How does walmart use demographics and geographics to target

How does walmart use demographics and geographics to target its customers?

Solution

Two of the variables used by Walmart to segment its customers and divide them into groups are demographics and geographics. It develops profiles of market segments by collecting customer data from their shopping habits. it tries to identify the similarities and differences in the profiles in order to develop a strategy suitable to all customer groups. The data shows if the customer needs are homogenous or heterogenous. In a homogenous approach, the strategy of Walmart for customers remains undifferentiated as the other stores around the country. In the other case, the company tried to identify major spending groups and develops offers according to their needs

Demographics - Studying the income pattern of the people in the area

Walmart identifies the income pattern and the average earning potential of an individual by his shopping habits. This helps them in improving the information they can get for the average inventory for products most preferred by the customers.

Geographics - Due to Walmart being a brick and mortar outlet (mainly), it becomes important that the store is located in a place accessible by most people around the area. Due to the sheer size of the store, it becomes important to find a location which can serve as many people as it can.