TARGET Market Description
Category : Marketing Strategies
Market Description of Target Corp.
In today’s business world, the value and importance of customers is not something that should be set aside by companies. Marketing plans and strategies would be incomplete without paying much consideration to the customers. Customers will and should always be a part of the agenda in any marketing plan of any company. Because of the implications for profitability and growth, customer retention is potentially one of the most powerful weapons that companies can employ in their fight to gain a strategic advantage and survive in today's ever increasing competitive environment (1999).
Market research is an integral part of the planning process. There are things that need to be done like the client satisfaction surveys, studying the competition, test brand recognition and then analyze market trends. In order to build future marketing programs and putting the company at a significant competitive edge, better information about an organization’s business environment should be established. Every business before operation on its mainstream function defines its targeted segment of the market. Generally, a target market for a specific kind of product/service is characterized by demographics and psychographics description. Among these are age, gender, and/or socio-economic grouping. In giving description to that market, there is a need to divide the existing market into smaller segments.
Market segmentation involves breaking down the entire market into smaller submarkets or subgroups that can be reached more effectively with different marketing programs ( 1994). Market segmentation appears to be an effective strategic tool for addressing the mature market, not only because this market is highly diversified but also because of its size. Segmentation also provides opportunities for efficiency and specialization. A company can achieve better results by designing marketing programs that match the needs of specific sub-segments and by developing a market niche than by attempting to reach all consumers with the same marketing program ( 1994).
Target Corp. is considered as the retail store that caters to the younger and more educated and well-off clientele as to compare with its rival. In a survey conducted, Target Corp. shoppers fall on a 46 years old age median, mostly female, have children at home, and attended or completed college (2006). Thus, the target market is perceived to be sophisticated.
Psychographics includes social class, lifestyle, and personality variables ( 1991). Product usage segmentation refers to the heavy, medium, or light users of a product category (1991). Segmentation strategies are made significantly easier when customers accept the product rapidly. There is a better opportunity of this occurring if marketers can make consumers aware of the product's benefits. Potential buyers go through a product adoption process before accepting a product. These stages are awareness, interest, evaluation, trial, and adoption (1991).
Demographics. For Target Corp. to become successful, the company must be able to determine first its target market. The company must used demographics to group or to determine the target markets of the company. Demographics include profiles of the consumers and these profiles would determine the behavior of the consumers. Target Corp. makes its focus on its target market in a different level of recognition. The total markets (consumers or clients) are divided into smaller, comparatively homogenous groups. Basically, its goal is to group its customers with similar or analogous characteristics, behavior and needs. The main target is to offer its products to its target market demanding the said products and to offer quality system and tools to the customers from household to their office needs and to give proper marketing strategies for each consumer.
Demographics are used in order to statistically analyze the total market, subdividing the clients according to their ages, gender, and income distribution. According to figures the company presented, the median household income of Target shoppers is $47,000 and 80 percent attended or completed college (2000; 2006).
Psychographics. Psychographics includes social class, lifestyle, and personality variables ( 2000). The end result of using these variables is a psychological profile of each market segment. Issues also examined the customers’ loyalties, habits and self-concept. Social class describes how individuals want their travels be through their comfort, what they consider important about their immediate surroundings, their opinions on various issues, and their interests. Psychographics can be related to Target Corp. customers or target market. Since many retail shops are confronted with competition, Target Corp. is concentrating on how their customers will enjoy their products and how their target market will be satisfied of the services that it will offer. The target market will heavily fall for mostly women who attend to all the personal and household needs of the whole family and themselves.
Consumer Behaviors. It can be argued that consumers all over the world vary and that these differences may lead to different consumer behavior. Since the consumer behavior (see Appendix 1) is being bounded by the culture and traditional values of nations the differences of consumer behavior are vastly increasing. Consumer behavior has been defined as the "acquisition, consumption and disposition of products, services, time and the concepts by decision making units" (1975; 1976). Consumer behavior also involves the purchase process, but it is concerned with the product use process as well. Therefore, consumer behavior in some general sense concerns not only phenomena that are directly related to but also phenomena that might be characterized as post marketing in the sense that marketing's influence on and involvement in consumers' use of products is nonexistent, more indirect, and/or less intense than its influence and involvement in product purchase. Research on sensation and perception, attention, categorization, inference making, information search, memory, attitude and behavior, attitude formation and formation, conditioning and satisfaction have been undertaken to understand consumer behavior (1998). In the area of sensation and perception and attention, most works are confined primarily to visual or auditory processes. The purchasing behavior of the consumers will depend on the marketing strategies that will be used by the Target Corp. in promoting and introducing its products.
Geographical Consideration. The target market population tends to live in suburban areas. In addition, the consumers for Target Corp. are also divided into other segments of the market.
Criteria. The market segment will be divided into distinctive features such as consumers according to needs, gender, preference, and the like.
Target Market. The target market will be all the consumers who wanted to purchase Target’s products and services because they need it or for some more considerable reasons. Moreover, target market will also include those who need quality and long lasting computer products such as computer parts, and software may it be household of office needs.
Differentiation and Positioning
There are many competitors who are already in the marketing arena – both traditional and online shopping – that offers same products/services as Target Corp. is offering. The products/services of Target Corp. offer a high quality and satisfying features that maintain its good reputation in the marketing arena – traditional and online in nature. In Target Corp., the availability of the products depends on the needs and demands of the customers. In order to position the products in the market place, the company uses integrated marketing communications such as advertising and public relations in the broadcast, print, and wired media. To be able to let the target market of the company know the products offered to the different market segments or groups, Target Corp. may use television advertisement for example. In addition, testimonials of the customers who already avail the products may be included. The company will also use print advertisement – in newspapers and magazines, leaflets, and brochures. And lastly, the company will strategically make deals for alliances and support when it comes to its wired communications like pop-up ads and other IT-based solutions.
Target Corp. possesses several advantages as to compare with other retail industry. The market is specialized in terms of the needs of its customers. Further, its differentiation from the other outlets is highly significant in the promotion and patronage of the products/services. Lastly, the market description of Target as identified earlier when it comes to demographical and psychographical aspects are among the highest in the U.S. retail industries and to customers themselves.
Figure 3: Buyer Decision Process