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.
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