Introduction
The most comprehensive factor that is worth noting in the contexts of marketing align with the primary fact that not all customers are equal. Precisely, different consumer bases have different needs, wants, as well as purchasing capabilities. For this reason, there is the need to develop adequate marketing segments for products and services that merge the needs of various consumer segments. Through marketing segmentation, corporation are able to develop a comprehensive platform whereby they can identify the needs of a particular marketing segments; hence, implement marketing strategies that suit the needs of such segments. On a similar note, marketing segmentation leverages the competitive capability of a firm because it allows them to differentiate themselves from the competitors (KURTZ, 2012, pg. 34). Wal-Mart occurs as one of the corporations that utilize a differential marketing approach in marketing segmentation, targeting and positioning.
Discussion
Wal-Mart current marketing segmentation strategy
Since its inception, the core marketing strategy that Wal-Mart has employed aligns with the need to provide customer with relatively cheaper prices. In fact, the main marketing message that Wal-Mart has been utilizing for marketing is “low prices, as always.” However, the dynamic nature of Wal-Mart customers has resulted in the need to restructure its marketing strategy and its marketing segmentation. At the moment, the marketing strategy employed by Wal-Mart is not only about price. Instead, Wal-Mart’s current marketing segmentation approach is based on the identity of its shoppers. Overall, Wal-Mart’s current marketing segmentation is defined by various customer related factors (ZIKMUND & BABIN, 2013, pg. 10).
Demographic segmentation
In line with demographic segmentation, the current marketing approach employed by Wal-Mart seeks to offer different product and service brands that suit the varying demographic aspects of its target customers. In fact, the current marketing segmentation approach utilized by Wal-Mart seeks to satisfy different demographic variables including age, education, occupation, religion, family status, income, ethnicity, and nationality. In line with demographic segmentation, it is essential to note that Wal-Mart’s current demographic marketing segmentation has moved from the “one store fits all” strategy, which this corporation has been utilizing in the previous years. Currently, Wal-Mart has customized its marketing segmentation to suit individual customer demographics. This is evident by the fact that Wal-Mart is now utilizing inventory data and wealth of sales to segment its demographic markets to a particular ethnicity, income brackets, and age.
As a result, Wal-Mart stores in which a significant proportion of shoppers are of African-American descent sell few sporting goods and more entertainment products. This is attributed to the fact that African-Americans have a fascinating admiration for issues products aligned with entertainment. Another example on how Wal-Mart has structured its marketing strategy to suit ethnicity as a demographic aspect is evident in cases where Wal-Mart stores situated in the context where Latinos visit frequently provide fresh market produce. This is because Latinos always prefer fresh market produce. In addressing the demographic aspect on income, Wal-Mart has managed to identify stores frequented by the wealth customers; hence, provide products such as gourmets, and high-end electronics, which are often preferred by the wealth customers (ZIKMUND & BABIN, 2013, pg. 19). On a similar note, the current marketing segmentation approach utilized by Wal-Mart has not forgotten its low income customers. In catering for the needs of such customer segments, Wal-Mart has established its stores in rural communal settings where such customers are concentrated. This analysis depicts the manner in which, Wal-Mart has segmented its market to suit different demographic needs of its customers.
Behavioural segmentation
Many at times, behavioural segmentations is determined by various factors such as price sensitivity, brand loyalty, and pursuit of benefits. In line with this, Wal-Mart’s current marketing segmentation system has come up with three primary customer segments, which include the brand aspirational, price sensitive, and value-price customers. In Wal-Mart’s context the “brand aspirationals,” connote to low income customer segments who have a fascinating admiration for certain product brands such as KitchenAid. On the other hand, the price-sensitive effluents refer to customers who may be wealthy, but prefer to engage in deals. Finally, the value price market segments as defined by Wal-Mart refer to customers who are interested in lower priced products. Upon identification of these behavioural characteristics its customers, Wal-Mart has devised adequate ways to satisfying such customer bases (KOURDI, 2011, pg. 92). As an example, the brand aspirational customers have been satisfied through the development of different product brands such as the KitchenAid.
Targeting based on age
A close evaluation of Wal-Mart’s target markets in terms of age shows that the primary age groups that this corporation targets in men and women aged twenty five to thirty four years. However, this does not mean that these corporations does not target other age groups beyond the connoted age bracket. This is evident by the fact that the current corporation has devised a target market for children whereby its stores integrated with play spaces, where children can be left to play while their parents are shopping. Certainly, this form of segmentation attracts families with children whom they come together for shopping at this corporations stores. On another note, the fact that the primary target market for this corporation comprises of “tech savvy” youth has led Wal-Mart to develop inline shopping platforms where such market segments get an opportunity to shop online and have their purchases delivered to their homes (PRIDE & FERRELL, 2010, pg. 64). This analysis shows the manner in which Wal-Mart age based segmentation is streamlined at the moment.
Targeting based on occupation
Another crucial factor regarding the current marketing segmentation employed by Wal-Mart aligns with the fact that it is structured in such a way that it addresses the needs of people of different occupations. Speaking of occupational targeting this entails to cases where Wal-Mart develops market segments based on the level of income generated from different occupations. For the high paying occupations, the current marketing segmentation strategy employed by Wal-Mart is streamlined in such a way that there are certain products that target high income earners as well as the low income earners, which is determined by the customer’s occupations. As an example, high end electronics traded in by Wal-Mart target high income occupations. On a similar note, occupational based targeting as addressed by Wal-Mart’s current marketing segmentation aligns with the fact that this firma has developed goods that target people whose occupation are in the rural setting. As such, Wal-Mart has established mini-stores as a way of reaching such market segments (ZIKMUND & BABIN, 2013 pg. 8).
Conclusion
There is no doubt that the current marketing segmentation strategy employed by Wal-Mart seeks to assure that the corporation reaches the entire parcel of its target markets. In a nutshell, Wal-Mart’s current marketing segmentation strategy has categorized its 3400 US based stores into six distinct models, which include rural, the affluent, African American, empty nesters, suburbanites, and the affluent. As such, Wal-Mart utilizes these models as a strategy of ensuring that it satisfies all its different market segments, who are often differentiated based on behavioural, psychographic, demographic, and geographic variables. Through the use of its current marketing segmentation strategy, Wal-Mart has been able to help its business to unravel ways of identifying and reinforcing the loyalty of its customers (MCDONALD & DUNBAR, 2012, pg., 27).
Reference List
KOURDI, J. (2011). The marketing century: how marketing drives business and shapes society : The Chartered Institute of Marketing. Chichester, Wiley.
KURTZ, D. L. (2012). Boone & Kurtz contemporary marketing / David L. Kurtz. Mason, OH, South-Western Cengage Learning.
MCDONALD, M. & DUNBAR, I. (2012). Marketing Segmentation hot to do it and how to Profit from it. Chichester, John Wiley & Sons.
PRIDE, W. M., & FERRELL, O. C. (2010). Marketing. Australia, South Western Cengage Learning.
ZIKMUND, W. G., & BABIN, B. J. (2013). Essentials of marketing research. Australia, South-Western Cengage Learning.
