论文关键字:市场 营销 沃尔玛
Key Word: Market, Marketing Communications, Wal-Mart
Introduction
This report critically evaluated current marketing communication practices of Wal-Mart conducted in both China and USA from an intergrated approach.
Wal-Mart Stores is one of famous company in the world and has long history over 40 years. It is the world’s largest private employer and retailer with over 1.9 million associates worldwide and more than 7,000 stores in 14 countries. Nowadays, Wal-Mart has expanded its business to 14 countries, among which there are developed countries like USA and developing countries like China.
It is expected that this report can conclude current successful experience of Wal-Mart’s Intergrated Marketing Communications and its deficiency needing to be improved. In the last part, an outline plan is made for future improvement in China’s market.
Part One – Review of Current Practice
1.1 The change of global market and integrated marketing communication
The change of global market and the challenge of marketing
The global marketplace has changed greatly because of the rise of customer demand, continuing stream of new and innovative products, rapid technical development, and new means of mass communication ( Lindgreen et al., 2004) . With the increase of the customer’s power, the focus of the market has also transferred onto the development of service and the way in which it can be incorporated into products( Gummesson et al., 1997). A lot of scholars has pointed out that marketing has passed several stages (Brady & Davis, 1993; Dickson, 1992; Webster, 1992), and the current emphasis has transferred from transaction marketing to relationship marketing( Gummesson, 1999; Jackson 1985; Payne, 1995).
The highly competitive and saturated markets market in this new century has removed some traditional marketing concepts and ideas which were once applied into previous marketing practices. Accordingly, many scholars have stated that the conventional marketing, which is also known as 4ps classic or transaction marketing could not give sufficient support to the promotion of the products and services in current commercial environment (Brady & Davis, 1993; Doyle, 1995). More and more companies and corporations also are realizing that they must seek more and better ways to increase the attractiveness of their products and service while adding their value. “Relationships, networks and interactions present this opportunity” ( Lindgreen et al., 2004).
Technology development has enhanced marketing development and sophistication. The development of computer technology, communication technology and fragmention of media have made the storage and collation of the customer information possible. More and more companies are benefiting from segmenting and targeting customers with more direct and perosonal communcations. “ Customised marketing” are overrunning the traditional mass marketing even at a glaobal level( Pickton & Broderick 2005:157).
The above discussion has showed that the global market has changed a lot. Furthermore, the player in this global arena has also transformed a lot. More and more transnational companies are expanding their business to each corner of our globe. In this process, they have to deal with the new customers who have different cultural background and consuming needs, and to respond quickly to the change of different local market where they are not familiar with. Thus, these factors also brings new challenges for those multinational companies on the matter of “relationships with new customers, network building, and interaction”.
Integrated marketing communication
Integrated Marketing Communication based on the holistic approach is defined as
“IMC is a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communications disciplines (for example, general advertising, direct response, sales promotion, and public relations) and combines these disciplines to provide clarity, consistency, and maximum communications impact .” (Schultz, 1993).
The marketing communication has become more and more important in the marketing of business organizations. Meanwhile, the emergence of new technology has provided various communication channels for them to communicate with the customers in a faster and more effective way . Hence, this constructs a solid technical basis for the practice of intergrated marketing communication.
The essence of relationship marketing is a quicker and more efficient response to “a changing, largely adverse, mature business environment” . ( Lindgreen et al., 2004). There is no doubt that this goal requires a more effective and efficient marketing communication approach. Marketing communication is defined as “communications by means of promotion within a target audience or market”( Kitchen 1999:2). However, this is not enough to meet this goal.
In Chinese, the word “crisis” ( “危机”wei ji) is made of two characters, namely “危”( danger) and “机”( opportunity). The wisdom of ancient Chinese is validated by the change of marketing communication. The digital economy which was resulted from the electronic technology has brought challenges to the traditional marketing; nevertheless it also brings new communication tools and new ways to enhance the relationships, networks and interactions between the corporate and its customers.
According to the theory of communication study, the communication is two way. The business organizations are both the message sender and the message receiver. On one hand, they send the proper commercial and social message to its customers and the public through the media, with the purpose to inform and persuade; on the other hand, they also receive the feedback from the market in order to develop future appropriate messages, adapt existing messages, collect the marketing data and give fast response to the changing business environment.
With the development of the internet, the media in the above communication process has experienced revolutionary changes. IT technology has made the marketing communication step into a new stage, the integrative marketing communication. Traditional marketing communication strategy highly relies on the mass media to send the generalized message. In addition, the feedback from the marketplace is not instant and is quite difficult to be collected. However, the integrated marketing communication is based on the personalised, customer-oriented and technology –driven approaches (Fill 2005:296). Furthermore, it also enables a consistent set of meanings within the messages that customers receive and high interactivity with them.
Although the IMC has been heated discussed and various marketing researchers have proposed some type of IMC approach or concept, there is still no consistent or mutually agreement upon its definition, description or process to indicate what is the IMC on earth. These ideas and theories of IMC are so diverse for they are so independent of each other. It is obvious that marketing researchers stand in their own shoes to propose the concepts and ideas. In addition, there are still many grey areas that need to be clarified.
1.2 The Integrated Marketing Communications practices of Wal-Mart in USA and China
Wal-Mart has been titled with “Relationship marketing King”. Walton once states that one of the secrates of the business success is to let the customer know you appreciate them. Wal-Mart uses lots of one-to-one relationship marketing tactics to show their appreciation of the customer.
Message communicated by Wal-Mart
Fill (1995) states that the main theme and set of core messages used in any promotion campaigns should first be determined and then deployed as an integrated whole across the promotional mix. Wal-Mart company holds this principle both in USA and in China. The company’s most competitive advantage is its low cost in its business operation, and its main business strategy is the cost leadership strategy. Thus, the core messgae of “low cost” is repeatedly sent to the USA market and Chinese market through various communication channels.
In USA, the core message sent to the market once was “always low price”, which has been used by Wal-Mart for 19 years. In order to attract the customers who can bring high profit, they finally changed the advertising slogan to “Save Money Live Better”. This messge not only emphazes the low cost, but also the quality it can bring to customer’s life. Thus, it also brings the possibility to attract the potential customer groups who also cares the quality of life. In addition, this new message shows that Wal-Mart well knows the customer’s need: seek a better life with low cost. Therefore, this gives a good siganal to the customers that “I know your needs, and I can satisfy them”. Based on this, a mutual trust and good relationship can be built on this understanding.
Wal-Mart continues to use the core messge of “low price” as a strategic weapon to dominate the retailing market of China. It entered China on August 12, 1996, when its main global competitor Carrefour has already stepped onto China’s land for a year. In order to grasp the market share, Wal-Mart uses the advertising slogan “天天平价” (every day lowest price) in its outdoor advertisement, television advertisement and printed materail, et al. As we all know, China is still a low income developing country. Hence, there is no doubt that Wal-Mart reached its expected communication results: immediate arousing customer’s purchasing desire. Based on this appreciation of Chinese customer’s needs, this message could quickly grasp receiver’s attention and change their attention to purchasing action. The instant success of Wal-Mart in China should partly credit to the core message they carefully selected and consistently delived.
The key visual triggers ( design, colors, form and tag line) used in advertising of Wal-Mart is also replicated across the range of promotional tools used, inclduing the point of purchase and the sales force.
From the above analysis, the core messages delived to the market is slightly different because of different social situation e and living standards in USA and China. Wal-Mart successfully determines the most effective core message to meet different level of needs in the market of USA and China. In addition, it constistanly delived the unified message to the market across the promotional mix and media.
One of the popular idea with respect to the IMC is that the messages communicated through various media tools should be harmonised in order to keep the audiences perceive a consistant set of meanings within the messages they receive(Fill 1995: 297). These messages communicated to the market by Wal-Mart have been consistantly received by the customers through the broadcasting advertisement, print material, sales promotion, website, product placement, etc. This makes the customer connect Wal-Mart with the low price in both China and USA. Therefore, the core message Wal-Mart sent to the market well serves its business strategy-the cost leadership strategy.
Furthermore, Wal-mart’s messages about the organization itself and the market, which is delivered within the organization should are also consistant through company’s inner communication channels and training programmes. Thus the shared and widely accepted message could enhance Wal-mart corporate culture(like“best service for the customer”) and accelerate the respoonse to the changing market.
Marketing Communication Tool
In this part, the marketing communication tools are considered as the communication channels to carry the messages delived by Wal-Mart. Wal-Mart uses both online and offline marketing tools to communicate messages to the customers in Both China and USA. The offline channels include traditional newspaper, magazine, mail order, public relations, radio and television. The online communication tools include e-marketing campaigns or programs, pay-per-click, e-amil, website, database. Furthermore, “…above-the line and below the line communications needed to be moduled into one cohesive bundle, from which tools can be selected and deployed as consitions require”( Fill 1995 :298).
Traditional Offline marketing Communication Tools
Wal-Mart frequently uses the traditional offline tools for marketing communication purpose in both China and USA.This includes broadcasting media including television and radio; print media including newspapers and magazines; out door advertising on billboards, transit and street furniture; in-store media of point of purchase; exhibitions and product placement. However, Wal-Mart’s expendure on the broadcasting and printed advertisement is much less compared with its competitiors in both China and USA. For example, a large-sized retailing business company in USA has 50-100 advertisement on the TV or newspaper on average. However, Wal-Mart has only 12 advertisements in total in order to save the cost. In fact, it more relies on outdoor advertisement, in-store media, exhitions and product placement. The situation in China is the same thing.
However, there is a conspicuous sign of Wal-Mart in both USA and China that the sporsorship is one of its most important tools to communicate the positive corporate profile to its exsiting and potential customers. It is quite natural to align the advertising with sponsorrship, which can arouse the awareness and convey positive message to the audience. Wal-Mart has sponsored 22,500,000 RMB to the local community’s charity and environment protection in China since it entered China. In USA, Wal-Mat has donated countless founding to the charity organizations, University scholarships, and public schools, and so on. This sponsorship of Wal-mart could arouse the association of the corporate with community contribution and a particular cause. In addition, it “provides sponsors with opportunity to blend a variety of tools in the promotional mix and use resources more efficiently and arguably more effectively.”( Fill 1995: 713).
The core idea of intergrative marketing communication theory is that both the producer and dealer cooperate together to make full use of different communication tools to arouse the consumer’s purchasing desire. Therefore, the goal of low advertising cost and high avertising effectiveness can be achieved through combined advantage of all kinds of communication tools. In the practices of Marketing Communications in USA and China, Wal-Mart usually brings together the promotion tools. For Example, the sponsorship is always with outdoor advertising, or with local newspaper.
Online Media and Database marketing
Database is a driving tool to promote the IMC, which can accelate the two- ways communication between the company with its thousands of customers without geographic limits . It is also fundamental in changing transactional marketing to customer relationship marketing, increasing the customer loyalty, keeping the right customers and resulting in better profit and lower costs ( Stone et al., 2001).
“Web enabled communications, customer care centers and sales promotions can be linked together, through database applications and all are designed to communicate the same message.” ( Fill 1995 :297). Hartley & Starkey (1996) further points out that there are three components of data base marketing: computer-aided sales support, direct response marketing, and customer information and service.
In USA, Wal-Mart has fully used database (or Information System) in their marketing communicatuions activities. It highly relies on IS and IT technology to lower the cost, contact with the customers, build and maintain customer relations. During the 1985 to 1987, Wal-Mart invested over 400 million dollar in business secondary planet to achieved globally network and communion transferability. We can also imagine the total expenditure Wal-Mart has spent on its world famous database system. In any country, the information of the branches could transfer as soon as possible to parent company of Wal-Mart.
Wal-Mart’s branch in USA utilizes the database in the following area:
1. Compter-mediated sales support (CASS).The field sales team, sales support team, and telemarketing team of Wal-Mart have the access to the datebase, through which the electronic communication with the customers can be conducted, for example e-mails.
2.Direct response marketing (DRM). Wal-mart uses the database for campaigns using addressable communications, such as direct e-mail, mail order, telemarketing, e-mail, text messaging .
3.Customer information and service (CIS). It is very common for the customers to cantact with Wal-Mart company throng the website Walmart.com and Internent for the information of bill query, warranty claim, technical problems, and service information.
From the above discuss, it can be found that multiple communication tools are coordinated with database, such as telephone, fax, e-mail, direct mail, et al. They complement and intergrat with each other to reach the best impact on the marketing communication. With the help of Internet, customer care centers and sales promotions can be linked together, through data base applications, and all are designed to communicate the same message ( Fill 1995 : 298).
Customer relationship management has become a popular focus in marketing with the help of Information System and Information technology. Wal-Mart also use the customer relationship management system to improve their service and make the customer’s processing more convenient and simplified, thus increasing customer loyalty. In USA, Wal-Mart store customers’ information and purchasing history on their information system. In doing this, it can supply specific service to the targeted customers. In addition, the customer can sign in their account on the website of Wal-mart and track the order, even make complainment. Thus, this kind of customer relationship management through the two ways of communication channel of Internet can build solid relationship with the customer in the long term. Therefore, this can enhance the relationship marketing “as such issues as customer loyalty, brand loyalty and customer lifetime value have become keys to marketing planning and strategy.”( Pickton & Broderick 2005: 267). Wal-Mart uses IS and IT technology to communicate with the customers and manage the customer relationship. Not only can the customer loyality be bulit, but also most valuable customer can be identified, attracted, and retained to generate profitable growth.
Because of the limititions of IT infrastructure and Communication Network, and people’s acceptance towards Information Technology and Information System, Wal-Mart in China still cannot make full use of the advantage of its advaged Information system, which helps it have precedence over their competitors in USA. In contrary, Wal-Mart relies more on the traditional communication tools in China, such as the printed media and television advertsing.
IMC and Wal-Mart’s business strategy
“At a strategic level, IMC has its roots in the overall business strategy of an organization.”(Fill, 1995: 301). IMC is a developmental exercise of the whole organization’s business process, thus it should have a strategic orientation and strategic output. Low-cost strategy, one of the generic coporate strategies proposed by Michael Porter, is adopted by Wal-Mart. Hence, the message that focuses on price advantage that customers can benefit is used to complement the corporate’s low-cost strategy.
[8]电大学习网.免费论文网[EB/OL]. /d/file/p/2024/0425/fontbr /> Only all of the elements involved are intergrated into a unified body, the expected marketing communication impact can be achieved. Intergrated into the whole organization’s business strategy, Wal-Mart carefull intergrates and coordinates its multiple communication tools to deliver a clear, consistent and compelling messages about it and its service.
1.3 The Evidence of Intergrated Marketing Communications
From the above the analysis, the evidences of intergrated marketing communications that Wal-Mart conducts are reflected in the following aspects:
1. The core message of “low price” that Wal-Mart sends to the market of USA and China is intergrated with its business strategy, namely “cost leadership strategy”. In addition, the core message consistantly delivers to its existing and potential customers through various communication channels, such as broadcasting media, print media, personal selling, product placement, and so on.
2. Multiple communication channels are intergrated together to realize the best communication and promotion effect. Wal-Mart in USA and China modules together the online media and offline media into one cohesive bundle. Even in the database marketing, other traditional communiation channles like telephone, direct mail are also coordinated with the new media of database and Internet to improve the marketing communition.
3. Wal-Mart’s marketing communications strategy is highly related to its business strategy in both China and USA. For example, its sponsorship to the charity and local community could build a favorable image of the company, which is the access to better economic rewards.
In order to adapt the marketing communication strategies among the branches in different countries, Wal-Mart has invested billions of dollars onto its information system and other communication projects, which allow the marketing data of its global branches can efficienciently communicated in two-ways with the headquater, and so does the guidenceto the global marketing communications strategy. This makes Marketing Ccommunication strategy and activies of Wal-Mart’s branches in China keep pace with its global marketing strategy.
Part Two – Recommendations for Improvement & Change
In this part, the author proposes an Intergrated Marketing Communications strategy for a one year’s tactical plan designed for Wal-Mart’s branch in China. It is built on the basis of IMC RABOSTIC Planning Model( Pickton & Broderick 2005:310). It’s planning circle includes the following elements: resource analysis, audiences, budget, objectives, strategy, tactics, implementation and control. Here part of thoses elements are described in this plan.
An Outline Plan
1.Situation Analysis
1.1 Market Analysis and Competitor Analysis: In present China’s retailing market, the number of the retailing stores owned by multinational company is 0.4% of the total number, and the number of domestic retailing stores is about 99.6%. The main operation form is the deparment stores, supermarket, and authorized stores. Wal-Mart’s main competitors in China is Carrefour and Metro, who entered Chinese market a little earlier than Wal-Mart.
A series of negetive events connected with Carrefour has lowered its company image and brand. Hence, it provides a good chance for Wal-Mart to reinforce its company profile through the public relationship campaign and sporsorship.
The structure of China’s retailing market
1.2 Consumer Analysis: The Chinese consumers is becoming mature while their income increases, thus they begin to have more desire to purchase the products of high quality. The low price is no longer the only factor to influence their purchasing desire. Hence, the message that Wal-Mart delivers to the Chinese market should not only focus on “low price”, but also”better life”.
2.Marketing Communications objectives.: promote the sales and brand equity of Wal-Mart.
3. Messages: The messages that are going to be delived to the audience mainly focus on “low price”, “high-quality service”, and “Wal-Mart’s contribution to the local community”.
4.Tools: sales promotion, public relationship, sponsorship, advertising, event promotion, personal selling, product placement and database marketing. Event promotion, sponsorship and public relationships can work together to promote the image of the company. For example, a Wal-Mart founding for the people suffering from earthquake in Chichuan Province is a comination of event promotion, sponsorship and public relationships.
5. Marketing Communications Targets : According to the objectives, the range of targeted groups are not only confined to the existing and potentical customers(this is the focus of the IMC), but also local governments, public organizations, journalists, colleges, and opionion leaders, who are strong influencers in purchase decisions.
6.Marketing Communication Strategy:
6.1 Creative Advertising Strategy: A series of event promotion could attract the attention of the news media, such as the funding for the earthquake and environment protection. The reporting of these activities is a free advertisement to promote the brand values of Wal-Mart.
6.2 Media Strategy: Various media are involved in IMC, such as broadcasting media, print media, word of mouth, product placement, exhabitions, intertnet, sponsorship and so on. They should coordinated with each other to make full use of each advantage.
6.3 Sales Promotion Strategy & Direct Marketing Strategy: This is mainly targeted to the existing and potential customers
6.4 Public Relations Strategy: Charity Fundings are going to be established and sporsorship for a series of public-interest activies are going to be conducted.
6.5. Other ( such as event marketing).
7. Budget: The “objective and task method” is adopted to decide the budget. It is mainly distributed into two parts: the sponsorship and other advertising activities. The budget is connected with the two goals of the marketing communication, namely the promotion of the sales and enhancement of the company image.
8. Time- Scale: It is expected that 5-10 promotion activities will be organized in the whole year. One founding programe for the earthquake victims is going to be established in the first month.
9.Other Creative Ideas.
9.1.Enrich the website the functions of the website www.wal-martchina.com, expecially the function of computer-aided sales support, direct response marketing, and customer information and service.
9.2. Reinforce the existing customer-relationship management information system. Give some special offers to those Chinese customers who input their e-mail box to the database and those who frequently use the website of www.wal-martchina.com for the purpose of collecting customer’s data. In addition, the customer account which connects the interface of the Wal-Mart’s website with the database should also be established for the customer. The feedback from the cutomers from the telecommunications and e-mails could also be collected, analyzed for future marketing.
9.3 Plan events for customers that could promote Wal-Mart’s profile while offering the entertainment and social interaction
9.4 Investigate each campaigns and analyse the feedback of the audience. These feedback collected from the audience can be used to guide the future marketing communication.
Conclusion
The marketing communication includes a range of promotional avtivities targeted with specitic social groups, such as existing and potential customers. The ideal impact of these activities could be achieved on the condition that all of the are factors are intergrated together, including objectives, messages, tools, targets, marketing communication strategy, budget et al. Thus, the IMC becomes the best way to reach final MC goals of promotion of the sales and the brand equity. In addition, it is an effective tool to realize the relatiobship marketing.
The 4Cs of Intergrated Marketing Communications are coherence, consistence, continuity and complementary communications(Pickton & Broderick 2005: 28). Once the intergration of marketing communication can be achieved, the 4Cs of IMC can create the synergistic benifite of intergration. According to the analysis of Wal-Mart’s marketing communication activities in both USA and China, we can draw the conlusion that they basiclly accord with the 4Cs of IMC. The message Wal-Mart communicated to the market is of continuity and consistance, which is also highly related to the overall business strategy. The marketing communication tools Wal-Mart selects makes the whole complementary communications. As for the marketing communications strategy, it serves well for the overall business strategy and organization’s goals.
Reference
Brady, J. & Davis, I. (1993). “Marketing’s mid-life crisis”, McKinsey Quarterly, l( 2), 17-28.
Doyle, P. (1995), “Marketing in the new millennium”, European Journal of Marketing, Vol. 29 No. 13, 24-31.
Fill, C. (1995). Marketing Communications: Engagement, Strategies and Practice. Printice Hall: Harlow
Kitchen, P. J. (1999) . Marketing Communications: principles and Practice. Thomas learning: London.
Lindgreen et al. ( 2004). “Contemporary marketing practice: theoretical propositions and practical implications”, Marketing Intelligence & Planning, 22 (6).
Pickton & Broaderick. (2005).Intergrated Marketing Communications. Prientice Hall: Harlow.
Stone, M,, Abbott, J., & Buttle, F. (2001). “Intergrating customer data into CRM strategy”. In: Fross, B. & Stone, M(ed.). Successsful Customer relationship Marketing: New Thinking, New Strategies, New Tools for Getting Closer to Your Customers. London: Kogan page.
Schultz, D. E. & kitchen, P. J. (1997). “Integrated Marketing Communications in U.S. Advertising Agencies: An Exploratory Study.” , Journal of Advertising Research, September- October, 7-18.
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