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.
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