Starbucks Marketing Mix Paper
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 ...view middle of the document...
Price refers to the product’s list price or any incentive sales promotion such as quantity discounts, temporary price cuts, or deals (Shahhosseini & Ardahaey, 2011). Price could also be interpreting as the money, which a consumer pays for a product. The price of a product is indirectly proportional to its availability in the market. Lesser its availability, more would be its price and vice a versa. Retail stores, which stock unique products (not available at any other store) such as antiques and specialty items, can quote a higher price from the buyers (managementstudyguide.com, 2012).
Place refers to delivery of the product measured by variables such as distribution, availability, and shelf space (Shahhosseini & Ardahaey, 2011). Place also refers to where the products are available and can be sold or purchased. Consumers can purchase products either from physical markets or from virtual markets. In a physical market consumers and sellers can meet physically and interact with each other whereas in a virtual market buyers and sellers meet through Internet (managementstudyguide.com, 2012).
Promotion refers to advertising, detailing, or informative sales promotions such as features and displays (Shahhosseini & Ardahaey, 2011). Advertising can be done through print media, television, and radios, which are the more effective ways to entice customers and make them aware of the brand’s existence. Billboards, hoardings, banners installed intelligently at strategic locations with heavy traffic areas, crossings, railways stations, bust stands can attract the passing individuals toward a particular brand. Taglines also increase the recall value of the brand amongst the customers (managementstudyguide.com, 2008- 2012).
Word of mouth can also help promote a product. One satisfied customer brings 10 more customers along with him or her whereas one dis-satisfied customer takes away 10 more customers. This is the importance of word of mouth. Positive word of mouth goes a long way in promoting brands among the customers (managementstudyguide.com, 2008-2012).
Starbucks Marketing Mix
Starbucks is a worldwide coffee company. It was founded in 1971 in Seattle as a single store. Starbucks is part of the food industry. Its mission is to inspire and nurture the human spirit one person, one cup, and one neighborhood at a time. Today, with more than 17,000 stores in 55 countries, Starbuck is the premier roaster and retailer of specialty coffee in the world. Starbucks offer the finest coffees in the world, grown, prepared, and served by the finest people (Starbuck.com, 2012).
Starbucks was initially not very famous choice but with a little change in strategy it entered into small and large enterprises and hit the market saturation. Today Starbucks is the total coffee supplier and retail market in United State. The company is popular because of being user friendly as it organizes the music and book events and with...