The recent developments in the business environment Essay

The recent developments in the business environment - Essay Example The main motivation for mass marketing is the huge profit prospect created economies of scale. Starting from the strategy of competing on prices, companies have shifted to the focus on adding customer value by enhancing product quality. Recognizing the uniqueness of each of the segment of market segment, niche, and individual customers companies have embarked on target marketing. As opposed to mass marketing, target marketing focuses on serving a specific and identified target market. Instead of going after everyone, customers choose the most lucrative sector to cater to and use all of its resources in order to satisfy the needs and wants of these customers. From its humble beginnings Wal-Mart has become one of the most successful and biggest retailers in the world. What is very interesting about the company is its firm adherence in mass marketing as a strategy in the attainment of its organizational goals. Since its inception, the company is stuck to the principle in competing through a low pricing strategy. Following this, the company leverages on its ability to reap huge economies of scale through the large volume of sales. However, with the evolution of a hypercompetitive business environment characterized by the presence of higher customer bargaining and more aggressive competition on product quality (Kotler & Armstrong 2001) industry experts note that Wal-mart should leave mass marketing and focus on launching specific strategies aimed at each segment that it serves including Blacks, the Affluent, Empty Nesters, Hispanics, Suburbanites, and Rural Residents. Recognizing the importance of cultivating relationship marketing and the significance of considering the unique needs of each segment, this paper strongly recommends that Wal-mart embark on a target marketing approach. It should be noted that the more competitive nature of the retail industry dictates that each player pursue a harmonious and lasting relationship with its buyers by adding the value that they require. Thus, Wal-mart should step out from serving the broad anonymous crowd and start selling to each segment (Bianco 2004). It is recommended that the company does this by utilizing market penetration and product development. Recognizing that the product offered by Wal-Mart appeals to the working and bargain hunting customers, it is deemed most appropriate if the company looks into the possibility of serving the upscale segment by offering a new set of products which appeals to this demographics. Aside from this, the company can also opt to stand out from the crowd by improvin g on the other aspects of retailing such as merchandising, add-on services, and ambiance. Wal-Mart has long appealed to Blacks, Hispanics, and Rural Residents because of its price appeal. Having the capability of charging rock bottom prices because of economies of scale, Wal-mart has become prominent to this market. However, the proliferation of retailers who are taking efforts of targeting these markets somehow hurt the sales of the giant retailer. Thus, it is recommended that Wal-mart looks into penetrating these segments by offering more beverage and food products which are culturally appealing to Blacks and Hispanics. In order to cater