- March 13, 2013
- Posted by: essay
- Category: Term paper writing
On analyzing the marketing budget of Walmart, it is worth mentioning the fact that the company has about USD 17 billion of the net income. In such a way, the company is one of the most successful companies with the highest revenue, which comprises over USD 420 billion. Obviously, the current financial position of the company is strong and its competitors have worse marketing performance. In this regard, it is worth mentioning the fact that Walmart needs substantial investments to expand its market internationally. In fact, the company attempts to expand its market internationally and uses its own financial resources (Robinson, 1993). As the net income of the company is high, Walmart can use its financial resources to open new stores worldwide. At this point, it is worth mentioning the fact that the company also needs to spend considerable financial resources for the development of effective promotional campaigns and to develop positive relationships with local communities. The latter implies the involvement of the company in the life of local communities, the organization of socially significant events and, thus, to form a positive public image of the company. In actuality, the company develops its marketing budget taking into consideration available resources and its marketing strategy and plans concerning the international market expansion.
5.0 Description of Location (P)
As it has been already mentioned above, the company expands its markets internationally, the company attempts to enter new markets and become the leader in the world market. In actuality, the major market of the company is the US market, which, though, is currently facing considerable problems provoked by the deterioration of the economic situation in the US. At this point, it is worth mentioning the fact that the company affects considerably local communities that raises the opposition from the part of the local population. In this regard, the company still focuses on the expansion of its markets internationally, especially Latin America, North America, and Europe. The international market expansion is strategically important for the company because Walmart needs to take the lead. Otherwise, the company may fail to afford the growing competition from the part of its major rivals.
6.0 Pricing Strategy (P)
The pricing strategy is extremely important for the company because Walmart offers customers low prices, which are attractive for customers. What is meant here is the fact that the company’s pricing policy is strategically important for the development of Walmart’s business because it is the major advantage of Walmart compared to small businesses and smaller companies compared to Walmart as well as some of its rivals (Trevor, 2005). The company is large enough and has huge marketing budget, which allows the company to decrease prices and offer customers discounts, which attract customers. At this point, it is important to place emphasis on the fact that the development of the pricing policy by Walmart focuses on the minimization of price to take an advantageous position in the market because the company offers customers products at low prices. The low price offered by the company allows the company to maintain its competitive position, in spite of the negative public image and the current economic situation in the US, which suffers from the negative effects of the economic recession.
7.0 Summary and Implementation Plan (P)
Thus, taking into account all above mentioned, it is important to place emphasis on the fact that the company should develop its marketing plan on the ground of its current challenges and to use the full advantage of its marketing position. First, the company should focus on the development of effective company-customer relationships because the company developed the effective strategy to participate in the life of local communities that will allow the company to change the public image of Walmart. For instance, the company should sponsor socially significant events and to attract customers to its products and services. Furthermore, the company should carry on its pricing policy, which is focused on the minimization of prices of products sold via Walmart. In addition, the company should accelerate the international market expansion because the company should take a strong position in the international market to afford the growing competition from the part of its major rivals, such as Costco, Target, Carrefour and others. In such a way, the company should focus on the maintenance of its effective marketing strategy and improve its company customer relationships. Walmart has substantial potential for the further international market expansion, regardless of the current negative image of the company.
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Robinson, M.D. “Measuring Discrimination against Females: Is the “Non-Discriminatory”ť Wage the Male or the Female Wage? American Economist. 37(1), 1993, p.45-54.
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Trevor, T. (October 31, 2005). “Wal-Mart ponders reshaping its benefits.”ť Life and Health, 109 (41), p. 8-10.