Segmentation and Targeting - Essay Example

Comments (0) Cite this document
Segmentation and Targeting Name Institution Segmentation and Targeting Starbuck Company Introduction The Starbuck Company was established in 1971. The founders Gordon Bowker, Jerry Baldin, and Zev Siegle had a vision of enlightening customers about fine coffee…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.5% of users find it useful
Segmentation and Targeting
Read TextPreview

Extract of sample
"Segmentation and Targeting"

Download file to see previous pages Starbuck has experienced tremendous growth since it was founded. Identify the company’s target market and positioning strategy The level of coffee consumption in the United States has been on a downward trend, especially in the late twentieth century. However, Starbuck has been quite cautious when choosing its target markets. A target market can simply be defined as a group of consumers who share the same interests that a particular company selects to serve. The process of choosing a target market can be undertaken by evaluating social, environmental, political, and competitive factors. Consumers bargaining power and entry barriers all fall under the category of market factors. The prices offered by Starbucks were extremely high and the company was trying to develop a new culture for its customers. Considering that Starbuck was very careful when it came to coffee production, the company managed to maintain a stable relationship with its suppliers hence, it faced minimal threats and competition (Starbucks Corporation SWOT Analysis, 2008). Office employees with both middle and high revenue were the sole target for Starbuck. Schultz wanted Starbuck to be the place where people could meet and relax on their way home, after work and socialize with each other. Therefore, the company was aggressive in meeting the needs of the consumers. Great consideration was also placed on the arrangement of the store. Target market can be executed in various ways namely concentrated, distinguished and undistinguished (Kotler & Armstrong, 2004). The concentrated strategy focuses its efforts on a single market section and develops and maintains an exclusive approach for every section. The distinguished approach reaches out to the market by creating distinct products and promoting the programs for the various sections. The undistinguished strategy on the other targets the whole market using a single (Kotler & Armstrong, 2004). Starbuck adapted the undistinguished strategy to market their products. The company measured the whole market as one single section. The main obstacle that Starbuck faced when it employed this strategy is the development of a brand that would satisfy the needs of all customers. Nevertheless, Starbuck did not compromise any of its services hence, they did everything they could in order to produce a quality product. A company must choose which position it wishes to occupy in the market after identifying its target. The positioning entails the way consumers define a particular product in terms of quality, size, price and performance and several other factors. Previously, Starbuck had been using transactional marketing where profit was obtained mainly from reserved customers who had a long-term relationship with the company. However, the customer retention approach aims at enchantment instead of consumer fulfillment. Starbuck later discovered that public opinion was a better approach. This kind of strategy takes a long time to thrive, though the benefits are worthwhile (Brassington & Pettit, 2000). How does their product line fit with their target market and positioning? Does it make sense? Starbuck began to create high quality products and services to its consumers. Schultz was aware of the fact that coffee is indeed perishable hence, he emphasized on the production of quality products by supervising each stage of coffee manufacture. Whole bean coffee was purchased from countries such as Kenyan and Ethiopia (Stanley, 2002). The coffee was then roasted and ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Segmentation and Targeting Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Segmentation and Targeting Essay Example | Topics and Well Written Essays - 750 words. Retrieved from
(Segmentation and Targeting Essay Example | Topics and Well Written Essays - 750 Words)
Segmentation and Targeting Essay Example | Topics and Well Written Essays - 750 Words.
“Segmentation and Targeting Essay Example | Topics and Well Written Essays - 750 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Segmentation and Targeting
...?Segmentation and Targeting In the current competitive environment, every business is aiming at attaining a higher competitive advantage. Segmentation and targeting is important in the achievement of this. One of the advantages of segmentation is that it enhances the levels to which a business matches its products with customer needs. Segmentation is also key in brand positioning and enabling a business to maximize its profitability (Smith, 1956). The purpose of this paper is to show the effectiveness of proper market segmentation and targeting in brand positioning, customer retention and maximizing...
4 Pages(1000 words)Research Paper
Segmentation and Targeting
...? Assignment Byline Segmentation and Marketing There are few American companies that have had as much impact on society and business as the king of fast food joints, McDonalds. According to the company’s official website, McDonalds has over 32,000 restaurants in 117 countries and serves over 64 million people every single day (“Our Company”, 2011). Perhaps one of the biggest reasons that McDonalds has proven to be so successful is due to the fact that this particular company has mastered the art of marketing to its consumers. In order to better understand McDonald’s marketing strategy, it is important to define several elements of marketing itself. According to the book entitled “Principles of Marketing,” the primary...
4 Pages(1000 words)Research Paper
Segmentation and Targeting
... Describe each company's target market. Do NOT include definitions of target market or segmentation. The target market for Timex watches is much wider than for Rolex watches. The Timex is a product that targets people of all ages that have low to middle income. Timex has watches for both female and male users. The Rolex watch targets a different target market. The target market for Rolex products are people that have income above $100,000 a year. This target market is based on the introductory level Rolex products. A Rolex customer is a person that is accustomed to buying luxury items. A lot of Rolex watches have target market of people that are millionaires (Rolexforums, 2011). (2) How does the choice of target market influence... involves...
4 Pages(1000 words)Term Paper
Segmentation and Targeting
...? Segmentation and targeting al affiliation Segmentation and targeting Introduction Marketing comprises of three phases that determine the customers’ reaction towards a product introduced in a new or mature market. In the undifferentiated strategy, every buyer is treated in the same manner making organizations less concentrated on making precise efforts to satisfy particular market groups. Segmentation and positioning prove significant when the product is standard and one rival product is not able to offer what another cannot. Targeting requires analysis on the income distribution of potential and mature markets to realize whether to introduce a new target market or not. Specific marketing cases Ford Escort is a car brand... , And Chansarkar,...
4 Pages(1000 words)Essay
Marketing Segmentation and Targeting
...Marketing Segmentation and Targeting A market, in contemporary terms, is defined as place where both buyers and sellers come to meet with the objective of exchanging of goods or even services. In this text, the general definition of a market is group of both people as well as businesses with a clear interest, purchasing ability and willing to spend some money to get the goods or services to satisfy their specific needs. Market segmentation is the grouping of customers who may be individual or corporate into a pool of customers with similar demands (goods and services) in terms of prices and designs. It can also be termed as a marketing strategy where a large market is divided into...
6 Pages(1500 words)Essay
Segmentation, Targeting, Positioning
...? UNDERSTANDING THE CONCEPTS AND PROCESS OF MARKETING AND EXPLORING THE CONCEPTS OF SEGMENTATION, TARGETING AND POSITIONING ’s name: Course code: Instructor’s name: Date of Submission: Introduction Cornflower Blue is a company that specializes in the production and distribution of products such as body care products that are herbal oriented, herbal remedies, aromatherapy products and culinary products that constitutes of honey, tea and chutney. The company needs to apply various marketing strategies in order to remain competitive in the market. In any business, marketing is a significant component in the contribution of an organization success. Distribution and production of a company’s product depends...
6 Pages(1500 words)Assignment
Segmentation, targeting and positioning
...? Segmentation, Targeting and Positioning UK Footwear Market Background Since the falling recession of 2008, UK has been facing challenges in both retail and apparel market. Footwear is on the major side of influence where market received short coming of brands and lack of customer response in the 2008 fiscal (Key Note 2012). At the time of recession some companies got recovered including Retailer Faith which administrated its place in the period 2010 April. At the same time some brands like “Stylo PLC” were badly affected as were posed to deepest threats of the recession 2008. Changes in fashion and consumer behavior have also been influential (Key Note 2012). Such factors have influenced market trends...
7 Pages(1750 words)Essay
Segmentation targeting positioning (STP)
...Segmentation Targeting Positioning Task Introduction Segmentation is an approach whereby s’ needs are prioritized and deemed essential. It is a countermeasure of strong competition from other companies and the ever-varying trends of demand in the market. Market Segmentation is the initiative of dividing a product or services into various categories to survive in the competitive market and meet the needs of every purchaser. Proper segmentation is realized where customers with a common need are placed together and the demand strategy should differ from the needs of the other customers, (Capon, 2009). Targeting Market A company should...
1 Pages(250 words)Essay
Segmentation targeting positioning (stp)
...Segmentation Targeting Positioning Before going to discuss an article regarding importance of segmentation, targeting, and positioning to service, let us get a better understanding of what these concepts actually are. Market segmentation is a process in which marketers divide the total product or service market into sub-markets, which are reached by the marketers using distinctive marketing mix. Tatum (n.d.) states, “Market segmentation is a strategy that involves dividing a larger market into subsets of consumers who have common needs”. Targeting is another concept, which is related to identification of the market segments that are likely to purchase or use the product or service of a company. If we talk about positioning... , it is the...
1 Pages(250 words)Essay
Segmentation and targeting
...Segmentation and Targeting in Harry and David’s Today’s markets are characterized by differences in consumer tastes,needs and purchasing power. This makes it impossible to appeal to all consumers in the entire market. Marketers succeed by dividing the total market into small homogeneous consumer segments. Segmentation involves identification of the factors that influence the purchasing decisions in a particular consumer group after which the consumers are grouped on the basis of the identified factors. Consequently, the marketing strategies are adjusted to cater for the needs of each consumer segment. The major consumer characteristics influencing market segmentation include geographic, psychographic, behavioral and demographic... ...
1 Pages(250 words)Personal Statement
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Segmentation and Targeting for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us