Walmart Retail Stores
Criteria 2: Marketing performance
Marketing performance measures how effectively an organization performs in the market place. It determines whether an organization’s products or service market share has increased as well as whether products or service upgrades helped boost sales. According to Lovelock and Patterson 2015, a successful organization is one that has extensive knowledge of their customers and their competitors. They constantly engage in market research to collect information which will make them more aware of what the customer’s wants as well as their capability. Wal-Mart as an organization is constantly involved in market research to evaluate what the customers want. It is the powerhouse of a business, and one of its significant strengths is its marketing. Performance in a retail market needs more than a large capital base. The organization has continuously managed to put its customers ahead by making sure that they get affordable products.
Moreover, marketing has been used as an indicator and determinant of long-term competitive success in organizations. For instance, a marketing strategy that does not bring value to customers is deemed to fail whereas marketing strategy that adds value to a customer is considered to result in success. According to Lee, Kozlenkova and Palmatier 78, marketing plays a significant role in an organization’s competitive success. In light of this, an organization style of marketing results to a strong competitive advantage over its competitors thus an overall organization’s performance. Walmart marketing strategy has enabled it to have a competitive advantage over the competitors in all its environs. Walmart uses the pricing strategy to outdo the competitors in the marketing by offering products and services at lower prices compared to what is in the market. Therefore, Walmart matches the marketing performance criteria stated.
Besides, marketing based on an organization’s location. For instance, It is important to determine if the customers able to get and reach the stores to purchase the products and services. In this contemporary world, a digital presence is almost as significant, if not more significant, than a physical presence. Also, strategic geographical dispersal of physical stores is also an important marketing strategy (Lee, Kozlenkova and Palmatier 2015, p.84). Thus, people tend to believe that a successful organization is one that can reach out to their customers irrespective of distance. It is apparent that such an organization will meet the demands of the customers hence the ability to make more profit. A successful organization is perceived to be one with a great customer pull in the market. To match this criterion, the performance of Walmart is also tailored with a great customer pool in the market.
Walmart has a strong customer pull. Every week, more than 275 million customers and members visit more than 11,300 stores. In regards to this, with the number of stores spread across various countries globally, the customers can locate the organization and get the products. Thus, the performance of the organization confirms its marketing strength and impact in the market. Walmart has successfully managed to reach its customers in different countries attracting a pull of customers which is a marketing performance criteria. The extensive organization power in the market is an indication of its overall performance as a retail store.
Organizational success is based on attainment of purpose and aim. Every organization has a purpose which it wants to achieve. Thus, to measure the success of every organization, it is important to involve various criteria; organizational performance and marketing performance. The organization performance involves evaluating the values and mission of a business using its current achievement. Marketing performance is about the value that the organization has made in the market. Walmart as an organization matches the criteria for evaluating success.
Kraus, S., Harms, R. and Fink, M., 2011. Family firm research: sketching a research field. International Journal of Entrepreneurship & Innovation Management, 13(1).
Lee, J.Y., Kozlenkova, I.V. and Palmatier, R.W., 2015. Structural marketing: Using organizational structure to achieve marketing objectives. Journal of the Academy of Marketing Science, 43(1), pp.73-99.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Massa, L., Tucci, C.L. and Afuah, A., 2017. A critical assessment of business model research. Academy of Management Annals, 11(1), pp.73-104.
Stiglitz, J.E. and Rosengard, J.K., 2015. Economics of the public sector: Fourth international student edition. WW Norton & Company.
Shabbir, M.S., 2016. Why are manufacturers less powerful than retailers in trade circles? A case study of Wal-Mart retailing business. Journal of Global Economics.