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Scenario 10-6 Facing Stiff Competition from Walmart and K-Mart, Executives for Target

question 8

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Scenario 10-6
Facing stiff competition from Walmart and K-mart, executives for Target stores have decided to focus on reaching more affluent shoppers and luring them away from traditional department stores. They have already expanded the products and brands they offer to include reasonably priced items by modern design masters. Target hopes to draw more affluent shoppers into its stores through a series of advertising campaigns that are presently in the planning stages. Most of the advertising budget will be directed to ads in regional luxury magazines, which, research shows, are frequently read by affluent individuals.
-(Scenario 10-6) Target managers decide to run magazine ads with very few words,focusing on visuals of the Target logo (the recognizable red ball) and high-end goods sold in their stores.Target is attempting to use an efficient communication that sends a message at a glance,in the form of:

Definitions:

Lumber

Timber that has undergone transformation into boards and beams, representing an intermediate phase in the creation of wooden materials.

Comparative Advantage

Comparative advantage refers to the ability of a country or firm to produce a particular good or service at a lower opportunity cost than its competitors.

Labor Abundance

A situation where there is a large supply of workers relative to the demand for labor, which can affect wages and employment levels.

Textiles

Fibrous materials, including cloth and fabric, that are woven, knitted, or otherwise processed for use in producing goods like clothing, home furnishings, and industrial products.