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.