This article discusses the advantages and weaknesses of guerrilla marketing, a low-cost and unconventional advertising strategy. It explores the benefits of low costs, enhanced creativity, and innovation, as well as the challenges of measuring ROI and potential misconceptions.
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1 MARKETING MANAGEMENT Table of Contents Advantages and Weaknesses of Guerrilla Marketing................................................................2 Success Story of Walmart from Inception to Global Dominance..............................................3 References..................................................................................................................................5
2 MARKETING MANAGEMENT Advantages and Weaknesses of Guerrilla Marketing Guerilla Marketing is the advertising strategy which mainly focuses on the low-cost unconventional marketing aspect and tactics which will help yield the maximum results appropriately. The significantadvantages of Guerrilla Marketingare inclusive of the following elements: Low Costs-It is the kind of marketing which is cheaper to execute in comparison to the traditional type of marketing. Moreover, with the help of Guerrilla Marketing, it helps enhance the performance, customer base and gaining competitive advantage in the market as well (Dinh and Mai 2016). The different Guerrilla marketers in the entire world have seen more than 90% reductions in the various advertisements due to the unconventional approach. Enhancement of Creativity-It is the other aspect wherein the respective method relies on creativity than the amount of money which is being spent. It helps create a memorable experience for the different customers and supports the brands in going viral in the market as well (Gökerik et al. 2018). Innovation and Authenticity-It is the last aspect of the Guerrilla Marketing in which it associates the brand with proper innovation that will be attractive.For example-Coca Cola is not a small company; it is one of the million-billion-dollar conglomerates, however, the company has been able to gain more customer base from the usage of Guerrilla Marketing (Gökerik et al. 2018). The Coke Happiness Machine is the campaign which went viral was the sheer genuineness of the different reactions of the students. Disadvantages of Guerrilla Marketing No method to measure the ROI-In Guerrilla marketing, the viral content is not easy to track outside of the few locations along with time frame. Moreover, there are issues in
3 MARKETING MANAGEMENT determining conversion rate along with cost per response as there is no such inclusion of a pre-determined number of the consumers (Gupta and Singh 2017). The misconception of the Campaign-It is the other issue wherein there can be the inclusion of fake products which is showcased by the companies and it will create a negative impact on the perceptions of the customers (Gökerik et al. 2018). There can be a different personal judgment of the various individuals that affect the overall effectiveness of the advertisement. Success Story of Walmart from Inception to Global Dominance One of the best and suitable examples of the power of the explicit along with systematic process is to analyse the complex set of various factors which is included in becoming the most appropriate global player is Wal-Mart Inc (Corporate.Walmart.com 2019). It is the largest retailer in the entire world wherein the company first opened their international store in Mexico in the year 1991 and the present scenario, the company is operating in more than 50 states such as Canada, China, Brazil, Britain, South Korea and Puerto Rico. Moreover, Wal-Mart has pursued the strategy related to globalisation aggressively since its first move across the border in 1991. By the year 1998, Wal-Mart had grown to 18%, and between 1995 and 1998, more than 5% of the growth of the company was in sales, and morethan4%oftheprofitscamefromthedifferentinternationaloperations (Businessinsider.com 2019). The growth was essential for Wal-Mart as the organization required to show the increase in profits and sales as to satisfy the expectations of the capital market.
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4 MARKETING MANAGEMENT In undertaking the global expansion aspect, Wal-Mart had the accurate capacity to leverage the two significant resources developed initially in the United States. Moreover, the company was able to leverage sales generating or the ideas related to cost reduction which was learned bythemintheinternationaloutletstobenefitthe3000UnitedStatesstores (Businessinsider.com 2019). The other success story of the global expansion of Wal-Mart was theLocal Adaptionwherein the organization was able to establish their local presence, and they tried to understand the unique local market and established the business model as per the local adaption. Besides, Walmart took six years to reach $7.5 billion in international sales (Corporate.Walmart.com 2019). Lastly, the dedicated workforce of Wal-Mart has been able to build large discount stores in different and small rural towns.
5 MARKETING MANAGEMENT References Businessinsider.com 2019 The Incredible Story Of Walmart's Expansion From Five & Dime ToGlobalMegacorp(online)Retrievedfromhttps://www.businessinsider.com/the- incredible-story-of-walmarts-expansion-from-five-and-dime-to-global-megacorp-2011-7 [Accessed on 8th April 2019] Corporate.Walmart.com 2019 our-story/our-history - Walmart Corporate (online) Retrieved fromhttps://corporate.walmart.com/our-story/our-history[Accessed on 8th April 2019] Dinh, T.D. and Mai, K.N., 2016. Guerrilla marketing’s effects on Gen Y’s word-of-mouth intention–a mediation of credibility.Asia Pacific Journal of Marketing and Logistics,28(1), pp.4-22. Gökerik, M., Gürbüz, A., Erkan, I., Mogaji, E. and Sap, S., 2018. Surprise me with your ads! The impacts of guerrilla marketing in social media on brand image.Asia Pacific Journal of Marketing and Logistics,30(5), pp.1222-1238. Gupta, H. and Singh, S., 2017. Sustainable practices through green guerrilla marketing–an innovative approach.Journal on Innovation and Sustainability. RISUS ISSN 2179-3565,8(2), pp.61-78.