2. Retailers identify and reach out to their target markets by means of the foll

Question

2. Retailers identify and reach out to their target markets by means of the following strategies:

There are at least half a dozen steps to identify a suitable target market. Quantifiable definition of target market – for example, a shoe retailer must not say small to medium sized project ranges, rather they must be specific and precise – something like this would suit: Target market of consumers and customers within a radius of 30 square miles, with a average aggregated household income of $36,000 to $54,000 per annum, and preferably with the flair for sports and exercises.

Step 1: Identify and make a table of cause(Feature) and effect(benefit):

Identify the cause or why would they buy our brands. What is the feature of our product and what is the benefit for the end user. e.g. see the Table:

Features of our product

Benefits

Targeted market

Soft cushion pad for the keyboards

increased comfort while typing and hence less strain on the palms and boosted productivity

Computer users, typists, student preparing study materials on computers

Child lock at the rear doors of the cars

Safety, kids cannot get out of the car while on the move

Family with kids less than 12 year old, Schools

Table lamps

Minimizes light pollution, helps students and budget accommodated boarding houses where there are lots of people in a dormitory – if one person is reading at night, the person sleeping in the next bed is not affected by too much light from the room lighting – rather the table light is focused just for the reader – hence improved sleep and health

Middle and low income group, those who cannot afford to have individual rooms for each person, dormitory dwellers;

Step 2: Segmentation of our overall Market based on Geography, Psychographic, Demography, male, female, transgender, other life forms, ethnic background, race(white(Europeans), black(Africans), yellow(Asian, Chinese, Japanese) , brown(Indians, Aborigines, Native Australians), Age group, number of members in the family unit, type of family (joint family(husband, wife, father in law, mother in law, children, grand children – all living in a huge house) or nuclear family(just a small family of 2 to 3 members)), Business market – number of companies with more than 50 employees, number of office spaces with more than 20 employees, and so on; Behavior;

Step 3: - The famous market research – collect data – from internet, surveys, public libraries, micro fishy, interviews, opinion polls

Step 4: Let us stand out of the crowd – are our products unique – if you want to win, think different – winners do not do different things – they rather do the same things differently

It was the same computer with just texts and numbers for decades – Bill Gates introduced windows, graphics, pictures, videos into his operating system and won – different operating method.

Consumer, industrial and reseller markets:

Consumers are the end users – like the people who wear our shoes. Other such materials could be bread, butter, Jam, milk, food items, clothings, dress, Staionary etc.

Industrial market segment includes offices and other industrial sectors that will use our products as raw materials to make their finished goods – example – they buy toner cartridge from us and fill up their printers; they buy papers from us in bulk and print books, news papers, journals, magazines;

Resellers are those who buy low and sell high – the middle men – they buy our shoes at the whole sale prize of $20 per pair and sell them for $25 per pair.

3. Explaining the importance of a retailer’s location to its strategy: In the case of child safety locks at the rear doors in cars, they car retailers have to set up their showrooms near where their targeted consumers live – family with kids, schools, primary schools are the suitable locations.

6. Wholesaling intermediary:

These are entities like agents, brokers, advisors or representatives as a sole traders or proprietors, they work on behalf of the 3rd party, liaiso

Explanation / Answer

2. What is changing about retailing? 3. How are markets changing in ways that impact retailers?

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