Target

Facing stilf competition Injm top retailers Wal-Mart and Kmart. Target Stores deeded to reach more affluent sneppets and woo them away from departmeni stores. The Midweslerl discount retailer ran an unusual advenising campaign in some unusual spots: the Sunday magazines of the New York Times, the Los Angeles Times, and the Sen Frsncisco Examiner. One ad showed a woman riding a vacuum creaner through the nigii" sky. T}ie ad simply said Fashion and Housewares," with the Target logo in the lower right-hand corner. These hip spots gamed Target Stores a repulation as the "upstairs" mass retailer, or "Kmart for Puppies." as one stopper put it. in 2001, Target Drought "(ash inn to food" by adding grocery seel ¡cms to ils retail concept arid creating 175.000-square-foOl SuperTargcls. By 2004. there were 1.249 Target stores in 47 states (with 119 i SuperTarget stores).^

A Vocabulary for Demand Measurement

The major concepts in demand measurement are market demand and company demand. Within each, we distinguish among a demand [unciion, a sales forecast, and a potential.

As we have seen, the marketer's firM step in evaluating marketing opportunities is to estimate total market demand. Market demand for a product is the loial volume thai Would be buuyhi by 3 defined customer group in adelincd geographical area in a defined time period in a defined marketing environment under a defined marketing program.

Market demand is not a fixuu number, but mi her a fu net ion of the siaied Conditions. For this reason, it can be called the mrirtfet demand function, [he dependence of loial market demand on underlying conditions is illustrated in Figure 4,5(gJ. The horizontal axis shows different possible levels of industry marketing expenditure in a given lime period. I he Vertical axis shows the resulting demand level. The curve represents the estimated market demand associated with varying levels, of industry marketing expenditure.

Some base sales [called the fttarier minimum, labeled in the figure] would take place without any demand-stimulating expenditures, I Ugher levels of industry marketing expenditures would yield higher levels of demands first at an increasing rate, (hen at a decreasing rale. Marketing expenditures beyuOd a ccrlam level would nol Stimulate much further demand, thus su^gesiing an Upper limit k> market demand called the market potential [labeled 02 in the figure).

Iii) Marta-ti ng Uimänd as a Function ol In Jut-try Marketing EMpeniSlure [j&suines a particular (n.ufccting enuirojiniem)

Mafkil pot-cFilial. 0,

Mshtl fBicast, Q,

Mafkil pot-cFilial. 0,

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rIn:lIJL-Lry MrtrkL'tiiiq Expenditure

(b) MiirkElinif Demand tB 9 Function d Industry Markeling ExpcrvdiLjr« [tvw> dilltrtrtl environrtients sasirni tJ)

I Harkil

£ potential

" (prosperity)

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(b) MiirkElinif Demand tB 9 Function d Industry Markeling ExpcrvdiLjr« [tvw> dilltrtrtl environrtients sasirni tJ)

I Harkil

£ potential

" (prosperity)

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—-

Prosperity

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