Ch. 7 Business Marketing

The book definition for business marketing is "the marketing of goods and services to individuals and organizations for purpose other than personal consumption." Starbucks does not fall into this definition with any ease. When you think about any sort of coffee shop the only image one can gather is that it is all for personal consumption.

After doing some research I was able to find some information that relates to this company and business marketing. It is not relating to Starbucks drink products but rather their music.

Starbucks has agreed to a partnership with Apple to collaborate on selling music as part of the "coffeehouse experience". In October 2006, Apple added a Starbucks Entertainment area to the iTunes Store, selling music similar to that played in Starbucks stores. In September 2007 Apple announced that customers would be able to browse the iTunes Store at Starbucks via Wi-Fi in the US (with no requirement to login to the Wi-Fi network), targeted at iPhone,iPod touch, and MacBook users. The iTunes Store will automatically detect recent songs playing in a Starbucks and offer users the opportunity to download the tracks. Some stores feature LCD screens with the artist name, song, and album information of the current song playing. This feature has been rolled out in Seattle, New York City, and the San Francisco Bay Area, and was offered in limited markets during 2007–2008.^[174] During the fall of 2007, Starbucks also began to sell digital downloads of certain albums through iTunes. Starbucks gave away 37 different songs for free download through iTunes as part of the "Song of the Day" promotion in 2007, and a "Pick of the Week" card is now available at Starbucks for a free song download. Since 2011 Starbucks also gives away a "Pick of the Week" card for app downloads from the App Store. A Starbucks app is available in the iPhone App Store.

Ch. 8 Segmenting and Targeting Markets

Starbucks has never seemed to have any worry about reaching their target market. Over the years the name has proven to speak for itself. Specialty coffee drinks seems to be that one luxury that people keep holding onto even in a time of economic struggle.

The type of segmentation that they use, as slight as it is, would be demographic. Though they will always strive to be the place for everyone they still have a specific group that they will reach more for. This is determined with demographic segmentation. Age plays a huge factor in determining this company's marketing mix. You will see your occasional tween in one of the many different stores throughout the world, but their main conquest are people age 20-40. This includes students as well as business people. It is marketed to the people who actually need caffeine in their daily routine.

In addition to their segmenting strategy they also have a targeting strategy. I briefly went over it in the last paragraph. Starbucks uses undifferentiated targeting. Though they have their ideal target market they still understand that in order to be a better more successful business they must look at the picture as a whole. The definition states: "essentially adopts a mass-market philosophy, viewing the market as one big market with no individual segments." In this type of business you are not going to be able to make every individual happy. That is why you must market yourself for everyone as a whole. Not to say that it is that way for everyone; but the field that Starbucks falls under, food and drink services, you must have a undifferentiated targeting strategy.

Starbucks has their main idea (undifferentiated targeting) and their sub plot (demographic segmentation). Both of these philosophies work for this company and work in harmony under these circumstances.  

Ch. 11 Developing and Managing Products

Something that Starbucks always seems to be doing is introducing new products into their existing product lines. Not always with customer knowledge. The products are normally seasonal which generates a certain buzz for the aware consumers.

Just today I was inside a neighborhood Starbucks and saw that they had a coffee bean blend called Thanksgiving roast. It was the first I had heard of it. I was only aware of the Christmas roast due to last weeks assignment to find out what our company was doing for the holidays.

The use of seasonal releases for new products is a kind of test market. They put the product out there and see how the customer reacts and then it goes away and they can decide how to better the product or leave it as it is for the following year.

These products rate of adoption fall under both "trialability" and compatibility. It is in the "trialability" category because it can be tried on a limited basis. Because these products are perishable the consumer does not have to make a long lasting, life changing decision. It is used on a trial basis only. The newer products being seasonal also helps this fact. They are also compatible because any product from Starbucks will have the logo attached to it. Any new product will be consistent with the pre-existing products to create continuity within the company and for the customer.   

Starbucks for the Holidays

As we get ready for the holidays so does Starbucks. Here are a few things that they are planning for this coming season:

• New addition to the holiday classic drinks; skinny peppermint mocha.
• New Christmas blend coffee
• New app for smart phone. Starbucks Christmas App
• And a promotion. Buy one get one holiday drink from Nov. 17 - 20 2-5pm. 

Ch. 16 Integrated Marketing Communication

Starbucks tends to do their marketing on a more personal level. They do use a mass form of communication, however, it is still a smaller group of people who are up-to-date on the day to day happenings within this large company.

You can create a free online account on their website to receive emails on updated news from Starbucks. They also have a basic news feed section on the same website that allows non-members to view up and coming information.

A way this company likes to send out messages to the masses is through video. I have found throughout my time learning about Starbucks that any news that has happened or will happen is accompanied by an informative video. This is an example of marketing through the use of internet. They have their own channel on Youtube that they use to post their latest creations.

For example they recently launched a new promotion that is geared towards helping create new jobs in the USA (see page entitled "Starbucks reaches out" for more info.) and this is the recent video that came out to promote their cause:

They let their creativity do the talking anytime they have a new exciting opportunity or advertisement to share. I believe that its a successful communication tactic because it shows how relaxed this company is. It shows a sort of confidence because they do not need to be in your face to get the point across, and on top of that its tasteful and artistic.

Ch. 18 Sales Promotion and Personal Selling

Starbucks doesn't adhere to the norm when it comes to promotions. They don't use coupons, rebates, premiums, loyal marketing programs, contests, sweepstakes, point-of-purchase promotion, or online sales promotions. Sometimes in select store locations they will have samples of things. It is very rare when you find that though. Its most likely around the time that they are introducing a new products

They do fall under the advertising and sales promotion category. They do not do personal selling though, you could say they take part in relationship selling because they work on a more personal level with their customers.

Most of Starbucks promotions. when they do them, are geared toward environmental aid. They gave away thermos's and traded them for your cup of coffee and they take ten cents off your coffee if you reuse a cup or bring your own to help fight against pollution.

Starbucks sales promotions are different in that they don't fall into the normal categories. This has yet to show any negative effects on them as a company.

Ch. 10 Product Concept

The Starbucks brand is what keeps this product selling. This company has a brand loyalty, "a consistent preference for one brand over all others". Their logo is known by most people and is a symbol that represents their product. People will buy it because it is a brand that is trusted.

The Starbucks logo is so well known these days that, since its new face lift, it doesn't even need the name attached to it. 

I believe that Starbucks falls under 'convenience product'. It is a convenient product, not only because they are very easy stores to come by, but because it fits the definition that says "a relatively inexpensive item that merits little shopping effort - that is, a consumer is unwilling to shop extensively for such an item". This is absolutely true for Starbucks products. Though it is a high quality and popular coffeehouse, its main selling point is how convenient it is for consumers.

Starbucks different product lines continue to grow with the passing of time. Just recently they released a new kind of coffee that is a Blonde roast. This is the latest addition to their product line of whole bean coffees. Their product mix ranges from different beverage lines to different food lines, even; all of the merchandise they sell would be in its own product line within the product mix. 

Like any company, Starbucks would be no where without their products. Their base for success is their product concept. And this concept is working for them as they are the leading producer in that field.