Ch. 12-Services and Nonprofit Organization Marketing

Cultivating Change– one relationship at a time.

Starbucks is committed to doing business responsibly and helping communities thrive. And while their vision is big, they're doing things to extend their reach at the same time. They are focused on stimulating a passionate network to their diverse partners, customers, nonprofit organizations, businesses and civic leaders for innovative, positive change. Each relationship brings specialized expertise and experience to the table, and they work with them to create innovative solutions that support their commitments to ethical sourcing, environmental stewardship and community involvement. Every one of them plays a part in their success, and they’re crucial to helping them reach our goals.

They are proud to work with The American Red Cross, AAMA (The Association for the Advancement of Mexican Americans),The Association of Post consumer Plastic Recycles, The Food service Packaging Institute, Inc. (FPI) along with many more. 

   

Ch. 11 - Developing and Managing Products

Developing new products and to be up to date plays a vital role in today's fast moving business world. Innovation is the key of developing new products. Starbucks is considered as the most developing company in the specialized coffee industry. Starbucks provides its customers with new exciting beverages,food items and a unique store experience throughout the year. Coffee is nothing new to the world, and basically all the items Starbucks offers do exist already. But nevertheless, Starbucks makes it happen to update their own company to a overall new experience by creating new product lines,adding new products to existing product lines, improving or revisions of existing products, re-positioning products and innovating customer experience.

The coffee house adds new products to its products lines throughout the year. For example, Starbucks extents its line every season by introducing specific seasonal drinks such as the pumpkin spice latte or peppermint mocha.

Another way Starbucks develops new product is by re-positioning. For example, Starbucks frappuccinos which are actually just ice coffee drinks appeal more to younger people after Starbucks added a couple of flavors such as strawberry,vanilla or chocolate mint. The frappunccinos have become to a more icy milkshake drink that attracts mostly younger children.

Ch. 8 - Segmenting and Targeting Markets

Market segmentation is a very resourceful strategy for organizations to fulfill their mission and gain profits. This is the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups. Starbucks uses demographic segmentation(markets by age, gender, income, ethnic background, and family life cycle) as well as geographic segmentation (markets by region of a country or the world, market size, market density, or climate) and psycho-graphic segmentation, which can link with demographics.

After a company decides what is their target market and market segments, it should choose what positions they should occupy within those segments.  Positioning within a market is developing a specific marketing mix to influence potential customer's overall perception of a brand, product line, or organization in general. Starbucks has positioned themselves as a highly respected brand.  The Starbucks company has become positioned in a way that it can distinguish their products from competition, which gives them an advantage once again.  Going back to their mission, they want "to inspire and nurture the human spirit - one person, one cup, and one neighborhood at a time."  Their positioning strategy is customer based, which allows them to give the best customer service.  As they continue to do this, they hold onto their sustainable competitive advantage in terms of their customer satisfaction as well as their employee satisfaction.

Ch. 15- Marketing Communications

It is less likely that a business survives without promotion no matter how good the product is. Communication to customers is an essential key to make them aware, informed and more apt to take action. All the promotional strategies ( advertising,public relation, personal selling and sales promotion) must be combined effectively and efficiently. It is important to promote on each and every stage of the "purchase decision making process" in order to make customer buy the products. The AIDA concept outlines four basic levels of the purchase decision making process (attention, interest,desire,action) and indicates the most effective promotion strategies on each level.

Starbucks mostly attracts attention through high publicity and all kinds of direct and indirect advertisement. For example, the coffee company seems to be everywhere in NYC. The extreme appearance of the Starbucks brand on cups, stores, packages, TV, social media etc. pp. catches the average consumers eye immediately and unintentional. 
Simple awareness is not enough to drive a consumer to buy, interest must be created. Starbucks creates high interest by advertising their unique store experience and by public relations. For instance, Starbucks attracts interest by sponsoring communities such as the store in Harlem, New York City that shares the profit with the community.


Starbucks encourages desire by different sales promotion that persuade customers to by new products and by well trained sales people.

Ch. 10 Product Concepts

Product Concept 

Starbucks products can be defined as "Convenience Products" because there are "relatively inexpensive" and "limited shopping effort" has to be invested. Among the coffee industry though, Starbucks can be viewed as a "Specialty Product" because compared to other coffee brands, Starbucks brand name, image and quality of service are key components in their company outlook. Also, the price range of the coffee makes it come off as high quality or a luxury.
The coffee company has a high product mix, beside a major variety of coffee and espresso beverage, Starbucks offers different kinds of petites, breakfast items, sandwiches, salads etc. Starbucks has been constantly expanding its product lines by developing plenty of new products.

Starbucks has a international brand name and loyalty (brand equity).The coffee house has been able to established a quality and upscale image. It's logo is well known and immediately identified on a worldwide basis. Starbucks gives many consumers a feeling of high prestige. The company stands out above other coffee houses such as Dunkin'Donats because of their high quality product - coffee - and it's product mix width; furthermore, because of the unique store experience. Starbucks as a whole is basically the main product concept that makes the company so successful, the actual coffee is considered secondary. No other coffee brand has been able to build a brand where its seen as more than just a place where people grab a cup of coffee. One of the most compelling facts is that even though Starbucks products are relatively expensive and defined as "luxurious", it is still affordable. Starbucks was actually meant to target the upper working class. But its brand appearance was so pervasive that Starbucks ended up attracting almost everybody throughout the world.

Ch. 17 - Personal Selling and Sales Management

Retaining Loyal Customers

Starbucks Rewards Card

In order for Starbucks to retain its customers they offer a Starbucks Rewards Card that can save the customer money. The rewards program has 3 different levels that each customer can level up to to continue to receive better benefits. Customers can simply continue to reload their cards in store or do it through the "Starbucks" mobile app to keep up with their stars and balance. Recently, Starbucks has changed the Starbucks rewards to the picture below. 

Personal Selling 

Starbucks are using personal selling business. Starbucks main purpose is to sell coffee drinks and good services. It is more like direct communication between a salesperson and individual customers. Baristas of Starbucks can communicate with their customers one to one and answer questions their customers had, and tell the differences between different type of coffee drinks. Selling coffee drinks are mostly short term sales, it is focus on products delivery and sales follow-up is short term.

Ch. 16 Advertising, Public Relations and Sales Promotion

Adverting 

The Starbucks logo on the white cup itself is enough for advertising. Most everyone who walks with a Starbucks cup in hand is basically a walking billboard. They also use the Starbucks website to promote new drinks or other products.

Promotion

Starbucks offers many promotions whether it's there Half Price Happy Hour, Happy Mondays, Morning receipt promo, Holiday Specials or the promotions you receive through their Starbucks Rewards. Of course the promotions are usually durning certain days and times they still find a way to offer their customers a way to save money. The promote these offers by e-mail, or by the Starbucks Mobile App.