Ch. 12-Services and Nonprofit Organization Marketing

According to the definition in our text book, Nonprofit organization is "an organization that exist in order to achieve some goal other than the usual business goals of profit". Starbucks is an example company for nonprofit organization. Not only do they run a business for the pleasure of their costumers which they do very well, but they also are involved in activities and organizations that don't benefit their business. For example Starbucks believes in positive change and helping the environment. Which may not have a lot to do with the kind of business they run. They are going out of their way to partnering with nonprofit organizations such as The American Red Cross and AAMA. Since 2011 and 2012. The American Red Cross helps save lives and the AAMA helps Hispanic students continue their studies and achieving their academic goals. 

Ch. 11- Developing and Managing Products

As the textbook explains "New products are important to sustain growth, increase revenues and profits, and replace obsolete items". Starbucks is widely known for its coffee and various deliciously tasting cold and hot beverages. Starbucks has also been selling foods like salads and yogurts but nothing like the new bakery they have now. In the coffee/food industry there are still ways to introduce new products to the market. As Starbucks has evidently shown. Two years back Starbucks incorporated baked goods into its revenue. Adding "La Bounlange" bakery to every shop. This expanded Starbucks market to people who are not only looking for coffee but also something to eat. With croissants, cookies, scones, and cakes of your choice. Showing that Starbucks knows how to develop and manage products.

Ch. 8 - Segmenting and Targeting Markets

Our textbook states that market is made up of four factors. "(1) people or organizations with (2) needs or wants and with (3) the ability and (4) the willingness to buy". Within a market there is a subgroup called market segment which is one group or many of people who share a same interest which cause them to have similar product needs. To meet the needs of a specific group, companies separate them into categories. This process is called market segmentation. This allows the company to pin point their target market.
Starbucks does two kinds of segmentation. They do geographic segmentation which as defined by the book is "segmenting markets by region of a country or the world...". Starbucks have locations everywhere. Especially in majorly visited and populated areas. Such as businesses and schools. We have a Starbucks inside our Fiterman building of BMCC. Making it very convenient for us college students to buy. Which leads to Starbucks other form of segmentation that is demographic segmentation which defined by the book is "segmenting markets by age, gender, income, ethnic background, and family life cycle". Starbucks knows its target market. Which as mentioned earlier is a fundamental part of market segmentation. The target market for Starbucks is youths from ages 20 through around 30. Most of these people are college students. The fiterman buiding serves Starbucks beverages in the lobby but we also have two Starbucks located very near to us just a couple of blocks away. Another college I know that serves Starbucks is Queens Community College. These groups of people that Starbucks is segmenting all have a same interest in Starbucks coffee and other beverages.

Ch. 15- Marketing Communications

You may have the greatest invention of all times ready to go on the market according to your judgement. What many companies know but not always achieve is that in order for your product and/or company to be successful there has to be effective promotion. There has to be enough stimulus that will attract buyers to your product. companies have to start off with a Promotional Strategy which is "a plan .. with the use of the elements of promotion: advertising.. sales promotion... and social media". Starbucks does most advertising and social media. You can find Starbucks posters in the train on your way to work or online as your browsing through your social network. Starbucks advertising increases specifically during the holidays. They know their target market and create new drinks aiming for the interest of young college students and teens. They also decorate their cups in a holiday cheer matter. 

There are stages to this marketing communication according to Principles of Marketing. These stages are called Aida Concept which incude Attention, Interest, Desire, and Action. Like I mentioned earlier Starbucks knows their target maket.

• Attention- Starbucks gains the attention of their target market by advertisement. Any new product they over advertise to make sure their costumers are aware of it.
• Interest- They create specials, like in the ad seen above, allowing costumers to buy one holiday drink and getting one free. 
• Desire- With many coffee brands and shops out there, Starbucks has to stand out and make costumers desire their product. They do this by creating unique beverages with unique ingredients, names, and designs.
• Action- Costumers get persuaded by all of Starbucks attempts and they finally buy the product.
  
  

Ch. 10 - Product Concepts

When developing a new company or opening a new business, product is very essential. You must know that your product has potential for success. When it comes to products I think Starbucks coffee is a convenience product. Its something that people do not double think of before purchasing it. Even though there are more locations that sell coffee for a relatively lower price, dedicated Starbucks costumers do not think twice before stepping into a Starbucks. Starbucks is also found in about any corner of your neighborhood making it nearly impossible to even consider another option.
Starbucks has gone through some Product Modification. With the years the Starbucks logo has changed. The company has made is simpler in seeing that people recognize a Starbucks shop without it having to actually say "Starbucks". That is how successful and world wide this company has become. 

Ch. 17 - Personal Selling and Sales Management

Starbucks practices personal selling. As Principles of Marketing explains "personal selling is a purchase situation involving a personal, paid-for communication between two people in attempt to influence each other". Starbucks goal is to ultimately sell you coffee and their other goods. The way they do this is by communicating their new beverages and new pastries to their costumers. Starbucks baristas will answer any question you have and will tell you the difference between all the various coffee beverages they have. Personal selling is very beneficial to Starbucks because good service is what influences costumers and make them more willing to purchase their goods. 

Starbucks is a well known and globally successful corporation. Their relationship selling techniques has a lot to do with where they are now. Starbucks focuses on their costumer and do everything they can to enhance and maintain their communication with them. One way they do this is their Starbucks membership cards. There are three levels of them and each card benefits the costumers in one way or another.

This is a smart incentive that Starbucks created to keep their costumers happy by offering rewards. Any reward will definitely having people coming back for more.

Ch. 16 - Advertising, Public Relations and Sales Promotion

Starbucks does not spend as much money on advertising as many other coffee companies do. Anywhere you go you will see a common Dunkin Donuts ad or a Mcdonalds coffee ad. Starbucks has proven to be very successful without it. Like the saying goes "why fix whats not broken". Starbucks tends to conduct their advertising in moderation. 

The most common form of advertising for Starbucks is Product Advertising. As explained in Principles of Marketing, Product Marketing touts the benefit of a specific good or service. Anytime Starbucks comes out with a new beverage they advertise that specific beverage. To be more precise, It happens most frequently during the change of seasons. For example in the Fall season Starbucks has its famous "pumpkin spice latte". Which becomes hugely popular during the time by the different ads but also by word of mouth. 

One of starbucks product relation strategies is product placement. If you look at some movies like "The Devil Wears Prada" you see the actress Anne Hathaway carrying several cups of Starbucks beverages. Starbucks opts for the best form of advertising in the world of promoting your product. As oppose to a common ad or commercial on television where most people change the channel during the breaks. In a movie they are forced to see it and will notice.

Ch. 14 - Marketing Channels and Retailing 

Walking down any street you will come across a Starbucks. Starbucks has established locations anywhere and that is them practicing the "direct channel" of Marketing Channels. There is a process that happens to get products from the producer to the consumer. Another one that Starbucks has picked up is "Intensive distribution". You can now go into a Target or Duane read and find a four pack Starbucks fraappuccino package. These originated from Starbucks and only Starbucks shops sold them. In a way to expand their retailing and to accommodate their consumers they made a smart decision in not only selling these frappuccions outside of their shops, but selling them in packs. These whole sale markets are known to have stuff for cheaper. I myself have seen these frappuccino four packs at a lower price than what you would get them at an actual Starbucks. One single frappuccino can cost about $2.75. These other markets are selling four of them for only $5.00. You are essentially getting two beverages free. Its a good way to intrigue the consumer and have them buy it. 

Ch. 6 - Consumer Decision Making

When consumers go to purchase a product theres a whole process that happens before purchasing. That process is called the "Consumer Decision Making Process". It goes as follows. 1) Need recognition , 2) Information search , 3) Evaluation of alternatives , 4) Purchase , and 5) Post purchase behavior. If we were to apply this process to the faithful Starbucks costumers I would say that they use Need recognition process and Information search. The textbook explains the Need recognition process as "an imbalance between actual and desired states. The imbalance arouses and activates the consumers decision-making-process". Me being a liable Starbucks costumer know how this works. Every morning I feel like I can not function is I have not had my coffee or any caffeine beverage. I may try and convince myself that I do not need it but if I pass by a Starbucks and get a whiff of the delicious coffee smell coming from the shop, my body is aroused and stimulates my need to have my daily cup of coffee. With the Information search process the book explains "After recognizing a need or want consumers search for information about the various alternatives available to satisfy it". If a person is looking for a new coffee shop, I am sure they have heard about Starbucks. This is when their Information search starts. They could go online and check it out but what most likely happens is a simple word of mouth. Many faithful Starbucks costumers are always raving and sharing their positive feelings towards the famous coffee company. That is all it takes for a person to want to give it a try.

Ch. 5 - Developing a Global Vision 

While developing a global vision, the company has to be aware of its competition world wide. When it comes to Starbucks, they are widely known for their various caffeinated beverages. Starbucks is not the only place to buy a well made cup of coffee or capuccino though. Starbucks is aware. They are aware of their global competition but they use their vision for success to their full effect. One of Starbucks biggest struggle is to adapt to a culture and new location where there already are coffee lovers. Therefore as the textbook states "Starbucks chooses location with shared values and strategic fit". The Starbucks logo is very well known, that is why it is a key aspect in their global marketing. Japan was their first area where they globalized to and did not do so well because the population there are more tea drinkers than anything else. Which is the same problem they are having in China now. Paris and Italy are also showing tough to adapt too as they prefer their fanvy cafés over coffee shops like Starbucks. Regardless of all this Starbucks has expanded to 44 different countries and are prevailing in their success.  

Ch. 4 - The Marketing Environment

If any company is smart enough, they will pay attention to their marketing environment. If they plan to succeed in the marketing world they must orient themselves on what kind and/or type of audience they are aiming to sell to. There are different age groups, and different ethnic backgrounds that will make a difference with your overall sells. Starbucks for example has been racially associated with "white people". Being a 20 year old college student I have seen many times a young female being stereotyped as a "white girl" only because she is drinking a Starbucks drink. Now if this is true or not, Starbucks knows who their consumers are. Starbucks has a beverage for all ages. Aiming mostly at the Generation Y consumers when coming out with their different yet sweet and delicious flavored hot and cold beverages. They know Generation X consumers can never go wrong with an original cup of coffee and thats why that product will never go out of style. Starbucks gets all kinds of ethnic background costumers, that is why their drinks go accordingly. You will see drinks like the "dulce de leche" which is evidently for the hispanic crowd. The new "pumpkin spice latte" that comes out mainly in the fall, mostly attracts the white crowd. Therefore Starbucks seems to have a great understanding of what their marketing environment is like.

Ch. 18- Social Media and Marketing

According to this chapter in the book, social media is greatly involved in the marketing and advertising of companies. Facebook would be the third largest country in the world according to its population, if it was a country. Starbucks is no stranger to the world of social media, especially facebook. Starbucks has a fan page on almost every social media website. With 37.32 million likes on facebook and 6.56 million followers on twitter. Amongst others. Most people spend more time on their phones or computers rather than watching tv now a days. Starbucks for example is very aware of that. From a personal view point I have seen more Starbucks advertisements online rather than commercials on tv. Starbucks is an all around coffee producing company. They are listening to what people might want to know according to their market. Which is a process of Social Media Objectives. Instead of constantly posting coffee pictures or different drinks on facebook, they also post things such as how to clean your coffee maker. On twitter, Starbucks likes to build relationsjps with their consumers by reposting what their costumers have said about their products and drinks. Mostly the positive comments. Which by listening to their consumers will also attract costumers to perhaps go into a Starbucks and try out the drink that the one costumer had just raved about. 

Ch. 2 - Strategic Planning for Competitive Advantage 

The company of Starbucks has been very smart with their way of adapting to the new culture. They have created a strategic plan in order to stay relevant in their competitive market of Coffee. As market development is explained , Starbucks found a new use for an existing product. They started off only selling coffee and coffee machines. They knew that was making them business but they wanted to increase profit. Therefore they started creating new and famous drinks that we all know and love today. Such as the frappuccinos and other coffee based drinks. Never leaving the consumers favorite that is coffee behind. With the much obvious success of Starbucks, its evident that they have a market plan that works for them. 

Ch. 1 - Overview of Marketing  (Brief History and Mission Statement)

History-The history of Starbucks strats back in 1971 when the first store opened in Seattle, Washington. Jerry Baldwin, Zev Siegl and Gordon Bowker got the idea from Alfred Peet (of Peet's Coffee fame). The store initially sold just coffee beans and coffee making equipment rather than the drinks they have become so famous. After about 10 years, Howard Schultz was hired as Director of Retail Operations and came to the conclusion that they should be selling drinks rather than just the beans and machines. He couldn't convince the owners, so her went his own way to start the || Giornale chain of coffee bars in 1986. The next year, Baldwin and the others sold Starbucks to Schultz who the renamed his || Giornale  locations to Starbucks and quickly started to expand. (Source: Coffee.org)

Mission Statement- "To inspire and nurture the human spirit - one person, one cup, and one neighborhood at a time". (source: starbucks.com)

Ch. 1 - Overview of Marketing  (Brief History and Mission Statement)

History - Founded by Charles Lewis Tiffany and John B. Young^[7] in New York City in 1837 as a "stationery and fancy goods emporium", the store initially sold a wide variety of stationery items, and operated as "Tiffany, Young and Ellis" in Lower Manhattan. The name was shortened to Tiffany & Company in 1853 when Charles Tiffany took control and established the firm's emphasis on jewelry.^[8]Tiffany & Company has since opened stores in major cities all over the world. Unlike other stores at the time in the 1830s, Tiffany clearly marked the prices on its goods to forestall any haggling over prices. In addition, against the social norm at the time, Tiffany only accepted cash payments, and did not accept payments on credit. (source : Wikipedia)

Mission Statement - ”To be the world’s most respected and successful designer, manufacturer and retailer of the finest jewelry." (source: retailindustry.about.com)