Four P's Marketing Mix on Starbucks

In: Business and Management

Submitted By mizzaetnoy
Words 1212
Pages 5
2
Four P’s Marketing Mix on Starbucks
The marketing mix plays an important part in marketing. The purposes of the marketing mix are to use a combination of tools to satisfied the customers and obtain company goals. The marketing mix is referred as the four P’s: product, price, place, and promotion. “The elements are adjusted until a right combination is found that serves the needs of the product’s customers while generating optimum income”. (Marketing Mix, 2010, p. 1). By using the four P’s, most businesses have the ability to connect with consumers within the targeted market. The ability to create a successful marketing mix often has good results. However using the wrong mix can lead to failed marketing strategies which can result in the business dissolving. The key is not to get stuck on one mix; the combination of elements often has better results than just using one. This research paper will review all elements of the marketing mix and how each ones plays an important role that organizations must acknowledge in order to be successful.
The first P in the mix is the product. The product is used to determine market needs, wants, and desires, to assess internal resources regarding satisfying market needs, wants, and desires with innovation, to develop process for market resource and product testing, and to forecast product life cycle. With this being said, the product would refer to a physical product or service in a company. The product would be used to satisfy a targeted group of consumers and customers.
The second P in the mix is the price. The price would depend on how and which product is being offered, the price of the competition on a similar item, and how much demand there is for the product. The price is to know how to understand strategic applications, developing a cost

Marketing Mix 3
based or value based pricing depending upon market…...

Similar Documents

Starbuck Marketing

.../starbucks Figure 10 – Influences on Consumer Purchase Decision Process Marketing mix influences Product Coffee products and Starbucks experience. Price More expensive than average coffeehouses. Promotion In-store advertisements, interviews and articles in newspapers and magazines. Place Everywhere, you don’t have to go far to find a Starbucks: “The Non-Coffee Treat” 13 Psychological influences: Motivation Physiological need Personality Compliant - prefer known brand names Perception Selective exposure, notice Starbucks when tired or thirsty. Attitude Favorable attitude toward Starbucks experience. Belief You will always receive good coffee and service Lifestyle Busy, fast-paced Consumer purchase decision process Problem recognition: Feeling thirsty, need of energy caffeine ↓ Information search: Friend’s relatives, advertising and display of posters ↓ Alternative evaluation: Other acceptable brands of coffee drinks ↓ Purchase decision: Assessment of receiving value for given price ↓ Postpurchase behavior: Satisfaction from product and experience Sociocultural influences Personal influence Opinion leaders – Important associates drink Starbucks coffee you want to too. Word of mouth – A friend mentions how great the new Frappuccino flavors are. Reference groups Membership group such as college students or business associates. Family Parents go to Starbucks when child matures will remember the experience. Social class Middle to upper class business associates and......

Words: 4057 - Pages: 17

Marketing Mix

... countries to take advantage of relationships, storefronts, factories, and personnel already in place. These offices still report to headquarters in the home market but most of the marketing mix decisions are made in the individual countries since that staff is the most knowledgeable about the target markets. Local product development is based on the needs of local customers. Lufthansa has handle the global market very well with having the second largest Boeing 737-300 fleet in the world because they acknowledge that each market/country has different needs. (Douglas, S and Craig, S (1996) References Anonymous, (2011) Southwest Airlines and Lufthansa Airlines Retrieved from http://airlinespoint.com/SouthwestAirlines/LufthansaAirlines Douglas, S and Craig, S (1996) Responding to the Challenges of Global and Domestic Markets: Change, Complexity, Competition and Conscience Retrieved from Journal of International Marketing 4: 93-110...

Words: 822 - Pages: 4

Marketing Mix

...Marketing Mix Student name Class name/number/ week number Date due Instructor’s name Marketing Strategy Marketing strategy can work with any company from profit to nonprofit. A nonprofit organization provides some input into how families in need can and do receive help without anyone judging anyone else for asking. Working with The Way Ministry is a learning experience that teaches people, to help, and receive help. Providing information on the marketing environment and the marketing mix are the next steps in the marketing strategy. The picture gives some information on where each item is in the marketing strategy. (Marketing: An introduction, p. 48). Marketing Environment According Armstrong and Kotler (2009), “There are three kinds of companies: those who make things happen, those who watch things happen, and those who wonder what’s happened” (Marketing: An introduction, p. 47). The above statement describes the different companies and the success of each. A company can look toward the future and predict what may happen in advance to control the situation, possibly making a profit. Another company will watch what happens and follow through with the flow of what is going on at the time not making a profit but not losing money. The third company will look at the first company and wonder how it...

Words: 1750 - Pages: 7

Four P's or Marketing Mix

... this paper I will explain the Four P’s (Product, Price, Place, and Promotion) or Marketing Matrix and its elements as they relate to a company’s marketing platform. 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. (American Marketing Association, 2012) In layman’s terms marketing is what a company does to get the word out to as many people as possible, and how they get the word out to the masses or a selected audience. Platforms are what companies use to help market there business in today’s marketing strategies most platforms used are social media platforms. Strategic marketing plans define the company’s mission and objectives. Once the company has decided on their marketing strategy and the targeted customer base has been decided they move on to the next phase, constructing a marketing program. Marketing programs consist of blended marketing mixed elements and focus on the four P’s to transform the marketing strategy into a well thought out plan to bring to life. Marketing departments in companies are tasked with summarizing the major activities involved in managing a customer-driven marketing strategy and the marketing mix. (Armstrong & Kotler, 2011) The first phase in the four P’s is deciding on and developing the “Product”. A product is the goods and services the company offers to their targeted markets.......

Words: 995 - Pages: 4

Four P's Marketing Mix on Starbucks

...2 Four P’s Marketing Mix on Starbucks The marketing mix plays an important part in marketing. The purposes of the marketing mix are to use a combination of tools to satisfied the customers and obtain company goals. The marketing mix is referred as the four P’s: product, price, place, and promotion. “The elements are adjusted until a right combination is found that serves the needs of the product’s customers while generating optimum income”. (Marketing Mix, 2010, p. 1). By using the four P’s, most businesses have the ability to connect with consumers within the targeted market. The ability to create a successful marketing mix often has good results. However using the wrong mix can lead to failed marketing strategies which can result in the business dissolving. The key is not to get stuck on one mix; the combination of elements often has better results than just using one. This research paper will review all elements of the marketing mix and how each ones plays an important role that organizations must acknowledge in order to be successful. The first P in the mix is the product. The product is used to determine market needs, wants, and desires, to assess internal resources regarding satisfying market needs, wants, and desires with innovation, to develop process for market resource and product testing, and to forecast product life cycle. With this being said, the product would refer to a physical product or service in a company. The product would be used to satisfy a...

Words: 1212 - Pages: 5

Marketing Mix

...Marketing Mix Student Name Marketing MKT421 SC11BSB04 Date Professor Marketing Mix Marketing mix is a tool that companies use to develop marketing strategies and a way to implement new programs to communicate a value for consumers. According to the text, Basic Marketing, the marketer tools are “product, price, place and promotion” (Perrault, Cannon & McCarthy, 2011). Four P’s of Marketing Marketing mix is known as the 4 Ps of Marketing or Product, Price, Place (distribution) and Promotion. These become the guidelines that marketers use to control the environment of marketing. Decisions need to be made that place the 4 P’s on client or customer experience and create a positive experience and generate value. Product: When a company has a brand name, offers a warranty, promotes quality or style. Price: Developing the use of a strategy for pricing, or a suggested retail price, being flexible or offering wholesale pricing and volume discounts. Good examples of this are Costco and Sam’s Clubs. Place: The products have to reach the customer. This P is about the use of distribution channels, warehousing or having a distribution center, transportation and managing the inventory. Promotion: This model is how information about the product must be communicated with the end goal being a positive customer experience. This is the area in which marketing communications would use promotions, advertising, public relations services and create a marketing...

Words: 1498 - Pages: 6

Marketing Mix

...Marketing Project on ITC Ltd. Ciggarette Industry Submitted to: Dr. Kavita Pathak Submitted by : Ajitesh Kumar Soni(012) Anuj Tripathi(033) Ashish Kumar(042) Avi Shankar(052) Akash Yadav(017) Dheeraj Suri(060) Table of Contents Introduction 3 Cigarettes: 3 The Global Tobacco Market 3 ITC 4 MARKETING MIX 5 Product 5 Price 5 Promotion 5 Place 5 VISION AND MISSION (/www.itcportal.co) 6 VISION 6 MISSION 6 PEST ANALYSIS 6 POLITICAL ANALYSIS 6 SOCIAL ANALYSIS 6 SWOT ANALYSIS (itc-hikes-gold-flake-prices) 8 SEGMENTATION 9 FUTURE GROWTH PROSPECTS 9 Bibliography 11 APPENDIX 12 Introduction Cigarettes: Cigarette is a product consumed via smoking and manufactured out of cured and finely cut tobacco leaves and reconstituted tobacco, combined with other additives, then rolled or stuffed into a paper-wrapped cylinder (generally less than 120 mm in length and 10 mm in diameter). The cigarette is ignited at one end and allowed to smolder for the purpose of inhalation of its smoke from the other (usually filtered) end, which is inserted in the mouth. They are sometimes smoked with a cigarette holder. The term cigarette, as commonly used, refers to a tobacco cigarette but can apply to similar devices containing other herbs, such as cannabis. Approximately 5.5 trillion cigarettes are produced globally each year by the tobacco industry...

Words: 3269 - Pages: 14

Marketing Mix

... important strategies in the market, and customer recognition is foremost. Sales Promotions such as free checking, or 0% interest on a credit card may persuade a customer to buy the service. . The four elements of the marketing mix; product, place, price, promotion, affect the development of the Wells Fargo marketing strategy. Product for this company is the personalized service provided to each client. Wells Fargo teaches team members to cross sell services, increasing customer awareness and revenue. The firm uses place by having land locations for customers enjoying a physical site, or Internet services for people on the go. Many people work from home and need the convenience of banking at their fingertips. Online banking, ATMs, and wire transfers make banking more convenient and cost-effective for customers and businesses alike. Wells Fargo has an advantage in the marketplace because this company helps to set the industry rates and is very competitive in the market. Product promotion includes advertising because it introduces the service to the client. Wells Fargo encourages the cross selling of products, and trains the team member to handle the opportunity. The team member who has knowledge of a product, or perhaps uses a product the customer does not have, is more comfortable offering the product to a customer. The company’s marketing strategy is “to be the...

Words: 1653 - Pages: 7

Marketing Mix

...Marketing Mix of Kraft Foods When a company, like Kraft food, look at an alteration in its promotion it can believe about four ground rules, which are documented as the marketing mix or 4Ps, explained below: Products: Kraft foods are one of the most versatile companies based in America. Over the many years, Kraft food is serving as one of the most famous, delicious and prominent brand. The major products of the company are in chocolate, coffee, candies, etc. brands. The company’s products are recognized as delicious. That’s the reason company states that being delicious is their main rival factor that differentiates it with other food brands. The corporation produce and marketplaces wrap up are sold food products such as Coffee, cheese products, desserts, ready to cook foods, confectionery, juices, ready-to-cereals, desserts, convenient etc. , under the main brands such as Kraft, Jacob’s, Philadelphia, Maxwell house, Nabisco, Oscar Mayer, Post, Oreo and LU. Pricing: The pricing strategy of Kraft food is quite competitive to as compare of other food brands. The quality of food products is superior but cost effective to management. The company states that they never compromise on the quality of their branded food stuff, however they always try to introduce such ingredients while manufacturing their products that are taken from natural sources and cost effective so that both consumer & company enjoys competitive price products. Placement: Kraft...

Words: 816 - Pages: 4

Starbuck Marketing Strategy

... clear in every maketers mind. In this case, one of the factor of marketing mix, the place, the importance of distribution will show how the importance is to distribute company product to customers. There are two types of distribution which are direct distribution and indirect distribution. Direct distribution: It is about the company sells their product directly to the customers. Indirect distribution: This type of distribution is that the company sells their product not directly but through intermediaries such as wholesalers, retailers, and so on then to the customers. In Vietnam, Starbucks distribution strategy is quite poor. The company just uses the direct distribution, and it means that customers in Vietnam who want to buy coffee from Stabucks can just only go directly to their stores, order a cup of coffee from the stalls. In addition, when customers want to buy the package of coffee roast to bring home, they can only buy directly in Starbucks store either because these packages have not available in wholesalers or retailers in Vietnam yet. This strategy can course Starbucks that their product comes to customers in just one way, so it is hard for the company to gain more profit because the product cannot be expanded widely. However, it can be one of the good strategy for Starbucks because it fits the company goal which is serving people. According to Starbucks, the company wants to put the customer at the center of their activity and consequently, all their...

Words: 3045 - Pages: 13

Marketing Mix

... customers just stop buying it and the firm thus has to stop the production Many products tend to fit into this product cycle model following through the four stages. The product life cycle model is important to producers because it helps them understand the nature of market requirements. To understand the sale pattern firms must monitor sales so that they are able to place them on the product life cycle and make the right strategies. If firms understand when the maturity stage is reached, they are then able to use extension strategies, which may include special offers or the development of new uses for the product. The product life cycle is therefore useful when the business wants to make changes to its product range. 3) What is price? Using examples, explain how a company’s pricing strategy might be effected by, and effect, the marketing mix? In selling a product price plays an important role in whether the product succeeds or fails on the market. However there are aspects of the marketing mix that are also crucial to sell a product. Importance of price Consumers tend to have their own price expectations and when a product is highly or lowly priced it may jeopardize the success of the product, consumers get a chance to assess value for money from the price. Consumers can also get a chance to assess the quality of the product. There are several factors that firms take into account to decide on the best price for the product. Price elasticity This considers......

Words: 1365 - Pages: 6

Marketing Mix

... more direct marketing to the target group which has more satisfaction to their needs and wants. This enables a company to be able to be a market leader in a particular market segments to cover for those it isn’t. Promotion The communication element of the marketing mix includes personal and non-personal communication activities. Activities that communicate the qualities of the product, which includes: * Personal Selling * Advertising--Mass or non-personal selling: TV, radio, magazines, newspaper, outdoor/out-of-home. Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor to a specified market. (Kotler and Armstrong, 2010). Adverts can be a cost-effective way to disseminate messages, whether to build a brand preference or to educate people. * Sales Promotion--Trade deals, samples, coupons, trade shows, sales rep contests, events/experiences and more can be used in the promotion administration. * Collateral Materials--Booklets, catalogues, brochures, promotional products and annual reports. * Direct Marketing - direct mail, database management, catalogues, telemarketing, and direct-response ads including web ads * Events and Experiences Promotion is one other important element of marketing. It is important as it is through promotion that information about the product is passed on from one person to the other, so that if there is a need or want for this product, relevant...

Words: 1549 - Pages: 7

Marketing Mix

... page. The presentation slides should not more than 6 slides. 3. Group Written Assignment (60%) Requirements Select a company in the consumer market for analysis and write a report on the following topics: * Background of the company * Marketing Mix: Product, Place, Price, and Promotion * Recommendations Instructions to students * Form into groups of 4 to 5 students in each group. * Write a report of between 12 to 15 pages (excluding Table of Contents and Appendices). A penalty of 2% will be imposed on reports exceeding the required number of pages. * The assignment must be submitted in neatly type-written Report Format. * Assignment is to be typed in font size 12pt, Times New Roman. 1.5 spacing and Justify for text align on A4 size papers. * All pages must be paginated consecutively using Arabic numerals (e.g., 1, 2, 3, etc) including appendices and printed at the bottom centre of the page. * Appendices: copies of articles must be attached to the report. * Use the Harvard Referencing System. * The written assignment must be submitted in second tutorial of Week 5 during tutorial session. * A softcopy of the assignment in CD format must be submitted together with the written assignment. * Students will get the feedback of their assignment during week 7. * Students are required to submit their original work and avoid any plagiarism. Students are required to sign a declaration that the work submitted is...

Words: 2296 - Pages: 10

Marketing Mix

...The most important process that should be concentrated in marketing is creating an appropriate marketing mix. The main objective of a marketing mix is the accurate product for the accurate customer at the accurate place.  Product    * Produce more ‘sexy’ smart phones with slim, lightweight and fashionable designs to attract customers (e.g. the unique curved all-touch screen of Nokia N9 and Nokia Lumia 800).   * Focus on extending the OVI store (including music, games, apps, map etc) with the assistance of partners and its advantages (e.g. office application)   * Design more series of smart phones so that customers will have many choices based on their ages, characteristics and hobbies   * The average age of people in UK is around 40.1. Therefore It is a suitable market to put up for sale business smart phones such as Nokia E7, Nokia Lumia 800 and Nokia 701.   * Build up more Nokia warranty/service center in UK to meet, satisfy and solve all the needs of customers.   * All the products should be ‘green’ , including eco-design (mobile phones), energy-saving (adapters) or environmentally responsible (packaging materials) as they are serious global issues nowadays Price Price of a product must be decided based on the Product Life Cycle. Products or services which are highly technological and advanced can be released into market at premium prices where as the other products can be offered at low prices in order to attract most of...

Words: 570 - Pages: 3

Marketing Mix

... the commencement of classes. ➢ Offering credit to those who are credit worthy based on the history of the customer. ➢ Exemptions can reduce the tuition fees paid by students. ➢ Pricing structure can be prepared depending on what the customer wants. For instance, a student who does not need bearding facilities should not be given charges on boarding. She or he should be given tuition fees only. ➢ The council should introduce subsidized fee or scholarships programmes for those who do well in extra-curricular activities such as sports, drama, community work, and those who portray good character, among others. This will increase the number of students in the university. ➢ The council should formulate a strategy about the fee structure which should be friendly to all customers. Instead of the ANU marketing department writing tuition fee per unit they should just write per credit hour in order for the viewer to be attracted Promotion Modern marketing calls for more than just developing a good product; it must be priced attractively and made available to target customers. Companies must also communicate with current and prospective customers about product or service offerings. A company’s total marketing communication mix, also called its promotion mix, consists of the specific blend of advertising, personal selling, sales promotion, public relations, publicity and direct marketing tools that the company uses to pursue its marketing objectives (Kotler and...

Words: 2435 - Pages: 10