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Starbucks marketing
Brief history of the term “marketing-mix”
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1964’ Neil H. Borden published “The Concept of the Marketing
Mix”
“Marketing-Mix” included: product, planning, price, branding,
distribution channels, personal selling, advertising, promotions, packaging,
display, servicing, physical handling, and fact finding analysis
Brief history of the term “marketing-mix”
1940’s James Culliton
“marketing manager=mixer
of ingredients”
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Brief history of the term “marketing-mix”
E. Jerome McCarthy grouped each aspect into 4
categories
 The 4P’s of Marketing:
product, place, price,
promotion
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The 4 P’s of Starbucks Marketing
1. Product
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Must meet customer requirements
Products should meet expectations
The goal is to satisfy consumers needs
The 4 P’s of Starbucks Marketing
1. Product
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Starbucks is known for one product: extremely good
coffee
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No more breakfast sandwiches because does not
compete with coffee aroma
The 4 P’s of Starbucks Marketing
2. Price
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Discounts, financing
Price decisions: profit margins and response of
competitors
Determined by the quality of the product and the
target consumers
The 4 P’s of Starbucks Marketing
2. Price
Starbucks has achieved the highest price point for
cofee in the restaurant industry
 Consistent high quality beverage
 Threat of competitors: McDonald’s- McCafe
Dunkin Donuts- Dunkachino
 Starbucks counter offer: $1 cofee item
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The 4 P’s of Starbucks Marketing
2. Price
The 4 P’s of Starbucks Marketing
3. Place
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Channels of distribution
Distribution decisions include market coverage, channel member
selection, logistics, and levels of service
The 4 P’s of Starbucks Marketing
3. Place
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Starbucks has strategically located its retail locations
Target potential customers
The 4 P’s of Starbucks Marketing
3. Place
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College campuses
Irreplaceable real estate
Helpful mobile applications
with store locations
The 4 P’s of Starbucks Marketing
4. Promotion
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Business of communicating with customers
Promotion decisions involve advertising, public
relations, media types
Successful promotion increases sales
The 4 P’s of Starbucks Marketing
4. Promotion
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Starbucks is an overall success story when it comes
to promoting their products and services
Brand image: “the third place”, unique & relaxing
atmosphere
The 4 P’s of Starbucks Marketing
4. Promotion
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Use technology to promote their brand
Social Media Marketing: Facebook daily notices
Free wifi
Loyalty cards
Starbuck’s ads
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Starbucks: Make a Difference. Take The Pledge:
http://www.youtube.com/watch?v=KRFofwu-0o4
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Starbucks new TV advert, UK:
http://www.youtube.com/watch?v=19r4I70fZRU
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Starbucks "Mondays Can Be Great" Campaign:
http://www.youtube.com/watch?v=sj5NxPryPXE
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