May 9, 2013
Target: Marketing Mix
A marketing mix is a planned business tactic that is used in marketing by companies. For a company to develop an effective marketing plan, it must determine a marketing mix that will best fit the goals of the organization as well as its consumers. When developing a marketing mix, four variables are to be considered. These variables include, product, place, price, and promotion, these are also known as the four P’s. This paper will discuss the importance of a marketing mix within the Target Corporation, and how each are implemented into the company.
Originally the Dayton Dry Goods Company of Dayton Hudson Corporation, the Target Corporation was founded in Minneapolis, Minnesota in 1902 ("Target through the Years", 2013). Since then, the company has become the second largest retailing company in the United States behind Wal-Mart. In the United States, Target operates 1,683 stores in 48 states ("Fast Facts", 2013). Target announced its expansion to Canada on January 13, 2011, and expects to be operating anywhere from 100 to 150 stores by the end of 2013 ("Target through the Years", 2013). Since its first store opening in 1962 in Roseville, Minnesota, Target stores have evolved into more than just retail. Some Target stores also provide customers with pharmacies, optical centers, portrait studios, one-hour photo processing labs, Starbucks, and health clinics ("Fast Facts", 2013). Although Target has been dominate in its market, it is still crucial for the company to understand the public and its target market to determine an effective marketing mix. Target founded its company as a discounted retail store and has gradually added more products to its merchandise such as pharmacies, portrait studios, photo processing labs, Starbucks, health clinics, and even food in the Super Targets. Determining and developing the right product for the company’s target market is the number one concern of Target’s marketing mix. When deciding on these products, a company must consider the brand name of the product, functionality of the product, quality, safety, warranty, repairs and support, accessories, and services of the product ("The Marketing Mix", 2002-2010). Products of a company should satisfy the needs and wants of its customers. Target recognizes that its consumers want to shop at a one-stop-shop store. Therefore, producing more of these intangible products allows Target to remain a top retailer in its industry. The Target Corporation offers a wide array of home furnishings such as indoor and outdoor furniture, electronics, housewares, clothing, and many other retail products. Target carries a wide variety of its products to ensure all customer satisfaction. Unlike Wal-Mart, there is not a Target store in almost every city of the United States. This causes the location of Target stores to be extremely important. The location of an organization should be in a place for which it is convenient for consumers to access. A stores product is no good to a consumer if it is not accessible when needed or wanted. To ensure that products are available to its consumers, it must go through a channel of distribution. Included in a distribution strategy of an organization are intensive distribution, selective distribution, exclusive distribution, and franchising. Targets Regional Distribution Centers receive shipments of the stores merchandise from its suppliers and ships these products directly to Target stores nationwide. Currently, there are 26 Target Distribution Centers in 21 states (Target Distribution Centers, 2013). Target is very strategic in the theory of its location of stores. Most Target stores are located in large metro areas near a shopping mall or strip mall. This location allows Target to attract consumers who are out with the intentions of shopping. The Target Corporation being considered as more of a