Part Four Principles of Marketing- 11 - Marketing Processes and Consumer Behavior.pdf

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268PART FOUR| PRINCIPLES OF MARKETINGMarketing Processesand ConsumerBehavior11Starbucks Brews a NewMarketing MixFor lovers of upscale coffee products, Starbuckshas long been the standout brand with a premi-um image as the “home of affordable luxury.”With its well-established line of tasty lattes andFrappuccinos—some priced above $4 and all presentedby service-savvy baristas—Starbucks gained great pop-ularity in the connoisseur coffee market. Seeking to tapthe market’s full potential, Chairman and CEO HowardSchultz spearheaded an ambitious expansion dream for40,000 retail outlets globally, creating a massive networkof stores dispensing Starbucks products, along with aninfusion of Starbucks’s “romance, warmth and theater,”to millions of coffee gourmets. All of that changed, how-ever, with the sting of the 2008–2010 recession.To stay afloat, Starbucks is reconsidering all aspects ofits marketing strategy, including downsizing the distribu-tion network of retail stores, refashioning its line of prod-ucts and prices, and promoting a repositioned Starbucksimage. The new strategy—presenting Starbucks as beingmore affordable—reflects the company’s tighter budget and realignmentwith the target market, as consumers adjust to the realities of a down-turningeconomy. Instead of adding 2,500 locations annually, hundreds of the once-17,000 locations have been closed, including stores in areas such as Floridaand California that have seen widespread home foreclosures. And fewer ofthe planned new stores have opened. The strategy also refocuses its productsback onto what made Starbucks great—coffee—instead of side-tracking intomovies and music. New entries in the product mix include a line of instantAfter reading this chapter,you should be able to:1Explain the concept of marketing andidentify the five forces that constitutethe external marketing environment.2Explain the purpose of a marketingplan and identify the four componentsof the marketing mix.3Explain market segmentation andhow it is used in target marketing.4Describe the key factors that influencethe consumer buying process.5Discuss the three categories oforganizational markets.6Explain the definition of a product asa value package and classify goodsand services.7Describe the key considerationsin the new product developmentprocess, and explain the importanceof branding and packaging.8Discuss the marketing mix as it appliesto international and small business.
Marketing Processes and Consumer BehaviorCHAPTER 11269WHAT’S IN IT FOR ME?Adjusting its marketing strategy is an example ofhow a company can apply marketing basics in an in-novative way to appeal to the forces of the externalmarketing environment. This chapter discusses thesebasics along with the marketing plan and componentsof the marketing mix, as well as target marketing andmarket segmentation. It also explores key factors thatinfluence consumer and organizational buying pro-

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Term
Summer
Professor
Saiful islam
Tags
Marketing, Marketing Processes and Consumer Behavior

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