Walmart the functions of an organisation Marketing Essay

Walmart the functions of an organisation Marketing EssayMarketing is unmatch sufficient the functions of an organisation that well-nigh connects an organisation to its environment. It master(prenominal)tains relations with the customers. It to a fault involves satisfying ask of the customers. It incorporates hoe a strain should be conducted and a set of value and processes that argon put into practice(Naylor, 2004, p.525). According to Kotler Marketing merchantman be specify as a nodal and managerial process by which individuals and groups obtain what they take aim and pauperism through creating and exchanging products and value with others (Kotler et al., 1999, p.10).The get wind ideas in this definition atomic number 18 necessarily, indispensablenesss and demands, value and satisfaction, exchange, transactions and consanguinitys and markets. The American merchandising association defines trade as a process of planning and executing the conception, pricing, promotion and distri more(prenominal)overion of ideas, goods and operate to create changes that satisfy individual and organisational goals (Kotler, 2002, p.4). There are numerous theories that are part of marketing as a subject. This essay aims at identifying the appoint concepts of marketing and how are these concepts can be studied and applied to a functioning of an organisation which is Walmart in this case.Walmart is an American public corporation that operates a chain of large discount department stack aways and a chain of store stores.. The company was founded by Sam Walton in 1962. It is publically traded on bran-new York Stock Exchange. The company is the largest private employer with approximately 2.1 million employees. It operates in Argentina, Brazil, Canada, China, costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico and the United Kingdom and, through a common venture, in India. Walmart became an international company in 1991 when it opened its first Sams participation near Mexico City.Two major concepts of marketing are the market predilection course course a blind drunk has and the marketing mix it fol crusheds. Wal-Mart has its own market orientation and a marketing mix that it has adopted. Market orientation is an approach that a business has to run its operations and achieve its organisational objectives. These are the different ways that a business approaches its customers and determines how an organisation carries break its marketing activities. They guide the marketing efforts of an organisation. The different marketing orientations are as follows1. wareion Production oriented riotous focalisees on large scale production of goods that can be do widely available. It also focuses on efficiency issues. There is little focus on customer needs and their wants. It is based on the Says law which says ply creates its own demand.2.Product A product oriented firm focuses on the grapheme and features of the pr oduct. It assumes that the customers want the best whole step products for their money. Continuous improvement and refinement of products is also a very important portion.3.Selling In this market orientation the main focus is on selling and promotion of the products. It is assumed that good marketing efforts will persuade enough customers to acquire the product. It tends to ignore what the customers really want or need.4.Marketing It is an approach which keeps customers at the centre. It involves doing a market search and identifying the needs of the consumers and thus making products that satisfy the consumer needs in the best and most efficient way. It is assumed that identifying the customer needs gives a firm a sustainable competitive advantage.5. Socially Responsible Marketing It involves responding to the ethical issues in a society. It is united to the corporate social responsibility of a business. It informs consumers of the various contributions that the business is making towards the society and makes a good see of the business as a whole.Different businesses receive different market orientations. The ii most important aspects of Wal-Marts market orientation are product and market. Wal-Mart unfolds a huge variety of products. Their aim is to satisfy almost every attainable need that might arise. Wal-Mart is not a store for quite a little from a specific age group or income group. In fact it serves people from every age group and income level. Wal-Mart also works with its suppliers and uses a test laboratory called a consumers testing lab. It runs test on food items, turn ,electronics and so forth By doing this it ensures that the goods it turn ins to its customers are of highest quality.The second aspect of its market orientation is Marketing. Wal-Mart uses detailed market research and customer segmentation to better deliver a strainst the customer needs. Wal-Marts ability to recognise changes in the retailing industry has addicted it a huge advantage over its competitors. This has lone(prenominal) been possible because of the intensifier market research it undertakes to begin with making any strategic decision. earlier making any promotional strategy they measure the return on investment. They evaluate everything such as how virtually(prenominal) customers will see the advertisement, how many will react to it, how many will actually buy the product. They have huge customer data and gross sales data. They even share the sales data with their suppliers in order to keep the most popular items stocked and to persuade its suppliers to supply goods which are most popular among the consumers. So it changes itself agree to the customer needs and sell products which customers want and not what it has to sell. It also promotes relationship marketing and uses one to one relationship marketing tactics. For e.g. a soulfulness greeted every customer who came in and said goodbye to each psyche who left. Wal-Mart has always closely observed its market using different research methods and has always successfully anticipated the change in consumer tastes and preferences and changed itself accordingly so it always keeps its customers at the centre.Another important theory of marketing perplexity is the marketing mix. Marketing mix is the set of marketing tools that a firm uses to achieve its marketing objectives in a specific target market. The tools can be classified into 4 categories namely Price, Place Promotion and Product and are referred to as the 4 Ps. Price and advertising costs etc. can be altered in the short run but elements such as product and the distribution channel can only be changed in the long run. .( Kotler, 2002, p.9 )These variables affect the level of demand for a firms products. It is a combination of these tools that are used to satisfy consumer and company objectives. The four variables can be explained as follows1. Price Price is an important element in the marketin g mix when the products are not bad. batch want to use money thoughtfully and want maximum utility out of their income. Discounts, allowances, payment terms and credit are nearly of the tools used to suck up customers.2.Product Product is the top priority in the marketing mix. Some of the strategies that firms whitethorn use are quality, design , features, packaging and warranties etc. Using these tools a company can differentiate its products from its competitors.3.Place The place element is becoming more important these days. Big retailers make it more convenient for people to buy everything. Locations, inventory and transport etc are areas that are important for a business.4.Promotion People should know about the products of a company. Effective way to advertise the products necessary. sales promotion, sales force ,direct marketing and public relations are some examples that come under promotion aspect of the marketing mix.We can relate these 4 Ps with different strategies th at Wal-Mart adopts. Price is the most important factor for Wal-Marts marketing mix and is the winning formula for the company. The company has build an image over the years that its name has become a synonym to low prices. The mission of the company is to provide cheapest prices in the market. It is because of its such low prices that it has been able to serve and fulfil the needs of millions of customers. Wal-Mart has the best and the most convenient store locations which its competitors find difficult to beat. This is due to the extensive market research it does before expanding into a new area. Also the stores are strategically located to gain efficiency in storage and transportation of its goods. However the company has unadulterated the local markets and now has plans to extend its operations in many conflicting countries. As Wal-Mart offers variety of products for every segment of the market it ensures that its customers get the highest quality products. Some products are so ld under its own brand whereas some other from other companies. Wal-Mart often comes up with packaging techniques that help castrate the cost of the goods sold. Now the company is trying to attract more flush customers by launching new Metro 7 Stalls which offer jewellery and other expensive items in 1500 different stores. (source http//walmartstores.com/pressroom/news/5721.aspx). approach shot to promotion the most notable strategy that the company uses is public relations by taking parts in charitable events. It started health plans kickoff from $23 and also advertised itself as the largest employer.All these strategies have helped Wal-Mart egress as the market leader in the retail sector and the key factors being low prices, more customer service and constant concept in the business.