Based on the information provided in the case only, do you think that Target has been effective in its use of advertising and public relations tools? How do these promotional tools help achieve Target’s primary communication objectives?

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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  1. Based on the information provided in the case only, do you think that Target has been effective in its use of advertising and public relations tools? How do these promotional tools help achieve Target’s primary communication objectives? 

Hint: For full credit, answer each of the two parts in the question above and provide support for your answer. In answering the second part of the question about how these tools help Target achieve its promotional/communication objectives, think about how Target’s advertising and public relations are contributing towards achieving Target’s objectives – individually and together.

Target Corporation: Award-Winning Advertising:
The Company
Recognized as one of the most respected companies in the United States, noted for its
philanthropy, its commitment to health and wellness, the environment, innovation, design, and
its shareholders, it is not surprising that Target Corporation is also one of the most savvy retail
marketers today. Target has grown from a single Minnesota store in 1962 to more than 1,500
stores in 47 states plus the online Target.com. Estimated 2007 sales are $59.49 billion. Sales
growth annually has been a healthy 13.1 percent with net income growth of 15.7 percent. Target
is considered the No. 2 discount chain after Walmart.
Objectives and Strategy
The company embarked on a path of differentiation more than 20 years ago that it still follows
today. "We knew we would never be able to compete solely on price,” says Michael Francis,
senior vice president of marketing. “We knew there was a customer out there who wanted
(something different)."
From a communication standpoint, the company has several important and overlapping
objectives: the need to deepen the bond with the existing customer who identifies Target as a
place for trendy and exclusive merchandise and to keep her coming back. The Target customer
has a median age of 41, youngest among major retailers, with a median household income of
$58,000; 43 percent have children at home; and 43 percent have completed college. While
maintaining its base, Target is also looking to broaden its reach with younger consumers, in large
part through advertising.
Breakthrough Advertising
Target is second to none when it comes to award-winning advertising campaigns that reflect its
affordable chic, fun, and friendly image. Its ubiquitous bull's-eye logo is recognized by 96
percent of all U.S. consumers. Not content with such high recognition, Target now wants to
"own the color red." Target has dominated the RAC (Retail Advertising Conference) awards for
more than 14 years, winning awards in virtually every possible category and media as well as
overall best of show.
In terms of media, Target ads are seen in newspapers, magazines, television, and outdoor
billboards. Target even has its own in-store TV network (Channel Red) playing in its electronics
departments that shows Target ads and promos for new CD and DVD releases. One of the
biggest advertising tactics for Target is the newspaper circular listing featured items for the
week.
Target also has cleverly utilized promotional events. One such event was the launch of a
new apparel line by a British designer that used a London-style double-decker bus as a boutique
Roger A. Kerin, Steven W. Hartley, Arsenio Bonifacio, Donna Dumont, and Carol Bureau (2021), Marketing The Core, 6th Canadian Edition,
McGraw-Hill Ryerson
Transcribed Image Text:Target Corporation: Award-Winning Advertising: The Company Recognized as one of the most respected companies in the United States, noted for its philanthropy, its commitment to health and wellness, the environment, innovation, design, and its shareholders, it is not surprising that Target Corporation is also one of the most savvy retail marketers today. Target has grown from a single Minnesota store in 1962 to more than 1,500 stores in 47 states plus the online Target.com. Estimated 2007 sales are $59.49 billion. Sales growth annually has been a healthy 13.1 percent with net income growth of 15.7 percent. Target is considered the No. 2 discount chain after Walmart. Objectives and Strategy The company embarked on a path of differentiation more than 20 years ago that it still follows today. "We knew we would never be able to compete solely on price,” says Michael Francis, senior vice president of marketing. “We knew there was a customer out there who wanted (something different)." From a communication standpoint, the company has several important and overlapping objectives: the need to deepen the bond with the existing customer who identifies Target as a place for trendy and exclusive merchandise and to keep her coming back. The Target customer has a median age of 41, youngest among major retailers, with a median household income of $58,000; 43 percent have children at home; and 43 percent have completed college. While maintaining its base, Target is also looking to broaden its reach with younger consumers, in large part through advertising. Breakthrough Advertising Target is second to none when it comes to award-winning advertising campaigns that reflect its affordable chic, fun, and friendly image. Its ubiquitous bull's-eye logo is recognized by 96 percent of all U.S. consumers. Not content with such high recognition, Target now wants to "own the color red." Target has dominated the RAC (Retail Advertising Conference) awards for more than 14 years, winning awards in virtually every possible category and media as well as overall best of show. In terms of media, Target ads are seen in newspapers, magazines, television, and outdoor billboards. Target even has its own in-store TV network (Channel Red) playing in its electronics departments that shows Target ads and promos for new CD and DVD releases. One of the biggest advertising tactics for Target is the newspaper circular listing featured items for the week. Target also has cleverly utilized promotional events. One such event was the launch of a new apparel line by a British designer that used a London-style double-decker bus as a boutique Roger A. Kerin, Steven W. Hartley, Arsenio Bonifacio, Donna Dumont, and Carol Bureau (2021), Marketing The Core, 6th Canadian Edition, McGraw-Hill Ryerson
to showcase the line around the country. Two years ago, the retailer staged a "vertical fashion
show" featuring acrobats in harnesses walking down the side of Rockefeller Center while
wearing items from Target's fall collection.
Sometimes the Target advertising itself becomes the story - a two-for-one advertising
and public relations bonanza. Target was the sole advertiser for the August 22, 2005, issue of
The New Yorker. The New Yorker is the paragon of style and upscale cool, perhaps the most
prestigious magazine in the country, and many thought that the image of Target did not fit the
media. The campaign generated controversy and buzz. On the one hand, The New Yorker was
roundly criticized for permitting a single advertiser, unprecedented in its history, and for not
printing some statement saying the advertiser did not have any control over the issue's editorial
content.
On the other hand, an otherwise jaded Adweek columnist gushed about Target's clever
illustrations, the beautifully rendered and conceptually coherent design that matched the visual
design of the magazine. Describing the effort as the “smartest and most exciting example of
branded entertainment I have ever seen," the columnist went on to ask, "How many
contemporary American brands have a logo and a visual identity so strong and distinct that it can
sustain 21 pages in a single issue without a single product mention or word of text and have it all
remain immediately recognizable?"
Target has demonstrated that it is willing to take risks. Michael Francis has been known
to say that if an idea sounds a bit scary, it's probably a good idea. One idea that didn't work quite
as planned was painting bull's-eyes on white hermit crab shells as a means for Target to brand
the Spirit Awards in Los Angeles, the week before the Academy Awards. People thought the
crabs were cute until they were bit on their fingers. Well-branded hermit crabs were hanging off
fingers in photographs from the event. But the stunt took on a life of its own as people from as
far away as Mexico and San Diego called in over the next 18 months with reports of branded
crabs on the loose. Undeterred, Target decided it was a great opportunity to send out Target gift
cards and turn it into something that was completely unplanned – a find the hermit crab
sweepstakes.
Effectiveness and Assessment
What does Target spend on advertising? The Target annual report suggests that Target spent
approximately $1,170 million on advertising in 2006. Newspaper circulars and media broadcast
made up the bulk of the spending. How does the company evaluate the return on that expense?
Winning advertising awards is fine, but what are the key measures for assessing effectiveness?
One example was the Target "Tony Bennett" campaign to leverage Bennett's 80th
birthday and his new CD "Duets: An American Classic." Target negotiated an exclusive version
of "Duets" featuring four exclusive tracks and a DVD of the making of the CD, sold exclusively
at Target. Then the company sponsored a star-studded gala in New York City to celebrate Tony
Bennett's 80th birthday and the release of his new CD/DVD complete with branded cocktail
napkins and martini glasses distributed to hot New York and Los Angeles clubs. Target ads ran
on A&E, TBS, and TNT, as well as in Time, People, and Vanity Fair to support the CD. Target's
ad agency also worked with director Rob Marshall to produce an NBC special that aired the
Roger A. Kerin, Steven W. Hartley, Arsenio Bonifacio, Donna Dumont, and Carol Bureau (2021), Marketing The Core, 6th Canadian Edition,
McGraw-Hill Ryerson
Transcribed Image Text:to showcase the line around the country. Two years ago, the retailer staged a "vertical fashion show" featuring acrobats in harnesses walking down the side of Rockefeller Center while wearing items from Target's fall collection. Sometimes the Target advertising itself becomes the story - a two-for-one advertising and public relations bonanza. Target was the sole advertiser for the August 22, 2005, issue of The New Yorker. The New Yorker is the paragon of style and upscale cool, perhaps the most prestigious magazine in the country, and many thought that the image of Target did not fit the media. The campaign generated controversy and buzz. On the one hand, The New Yorker was roundly criticized for permitting a single advertiser, unprecedented in its history, and for not printing some statement saying the advertiser did not have any control over the issue's editorial content. On the other hand, an otherwise jaded Adweek columnist gushed about Target's clever illustrations, the beautifully rendered and conceptually coherent design that matched the visual design of the magazine. Describing the effort as the “smartest and most exciting example of branded entertainment I have ever seen," the columnist went on to ask, "How many contemporary American brands have a logo and a visual identity so strong and distinct that it can sustain 21 pages in a single issue without a single product mention or word of text and have it all remain immediately recognizable?" Target has demonstrated that it is willing to take risks. Michael Francis has been known to say that if an idea sounds a bit scary, it's probably a good idea. One idea that didn't work quite as planned was painting bull's-eyes on white hermit crab shells as a means for Target to brand the Spirit Awards in Los Angeles, the week before the Academy Awards. People thought the crabs were cute until they were bit on their fingers. Well-branded hermit crabs were hanging off fingers in photographs from the event. But the stunt took on a life of its own as people from as far away as Mexico and San Diego called in over the next 18 months with reports of branded crabs on the loose. Undeterred, Target decided it was a great opportunity to send out Target gift cards and turn it into something that was completely unplanned – a find the hermit crab sweepstakes. Effectiveness and Assessment What does Target spend on advertising? The Target annual report suggests that Target spent approximately $1,170 million on advertising in 2006. Newspaper circulars and media broadcast made up the bulk of the spending. How does the company evaluate the return on that expense? Winning advertising awards is fine, but what are the key measures for assessing effectiveness? One example was the Target "Tony Bennett" campaign to leverage Bennett's 80th birthday and his new CD "Duets: An American Classic." Target negotiated an exclusive version of "Duets" featuring four exclusive tracks and a DVD of the making of the CD, sold exclusively at Target. Then the company sponsored a star-studded gala in New York City to celebrate Tony Bennett's 80th birthday and the release of his new CD/DVD complete with branded cocktail napkins and martini glasses distributed to hot New York and Los Angeles clubs. Target ads ran on A&E, TBS, and TNT, as well as in Time, People, and Vanity Fair to support the CD. Target's ad agency also worked with director Rob Marshall to produce an NBC special that aired the Roger A. Kerin, Steven W. Hartley, Arsenio Bonifacio, Donna Dumont, and Carol Bureau (2021), Marketing The Core, 6th Canadian Edition, McGraw-Hill Ryerson
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