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.
