MarketingManagement.pdf

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 seg-
ments. The target market(also called the served market) is the part of the qualified avail-
able 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 marketis 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 at-
tract a larger percentage of buyers from its target market. It can lower the qualifica-
tions 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 po-
tential market by advertising the product to less interested consumers or ones not pre-
viously targeted.
Some retailers have been successful at retargeting their market with new ad cam-
paigns. Consider the case of Target Stores.

■ Target Facing stiff competition from top retailers Wal-Mart and Kmart, Tar-
get Stores decided to reach more affluent shoppers and woo them away from
department stores. The midwestern discount retailer ran an unusual adver-
tising campaign in some unusual spots: the Sunday magazines of the New
York Times,theLos Angeles Times, and the San Francisco Examiner. One ad
showed a woman riding a vacuum cleaner through the night sky. The ad sim-
ply 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

Gathering Information

and Measuring

Market Demand^119

Space

level

Product

level

World

U.S.A.

Region

Territory

Customer

All sales

Industry

sales

Company

sales

Product

line sales

Product

form sales

Product

item sales

Short run Medium run Long run

Time level

FIGURE 1-12

Ninety Types of Demand

Measurement (6 5  3 )