Tara Looie Running head: Each retailer in the retailing industry tries to differentiate itself from the competitors, but the strategy the company applies to sell its products is the main factor. TGT considers as discount stores type of retailing industry, offering a wide variety products while competing on the price. The companies in this type of industry sell a wide variety of merchandise, including grocery, personal care products, pharmacy, paper products, books, computer software, sporting goods, household furnishings, apparels, electronics devices, and automotive products Bloomberg,
Not all products and services are meant for all types of consumers, and consumers are often cautious with their spending power. For this reason, target markets are typically segregated by age, location, income and lifestyle.
A company defines its target market by the consumers that are likely to have a need for its product. Defining a specific target market allows a company to hone in on specific market factors to reach and connect with customers through sales and marketing efforts.
Testing of the target market often occurs in a phase before the product release. In this phase, a company may use limited product rollouts and focus groups, allowing the product managers to get a feel for which aspects of the product are the strongest. Once a product is released, the company can continue to monitor the demographics of its target market through sales tracking, customer surveys and various other activities that allow the company to understand what its customers demand.
Target Market and Product Sales The target market is a central focus within a marketing plan that determines other essential factors for the product, such as distribution, price and promotion efforts. The target market also determines significant factors about the product itself. In fact, a company may tweak certain aspects of a product, such as the amount of sugar in a soft drink, so that it is more likely to be purchased by consumers with varying tastes.
International expansion allows a company to reach a broader subset of its target market in different regions of the world.
In addition to international expansion, a company may also find that its domestic target market expands as its products gain more traction in the marketplace. Expanding and growing target markets are all the more reason for companies to monitor their sales and customer preferences for evolving revenue opportunities.BibMe Free Bibliography & Citation Maker - MLA, APA, Chicago, Harvard.
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Kmart and Wal-Mart were both founded in Both focused on cost as a business strategy and adopted super-center retail formats. In , Kmart had 2, stores and revenues of $ billion to Wal-Mart’s 1, stores and revenues of $ billion.
Walmart vs. Target. Two of the largest retailers in America competing for consumer attention and share of wallet. Some might argue there is no contest here as Walmart (#1 on the Fortune list) generates more than 6 times the revenue of Target ($ billion vs.
Whether a company’s target market is broad or narrow, or. Whether the company is pursuing a competitive advantage linked to low costs or.
product differentiation. FIVE GENERIC COMPETITIVE STRATEGIES. Wal-Mart. Sam’s. 99 Cent Stores. The Attic. Dollar Tree. Dollar General. Family Dollar. Perceived Value of Wal-Mart. In North America, where consumers want low price, Wal-Mart's low-price offering is matched with customers' definition of value, resulting in effective value exchange between Wal-Mart and its customers (see Figure 1).However, Korean consumers in the discount retail market proved to have a different definition of value in the retailers' product and service offerings.