STARBUCKS

Marketing Strategy of Starbucks

Marketing Strategy of Starbucks

1.1 Marketing and Elements of marketing Process

Marketing is process of communication and activities which a firm is taking in order to sell the products and services. Today, large companies are either directly doing research or hiring the services of research for the marketing. Marketing mix is one of most fundamental and familiar concept in the field of marketing. It is defined as 'the set of controllable planned marketing tools e.g. product, price, place, and promotion. A firm blends to produce the response it wants in the target market'. Product is basically the good or service that is sold by the company. Price is the amount customers have to pay in order to buy the product. Place means the activity by which company makes a product available to customers. Promotions include activities that persuade people to purchase the product. (Kilter & Armstrong, 2008, pp. 48). A popular expansion in the marketing mix was done by including three more factors into the four already established elements. The new elements were people, process, and physical evidence (Richardson & Gosnay, 2011, pp. 125).

1.2 benefits and costs of a marketing orientation

Marketing orientation refers to recognize the desires and wants of customers that derive the ultimate demand for the services or products, and fulfilling those wants/ needs through company's product offering (Avlonitis & Gounaris 1999, pp. 1003-1037). In contemporary world, this concept is applied many large companies and neglected the price competition. This is because of diversified customers who demand tailor made and greater vale for the paid amount. Consumer orientation is the client-cantered set of activities. The most important activities are the improving quality of product, prompt response to the clients' queries, care for the community issues and dealing them sensitively. The company like Starbucks gets benefits from it by satisfying more customers, serving customer's needs, give more value of paid amount, data compilation and above all competitive advantage over rivals. The cost of marketing orientation is spending more amounts because there is specialization in each unit of business. In addition, companies are spending sufficient amount in research for knowing their satisfaction and response for the provided services. Competitor orientation is all about the actions which companies take in the light of competitor's strategy. In this way, company becomes aware about the trend of industry and move shoulder to shoulder with rivals. Relationship marketing is the long-term policy of any company which is not focusing on sales and promotions. Its main motive is customer satisfaction and care which give him benefit in long-term. In this regard, Starbucks is revealing, rewarding and offering relevant offers. This benefit the company in consumer retention and loyalty.

2.1 Macro and Micro environmental factors

Macro means large; these are factors which are prevails in the external environment of the company. Most of the times, these factors are not in the control of company and they affects the quality, sales and customer response. On the contrary, there are micro factors which remain in the control ...