Principles and Practices of Marketing PPM

Principles and Practices
of Marketing PPM

Table of Contents
INTRODUCTION .............................................................................................................................3
Overview of the chosen organization ...........................................................................................3
STP analysis of chosen organization.............................................................................................3
Marketing mix of chosen organisation..........................................................................................5
Methods, through which respective organization evaluate the effeteness of their marketing
efforts.............................................................................................................................................7
Recommendation ..........................................................................................................................9
CONCLUSION ...............................................................................................................................10
REFERENCES.................................................................................................................................11

INTRODUCTION
Marketing is that form of communication in which a business communicate with its
customers with the motive to sale company's product and services to them. It is mainly concern
with the transfer of product's ownership from the producer to customers (Zhang, Yang and Qi,
2022). Marketing is everywhere, mostly task or project an organization do are linked with the
marketing. It deals with the customers to satisfy them at a profit. Twofold goals of the marketing
is to attract more new customers by providing them a superiors value products and keep the
current customers by delivering a satisfaction. Main purpose of the marketing is to earn revenue
for a brand company. The marketing professional and their team accomplish this through an
execution of their strategic digital activities that drive qualified leads, sales and traffic, in a direct
collaboration with sales team (Chen, Rao and Liao, 2018). The company chosen in this report is
Costa Coffee which is established in 1971 in London. It is a British coffeehouse chain with its
headquarter in the Dunstable, England. This report will be based on organizational positioning,
marketing mix of concerned organization and way in which company evaluate the effectiveness of
their marketing efforts.
Overview of the chosen organization
Costa Coffee is founded by the Italian brothers Bruno and Sergio Costa in London during
1971. it is UK's favorite coffee shop and it has been awarded as ' Best Branded Coffee Shop Chain
in UK and Ireland” by Allegra Strategies for the five years running. This British Coffeehouses
offered its services in world wide. This cafe has an experience of around 50 years to craft the
fitness quality coffee. This cafe has around 3883 stores at global level. It is very famous drink in
the world, more than 4000 billion of cup of coffee are consumed annually. This cafe is very
popular as it collect coffee beans from the across the world that make this cafe more famous.
STP analysis of chosen organization
The STP analysis is stand for segmentation, targeting and positioning. It is process of
combining three different marketing approaches into a single model. STP create the market
segmentation, targeting, selected segments and adjusting the service or product position
accordingly (Donohoe, McGill and Outslay, 2019). Combination of all these three element play a

crucial role to identifying a profitable segmentation and help the company to enhance
effectiveness of their quality product. In relation to the Costa Coffee, its STP analysis is discussed
below:
Segmentation- It is an assignment of the characteristics to organizational entire customer base
and then separating them into various audiences based on the data acquired (Stofkova, and
Sukalova, 2020). It include the four types o the segmentation which are mentioned below:
 Demographic- It is based on the gender, occupation, age. etc.
 Geographic- It is based on the country, region, state, location and many more.
 Psycho graphic- It is based on the factors such as hobbies, habits, activities, lifestyle and
other etc.
 Behavioral- It is based on the whey, how and how frequently the users interact with
company's website, store or apps.
Costa coffee has segmented its market based on demographic, behavioral and psychological bases.
In demographic this cafe has segment its market on the basis of age. In behavioral, as it focus on
consumer's social behavior in which people want an environment of a cafe. Secondly in
psychological, respective cafe observed that is customer's income is not so high, then occasionally
drinking coffee will give them a sense of level.
Targeting- In this, organization find out most valuable segmentation. There are different
approaches and data that support targeting (Fotaki, Lioukas and Voudouris, 2020). There are
certain points that can help the company to find an ideal segments. These points are mentioned
below:
 Profitability- It may difficult to calculate the profitability, but taking the customer
lifetime value into account and other data is an effective way to predict the segment
profitability.
 Size- A larger segment will facilitate more growth potential in the organization.
 Reach ability- It is another essential data point. Usually, the customer acquisition cost
hedged against the profitability metrics is an effective way to reach at the conclusion.
In this, Costa coffee has decided to target target audience between the age of 18 to 45 for both
the male and female. They target this segment because product itself is an ideal for adults.