Target - Marketing Essay

965 Words Feb 11th, 2013 4 Pages
One of the largest and most successful retailers in the United States is Target Corporation. There have been many micro-environmental factors that have affected this company’s performance over the past few years. The micro-environment are the actors close to the company that affect its ability to serve its customers such as the company itself, suppliers, marketing intermediaries, customer markets, competitors and publics (Kotler and Armstrong, p.66) The company itself definitely played role in affecting its performance over the past few years. Target wanted to be perceived as a discount retail store but also carry top designer products (Kotler and Armstrong, p.94). The marketing plans for the company affected its sales negatively and …show more content…
The most important actor in a company’s microenvironment is its customers and they have definitely affected the performance of Target’s performance over the past few years (Kotler and Armstrong, p.69). Target did not resonate with its customers like Wal-Mart did, according to Kotler and Armstrong; their well-cultivated “upscale discount” image was turning away customers who believed that its fashionable products and trendy advertisement meant steeper prices. Because of this, the company had experienced three straight quarters of flat-same store sales growth and a small reduction in the amount of shoppers they were receiving.
`While microenvironmental factors have played a huge part in Target’s performance over the past few years, macroenvironmental factors have played a role as well. Macroenvironment factors are the larger societal forces that affect the microenvironment such as demographic, economic, natural, technological, political and cultural forces (Kotler and Armstrong, p 66). The only macroenvironmental factor that I believe has affected the company’s performance over the past few years is its economic environment. Economic factors can have a huge effect on consumer spending and buying behavior and with our economy being so bad and the pricier image Target has, the company has definitely taken a hit