Page 117 - Marketing Management

94 PART 2 CAPTURING MARKETING INSIGHTS

character from the Apple ads) stating, “Hello, I’m a PC which bring in approximately 90 percent of the company’s
and I’ve been made into a stereotype.” The commer- $60 billion in revenue.
cials, which highlighted a wide variety of individuals who
prided themselves on being PC owners, helped improve Questions
employee morale and customer loyalty.
Microsoft opened a handful of retail stores—similar to 1. Evaluate Microsoft’s strategy in good and poor eco-
Apple stores—in 2009. “The purpose of opening these nomic times.
stores is to create deeper engagement with consumers 2. Discuss the pros and cons of Microsoft’s most
and continue to learn firsthand about what they want and recent “I’m a PC” campaign. Is Microsoft doing a
how they buy,” Microsoft said in a statement. good thing by acknowledging Apple’s campaign in
Today, the company offers a wide range of software its own marketing message? Why or why not?
and home entertainment products. In the ongoing
browser wars, Internet Explorer holds a 66 percent mar- Sources: Burt Helm, “Best Global Brands,” BusinessWeek, September 18, 2008; Stuart Elliot,
ket share compared to Firefox’s 22 percent and Safari’s “Microsoft Takes a User-Friendly Approach to Selling Its Image in a New Global Campaign,” New
York Times, November 11, 1994; “Todd Bishop, “The Rest of the Motto,” Seattle Post Intelligencer,
8 percent. In 2009, Microsoft launched a new search
September 23, 2004; Devin Leonard, “Hey PC, Who Taught You to Fight Back?” New York Times,
engine called Bing, which challenges Google’s dominant August 30, 2009; Suzanne Vranica and Robert A. Guth, “Microsoft Enlists Jerry Seinfeld in Its Ad
position in the marketplace and claims to give better Battle Against Apple,” Wall Street Journal, August 21, 2008, p. A1; Stuart Elliott, “Echoing the
Campaign of a Rival, Microsoft Aims to Redefine ‘I’m a PC,’” New York Times, September 18, 2008,
search results. Microsoft’s most profitable products con-
p. C4; John Furguson, “From Cola Wars to Computer Wars—Microsoft Misses Again,”
tinue to be Microsoft Windows and Microsoft Office, BN Branding, April 4, 2009.

Marketing Excellence Walmart expanded throughout the United States in the
1970s and 1980s by acquiring some of its competitors and
>>Walmart opening new stores. The first Walmart Supercenter—a dis-
count store with food outlets, an optical center, photo lab,
hair salon, among other amenities—opened in 1988. By
1990, Walmart had become the nation’s number one re-
tailer, with $32 billion in revenue and stores in 33 states.
The company’s international expansion began with a store
outside Mexico City in 1991 and has grown to over 3,800
international locations, some under a different brand name.
Walmart thrives on three basic beliefs and values:
“Respect for the Individual,” “Service to Our Customers,”
and “Striving for Excellence.” Sam Walton’s original 10-foot
rule—“I promise that whenever I come within 10 feet of a
customer, I will look him in the eye, greet him, and ask if I
can help him.”—still governs today, embodied by the
“greeters” at the front door. In addition, Walmart embraces
the communities in which it enters in order to develop
Walmart, the giant chain of dis- strong local relationships and build its brand image in the
count stores, is the second largest company in the area. The company donates significant amounts of money
world, with over $400 billion in revenue and 2.1 million to local charities through its “Good Works” program, hires
associates (or employees). The phenomenal success local individuals, and purchases food from local farmers.
story began in 1962 when Sam Walton opened up his Walmart’s marketing strategy has evolved over the years.
first discount store in Rogers, Arkansas. He sold the Early marketing efforts were based on word of mouth, posi-
same products as his competitors but kept prices lower tive PR, and aggressive store expansion. In 1992, Walmart in-
by reducing his profit margin. His customers quickly troduced its well-known tagline, “Always Low Prices.
caught on and the company took off almost immedi- Always,” which effectively communicated the company’s
ately. Walton’s EDLP (Every Day Low Price) strategy re- core brand promise and resonated with millions. In 1996,
mains the foundation of Walmart’s success today. Walmart launched its price rollback campaign featuring the
Through the company’s economies of scale, Walmart is familiar yellow smiley face as the star of the campaign. The
able to offer customers top brand-name products for smiley face happily slashed prices in Walmart’s television
the lowest price. commercials and appeared on store signage as well as