...Market Mix The Four P’s Price, Product, Promotion, and Place My company has decided that we want to sell a particular product or offer a service? This product will be based on Coffee. Not just hot coffee’s – but Iced Coffee’s with different flavors. As the company grows we will introduce 2 simple baked goods, English Scones and muffins. Deciding to sell these certain products will keep it simple in the beginning. As my company action plan will employ the market mix, and the essentials of the four P’s that will enable me access to get the goods and services to the customers that I am targeting in my local area. The action plan is called the “Marketing Mix”. The marketing mix is one of the biggest and most critical decisions that a company can make. A bad marketing mix can result in poor performance and the potential for financial losses. One has no wish to be alone with a great cup of coffee and a Blueberry Scone watching the Casey Anthony Trial in an empty Coffee Shop. Now that’s a bloody nightmare there.(Fulton et al, 2006) The Origins of the Market Mix Plan It is well known the marketing mix plan created and well defined by McCarthy some forty years ago. It is commonly used to date as the standard outline and set of marketing tools that a firm uses to pursue its marketing objectives or goals (Kotler and Keller, 2006). The marketing mix is then broken down into four distinct categories. These categories are called the four P’s or Product...
Words: 2594 - Pages: 11
...Marketing Mix: Starbucks MKT/421 Marketing Mix: Starbucks When thinking about the companies that have had the most successful marketing strategies, Starbucks is one of the top companies. Starbucks is an international coffeehouse beverage chain that has become very successful. Their marketing strategies have allowed it to surpass other coffee offering outlets such as Peet’s Coffee and Dunkin’ Donuts. Starbucks has been able to capitalize on consumers wanting a quality coffee or tea beverage delivered at a reasonable price point. One of the key factors in their marketing strategy has been to cater to areas where consumers have a disposable income and a “want” for their products (“Starbucks Marketing”, 2013). Additionally, as revenues skyrocketed, Starbucks began offering their product at retail outlets. This enables any consumer to experience their product without even having to visit a local Starbucks coffee shop. This has proven to be a very successful venture for the company. Fiscal year 2011, boosted over 11 billion dollars in revenue for the coffee giant. None of this would have been possible without a successful marketing mix (“Starbucks”, 2012). Marketing mix The actual term marketing mix was first used back in 1940’s, but gained momentum in 1964. That year, Neil H. Borden published an article entitled The Concept of Marketing Mix that detailed the actual concepts of a marketing mix strategy. His initial idea contained around thirteen different...
Words: 1313 - Pages: 6
...To fully understand the importance of marketing and organizational success one must understand what marketing is. Marketing and marketing decisions are the key to an organizations success. Without the marketing process and marketing strategies an organization is sure to fail. To me marketing is the communication of products to a specific target market, and marketing plans are based on the four P’s of the marketing mix: product, place, promotion, and price (Perreault, Cannon, & McCarthy, 2011, p. 35). According to the American Marketing Association, “marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large” (Definition Of Marketing, 2012). In addition, “marketing is the performance of activities that seek to accomplish an organization’s objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer to client” (Perreault, Cannon, & McCarthy, 2011, p. 6). The marketing process and marketing strategies are important in an organizations success. Without these important elements in marketing organizations are sure to fail. The marketing process consists of three important steps. The first step is planning marketing activities. The second step consists of directing the implementation of the plans, and the third step is controlling these plans (Perreault, Cannon...
Words: 1036 - Pages: 5
...Introduction Marketing mix comprises four P’s: Product, Place, Price and Promotion, which is one of the most fundamental concepts of marketing. These Ps are quite essential for developing a marketing strategy of any organization (Perreault & McCarthy, 2004). The marketing mix (price, product, distribution, promotion) forms the entire promotional campaign. As stated in “Management of a Sales Force” by Rosann L. Spiro, Gregory A. Rich, and William J. Stanton, “when these are effectively blended, they form a marketing program that provides want-satisfying goods and services for the company’s market." The term became popular in the article written by Niel Borden called “The Concept of the Marketing Mix.” He started teaching the terms to many after he learned about it with an associate. The marketing mix is a broad concept that includes several aspects of marketing which all are required to obtain a similar goal of creating awareness and customer loyalty. The marketing mix is not only an important concept, but a guideline to reference back to when implementing the price, promotion, product, and distribution. Those are the four main ingredients of the marketing mix, but there are other components not already mentioned on the Wikipedia site, including, planning, branding, packaging, display, distribution channels, personal selling, advertising, servicing, and physical handling. All in all the current description of the marketing mix is accurate, but missing some vital pieces of...
Words: 1605 - Pages: 7
...corporations are making personalized customer service an important part of their image. As a marketing intern for a well-known national chain, you have been asked to evaluate these trends. What do customers today expect? How are other national chains capitalizing on these trends? In addition to evaluating the trends, offer recommendations to the company. A marketing mix focuses on the four p’s. Product, price, place and promotion act together to help reach customers as a unit and independently. The four p’s are used to develop strategies for marketing and when used well, have proven to be successful (Martin, 2014). NIVEA uses mix marketing. They put significant research into what younger women wanted which was a daily use product not a medicated one. They packaged it environmentally efficient with more natural products and kept its price low. For effective distribution and a wide reach, Nivea bases its promotions on the lifestyle of its target market. Sample sales and an interactive online magazine, social media are used to increase product visibility and reach its audience. Starbucks coffee uses four P’s. It puts its best locations to gain maximum visits and one such place for younger people is college campuses. Starbucks has a mobile app that messages contacts. Knowing that most people always have their phone with them, Starbucks focuses on mobile phone development as a marketing strategy to get information to consumers without having to pay for commercials or ads...
Words: 1072 - Pages: 5
...Marketing LaTroya c. Boyd MKT/421 4/30/14 Dr. Michael Rico WHAT IS MARKETING? I consider marketing to be a form of art. The goal is to persuade the audience and lead each individual into the direction of being convinced. Whether it is a product sold in the market or an idea of a business and the creator is looking for an investor, marketing builds the connection that should ultimately lead into trust. According to “Basic Marketing A Marketing Strategy Planning Approach” marketing is defined as more than just buying and selling. It is stated that “marketing is the performance of activities that seek to accomplish an organizations objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to consumer or client.” In other words, the mission of any business is to keep track of what customers are most interested in order to maintain a successful business. It takes strategic planning and for all involved in the company to use good communication skills and learn to coordinate with the rest of the so that everyone is on the same page. To promote goods or services the marketing strategy should be organized. Un-organization is the recipe for failure. Personally I believe marketing is quite a few things. Marketing is art. It is a process of convincing people and promotion. Other sources will sum marketing up and describe it as a management process where goods and services are moved from a mere idea to the consumer...
Words: 1725 - Pages: 7
...ELEMENT IN THE MARKETING MIX Definition of Marketing Mix According to Philip Kotler - "Marketing Mix is the combination of four elements, called the 4P's (product, Price, Promotion, and Place), that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy" Marketing Mix was first coined by Neil Bordon, the President of the American Marketing Association in 1953 and is referred to as the set of actions, used by a company or organisation to promote its product or service in the market. A typical Marketing Mix is made up of 4Ps – Product, Price, Promotion and Place. These 4 Ps were introduced by the marketer E. Jerome McCarthy in 1960 and since then they are being used worldwide by the marketers. Product A product is a good or service offered by the company to satisfy the demands of the consumer. Price Price is considered to be an amount charged by the seller for the product or service given to the buyer. Promotion The methods used by the marketer to bring the product into market and to create awareness among the people e.g. advertisement. Place Place is all about how the products reach its buyers for sale. A business can be profitable only when the right product with right price is made available to the right users. The Product ‘P’ is always the single most important element in the Marketing Mix Affirmative The product plays the most important role in the entire process of marketing mix. The product is...
Words: 1186 - Pages: 5
...Draft #1 Section I Starbucks In 1971, three friends with a passion for coffee opened a gourmet shop ? Starbucks was born. The coffee shop's name comes from Herman Melville's 19th century novel about the whaling industry, Moby Dick. The seafaring name seemed appropriate for the small shop, which imports the finest coffee. The cold weather and thirsty Seattle community seemed to be a perfect match for this endeavor. Starbucks caught on and, in less than a decade, became Washington's largest coffee roaster. In 1982, Starbucks coffee changed forever. While traveling in Milan, Italy, head of marketing Howard Schultz was intrigued by the coffee shop atmosphere ? patrons sitting, relaxing and chatting over café latte. Wanting to incorporate what he had experienced into Starbucks, Schultz brought the idea home. Starbucks owners balked at the change, so Schultz opened his own coffee shop, IL Giornale ? nearly an overnight success. In 1987, Schultz purchased Starbucks for $3.8 million. Today, Starbucks has approximately 12,440 locations, consisting of 8,836 stores in the U.S. and 3,604 internationally located in 37 different countries. The future of the corporation looks bright for the 2007 fiscal year; Starbucks plans to add 2,400 new stores in calendar year 2007 this is based on a global basis. The company goal of 30,000 stores has been modified to 40,000 stores worldwide. The plan is to have half the stores in the U.S and the other half internationally. With record net earning...
Words: 2805 - Pages: 12
...Abstract This paper explores the global strategies of McDonald’s Corporation and Starbucks Corporation. An overview of the company histories is included along with the basic business philosophies. The focus of the paper is on the marketing strategies, both domestic and international, examining the marketing mix for each company. The four P’s of marketing are detailed with examples of how each company uses them to their advantage. The reasons for the successful global expansion of both companies are incorporated into the compiled information. A Look at the Global Marketing Strategies of McDonald’s and Starbucks McDonalds and Starbucks are two domestic companies that are very successful. Both have emerged first as leaders in their respective markets domestically, and because of that success have been able to grow and expanded into countries all over the world. This paper will examine these two companies from a global perspective in order to evaluate their marketing strategies, with a particular emphasis on how successful they have been in foreign markets. The paper will focus on how each company has applied the four P’s of price, product, place and promotion in their marketing mix, detailing how they are used gain an advantage in their respective markets. Finally, the paper will evaluate the success of these organizations in developing niches in their markets as compared to their competition. The first company examined is McDonald’s Corporation or McDonald’s as the...
Words: 3969 - Pages: 16
...Final: A Starbucks Case Study Brian Davis Business Ethics BUSM 4263 Dr. Johnson April 5, 2012 Incorporating Coffee and Business the Starbucks Way The Early Years Starting a Small Group – During a business trip Howard Schultz visited Seattle, WA, investigating why a local coffee shop was outselling Macy’s in specific drip coffee makers. His visit brought him to Starbucks where he first met Jerry Baldwin, Zev Siegl, and Gordon Bowker. Inspired, Howard Schultz sought and achieved employment with Starbucks as the head of marketing, forming a small group of owners and leaders. A small group interaction is, “the process by which three or more members of a group exchange verbal and nonverbal messages in an attempt to influence one another” (Tubbs, 2007, p. 6). As a new member of the Starbucks group Schultz brought fresh new ideas and a vision for future growth and expansion. For example, Schultz helped develop customer-friendly skills that employees utilized to build better relationships with clientele. This process was the beginning of teamwork in the Starbucks Company during the Schultz era. Group Dynamics – Group dynamics is defined as, “the interactions that influence the attitudes and behavior of people when they are grouped with others through either choice or accidental circumstances” (Dictionary.com, 2012, p. 1). Over time the dynamics of the cohesive Starbucks team shifted, after hiring Schultz, causing dissention...
Words: 4272 - Pages: 18
...SUMMARY 2 PROBLEM STAEMENT 3 SITUATION ANALYSIS 3 Background 3 Objectives and Goals 3 SWOT Analysis 4 MARKET ANALYSIS 4 Marketing Mix 4 COMPETITION ANALAYSIS 5 External Environment (PESTE) 5 CONSUMER ANALYSIS 6 Positioning Map 7 CASE KEYS 7 ALTERNATIVES – need more pros and cons 8 RECOMMENDATIONS 8 ACTION PLAN - TBD 9 CONTINGENCY PLAN -TBD 9 APPENDIX A – Competitor’s strength and weakness 10 APPENDIX B – Segmentation 11 REFERENCES 12 EXECUTIVE SUMMARY Founded 1971, Starbucks started off as a bean roasting company. After a visit to Italy by Howard Schultz, he was determined to open an Italian style espresso bar. For the next 20 years, after the name had been purchased by Howard in 1987, there was a vast growth and expansion. With little competition, Starbucks was able to open a total of 15,011 stores in globally in which two-thirds were in the USA. In 2007, Starbucks was hit with a financial crisis that plunged its shares around $19-$20. With a negative working capital caused by increase financial debt both short and long-term, the sharp expansion due to strategy shift may have caused targets in 2007 not to be met. As shareholders expectations were high, Shultz reclaimed is seat as CEO with intentions to steer the company back to focus on the customers and commitment to its community. During the years of great success for Starbucks, there was little competition globally. Its direct competition in Canada was Second Cup and in the US was Pete’s Coffee &...
Words: 1609 - Pages: 7
...How Costa Coffee would benefit and create additional value for their coffee store clients by using elements of Starbucks marketing strategy? Contents Introduction 3 Coffee Market in the UK 3 Market Leading Coffee Shops in the UK 4 Costa Coffee 4 Identifying competition 6 Starbucks 6 Conclusions 8 Recommendations 9 References 11 Appendix 1 13 Appendix 2 14 Appendix 3 15 Introduction Competitive marketing strategy is described by Kotler and Armstrong (2012) as a strategy which positions company against competition giving it the strongest possible strategic advantage. I have chosen Costa Coffee as it currently is the market leader in terms of most coffee retail outlets in the United Kingdom as demonstrated on appendix 1. Kotler and Armstrong (2012) point out that competitor analysis includes assessing competitions objectives, strategies, strengths and weaknesses, reaction patterns and selecting which competitors to attack or avoid. For he purposes of this assignment, I have identified competition based on the market share and customer view. Competitive marketing strategy is selected on the basis of it creating further value for the customer. Blythe (2009) concludes that competitive advantage is the outcome of effective...
Words: 2664 - Pages: 11
...Marketing Mix Jermaine Anderson MGT 421 January 22, 2013 Professor Robert Thompson Organizations rely on marketing to get a product new or old, big or small on the market to sell. If done correctly it will lead to a successful organization. One of the key components of a marketer is understanding the different element of the marketing mix. There are four basic elements: price, product, promotion, and place. Throughout this paper we will better analyze these four elements that consist of the marketing mix. Then compare the knowledge from the marketing mix into a real organization. Finally, discuss how each element affects the product as a whole and the organization’s development in its specific industry. Elements of the marketing mix There are four sections of the marketing mix: price, product, promotion, and place. They are called the four P’s and are used for products or service to enter a market successfully. Price considers a feasible amount that would be profitable and still remain a balance with sales. In this section it is important to scan the environment for competitors’ products prices and determine the value from products that are already on the market. Also it is important that the price of the good or service is considered reasonable by the consumers or the product will be rejected and unsuccessful. The product section takes into account the different variables of the product such as: packaging, features, benefits, warranties, instructions, branding, quality...
Words: 1268 - Pages: 6
...Marketing Plan Phase III MKT/421 December 1, 2013 Pareesa Naveed Marketing Plan Phase III Incorporating a home delivery and catering service for Starbucks is a different and exciting avenue the company will be taking to expand their products and services to their customers. The attributes of these services differ from Starbucks other service. This overview will look at the different attributes of the product along with the life cycle of the new services provided. Starbucks has already differentiated its products in the market as some of the finest atmosphere oriented coffees on the market. Starbucks will employ, differentiate, and position strategies to separate its new services. They will also have use an appropriate pricing strategy for these new services. This overview will evaluate how Starbucks will use these strategies to provide the best marketing for the new services they intend to provide. Starbuck’s new coffee home delivery is available for customers to sign up online or in a store. Starbucks coffee lovers can have the coffee they love delivered to their front door monthly. The convenient sign up process will provide the customer with an auto-shipment of coffee direct from Starbucks monthly. The customer selects the date and duration between shipments. Consumers quickly sign up with a credit card and receive their Starbuck’s coffee delivered to their home every month without worrying about purchasing coffee at a retail location. Coffee lovers...
Words: 1792 - Pages: 8
...MARKETING FUNDAMENTALS (BMAN 70441) University Student ID: 7922185(0) Application of the marketing mix is no longer relevant for firms adopting a contemporary approach to marketing. Is this statement true? Write an essay that critically assesses this statement with reference to relevant literature and briefly outline suitable practical examples of firm’s practices where appropriate. Introduction Marketing developed as a distinctive management function in the period between the First World War and the Second World War (Lindgreen et al., 2004) which according to Marshall (1927) focused purely on distribution and exchange of goods. Period through the 1950s and 1960s as observed by (Borden, 1964) saw a tremendous increase in the evolution and interest in the subject of marketing, leading to the development of the concept of transactional marketing. The Marketing Mix Model also called as transaction marketing has been used as a corner stone of marketing for virtually four decades (Grönroos, 1994). Since its inception, McCarthy’s (1964) Four Ps- Product, Promotion and Place have been of utmost importance in the marketing management text (Yudelson, 1999). The model has seen little change since 1950s and as time has progressed; goods and services have noticeably transformed, both in terms of appearance and perceived value (Grönroos ,1994). Piller and Müller (2004) further observed that the customers had changed...
Words: 3027 - Pages: 13
