Marius Ursache Marketing Principles
Marketing is defined as reforming the capabilities of the company, according to the needs and the wants of the customers. Marketing leads to the fulfilment of the objectives of the customers and the marketerer.
The process of marketing can be used for;
- Outlining what market segment does the organisation is going to target
- Stating and defining what are the needs of customers in the identified markets
- What will be the value adds needed to meet the needs and wants of the customers?
- Communicating the value that needs to be delivered to the customers of the organisation
- What part will the company play in delivering value to the end customers
- Monitoring what value is delivered to the end customers by the marketer
(The Marketing Function, (n.d))
Task 1: Understand the concept and process of marketing
1.1 Explain the various elements of the marketing process of Starbucks
Starbucks started in the US in 1971is a retail organisation that specialises in marketing various flavours of coffee, tea and other snacks, it has now established its stores in many countries. Starbucks has customers of all age groups from kids to old age customers. Starbucks is a perfect example showing the incorporation of all the essential marketing elements.
Starbucks over the time has gained competitive advantage and brand loyalty by following a smart marketing technique.
Two elements of the marketing mix of Starbucks
Starbucks is known for its extremely good coffee. If your coffee isn’t perfect we will make it over if it’s still not perfect make sure you are in a Starbuck’s – (Starbucks, 2014) Such is the conviction of the brand Starbuck’s in its product.
Marius Ursache Marketing Principles
Strategically located its outlets in highways,college campuses, mobile apps are helpful in locating stores for the customers.
SWOT Analysis of Starbucks
· Established brand having a global market presence Starbucks has captured over 36.7 share of the US market and operates in more than 60 countries
· Starbucks has implemented a smart strategy when it comes to its presence. Target premium, high traffic, high visibility locations.
· Human resource management is of high quality. It is rated one of the best place to work by Forbes Magazine.
· Good will in the society due to its CSR initiatives. At the Starbucks there is the shared values in believing that the organisation should positively affect the community (Starbucks, 2014)
· Technological strength The Starbucks app and the mobile outlets make Starbuck gain an edge over competitors.
· Pricing strategy, Starbucks products are highly priced in comparison to the products in the competitive industry.
· Starbucks has entered into a partnership with Square, which is a mobile payment app. The Square would be integrated with the official app of Starbucks makes it very convenient and easy to use for the customers.app, creates an ease of use process for customers, aligns customer loyalty through reward programs.
· New distribution channels: system called Mobile Pour a new delivery system, using Mobile Pour; Starbucks has a future opportunity for increasing their system of product distribution. Brand extension
1.2 Evaluate the benefits and costs of a marketing orientation for Starbucks
Starbucks has the following marketing orientation;
- Provide customer with service of high quality. Starbuck’s customers if dissatisfied with their drinks are entitled to get a new drink
- Keeping prices on par with competitors.
- To establish reach with more customers Starbucks is planning new promotional outlets
- Starbucks is increasing their market penetration in the retail stores such as grocery in order to capture the coffee market of the customers who prefer to make their coffee at home
- More penetration in the global markets