Comparative Analysis of Target Markets and Marketing Mixes of Amazon and Walmart
Amazon and Walmart are retail conglomerates that offer a wide selection of merchandise to their customers across the globe. Amazon is a multinational ecommerce organization with a formidable presence in the online retail market, where it caters for the needs of its customers from all age groups by proving a wide range of products. The customers use the Amazon.com website as a marketplace to purchase items online. Walmart is widely known, albeit in the real world as it operates numerous stores in over 27 countries as well as ecommerce websites. It is the largest brick and mortar retailer in the United States and across the globe.
Target market
The two organizations are the largest discount retailers in America. Walmart and Amazon companies use mass strategy to target everyone. However, the majority of Walmart’s customers do not have a substantial annual income, and many do not use credit/debit cards. On the other end, the operations of Amazon are purely online. Therefore, the majority of the customers of its are socio-economically equipped with access to the technology.
Marketing mixes
These giant companies use their marketing mix as an approach to attract their targeted customers. In this regard, the two reaches out to their market through marketing mixes that focus on price, place and product and promotion components. Amazon’s strategies are designed to take advantage of the online market and enable competitiveness through innovative services such as same-day delivery. While Amazon offers a wide range of products, Walmart has products in nearly all categories. In terms of place, Walmart initially dependent on physical stores but expanded to ecommerce. However, Amazon, which is a mainly online business, has some sense of dominance in online retailing through its website and other subsidiary sites, translating to higher sales revenue. Over the years, Walmart has utilized effective pricing and discounts as a critical component for generating demand. Amazon also appreciates the impact of pricing in selling and uses market-oriented pricing, value-based pricing, as well as price discrimination strategies to stay ahead. Both companies are well aware of the increased online shopping by customers and seem to use online platforms diligently.