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)