Analysis of Marketing Mix and 7Ps in Starbucks

The assignment delves into the roles and responsibilities of marketing functions, exploring how the marketing mix (product, price, place, promotion, physical evidence, people, and process) is interrelated. It provides a comparison between Starbucks and Costa Coffee, highlighting the key strategies used by Starbucks in its marketing efforts.

MARKETING
ESSENTIALS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
P1 Roles and responsibilities of the marketing function of Starbucks company...................1
P2 Roles and responsibilities of marketing relate to the organisational.................................3
P3 Comparison between marketing mix of Starbucks and Costa coffee................................5
P4 positioning. Concepts of segmentation, targeting and......................................................7
Conclusion.......................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Starbucks is a brand of high quality goods and services in the market. The company sells
its products and services at premium prices. The company deals with the coffee. The company
gives first priority to the consumers and their satisfaction. The coffee taste is appreciated by
customers. The article can elaborates advertising, distributions strategies and pricing strategies
used by the Starbucks company. There are roles and responsibilities of marketing function of
Starbucks company and the relationship between duties of Starbucks marketing functions. In
these readers can analyse the comparison between marketing mix of Starbucks and Costa coffee.
P1 Roles and responsibilities of the marketing function of Starbucks company
Marketing functions of company are related to the customer's influence and consumption
habits. Technologies and marketing trends are important for value additions and steady revenue
of company. Marketing functions helps the organisation to create a demand of goods and
services. It is very important to promote goods and services. There are research objectives of
Starbucks company. The first goal of the company is to analyse attributes and uniqueness of the
brands. Second is to examine social responsibilities and its impact to consider strategic analysis
of the company. To assess strategies to achieve long term objectives((Dibb and Simkin, 2013)).
Responsibilities for community- Starbucks is committed for the benefits of society and
community. The company supports communities around the world. From this the organisation
can make a relevant and positive impact on it. The community welfare can be done with the help
of using innovative ideas, global and relevance research and positive scale of products.
Environmental responsibility- The Starbucks has a responsibility for the environmental
protections. The company is finding the ways to minimise environmental footprint. The company
is trying to improve recycling process and also protects water, energy, Green buildings. There
are some problems arises on the time of productivity such as climate changes, which is more
difficult for the organisation(Dibb, 2013).
Ethical sourcing- Starbucks company is committed to produce high quality of products and
services. Customer wants to buy high quality of products. The company is ethically responsible
to create a future for farmers.
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Diversity- Marketing functions of Starbucks company is responsible for changing business
strategies which are invented by diversity of people. The company has to create more
opportunities and ideas for success of business that benefit customers and suppliers(Wirtz, 2012).
Innovation- Marketing function should involved innovation. Customers wants to be surprised,
they need to buy demanding products. Innovation includes to give higher offers to the customers,
affiliate programmes, improvements in the conversion and customer retention techniques. The
marketing department of Starbucks company is responsible to work on new promotions.
Innovation is a different technique in the organisation for the improvement.
Responsible for the communication- The organisation is a chain of members, who comes
together for a common goal. There are the needs of communication for achieving goals. This
process is required for maximizing its profits.
Improve sales processes- Marketing function plays an important role for the improvement of
sales in the organisation. It is the responsibility of marketing department to understand the needs
of customers and their feeling. Direct communication to the customer is a good way for knowing
the customers(Blythe, 2012).
As per the investment activities these is the combinations of time , money and efforts.
The marketing functions are responsible to calculate the return of investment of the company.
The company should compare the activities of the market to calculate the return of investment.
These calculations can defines the profitability of the business. Such as the company invests in
the social media, telemarketing and traditional media. The market is responsible for the
measurement of all and to examine the profit or interest earned by the investment.
Define strategic marketing plan- The strategies that are planned for achievement of the
objectives, the market should define plans to the company for achievement of goals. The
effective strategic market plan helps to understand strengths of the company . These marketing
plan involves competition to the company and the target of achieving objectives.
Get rid of repetitive task- Marketing functions and sales process plays an important role to get
rid of repetitive task. All the technologies like e commerce e bay , mobile and amazon are very
important for the task.
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However, Without marketing functional activities Starbucks company is unconscionable.
The company needs to be aware about the productivity and needs of the customers. The
marketing department is liable to give the information about consumer's satisfaction and their
demand. All the responsibilities are important for survival of the company. It is necessary to
listen orders of the customers to find out their expectations. This is possible by receiving
feedback from the consumers. Starbucks company can use two methods for receiving feedback.
Company's internal channels that is a method of survey and capture informations. Sales teams
and customer department provides informations regarding to the customer's needs. Second
channels are outsiders of company, social networking sides helps to understand the needs and
also provides informations regarding to the demand of customers(Lancaster, 2010).
Monitor competition and Track trends- For the company benefits it is necessary to know
about the position of the company. It is important to understand about the market and the
competition. The company can learn that what should they do and how can they do best from the
competition. The company is responsible to identify their mistakes and to invent ideas to avoid
falling into them.
P2 Roles and responsibilities of marketing relate to the organisational
Marketing plays an important role for the Starbucks company. It is a key functional area
in the organisation. It includes product research and development, promotions, advertisement and
product sales and services. The market should work hard to get success of company. The
marketing functions helps to achieve organisational goals that's why marketing activities are
beneficial for the organisation. There are some reason that why marketing relate to the
organisation(Baines, 2013).
Learning- Marketing is beneficial for the organisation. It helps to learn about the activities of
businesses. The key element of marketing is research technique, that help the company to
understand customer's needs, market place, product and other industrial activities. Marketing
functions motivates employees for developing products and services that helps to achieve
success. The marketing process helps to figure out the needs of ideal customers, it also analyses
the motives and missions of achieving them.
Present Offering- Organisation creates innovation process and invents new goods and services
for the customers. Marketing process promotes that product from which customers can purchase
it. Without marketing there is no source of selling the best product to the customers. The
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promotional activity of marketing can help the customer to understand that the products and
services invented and offer them are beneficial and that have a great value(Clow, 2013).
Interaction- the Starbucks company can interact with customer directly with the help of
marketing. Telemarketing, e mail, direct mail , mobile marketing , social media, personal selling
are promotional tools for the company. The company can use this tool to get direct interaction
with customers. These tools are beneficial for the customers to allow immediate response.
Market withdrew plans for it, now a days customers can interact with the help of Facebook,
twitter and other tools.
Sales and services- Marketing process helps to produce more products and services, and its
efforts produces big returns. The company invests its profit in the market, market analyses the
contributions to the investment. The marketing process measure the return on the investment that
are beneficial for achieving business goals. Marketing includes advertisement which is used for
attracting customers and getting their attentions then selling that products and services helps to
achieve organisational goal.
Brand recognition- Marketing promotes the organisational brands, which is a advantage for the
company. Starbucks company offers its products and services in several new areas and marketing
process helps for promoting it. So the success of the company can be identified by its brand
name. The company have to reach out to the channels that is helpful for the success. Consumers
wants the best quality of product and services so they always try to understand about the
company from they are buying. Hence, customers can understand about the products and
services through its brand name. That brand name instantly recognisable from the product(Jones,
2011).
New product ideas- Marketing functions of the company are responsible for promotion of
products. It provides the facilities of showing latest product to the customers. This is a advantage
for the customer that they can reach to the latest products and services. The organisation can also
take the advantage through computers , technologies and other electronic gadget of selling its
new products. Customers always wants to buy innovative products, marketing help them to
achieve that products. The article elaborates the pricing, advertising & distribution strategies
used by the company through offering them new products .
Increased sales- Marketing provides the platform to the company to sell its products to the
customers, which increases sales of products. Marketing includes Comparison between
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marketing mix of Starbucks and Costa coffee retailer that are beneficial for promoting goods and
services. Sales can be increased by the using certain strategies like providing coupons, special
discount and other offers.
Cost saving- Marketing process are beneficial for the company because marketing team is less
expensive than advertising agency for promotional activities. Advertisement process offers
certain advantages but these strategies can become expensive. Hence, External marketing
strategies if managed effectively, can be cost effective(Mihart, 2012).
However, there are many advantages of marketing strategies that helps the organisation.
Marketing functions are directly involved with advertisement, communication and development
process. It may involve sales and strategies to promote products and services adopted by
marketing teams. There are several benefit of marketing duties with in the organisation like it
increases sales and also helpful for developing new ideas.
P3 Comparison between marketing mix of Starbucks and Costa coffee
Starbucks marketing mix- Starbucks company provides coffee, coffee beans and
espresso drinks to the customers. Market mix of Starbucks covers 4ps price, product, place and
promotion that analyses the brand of company.
Costa coffee marketing mix- The costa coffee is situated in the U K and it is owned by
Whitbread. Marketing mix of costa coffee also covers 4p that includes product, place, price and
promotion that is useful for analysing the brand and explains the costa coffee marketing
strategies(Clow, 2013).
Marketing mix
(7 Ps)
Starbucks Coffee shop Costa coffee shop
Product Starbucks provides various products,
its speciality is coffee. There are
many products to attract customers in
its marketing mix. Mainly Starbucks
serves whole bean coffee, micro
ground instant coffee which is also
known as VIA, cold drinks, cafe latte,
espresso, cappuccino beverages,
Costa coffee most popularly known the
coffee chain. Main product of The
company is coffee in its marketing
mix or the company sells coffee. There
are many varieties and flavour of
coffee. Mainly the company is famous
for offering of cappuccino, flat white,
latte, mocha, express, America no etc.
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snacks, la Boulogne pastries, full and
loose leaf teas, evolution fresh juices
and other teavana tea products
(Starbucks Marketing Mix, 2017.).
Starbucks stores also sells hot
sandwiches, wine, beer, cold coffee
and other packaged food items.
there are some ice blended products
like coffee cream, lemonade and
mocha cream frostino etc. There are
many products that the company sells
to caterers and business. The products
of costa coffee are main source of
business strategy.
Price The price of Starbucks company is
comparatively low than costa coffee.
The company started with a low cost
range. The grocery store are also
comparatively cheaper than costa
coffee(Jones, 2011).
In the marketing mix of costa coffee
there are diversity in offering price of
the products. The company offers its
price influenced by its competitor. The
price of costa coffee company's
product offered with premium range.
The company can not focuses on the
price of products it believes that
satisfaction of consumers is more
important than price. The price of the
product of costa coffee is depends on
the quantity ordered (Costa Coffee
Marketing Mix, 2016).
Place Starbucks is located at more than
5000 areas. There are free Wi-Fi
facilities in the Starbucks
stores(Afridi, 2009).
There are 3300 outlets of costa coffee
over 31 countries in which the
company operate its business. There
are more than 2100 restaurants in U K.
The business of costa coffee is limited
but it is now growing in India also. The
company focuses on rich people and
middle class to sale our product. The
product of this company can be found
on airport and in shopping malls.
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Promotional N the marketing mix, Starbucks
focuses on promotion through TV,
print media and on other online
channels(Moons, 2010).
Costa coffee does not uses the
strategies like advertisement on TV or
print media. The most important
strategy is mouth publicity from its
customers. The company also use the
strategy of free sample of new product
to its customer.
people The company provides best services
to create memories for customer.
There are more than 200000
employees in the company which is
comparatively a lot from costa coffee.
Costa coffee focuses on employees and
customers. There are more than 20000
employee and in the company. The
company treats high regards to every
customer.
Process Starbucks uses loyalty cards for the
employees which helps to attract
customers. It uses highest
technologies in the market mix to
maintain standard.
The company makes comfortable to
every customers. The should available
in minimum time after taking the order
by employees. The last process for the
product is of paying bill.
Physical
evidence
Physical evidence of Starbucks
includes ambience, coffee mugs,
paper napkins etc.
The company sells merchandise to its
customers like branded cups and there
are physical evidence of the product
offered by company for this coffee
house.
P4 positioning. Concepts of segmentation, targeting and
Marketing plans can be defined by increase sales, the plan in which company can
increase its sales. Awareness of brand, to grow market shares of the company. Making strategies
relating to launching new products and services. Target new customers and enter into a new
market. The main focus of marketing plan is to improve stakeholder relationship and enhance
customer relationships. The marketing plan introduces internal communications and increases
profit. The marketing plan of Starbucks company is to increase the number of enquires by 20 %
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with in 2 years. The company also focuses on to increase sales by 30 % . This can be done from
best marketing objectives(Moons, 2010).
STP analysis-
STP analyses can be describe by three steps which includes segment your market, target
your best customers and position your offering. All three models are very useful to identify most
valuable customer , it helps to develop products and marketing(Nguyen, 2012).
Segmentation: Starbucks needs to use market segmentation that divide the customers in groups
through their needs. Mainly there are four kinds of segments. Demographic such as marital
status, age , gander , education and ethnicity. Second is Geographic, that includes country , states
, city, region and neighbourhood. Third is psycho graphic, that includes personality, values, risk
aversion and lifestyle. Forth is behavioural, that includes products and benefits.
Targeting: There are several factors to analyses size and potential growth. It is related to the
customers who owns the market as there preference is must for the company, who want to retain
in the market for long period. Starbucks is a company that targets the customers in such a way
that they covers the entire market by giving primary priority to the customers.
Positioning: positioning refers to the place offers by a customer to the company. So that the
company can fight completions and Diffie its competitor by keeping their product on top with
the help of their existing customers.
Marketing Strategies: it is a plan prepared by the marketing department of the company. It
defines the way in which product can get promoted.
7 Ps of marketing
Product- Starbucks company can produce its product as per the consumers requirements and
their expectation to get the best quality product from company.
Place- Starbucks company offers the targeted customer its product in the way that it is available
to them from where they can find Easiest to shop. These includes online ordering, malls and
nearest shops(Desai, 2013).
Price- the prising of product should be present good value in customer’s eyes. So that they can
find that the product presenting before them is cheapest available ever.
Promotion- Promotion decides the future of the company as these includes many
communication tools as its key factors. Promotion will help the company only when it is
systematically used by them.
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People- Starbucks company in one way on the other is dependent on the people who run them in
the market. Having right people in the company is must because the will help the company to
grow and expand in the market(Mihart,2012).
Process- It refers to the delivery of company’s services done with the customer presence. The
company must be provide the product to customer what they want and paying for.
Physical evidence- Starbucks company has physical evidence as it deals in coffee. Almost all
services provided by Starbucks has some physical element in it.
Conclusion
From the above analyses readers can find the roles and responsibilities of marketing
functions. How marketing mix or 7ps are interrelated with each other it can be summarised in
this. There are comparison between Starbucks and costa coffee. In these readers can understand
the marketing max and 7ps which includes product, price, place, promotion, physical evidence,
people and process.
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REFERENCES
Books and Journals
Dibb, S. and Simkin, L., 2013. Marketing essentials. Cengage Learning.
Wirtz, J., 2012. Essentials of services marketing. FT Press.
Blythe, J., 2012. CIM Coursebook Marketing Essentials. Routledge.
Lancaster, G. and Massingham, L., 2010. Essentials of marketing management. Routledge.
Baines, P., Fill, C. and Page K. 2013. Essentials of marketing. Oxford University Press.
Clow, K. E. and James, K. E., 2013. Essentials of marketing research: Putting research into
practice. Sage.
Jones, R. and Rowley, J., 2011. Entrepreneurial marketing in small businesses: A conceptual
exploration. International Small Business Journa. 29 (1). pp.25-36.
Afridi, F.K., 2009. Extended services marketing mix and emergence of additional marketing Ps.
Journal of Managerial Sciences. 3(1), pp.137-143.
Papasolomou, I. and Melanthiou, Y., 2012. Social media: Marketing public relations’ new best
friend. Journal of Promotion Management. 18(3), pp.319-328.
Durmaz, Y., 2011. A theoretical approach to the concept of advertising in marketing.
International Journal Economic Research.[23 Januari 2015].
Mihart, C., 2012. Impact of integrateStarbucks Marketing Mix. 2017.d marketing communication
on consumer behaviour: effects on consumer decision–making process. International
Journal of Marketing Studies. 4(2), p.121.
Moons, I. And et.al., 2010. The extended decomposed Theory of Planned Behaviour. A
framework for investigating the adoption process of electric cars. In The 6 Senses-The
Essentials of Marketing (EMAC 2010). pp. 191-191.
Desai, S. S., 2013. An analysis of the cStarbucks Marketing Mix. 2017.ompetitive marketing
strategies of the hospitality industry in UAE. IUP Journal of Management Research.
12(1), p.22.
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Nguyen, B. and Simkin, L., 2012. Fairness quality: the role of fairness in a social and ethically
oriented marketing landscape. The Marketing Review. 12(4). pp.333-344.
Online
Starbucks Marketing Mix. 2017. [Online]. Available through:
<http://www.mbaskool.com/marketing-mix/services/17140-starbucks.html
Costa Coffee Marketing Mix. 2016. [Online]. Available through:
<http://www.mbaskool.com/marketing-mix/services/17119-costa-coffee.html>.
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