Arketing Decision Support System

World

SPace _/ U.S.A.

leve

/ Region

/ Territory

'_ Customer

All sales ^^^^

Industry sales

Product

Company sales

level

Product line sales

Product form sales

Product item sales

i Short run

Medium run

Long run

Time level

Ninety Types of Demand Measurement (6 X 5 X 3)

Consumer interest is not enough to define a market. Potential consumers must have enough income and must have access to the product offer. The available market is the set of consumers who have interest, income, and access to a particular offer.

For some market offers, the company or government may restrict sales to certain groups. For example, a particular state might ban motorcycle sales to anyone under 21 years of age. The eligible adults constitute the qualified available market—the set of consumers who have interest, income, access, and qualifications for the particular market offer.

A company can go after the whole available market or concentrate on certain segments. The target market (also called the served market) is the part of the qualified available market the company decides to pursue. The company, for example, might decide to concentrate its marketing and distribution effort on the East Coast.

The company will end up selling to a certain number of buyers in its target market. The penetrated market is the set of consumers who are buying the company's product.

These market definitions are a useful tool for market planning. If the company is not satisfied with its current sales, it can take a number of actions. It can try to attract a larger percentage of buyers from its target market. It can lower the qualifications of potential buyers. It can expand its available market by opening distribution elsewhere or lowering its price. Ultimately, the company can try to expand the potential market by advertising the product to less interested consumers or ones not previously targeted.

Some retailers have been successful at retargeting their market with new ad campaigns. Consider the case of Target Stores.

■ a Facing stiff competition from top retailers Wal-Mart and Kmart, Target Stores decided to reach more affluent shoppers and woo them away from department stores. The midwestern discount retailer ran an unusual advertising campaign in some unusual spots: the Sunday magazines of the New York Times, the Los Angeles Times, and the San Francisco Examiner. One ad showed a woman riding a vacuum cleaner through the night sky. The ad simply said "Fashion and Housewares" with the Target logo in the lower right-hand corner. With the look of department store ads, these hip spots have now gained Target Stores a reputation as the "upstairs" mass retailer. It's the place where folks who normally shop in a department store wouldn't feel they were slumming by purchasing clothing along with staples like house-wares, both at good prices.32

A OCAB LA FO DEMAND MEA EMEN

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

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