Briefly explain the process of defining a target market.

Question

What will be an ideal response?

Answer 1

Answers will vary. The first and foremost task in developing a retail strategy is to define the target market. This process begins with market segmentation. Successful retailing has always been based on knowing the customer. Sometimes retailing chains flounder when management loses sight of the customers the stores should be serving. Customers' desires and preferences change over their personal and professional lifespans, and it is important for retailers to be sensitive to these changes by migrating them to new and different products as their buying patterns evolve.Target markets in retailing are often defined by demographics, geographic boundaries, and psychographics. For example, supermarket chain Publix recently introduced an app that makes shopping easier and more convenient for its customers. App users can even have groceries delivered directly to their homes to reduce shopping time. This app is targeted squarely at Millennials, who often have busy schedules and who are technology savvy. Whole Foods, on the other hand, is opening smaller, more convenient, and more cost-effective store formats targeted at Millennials. Determining a target market is a prerequisite to creating the retailing mix. For example, Target's merchandising approach for sporting goods is to match its product assortment to the demographics of the local store and region.