Delivery in day(s): 5
Marketing is the process of identifying customer needs, creating value and distributing the products to meet the needs of the customer in a profitable way. The marketing professional should have knowledge of marketing concept to bring good outcome by applying this knowledge to the company. Segmentation, targeting and positioning are the most important strategy of marketing process. These are called STP model. The STP model explains how to focus on the specific markets to effectively and efficiently attract the customers. The marketers should design effective marketing mix for meeting the needs of the customers (Pride, 2011). The effective marketing mix helps the company capture specific customers and bring good outcome for the company. This unit 2 marketing principles assignment help explains Starbucks apply marketing to the business operation and meet the needs of the customers.
Marketing means the social process that helps the company to increase revenue of the company by producing and distributing and meeting the needs of the customer (Pride, 2011). The marketing professional should understand the marketing concept to bring good outcome by applying marketing tools.
Marketing process has different elements. The marketer should follow all the elements to achieve the marketing goals and objectives. There are four elements of marketing process.
To meet the needs and wants of the customers, the company should identify its internal and external environment of the company. Starbucks is a global coffee company. Today Starbucks has 16,706 stores (as in the case study) in 50 countries. It has many customers in different countries. Therefore, the marketers should analyse the current situation of the company. The company can produce a SWOT analysis to identify the current situation of the company as follows (Ferrell & Hartline, 2011).
1.1.2 Marketing strategy:
Marketers must focus on the marketing strategy to bring good outcome. The marketing strategy includes segmentation, targeting, positioning etc. These elements will be explained later in this report.
1.1.3 Marketing Mix Decision:
Marketing mix is one of the most important elements of marketing process. Marketing mix explains how to design products, set price, distribute and promote the products. The marketing mix of Starbucks will be explained in this report later (Cadogan, 2009).
1.1.4 Implementation and Control:
At last, the marketing professional should implement it properly. The marketing process should also be monitored properly (Cadogan, 2009).
Therefore, from the above discussion it is to say that the marketing professional of the Starbucks or other company should consider all the elements properly. Otherwise, the marketing will fail to achieve the goals and objectives of the company.
Marketing orientation is a means to meet the needs of the customers in the best profitable way. There are different marketing orientations in the field of marketingwhich are as follows:
Starbucks is following the marketing concept where the products of the company are designed and produced keeping in mind the current expectations and needs of the customers. Starbucks focuses on fulfilling the demand of the customers. There are certain benefits and costs attached to the marketing orientation, which are explained as below:
These are the benefits and costs of a marketing orientation for Star Bucks.
The marketers should adopt proper strategy to meet the needs of the customers. For this the company should properly apply the proper segmentation, targeting and positioning strategy to bring good outcome for the company. Authors explained these as the STP model. This explains how the Starbucks can apply this marketing strategy.
Marketing environment is composed of micro and macro environment factors, which affect the marketing strategy of any business. These factors also influence the marketing decisions in Starbucks as follows. Micro environmental factors are those which can be controlled by the management of an organisation whereas Macro environmental factors are those which are not in the control of the management. (Drummond & Ensor, 2005).
Micro environment factors and its affect is different on all the companies if the same industry because all the companies are different in terms of size, strategies adopted, capacity, etc. Some of the most important micro environmental factors of Starbucks are customers, shareholders, intermediaries in market, competitors, etc.
Macro environment factors affect the decisions of the company and Starbucks has to reframe its functions and policies according to the macro environment factors. Some of the macro environment factors which affect the decisions of Starbucks are as given below:
From this, above discussion it is evident that the company should consider about the micro and macro environment factors of Starbucks. These factors influence the marketing decision and operation of the company.
The marketing strategy would be more effective for the company, if it is designed for the small group of the customers rather than large groups. For this reason, the marketing professionals suggested to divide the market into different categories based some features. Market segmentation means the process of dividing the potential market into unique categories so that the marketers can select one or more segments to attract them.
Starbucks is a large company. It has a large number of customers. This company always wants to expand its business. The company should follow the following criteria to segment markets.
If Starbucks considers all these segmentation criteria for the segmentation of the markets of coffee of Starbucks, it will be able to meet the needs and wants of the customers. The proper segmentation can help the company to achieve the goals and objectives of the company.
After segmenting the market based on the different criteria, the company should select specific market to serve them. Selection of a market from the segmented categories is called targeting. Starbucks should select proper market to serve the markets best (Jain, 2000).
Starbucks should choose proper targeting strategy to attract the customers. There are different targeting strategies as follows.
Starbucks is a large global company. It can choose differentiated targeting strategy to attract the customers. This strategy will enable the company to expand its business. It will help to attract new markets for the coffee ice cream. The company needs to design a single marketing mix for the some similar market segments.
Ferrell and Hartline, (2005) stated that positioning strategy helps the company to build the image of the products into mind of the customers. There are several ways of positioning the products into the mind of the customers such as:
Starbucks is a large coffee products company. It has a high reputation of its products. Starbucks can easily build a high image into the mind of the customers. The product positioning strategy explains that the company should design unique products for meeting the needs of the customers. Therefore, Starbucks should design coffee ice cream with unique characteristics. The company also should consider about the competition. There are some competitors like MacDonald’s has also such type of products. This is why; the company should design products, so that it can get competitive advantages.
Buying behaviour is the management approach, which analyse the purchasing habits of individual or groups. The buying behaviour affects the marketing activities.
Hooley, et al.; (2004) described the buying behaviour model. This model explained how the customers make purchase decision of products.
Buyer behaviours affect the marketing activities in different buying situations for Starbucks and its products. Various factors which have been identified for this are explained below:
They collect information about various products compare the products and decide to purchase the best one.
After purchasing the products, they also evaluate whether the produces has met their needs or not.
Starbucks marketing strategy should consider the buying behaviour of the consumers. The marketing activities are affected by this buying behaviour.
For example, the customers make decisions by getting information from online sources. Therefore, the marketing professional should take promotional strategy considering this. The marketers should maintain a good website which contains the characteristics of the products so that the consumer can make purchase decision based in the information.
Again, according to this model, the consumer evaluates the products after consuming. Therefore, the company must design quality products so that it can meet the requirements of the consumers. It will help the company to satisfy the customers and retain them as loyal customers.
2. Business to Business (B2B)
?While taking decisions in business to business transactions, there are certain factors which influence the buying behaviour. The buying behaviours while purchasing the Starbucks’s [products and services are given below:
Organisations while making purchase consider the factors given above in the diagram. They consider:
The buying process in B2B is multistep and is longer. The process of B2B business buyer is given below:
*RFP: Request for Proposal
Therefore, from this above discussion it is evident that the buying behaviour affects the marketing activities. The marketing professional should make marketing decision based on the buying behaviour of the customers and businesses.
Starbucks positions its products in the market which are known for quality, taste, class and so on. It positions its products in a way which makes it different from the products of the competitors. It believes in relationship marketing and believes in establishing good and healthy relationship with the customers for a longer period of time. It guides the customer about the different tastes of coffee available with them and asks for their own choices.
Proposition of New Strategy
Starbucks is a large global coffee products company in UK. It has 16,706 stores in 50 countries. It should choose a proper positioning strategy for its products. It can adopt competitive positioning strategy to bring good outcome for the overall performance of the company.it will help the company to build good image of the products to the mind of the customers.Starbucks can promote its products as nutritional products which do not increase any calories and can be consumed by the health conscious people. When it will offer better quality product at the same prices, customers will definitely position the product in their minds as the value for money product and they will surely prefer it more than other brands.
The new position of Starbucks is as the brand which offers nutritious and high quality coffee products to the customers at the same price as before and it can also be consumed by those who are conscious of more calories because of the consumption of coffee products.(Mooradian, et. al., 2012)
Marketing mix is an important strategy of effective marketing plan. The company should design proper marketing mix to attract the customers and bring good outcome for the company.
Marketing mix differs in different segments. Here, two different segments like married and unmarried person (Marital Status) have been explained.
The company sells products to the business as well as directly to the consumers. The marketing activities vary based on the marketing of products and service to the business rather than I the consumers.
The consumers buy products or services to consume it. But the business company buys products or service to resell to the consumers. The company can sell products to the business directly from the manufacturing unit. It does not require retail outlet. But the company needs retail outlets to sell to the consumers directly (Marketing Knowledge., 2006).
The company sells a large amount to the business but a small amount to the consumers. Therefore, the marketing activities differ based on this.
The promotional activities of marketing of products to the business and consumers also vary.
For example, John Beswick is a pottery manufacturer in UK. It sells its product directly to other business and consumers. It adopts different marketing strategy for attracting the business and consumers.
For many reasons the international marketing differs from domestic marketing as follows (Pasco & Le Ster-Beaumevieille, 2007):
For all these reasons the international marketing differs from the domestic marketing.
Marketing is the tool for any kinds of company to achieve e goals and objective of the company. The marketing professional should proper use the marketing strategy to bring good outcome. The marketing process has different elements. The company should design the products in such way that can help the company to achieve the goals and objectives. Marketing is a process of meeting the needs of the customers in a profitable way. The marketers should set proper marketing objectives before developing marketing strategy. The marketing strategy would be more effective for the company, if it is designed for the small group of the customers rather than large groups. For this reason, the marketing professionals suggested to divide the market into different categories based some features. To effectively meet the needs of the customers, the company should adopt STP model. Starbucks has used the marketing strategy to achieve the goals and objectives.
Blythe, J. (2009). Key concepts in marketing. Los Angeles, Calif.: SAGE.
Cadogan, J. (2009). Marketing strategy. London: SAGE.
Capon, N. and Hulbert, J. (2001). Marketing management in the 21st Century. Upper Saddle River, N.J.: Prentice Hall.
Drummond, G. and Ensor, J. (2005). Introduction to marketing concepts. Oxford: Elsevier/Butterworth Heinemann.
Ferrell, O. and Hartline, M. (2011). Marketing management strategies. New York: South-Western.
Hawkins, D., Best, R. and Coney, K. (2004). Consumer behavior. Boston: McGraw-Hill Irwin.
Hooley, G., Saunders, J. and Piercy, N. (2004). Marketing strategy and competitive positioning. Harlow, England: Prentice Hall Financial Times.
Jain, S. (2000). Marketing planning & strategy. Cincinnati, Ohio: South-Western College Pub.
Li, J., Chen, H. & Chu, F. 2010, "Performance evaluation of distribution strategies for the inventory routing problem”, European Journal of Operational Research, vol. 202, no. 2, pp. 412-419.
Lindgreen, A. (2010). Market orientation. Farnham, Surrey, England: Gower.
Marketing Knowledge., (2006). Marketing in Practice. CIM Revision Cards. Taylor & Francis.