Assignment on Marketing Esentials - Starbucks

Marketing Esentials

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Key roles and responsibilities of the marketing function............................................................3
Interrelationship of roles and responsibilities of marketing function with other functions of
organization..................................................................................................................................6
Comparison of marketing mix of two organizations...................................................................7
Basic Marketing plan for organization......................................................................................11
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Marketing essentials comprises all those activities that are related to the marketing
function of the organization that helps the company to generate the product sales revenue
through promotion and distribution activities. This report is based on Starbucks Corporation Plc,
which is an American Coffee company and coffee-house chain in Washington, U.S. Starbucks
serves different types of coffee and tea products and beverages along with bakery products like
cakes and pastries. The company has 28,218 locations and serves its products worldwide.
Starbucks has the revenue of US$ 24.71 billion and consists of 2,91,000 of the total employees
working for it. This report will highlight the key roles and responsibilities of marketing function
of the company. The report will include the interrelationship of marketing function with other
functional units in the organization. The report will also include the comparison of marketing
mix of two different organizations and analyse how it helps them in accomplishing business
objectives. The report will also include the evaluation of basic marketing plan for the
organization.
LO 1
Key roles and responsibilities of the marketing function
Marketing- Marketing is a process of influencing the customer through different activities and
ideas of promotion in order to make them buy a particular product. Marketing involves activities
such as promotion, advertising, selling and distribution of products as well as make them
available to consumers(Muller, 2019). It is a technique that involves activities to initiate
customer satisfaction and building relationships with them.
Importance of marketing for Starbucks- Starbucks is a prime coffee-shop located in the
different countries in the world consisting of its 28,218 locations all over. It is mainly famous for
its dark roasted coffee along with the taste, customer preference and experience, quality and
mainly the company is considered as “second wave coffee”. I order to maintain the revenue and
expand its customer base Starbucks needs and effective marketing department in its organization.
Marketing has promoted Starbucks brand and enhanced its sales all over the world and had
helped the company top build strong customer relationships by presenting them their demands
and preferences(Malhotra, 2015). Marketing has turned out to be the biggest source of revenue
generation for Starbucks as it operates in different economies and culture across the world.

Marketing has enabled the company to generate revenue of US$ 24.71 billion along with net
income of US$ 4.51 billion, comprising its total assets of US$ 24.15 billion. The marketing of
Starbucks has led the company to deliver its products and services in different countries as well
as survive in cross-cultural markets in the world. Hence, it can be said that marketing function
has highly facilitated the growth of revenues for Starbucks.
Marketing functions and its roles and responsibilities in Starbucks Plc-
Market analysis- Market analysis is used for notifying the current trend and the dynamics
of the market to the company so that it can plan out and frame its marketing strategies as per
these conditions for best outcomes. Starbucks operates in more than 70 countries across the
world and has to operate as per the different cultural dimensions of these countries. Market
analysis helps Starbucks to determine the factors such as Market size, Growth of the market,
Revenues to be generated, trends, Preferences of customers, Target areas, profitability of the
company, return on invest etc(Larson and Draper, 2015). It helps Starbucks to determine all
these factors and helps to frame strategies and objectives to overcome them on the basis of
current position of the company. The following are the different roles of this function for
Starbucks-
 To initiate the market research and identify the areas of operations in the market.

 To determine the needs, demands and preferences of customers in the market.
 To determine and collect the information related to customer's perception for Starbucks,
their purchasing power, tastes and choices for coffee.
 To estimate the market growth rate and forecast the profitability for the company in a
particular market.
 To identify the current position and stand of the company in the market.
 To evaluate the proportions and success estimates for the new product launch in the
market by Starbucks.
 To analyse the economic factors that includes inflation rate, currency exchange rates,
taxation rates for the company's operation in a particular country market.
Market Segmentation- Market segmentation is a process related to the diversification of market
on the basis of customers. Starbucks consists of 28,218 locations of coffee shops across the
world. Hence, in order to satisfy each and every customer at all places is quite difficult for the
company thus it divides the market into different segments of the customer. Segmentation is
done on the basis of psychographic segmentation that includes interests, perception, culture and
lifestyle of people, behaviouristic segmentation that includes the customer loyalty towards the
brand and the other one includes geographic segmentation that consists division on the basis of
different areas in the market(Pike, 2015). The following roles presented relates the segmentation
function of Starbucks marketing unit-
 To identify groups of people on the basis of their age and gender.
 To understand the culture and preferences of the people in the market.
 To identify the customers demand and to find out what products will be allocated in that
market to satisfy and influence them.
 To make decision regarding the market segmentation by company on particular basis.
 To determine the attitudes of the people related to their coffee choices and Starbucks.
Pricing- Pricing is the important element in the marketing function as the prices of the
products determine their value and profitability for Starbucks. Starbucks influence its customers
by providing the best quality and taste for its products at reasonable prices which can attract the
customers to buy the products. Prices of Starbucks products is mostly higher as due to its
exceptional quality and brand in the market(Hunt,2018). Prices turn out to be source of revenue
for the company as well as determines its profitability. Starbucks follows the premium prices for

its products due to high technology and the varieties it offers with the best customer experience.
However, the company also provides the low cost range of products in its few outlets to satisfy
the need of the customers that are not attracted by higher prices. Hence, it can be said that the
company follows the competitive pricing as well as relative pricing strategy to influence its
customers. The following are the roles of pricing function of marketing in Starbucks-
 To determine the prices of products considering the cost of production, profitability and
all other indirect cost incurred by the company.
 To calculate the cost of production comprising all the direct expenses as well as find out
total cost by adding up all the indirect cost, advertisement cost, promotion expenses etc.
 To study the competitor's p[rices and to frame the product price on its basis.
 To determine the price segment which will act more profitable for Starbucks products in
the market.
 Responsible for the price structure and price strategy of the organization.
Interrelationship of roles and responsibilities of marketing function with other functions of
organization
Marketing function play vital role in Starbucks and through this they create relationship with the
satisfying customers. This function of Starbucks understand to needs and wants of customers and