UKCBC unit 7 marketing principles 3
More than understanding the Marketing mix, it is more important to execute it perfectly. In this section of the report, we will discuss the application of marketing mix and how they are executed in practical. This section will also discuss the difference between the international strategies and the domestic ones.
1: To begin with you are asked to plan and prepare marketing mix for two different segments of the market in Starbucks. Use here an example of one existing segment and propose the second, new one. Design for both segments marketing mix plan (4P).
The existing segment of the Starbucks is the affluent class who can afford the price of the coffee the company offer. Following is the detailed discussion: –
- Product: the company offer a high-quality coffee and people come back because of the taste of gourmet coffee and the experience they have while having a coffee in the Starbucks.
- Price: the company never believed in decreasing the price and this existing class is ready to pay the price for the coffee the company offers.
- Place: the company always target a premium location of the city for building their coffee house.
- Promotion: the company believe in the word of mouth promotion and they don’t indulge much in another form of promotion because word of mouth promotion has made them the world-class company.
The new segment, which can be proposed for Starbucks, is the younger generation who have started exploring different taste and also look for a perfect hangout place. Following is the detailed discussion:
- Product: along with premium quality, the company must also try to make it tastier by adding various ingredients to it. The company must also focus on introducing more products which can attract the younger generation.
- Price: the price set should suit the young people pocket and it should also help them to bring more people to have this coffee.
- Place: the company as it is focused on premium location which is the main attraction for the young people.
- Promotion: the word of mouth strategy could also work in this case as this strategy is very strong in bringing more people and having the experience.
2: Your task is also to illustrate differences in marketing products and services to business rather than consumers. Next to Starbucks use here an example of another organization.
Marketing products and the services of Starbucks can be clearly compared with McCafe which is also very popular and quite different from Starbucks. McCafe sells little cheaper coffee and the class which have at McCafe is entirely different to that of people at Starbucks (Civi, 2013).
There is the difference in price, products and even the services are quite different in both the organisation. Starbucks service is more personalised while McCafe services relatively less personalised and professional.
3: Finally your report will end with the evaluation how and why international marketing differs from domestic one – use here, at least, two examples of marketing strategies Starbuck used to market their products internationally.
International marketing is quite different to that of a domestic one. The simple reason for this is while entering into a new market, the culture and taste and preferences of the customers completely differ (Luan & Sudhir, 2010). The company need to take into consideration the taste and culture of new market and modify accordingly. Following are two marketing strategies which Starbucks used to market the product: –
- The company analysed the local market and modify their menu accordingly according to the taste and preferences of the customer in that respective country.
- Another strategy which the company adopted to enter the international market is that Starbucks does not introduce all the products in one go. Instead, they focus on introducing one product at a time so that the customer can adapt the new product easily and quickly.
Application of marketing mix is the most crucial activity in the marketing process and of this is done in a proper manner than the company can succeed (Luan & Sudhir, 2010). So this step should be taken very carefully and after much analysis.
Civil, E. 2013. Marketing strategies to survive in a recession. International Journal of Business and Emerging Markets, 5(3), 254-267.
Ferrell, O. C., & Hartline, M. 2012. Marketing Strategy, Text and Cases. Cengage Learning.
Amin, S. H., Ramzi, J., & Zhang, G. 2011. Supplier selection and order allocation based on fuzzy SWOT analysis and fuzzy linear programming. Expert Systems with Applications, 38(1), 334-342.
Yangdong, W., Qin, A., & Zu Lixin, L. D. 2010. SWOT Analysis and Development Strategy of High Technology Service Industry in the Pearl River Delta. In Forum on Science and Technology in China (Vol. 10, p. 019).Order Now