target entreprise - MARKETING BY THE NUMBERS Many marketing decisions boil down to numbers An important question is this What is the market sales

target entreprise - MARKETING BY THE NUMBERS Many marketing...

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MARKETING BY THE NUMBERS Many marketing decisions boil down to numbers. An important question is this: What is the market sales potential in a given segment? If the sales potential in a market is not large enough to warrant pursing that market, companies will not offer products and services to that market, even though a need may exist. Consider the market segment of infants and children discussed above in Focus on Ethics. Certainly there is a need for medical products to save children’s lives. Still, companies are not pursuing this market. 1. Using the chain ratio method described in Appendix 3 , estimate the market sales potential for heart catheterization products to meet the needs of the infant and child segment. Assume that of the 40 000 children with heart defects each year, 60 percent will benefit from these types of products and only 50 percent of their families have the financial resources to obtain such treatment. Also assume that the average price for a device is $1000. 2. Research the medical devices market and compare the market potential you estimated to the sales of various devices. Are companies justified in not pursuing the infant and child segment? COMPANY CASE Target: From “Expect More” to “Pay Less” When you hear the term discount retail , two names usually come to mind: Walmart and Target. The two have been compared so much that the press rarely covers one without at least mentioning the other. The reasons for the comparison are fairly obvious. These corporations are two of the largest discount retailers in the United States. Category for category, they offer very similar merchandise. They tend to build their stores in close proximity to one another, even facing each other across major boulevards. But even with such strong similarities, ask consumers if there’s a difference between the two and they won’t even hesitate. Walmart is all about low prices; Target is about style and fashion. The “cheap chic” label applied to Target by consumers and the media over the years perfectly captures the longstanding company positioning: “Expect More. Pay Less.” With its numerous designer product lines, Target has been so successful with its brand positioning that for a number of years it has slowly chipped away at Walmart’s massive
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market share. Granted, the difference in the scale for the two companies has always been huge. Walmart’s most recent annual revenues of US$408 billion are more than six times those of Target. But for many years, Target’s business grew at a much faster pace than Walmart’s. In fact, as Walmart’s same-store sales began to lag in the mid-2000s, the world’s largest retailer unabashedly attempted to become more like Target. It spruced up its store environment, added more fashionable clothing and housewares, and stocked organic and gourmet products in its grocery aisles. Walmart even experimented with luxury brands. After 19 years of promoting the slogan “Always Low Prices. Always.” Walmart replaced it with the very Target-esque tagline “Save Money. Live Better.” None of those efforts seemed to
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