statistics, reports, and articles are continually explaining that private schools are mostly equal or less qualified than public schools. Parents should be educated in this matter. If more parents knew about the comparison of public schools to private schools, more families would be able to offer their children a better education and future for a cheaper price.

Child Called It

Jalen Jones Mrs. Moore English 113 A 1/3/12 Book Summary A Child Called It by David Pelzer is a real life story about a boy who was brutally beaten and severely starved by his alcoholic mother. When David was young, he lived a well and typical life with his parents and brothers. However, his mother unexpectedly, became a monster, taking her anger out on her anger on her vulnerable child.David was forced to lie in freezing cold water with his whole body under except for his nostrils, forced to eat his own vomit, sleep in the basement under the stairs, stabbed, and forced to sit in the bathroom with a mustard gas solution while the door was closed. These are just a few of the brutal, tortuous games that David’s mother used to play. She treated him not like her son, but like nobody with no feelings or emotions. David’s mother would never call him by his name, she always either called him â€Å"The Boy† or â€Å"It† David experienced both psychological and phy sical abuse.In order to survive from his mother's sick games, David used willpower. David has a strong will to survive at any cost. Through all of mothers’ torturous games, David's internal strength began to come into view. Introduction to Interview David Pelzer’s story is the exact opposite of a fairy tale. There was something I couldn’t get right about him. He looked normal but his childhood wasn’t. The room was bright and warm. I sat there preparing my questions for David Pelzer. As he walked into the room and sat down in the chair, I wondered â€Å"is this going to be a dreadful, painful day for David Pelzer? I knew that today, skeletons will be brought out of the closet. Today, there will be secrets revealed. Interview Questions Okay David, let’s jump right in. What was mother like? Mother was†¦ Mother. She was an alcoholic who tortured and starved me for her sick pleasure. She would do things to me that you couldn’t possibly fath om. Once she stabbed m in the stomach and gave me a slightly longer time to complete my chores. But the person, who I loathed in that situation the most, was father. After I was stabbed I turned to him for help and I assumed he would rescue me. Boy was I wrong.He just sat there†¦ In his chair†¦ Continuing to read his paper. When I told him all he could say was â€Å"Jesus H. Christ! Does Mother know that you are talking to me? You better go back in there and do the dishes. Damn it boy, we don’t need to do anything that might make her more upset! I don’t need to go through that tonight†¦I tell you what: you go back in there and do the dishes. I won’t even tell that you told, okay? This will be our little secret. Just go back in the kitchen and do the dishes. Go on now, before she catches the both of us. GO! † That day I lost all respect for him.The day I was taken away from that house was easily the best day of my life. What was the worst th ing mother did to torture you? The worst form of torture? Easily the â€Å"Gas Chamber† I would be trapped in the bathroom with a solution of Clorox  ® and Ammonia. In case you didn’t know that makes Mustard Gas. This was used in WWI to burn your eyes and lungs. The only way to save myself was to push the bucket closer to the door, put one of my work rags over my face. The main reason why I would push the bucket toward the door was so that when Mother opened the door, she would get a taste of her own medicine.My eyes would be red and burning and my throat will be sore and will be blister filled. Every time she did this I would pray to god that he would bring me through this. I had much will power. When Mother opened that door after each session, I would sprint for fresh air, and every time she would get a kick out of it. What was mother like before the abuse? Before the abuse started, my family was the â€Å"Brady Bunch† of the 1960’s. When it came to h ousekeeping mother was a clean fiend. After feeding my two brothers and me breakfast, she would clean, disinfect, scour, and vacuum everything.She never believed in doing anything half way. Our flower garden was the envy of the neighborhood. Mother was an amazing cook. She would often cook foreign and exotic meals. One time she took us to china town and dove around the area. As we did this, she told us about the culture and history of the Chinese people. When we returned home, mom started the record player and played beautiful sounds from the orient. She decorated the living room with Chinese lanterns. That evening she dressed in a kimono and served an exotic yet delicious Chinese meal.She always kept the house filled with pets; cats, dogs, aquariums filled with exotic fish, and a gopher tortoise named Thor. I remember him the best because I named him after my favorite comic book hero. Boy those were the good days. While school was out, what did you do? During the spring time, mothe r made me mow lawns. I would go out and mow lawns all day for a quota mother had set. If I didn’t meet the quota, I would get brutally beaten. Sometimes I would have to ask for money to meet my quota. One Christmas, she bought me skates. They were not for pleasure but for torture.Mother would make me skate outside in the freezing cold for hours with no coat on. It was horrible. Even though people saw me, no one did anything or asked questions. Was there a time where you stopped believing in god or that faith was nonexistent? Yes there was. When my father left, I stopped believing. He was my hero. My father was my only main choice of escaping that misery home. When he left, I had no more hope. All faith of leaving was gone. When he left, I started to do my chores nonchalantly. I decided that if there was nothing to live for why try to be perfect? What was something you were extremely proud of during your childhood?One day I entered a competition to name the school newspaper. I had one the competition and Mr. Ziegler; my teacher had given me an award to take home to my mother. I was hoping that she would be proud of me but boy was I wrong. Mother jabbed her finger and my face and hisses â€Å"Get one thing straight you little son of a b****! There is nothing you can do to impress me! Understand me? You are a nobody! An It. You are nonexistent! You are a bastard child! I hate you and I wish you were dead! Dead! Do you hear me? Dead! † After mother tore the letter to pieces mother returned to her TV show.I stood motionless gazing at the letter which lay like snowflakes at my feet. Even though I heard those words over and over again, the word â€Å"it† stunned me like never before. She had stripped me of my very existence. What would you do to steal food? Sometimes I would steal from the grocery store during recess. I would run to the grocery store, steal food, and run out the store with my prize. One of my favorites was to go through lunch box es of other kids and steal some of their food. But teachers found out about that. On my way to school, I would knock on peoples doors saying† I lost my lunch, can you make me one? One day I knocked on the wrong door. It was a friend of mothers. She made me a lunch but she called mother. I prayed all day that she didn’t call mother. When I got home I paid for what I did. Do you have any advice for people who get abused? Of course. Keep the faith. Always know there is a higher power helping you through the situation. Keep your head up. In time everything will get better. It did for me. I stopped believing but that only got me more torture. Just always know things will get better. Things always turn out in the best. Always remember that.

The Celebrity Lifestyle Is Not What Everyone Portrays It...

The celebrity lifestyle is not what everyone portrays it to be. 9 times out of 10 most celebrities wish they could live the average middle class life. Behind the scenes, celebrities suffer from multiple things that affect the lives of their families and themselves. The life of a celebrity can bring fame, money, and lots of attention, but has the downfall of addiction, pain, high standards, and no privacy. Lately, people have been craving the lifestyle of a celebrity because they only see the exciting component of a celebrities life. If people could put themselves in a position of a celebrity, I think most people would change their mind. The cons in a celebrities life are much bigger than people think. Addiction is a problem that many face in the world today. Many people think of addiction as food or drugs but I believe it is much bigger than that. Celebrities can become addicted to beauty, drugs, money, and unhealthy food. Addiction means there is something that comforts you from th e outside world. They face many problems and in most situations the solution becomes addiction. The most common celebrity addiction is drugs. Drug addiction has killed many celebrities throughout the past years. They run to drugs because they are overwhelmed with stress or they feel like their world is falling apart. I can relate to celebrities because I have an addiction to music. I am addicted to music because it makes me feel better no matter what my situation is. Music is my mind-alteringShow MoreRelatedThe Great Gatsby By F. Scott Fitzgerald1621 Words   |  7 Pagesas a token of their past, present, and future endeavors. Each character is inevitably distinct in their relationship to the superficial representation that photographs produce. Myrtle’s infatuation with celebrities and their lifestyle leaves her gaping at the thought of living a luxurious lifestyle herself. 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