Customer Relationship Management (Need one more page)
An effective marketing research campaign is an important aspect of doing business in order to be able to compete. It is true that information technology and collecting data to improve sales can be very helpful for Target to achieve its goals of maintaining its loyal customers which the company calls “Guests”.
In today’s global economy, it is important for Target to differentiate themselves from their competitors. Many companies try to build customer loyalty on price alone. But customers not only look at price or brand when considering to purchase, they also look at the added value that the company give s them. In Targets case, their competitive advantage is that they are an upscale discount retailer with clean store and excellent customer service. The organization successfully uses its internal data to determine their customer’s needs. By analyzing customer-driven data from market basket analysis ...view middle of the document...
On the basis of this information, Target managers may promote new goods, offer news about discounts, sales and special offers. For these customers, each data set is adapted for a certain customer segment or even certain customer.
Target CRM system allows them to have access to their customers information in any of their stores, website and call centers almost instaneously. For example, if a customer purchases a doll on the website the n decided to call customer service to ask questions about the doll. The call center would have that information available to discuss with the customer. In general, it is evident that marketing research is successful because it allows the company to attract new customers, making them loyal through well-established services and by offering them attractive deals tailored to their personal needs. Other sources of information available for Target are through networking with such companies as AOL (Rainer & Cegielski, 2009).
Market Segmentation (Need two more pages)
Target emphasizes its goods to be sold at moderate prices, and is considered one of the discount retailers among the group of its competitors such as Wal-Mart and K-Mart (Suminski, 2010). The slogan Target uses to attract the attention of its customers is ‘Expect more – pay less’ (Suminski, 2010). This means that it offers good quality products at affordable prices.
Market segmentation divides a company’s target market into segments according to certain criteria of its choice, such as gender, age, education, income or social class of its customers, to name a few segmentation choices (Croft, 1994). In Target’s case the segmentation is made according to the following criteria: Gender, age, household income, family structure and education. According to Suminski (2010), Target directs its promotional and marketing efforts towards women with median age of about 41, which have household income of $63K , have children, and have studied at or completed college. Approximately 93% of Target customers are women, about 45% of them have children, and 43% of them on the average have graduated from college (Suminski, 2010). Target is known to define its customers, or Guests, as educated, young, fashionable and sophisticated, and its products are chic. (“Target”, n.d.).