Mkt 421 - Starbucks Marketing Mix

Marketing mix

Chris C.

MKT 421

July 3, 2012

Dr. Hays

Whether a business is marketing a new or an older product, the marketing mix is one of the most important aspects within marketing. According to; "What Is Marketing?" (Nd), (para. 2), Marketing is "the process which is accountable for providing a profitable good or service to its consumer by identifying, anticipating and satisfying the customers requirements."

The marketing mix is, "the portion of marketing that provides a framework for blending the product, price, place and promotion of a product when introducing the product in the market place for a profit" (Taraporewala (August 22, 2011), (para. 1). How the marketing mix affects the development of an organizations marketing strategy and how the tactics of each element of the marketing mix implemented is discussed in this paper.

The organization discussed is, the Starbucks coffee company. Starbucks made its mark through its transcending payoff on the product that made it famous, the noble coffee bean. Starbucks persistent pursuit of a high quality product allows only the best coffee beans at a fixed price from distributors. Starbucks purchases only shade grown coffee, and this is an ethical standard they peruse. If Starbucks buys only shade grown beans, which the company prefers, and with this attitude it allows growers open land for more coffees to be grown.

Marketing mix

Marketing mix and Starbucks coffee company marketing strategy and tactics

The marketing mix is the main element of marketing decisions and tactics. The marketing mix consists of product, price, place, and promotion. Balancing these elements of marketing is crucial when meeting the customers' needs in the market targeted. Blending these four elements can allow a company to accomplish and possibly surpass the businesses objectives concerning its customer's.

The proper utilization and carrying out of a strategic marketing plan is imperative to the success of any business large or small. Every business has its own product or service to offer, but without the proper target market, product positioning, and a solid marketing plan, a business cannot effectively market its product or service to its consumer.

Within every marketing plan is a marketing mix. The Starbucks coffee company executes a well harmonized marketing plan that satisfies the needs and wants of its target market, and employ marketing mix (product, promotion, price, and place). The following four components are the elements Starbucks makes effective use of in its marketing mix;

The Starbucks product consists of all types of Starbucks paraphernalia from coffee makers, 30 varieties of whole bean coffees, eco-friendly cappuccino. To keep up with its competitors and satisfy customer needs, Starbucks has added oatmeal, wraps of all kinds, and smoothies to there list of products. With hopes of attracting a new market of tea drinkers, Starbucks has implemented offerings of, a full leaf Tazo tea and a Tazo tea infusion.

Starbucks product pricing is higher simple because the upscale image that the company has attached to its brand and the select coffees it offers. Offering bottomless or unlimited refills of an eigh- ounce cup of coffee for $1 was 50 cents less than any of Starbucks products and lower than their competitors. Because of the unpredictable pricing of green coffee beans, Starbucks has entered into long-term agreements with the coffee suppliers, eliminating price fluctuations and continue with its low prices to the customer and still profit.

The value strategies implemented by Starbucks have appealed to the price skittish consumer. By offering different "meal parings" the company can offer a lunch, dinner or breakfast item with a coffee and also highlight its $2 brewed coffee instead of a higher priced one. This style of pricing is ethical to the customers while making a profit.

Placing of Starbucks products can be found in most any neighborhood where there is a high traffic for its stores. Starbucks store products are extremely useful for the person who is on-the-go and those consumers who enjoy listening to music or just reading a book. Starbucks outlets also can be found in large chains, such as Target and Barns & Nobel. Starbucks also has implemented a placing strategy of localizing themselves by using stealth stores named after a street it is on or some landmark and sell their product with no Starbucks logo on any product.

The Starbucks Corporation has put-into-action many promotions when reaching its target market. Types of promotion Starbucks uses are: free delivery service to offices with no restriction of coffee sizes. The Starbucks gift card is a promotion that allows a customer to show brand loyalty and at the same time provides free advertising