...This essay will illustrate the extent to which effective marketing must incorporate Segmentation, Targeting and Positioning. Segmentation, targeting and positioning is a three stage process. Segmentation describes what kinds of customers exist, targeting describe target market which is best to serve and positioning which describe segmentation by categorizing the products or services for that segment. Segmentation is “the process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment.” Segmentation try to find out what kinds of different consumers with different needs exist. Segmentation depend on? Gender Age Social class Personal Disposable Income Family life cycle Employment status Marital status / living arrangements and many more. Segmenting consumer markets - Geographic -Demographic -Psychographic -Behavioural There are different kinds of variable which are used for segmentation: -Demographic – to this belong: gender, income, education, location, and family size, ethnic. -Behaviour – some customers are “brand loyal”- customers stay with the brand they are stick to. Some consumers are “heavy” users while other are “light” users. Targeting evaluate the attractiveness of each segment. Defending a target market requires...
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...Starbucks Market Segmentation Market segmentation is a common marketing process that divides a large group of an audience into a certain criteria with consumers that have similar needs, according to the online Business Dictionary (WebFinance, 2013). Once a market segment is developed, companies can use the marketing mix to individually approach the most profitable markets with messages specifically designed for them. This makes marketing investments more efficient. If successful, the benefits are higher profit margins, possible market share and revenue growth (Tobak, 2008). Starbucks uses demographic segmentation markets by: age, gender, income, ethnic background, and family life cycle; as well as geographic segmentation markets by: region of a country or the world, market size, market density, or climate; and psychographic segmentation, which can link with demographics. The company positions the business as a highly respected brand, and as such, that can distinguish their products from competition, which gives them an advantage. Starbucks practices a concentrated targeting strategy by focusing only one segment, which is the gourmet coffee drinker. This is how Starbucks defined its niche and labels the company as a high quality product. After establishing their niche, Starbucks continually expanses its product line to their specific segment more enthusiastic (Cachola, 2012). According to the article: “Starbucks and McDonald’s Winning Strategy” by Panos Mourdoukoutas, it...
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...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...
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...Starbucks Marketing Mix Paper Aiza Ashley Starbucks Marketing Mix Paper A good marketing plan must possess a strong marketing mix strategy. Organization uses marketing mix strategy modeling to estimate causal relationships and measure how marketing activity affects outcomes. The Marketing-mix models analyze data from a variety of sources, such as retailer scanner data, company shipment data, pricing, media, and promotion spending data, to understand more precisely the effects of specific marketing activities. In this paper there will be a description of the four elements of marketing mix: product, price, place, and production. It will describe how the four elements of marketing mix affect the development of the marketing strategy for Starbucks. The Four Elements of the Marketing Mix Modeling The four elements of the marketing mix modeling products, price, place, and promotions also known as the four Ps of marketing were known as the controllable parameters likely to influence the consumer buying process and decisions (Constantinides, 2006). The strength of the four Ps approach is that it represents a memorable and practical framework for marketing decision-making and has proved useful for case study analysis in business schools for many years (Constantinides, 2006). Product Product refers to aspects such as the firm’s portfolio of products, the newness of those products, their differentiation from competitors, or their superiority to rivals’ products...
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...Marketing Mix Latasha Edwards University of Phoenix MKT/421 Stuart Ringer July 07, 2012 Abstract This essay will describe the elements of the marketing mix. Starbucks is the organization that will allow a description of how all four elements affect developmental marketing strategy. An explanation of how each part of the marketing mix is implemented and what industry that Starbucks exist is present. Marketing Mix Starbucks originated in 1971 in Seattle. Today there are over 17,000 stores across 55 countries all over the world. The mission; “inspire and nurture the human spirit one person and one cup at a time” (Starbucks Company Profile, 2011, p. 1). Starbucks got its name from a story; Moby Dick and logo is a Greek mythology siren. This company views employees as partners. Products include coffee; more than 30 blends, handcrafted beverages; such as Frappuccino’s and ice coffee, merchandise; cups, mugs, music, books, fresh food; cookies, salads, and sandwiches. Marketing mix A plan, that is controlled, including four elements; product, price, place, and promotion. The company makes adjustments of these four elements until the right combination meets consumer needs. The ultimate goal, when using this tool, is to make a profit (Marketing Mix, 2012). Product is the central part of the marketing mix. One has to figure out how to make it, how the product line is going to run and set it up. One also has to decide the...
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...Table Of Content Introduction Marketing mix is one of the most useful strategies for every company to look for to have a good business. Starbucks has analysed the marketing mix to develope their brand in many market mostly in the Western country. However, in Eastern one, specifically in Vietnam market, the marketing mix strategy have to be different. This report will talk about the individual elements of the extended marketing mix and how to use the marketing mix in different contexts of Starbucks Vietnam. Starbucks Vietnam Marketing Mix Report 1. The explaination of how Starbuck Vietnam developed products to sustain competitive advantage Product is something that sastisfies a set of want that customers have. In every companies as well as Starbucks Vietnam, when they want to develope new product, they have to follow the eight stages of new product development (NDP) process: Figure 1: New Product Development Process (adapted from learnmarketing.net: New Product Development (NPD), n.d) The first two stages are the idea generation and idea screening. When Starbucks wants to make new product, the company needs to have new idea and the idea needs to be sreen clearly. The idea of Starbucks Vietnam can come from many ways that are from their competitor, through the market analysis or from the holiday, season or popular event. As can be clearly seen that, through time to time, Starbucks has came up with many new idea to survive in Vietnam market. They analyse the coffee...
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...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...
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...Marketing Mix Fontineese Green MKT/421 November 11, 2013 Jeff Lewis Marketing Mix Marketing mix is defined as a planned mix of the controllable elements of a product’s marketing plan commonly termed as 4Ps: product, price, place, and promotion. These four elements are adjusted until the right combination is found that serves the needs of the products customers, while generating optimum income (Business Dictionary.com, 2013). When a company is marketing their products, it is useful to reduce all the variables in the marketing mix to four basic ones: * Product * Place * Promotion * Price In order to create the most effective marketing mix, the product has to have the right features. Keep in mind that Product is not limited to physical goods. For example, the Product of H & R Block is a completed tax form (University of Phoenix, 2011). Place is concerned with all the decisions involved in getting the “right” product to the target market’s Place. This happens through a channel of distribution. A channel of distribution is any series of firms (or individuals) that participate in the flow of products from producer to final user or consumer (University of Phoenix, 2011). Distribution decisions include market coverage, channel member selection, logistics, and levels of service (“Quickmba”, 1999-2010). Promotion is the business of communicating with customers. It will provide information that will assist them in making a decision to purchase a product...
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...traits used to execute the business strategy. Starbuck opened in 1971. The company was a single store in Settle’s historic Pike Place Market. Starbucks went from just a narrow store front to one of the world’s largest and successful coffee store chains. Starbucks offer the world’s finest fresh-roasted whole bean coffee. The name was inspired by Moby Dick, evoked the romance of the high seas and the seafaring tradition of the early coffee traders. Howard Schultz chairman of Starbuck had a vision to bring Italian coffee house tradition back to the United States. A place for conversation and a sense of community. A third place between work and home. He left Starbucks for a short period of time to start his own 11 Giornale coffee houses and returned in August 1987 to purchase Starbucks with the help of local investors. Starbucks was set out to be a different kind of company. One that not only celebrated coffee and the rich tradition, but that also brought a feeling of connection. Starbuck’s mission is to “Inspire and nurture the human spirit-one person, one cup, and one neighborhood at a time” (Koehn,2002). Starbuck’s Organization Culture Starbuck sets themselves apart from other companies because they use the most distinct characteristics. The company influences employees and business performance. Starbuck’s employees work with each other and how they interact with customers. One of Starbuck’s indicators of Starbucks Coffee’s organizational culture is the warm...
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...summary “Third home”, it is concept created by Starbucks. This unique idea comes up because Starbucks understand consumer needs and wants. Starbucks is one of the most successful coffee shop chains with over 17000 stores in 52 countries. The company also employs 137 000 people, Starbucks is leader of coffee shop industry. Starbucks attracts various generations from teenager to senior citizen. But, their main target is office worker in middle and upper class who want “third home”. Surprisingly, nowadays their main competitor is fast food chain such as Mc Café and Dunkin’ Donuts. One of the strongest strength is cozy ambience of their shop where customer can feel comfortable. However, the reputation of Starbucks’ coffee taste is not so good despite of their success; this is their weakness to improve. Likewise, conducting Macro analysis allows Starbucks to grow more. From the PESTEL analysis, Singapore is ideal country to spread their product. It is because the economy of Singapore is much prospered and grows 4.1% in 2013. Moreover, westernization of Singaporean will enhance value of Starbucks. After analyzing external and internal environment, company need to make marketing strategy to suite their target market. Starbucks clearly segment its clientele on demographic bases. They focus its offer on the age of its customers, often between 25 and 40, but also on income since these are quite high wages. As mentioned, Starbucks targets on upper class and middle class people and...
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...Marketing Mix Tammi L. Temeyosa MKT/421 June 16, 2013 Nick Okoro Marketing Mix Starbucks is a leader in the coffee industry and in the business world. Starbucks is currently the largest chain in the world of coffee houses. The company purchases and roast whole bean coffees to sell, along with handmade tea beverages, food items, and coffees sold inside their retail stores. “As of Oct 3 2010, Co. has 8,833 company-operated retail stores and 8,025 licensed stores worldwide” (Starbucks). To maximize brand recognition and awareness to become the most respected and recognized in the coffee world, Starbucks implanted a marketing program that uses a marketing mix to satisfy the wants and needs of its large target audience. Discussed below is the breakdown of the marketing mix: product, place, price, and promotion. Product Starbucks sells everything from espressos, brewed coffees, iced drinks, smoothies, Panini’s, pastries, snack items, mugs, and even music. Starbucks sells more than 30 types of eco-conscious frappe’s to whole bean coffees and iced drinks along with other brand stamped memorabilia. Not only do they offer coffee but also have smoothies, wraps, and pastries to improve the customer experience and stay ahead of the competition. Starbuck’s has also introduced “Instant via Ready “and expanded their Tazo line with Tazo Tea Infusions and Full leaf Tazo Tea Lattes. The company claims that the instant coffee named “Instant via Ready” is very distinguishable in...
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...Hospitality Marketing Pham Manh Cuong Index number: RASG00009 Due date: 28/03/2010 Table of content 1.Introduction……………………………………….3 2.Main body…………………………………………4 2.1Nature of business…………………………….4 2.2 Customer perception…………………………6 2.3 SWOT analyze………………………………..8 2.4 Types of marketing…………………………..10 3. Recommendation……………………………….18 Reference…………………………………………..19 1. Introduction I have done a marketing analysis on Starbucks. I will be looking into nature of business of Starbucks, customer perception, the different areas of marketing plan adopted by Starbucks The general areas are analyzing the current situation, the marketing targets, goals, mission and objective, the marketing mix (the “4Ps”) and implementing, controlling and reviewing the marketing process. To source for the information, I have gone down to a Starbucks outlet to do some research. I have also gone to the internet to find articles on Starbucks. Combining the information, I hope the report I have done is able to provide an overview analysis of Starbucks’ marketing plans. 2. Main body 2.1Nature of business Starbucks started operations in Seattle's Pike Place Markets, Washington in 1971. It was originally named as Starbucks Coffee, Tea and Spices and is later changed to Starbucks Coffee Company. In 1982, Howard Schultz joined the company and changed its strategic direction. He sets to establish Starbucks as The Third Place' - a place between work...
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...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...
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...INTRO Marketing mix : the concept is simple. Think about another common mix- a cake mix.all cakes contain sugar, eggs, flour,milk .however, you can alter the final cake by altering the amounts of mix elements contained in it . so for a sweet cake add more sugar ! It’s the same with the marketing mix. The offer you make to your customer can be altered by varying the mix elements . So for a high profile brand, increase the focus on promotion and desensitize the weight given to price. Promotion represents all of the communications that a marketer may use in the marketplace. The promotion component of a marketing mix is where everything comes together. The product or service, its pricing strategy, and distribution method or methods determine the techniques the business will use to create awareness and attract customer attention. Promotional strategies incorporate a combination of one or more elements of print, electronic and technology-based advertising, public relations, sales techniques, customer service, and word-of-mouth “buzz.” The right strategy fits the product according to how customers perceive its overall value. Mercedes benz Since Promotion is about the development and implementation of promotional strategies that we’ve already introduced, many companies in the globe use that element in order to inform and persuade customers about the product. Example 1: Every one of us knows Mercedes Benz as one of the top most recognized automobile brand in the world and it’s...
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...| HND Business | | Marketing Principles | | LCC20146213 | | Taslim Ahammad | | 20/03/2015 | Hyasmin Hyasmin Unit 4: Marketing Principles Task 1 1.1: Elements of the marketing process Marketing is the action of a business endorsing, promoting and selling products or services, including that of market research, surveys and advertising. It’s the method of which goods and services move from concept to the consumer. “Marketing is a human activity directed at satisfying human wants and needs” (Phillip Kotler). The marketing process involves four steps. These four steps are all accomplished with the goal of creating value for your target consumers. Some elements of the steps are performed continuously, such as monitoring the marketing environment this can be done by market research. A SWOT analysis is an organized planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business. The four elements that Starbucks marketing consist of are; product or service, place, price, promotion. When marketing a product or services there should be an established price that balances the other elements of the marketing mix. When setting a price, Starbucks must be aware of the customer supposed value for the product or service. There are various features of the marketing method for example: scanning the marketing environment, targeting strategy, segmentation and positioning. ...
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