Three Facts Demonstrating Areas of Marketing

Three Facts demonstrating areas of marketing definition:

a) Multiple Store Formats: In 1988 Wal-Mart started opening supercenters to meet the demand for one-stop family shopping. This was Wal-Mart's way of creating and delivering an offering that has value to its consumers. The idea of the supercenter was to join the general merchandise discount store with that of a full-time supermarket (page 491) giving the consumers/customers and opportunity to purchase fresh food or grocery while also shopping for household supplies. This increased the square footage needed for the stores to an average of 187,000 square feet and also the need to hire more employees thereby creating jobs. With the larger space, Wal-Mart was also able to house specialty stores like beauty/hair salons, Subway, McDonald's, vision centers, one-hour photo shops, tire and lube express centers, portrait studios and banking centers thus providing a variety of offerings to consumers.

In 2008 Wal-Mart estimated that it purchased more than 70 percent of its produce from U.S. based suppliers, making it the biggest customer of American agriculture. The company is able to do this because of its partnership with local farmers. By supporting local farmers Wal-Mart's is contributing and supporting local economies, cutting shipping costs and providing fresh food to its customers. McCormick explained in a news article for Wal-Mart, that many areas throughout the US that were once supported by thriving agricultural economies are now often home to a Wal-Mart Food distribution center. "It made sense to us, that if we could revitalize those economies, it would let us buy fresher product for our customers and save food miles. At the same time, we would be supporting many rural communities that support our stores," he said.

b) Everyday low prices - this is another area where Wal-Mart is creating, communicating and offering economic value to its customers. As we know Wal-Mart is synonymous with cheap and inexpensive. The everyday low price concept is one that the company has used almost from its inception and has remained unbeatable by any other major retailer. For Wal-Mart to keep prices low it has to extend this concept to each and every value chain activity starting from the suppliers and then to all logistical and distribution related activities.

Wal-Mart's low price concept and strategy has not only benefited the company it has spread to other major retailers who in order to compete with Wal-Mart's prices have also lowered their own prices. Because of the effect of these lower prices on other major retailers Wal-Mart is credited for saving the average U.S. household more than $2,500 annually because of the indirect effect stemming from the lower prices on the part of other retailers in their effort to compete with Wal-Mart.

c) In 1989 Wal-Mart embarked on