The third actor within Target’s microenvironment is the company itself, specifically the marketing department. When Target’s profits began to slow, the company needed to come up with a better strategy to help increase their performance. They first developed better indoor signage that moved away from trendy fashion statements and more towards value messaging and what was on sale. This helped to improve Target’s overall performance as it was geared towards the audience that was coming into the store- customers who wanted to spend less without compromising on quality. Furthermore, Target released ads on TV aimed at showing consumers that they can offer the same everyday low prices that Walmart could, while still keeping their high end name. Proven in the quote, “The ad headlined, “The new salon trip’ a glamorous woman with flowing red hair appeared to be in an upscale salon”, shows that Target developed a brilliant marketing strategy that was aimed at telling consumers that Target was listening to their concerns. Lastly, a Public is any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives. Within their microenvironment, Target should be
concerned with the general public. To be specific, the general public upholds a certain image about the company, and this affects their buying decisions. If Walmart is considered lower-class to Target’s customer, their main priority should be marketing their brand in a way that further sets them apart from the competition. The general public and the consumer market are closely connected, however, in only opening 10 stores in 2010, Target will continue to change their brand and how they are perceived by the general public. Furthermore, in building a relationship like with Martha House, Target can continue to appeal to the audiences they need to keep interested, as well as appeal to the general public as an upscale, low cost grocery solution. 2. Economic and cultural factors play a big role for Target in terms of their marketing strategy after the economic downturn. To begin, before the economic crisis Target was marketing their brand towards a certain consumer. To explain, they were appealing to the consumers who wanted to pay less, but also wanted to feel classy and not “lower class” like the shoppers at Walmart. After the economic crisis, Target had to take a better approach to their marketing. Turning to value marketing, offering the right combination of product quality and good service at a fair price, is where Target started to see better traction with its customers. Proven in the quote, “During the first half of 2010, sales rose by as much as 5 percent with profits up a whopping 54 percent. Both spending per visit and the number of store visits increased.” Through value marketing and studying the economic factors helped Target create a marketing strategy that worked.
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- Spring '15
- Marketing, Brand, Grocery store