Essay Sample on Societal Marketing: Impacts & Reasons Why Wal-Mart Failed in Russia

Introduction

Societal marketing is a marketing strategy put in place by companies that seek to consider both the wants of individuals as well as society's long-term interests. This paper discusses the impacts of marketing on the behavior of individuals. It also states the reasons why Wal-Mart never advanced in Russia and gives recommendations for it to market, successfully.

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Discussion #1

There are several ways in which a company's societal marketing affects the consumer's behavior in some ways. It influences choices (Rackik & Rackik, 2018). According to the research, people are likely to buy what gives them a simple solution. In a marketing situation, the information about the benefits of the particular product is provided in details to the consumer. This information is an advantage to an average consumer who will find it more comfortable buying, the already known product rather than ask for new ones (Mitchell et al. 2017). This type of marketing alters behavior by creating an emotional attachment. The social service linked to the product makes people get emotionally attached to it, making them go for the product even when the product increases the price.

I have been convinced to buy a product because of its social concern. Puma, a shoe brand, had a project that contributed to the development of talent in soccer by giving contributions from the sales they made. The move was an exceptional one, and the fact that a percentage of the money made from the sales went to the support of the society made it a choice for everyone. It Won our emotions and made us feel like our purchases were contributing to the well-being of other people in different parts of the world. Many companies use this strategy in a large client base

Discussion #2

Wal-Mart, despite its success in the US markets, may fail to make a breakthrough, in Russia. Several reasons might have caused the failure. Market attractiveness in Russia is different from the one in America. The Russian market is a reflection of an economy trying to diversify. It relies heavily on resources such as telecommunication and IT development. It has been ranked as among the nations challenging to start a business in; because of several legislations that protect it from foreign investors (Alyona,2018). Protectionism has affected the development of multinational companies. There is an aspect of corruption, which is rampant in the country. Many companies are scared of losing large sums of money on fraud. There interior of the country is still facing underdevelopment. There is a poor road connection, and electricity connecting is hard to have.

As a member of the marketing team for Wal-Mart, when determining the suitability f Russia for expansion, the company needs to consider the acquisition of operation license and a physical location. These need to be done in advance before the launch of the campaign because of government policies concerning land purchase and business operation license. There should be consideration of using offline methods of marketing in areas without electricity

Conclusion

In conclusion, societal marketing has a lot of advantages to firms as well as to society. Several companies have benefited mutually over the years for collaborating with local projects that aim at giving back to the nation. The participation of a company in a community project creates a sense of friendship and loyalty. This idea translates to profits. Secondly, Wal-Mart should consider government policies in Russia before opening a branch there.

References

Mitchell, R., Schuster, L., & Drennan, J. (2017). Understanding how gamification influences behavior in social marketing. Australasian Marketing Journal (AMJ), 25(1), 12-19. Retrieved from https://www.sciencedirect.com/science/article/pii/S1441358216301513

Rakic, B., & Rakic, M. (2015). HOLISTIC MANAGEMENT OF MARKETING SUSTAINABILITY IN THE PROCESS OF SUSTAINABLE DEVELOPMENT. Environmental Engineering & Management Journal (EEMJ), 14(4). Retrieved from https://www.researchgate.net/profile/Beba_Rakic/publication/278622879_Holistic_management_of_marketing_sustainability_in_the_process_of_sustainable_development/links/5586ed2f08aef58c03a02695.pdf

Alyona, Z. (2018). The Influence of the Institutional Environment on Adapting Strategies of International Companies in Russia. Retrieved from https://dspace.spbu.ru/bitstream/11701/12708/1/master_thesis_Zhiltsova_Alyona.docx