Starbucks Marketing Strategy - Essay Example

? Marketing Strategy Question Market segmentation is highly significant in optimising the market as well as making it possible for the business to meet customer needs effectively (Wedel, & Kamakura, 2000). For example, a clothing firm specialising in baby-ware can segment the market in the following way. Geographically Cloths and apparel are worn dependent on geographical areas. The kind of weather and climate in a region affects the kind of clothing which is worn in a specific area. Once the firm has identified the various climates within the market, it will be possible to now have the right marketing strategy (Ranchhod & Gurau, 2007). It will also help in delivering the right products to the right market. Demographics Segmenting a market for baby-ware can be challenging because the consumer is not the actual decision maker. In considering the demographics of such a market, it is essential to understand that the demographics of the parents will be necessary. In this case, the age and gender of the parents of the children who are the target market will be necessary to be considered. This will help in creating marketing campaigns which are directed towards specific groups of people (Wedel & Kamakura, 2000). Psychographic segmentation Psychographic segmentation is also important. This refers to the behaviour of the customers and the way in which these customers are likely to behave in relations to the product (Webster, 1995). Some customers are likely to be willing to pay a little more if the quality of the product is raised higher. Others are likely to buy more often while others may be more exposed to the fashion appeal of the product. In developing a product for parents who want to buy fashionable clothing for their children, it will be necessary for the organisation to consider having fashionable products. Segmentation by occasions There are various occasions and seasons which may require various kinds of clothing for the occasions. For example, selling Christmas clothing may only be necessary during the Christmas season. Halloween attire may again need to be sold during the Halloween season. Question 2 Every product has to go through four main stages as follows; Introduction Introduction stage of a product is the time when the product has just been innovated and being introduced to the market. For an ice cream product at this stage, it would be necessary to have intensive market in order to make sure that as many consumers have managed to know the existence of the product. Active marketing such as advertising in the main media outlets will also help a lot in giving the product popularity (Webster, 1995). Growth The growth stage is crucial because not only does it show that the product is improving, but also because the product at this time has started to make money, thus making it possible to retain it. At this stage, the important thing is to increase the visibility of the product in order to have access to a wider market. Maturity At this time, the product is always at its best and it making a lot of money. However, the product mow has faces two main risks. The first risk comes from the fact that this product has no more room for growth because the product has reached its peak. The second risk is the risk of imitation from new market entrants. At this point, the best thing would be to look for ways to re-innovate the product. Decline The last stage of a product is the decline stage and at this stage the product is dying out. At this stage, the product cannot be redeemed, and it is important to utilize it as a platform to introduce its successor (Ranchhod & Gurau, 2007). Although the product is declining, it is still enjoying the fact that it is well known in the market. The best thing is to look at ways in which this product can be use to help the new product developed during stage three into the market. Question 3 In marketing, maintaining and strengthening customer relationship is always important. BMW has been one auto manufacturers who have managed to use modern marketing strategies in order to maintain their customers. For instance, BMW realizes how and why remaining market-oriented is important. In a global business environment, it is extremely critical for organizations to maintain a global strategy but at the same time be able to meet the specific needs of customers in every local market. The strategy of the firm should therefore be market-oriented. In cases where the firm operates in different markets such as different countries, meeting the needs of the different customers in the different countries is essential (Webster, 1995). BMW does this by researching on consumer behaviour in different countries and knowing their specific needs. For instance, in China, BMW realised that the main customers there unlike in other markets, constituted of middle aged men who have young families and were middle level managers to business executives. In this regard, BMW started developing new cars specifically to meet that need. Continuing innovativeness is also important if an organisation is going to be successful in the long run (Ranchhod & Gurau, 2007). BMW for instance is extremely good at using innovativeness continually both in terms of its marketing strategy as well as its products. Together with continually improving its products, BMW keeps adding value to its products. Adding value means that the customers get more value for less, and this is likely to increase sales. Having a sense of the mission is also considered a great part of a firm’s marketing strategy as well as its sustainability. Not only does it give the employees a sense of producing the best quality, it also gives consumers a sense of belonging to the firm. Maintaining social responsibility is also becoming increasingly significant and organisations have to adopt it (Paetzold, 2010). A good example is BMW which has used it to gives back to the society and also uses this as a way to increase its profile in the competitive market. Firms also have to use marketing metric because as the old adage goes that numbers don’t lie. Marketing metrics have to be used in order to help the firms to be able to do proper marketing and also to meet the needs of the market. Question 4 Starbucks is one of the firms in the word which have learned to use consumer behaviour to ensure that they are able to access the market as much as possible. To begin with, Starbucks understands that customers choose their products based on two main factors. Emotional benefit is one factor that consumers are likely to consider when making a purchasing decision. The second one is the functional benefit of the product. Starbucks uses this to access the market and does it in two distinct ways. To begin with, Starbucks is marketed as a classy brand, and this is likely to attract those customers who buy things to satisfy their emotional social needs. These emotional needs may include self esteem, status and self worth. Customers who have this attitude towards buying things are therefore lured into thinking that Starbucks is the best place to buy things. Secondly, Starbucks also understands that people also buy things to satisfy their functional needs or to achieve functional benefits. Starbucks also markets itself as a high class brand where customers can get the best quality. Customers who are concerned about the functional benefits of the product are those who are most concerned with the quality of the products and Starbucks lures these customers by marketing itself as a place to get high quality. The other important thing about consumers is that they go through a process of decision making before they decide buying a product. Starbucks designs its advertisements and marketing campaigns to communicate to consumers at all these stages of decision making in order to increase the process of the decision to buy. As a retail shop, Starbucks also understand that increasing customer experience can help in improving sales. In this regard, having wide spaces between shelves increases the customers’ emotional and psychological attitudes, and this is likely to increase sales. References Paetzold, K. (2010). Corporate Social Responsibility: An International Marketing Approach. Hamburg: Diplomica Verlag. Ranchhod, A. & Gurau, C. (2007). Marketing Strategies: A Contemporary Approach. Upper Saddle River, NJ: Financial Times Prentice Hall. Webster, F. (1995). Industrial Marketing Strategy, 2nd ed. Upper Saddle River, NJ: Wiley Blackwell. Wedel, A.M. & Kamakura, W.A. (2000). Market Segmentation: Conceptual and Methodological Foundations. New York, NY: Springer. Read More