An Analysis of Marketing Principles and Consumer Behavior at Starbucks

This report provides an in-depth analysis of Starbucks' marketing strategies, focusing on the application of various marketing concepts and consumer behavior. It explores how Starbucks utilizes production, product, selling, marketing, and societal marketing concepts to promote its products and services, emphasizing the importance of customer satisfaction and social welfare. The report examines how consumer buying behavior is influenced by factors such as online services and product variety, both in local and international markets. It also delves into the stages of the consumer decision-making process. The conclusion highlights the significance of adapting to changing consumer needs, emphasizing the role of innovation and quality in maintaining a competitive edge. The report recommends that Starbucks continues to emphasize societal marketing and adapt to changing consumer demands to enhance its brand image and customer loyalty.

MARKETING PRINCIPLES AND PRACTICE

INTRODUCTION
Marketing is the process of promoting the products and services in different areas and it
also helps the business organizations to entice large number of customers towards the available
products (Reynoso, 2013). The present research study has been emphasizing on use of marketing
concepts in Starbucks along with consumer buying behaviour. Further, in the research work,
discussion has been made regarding changes in customer behaviour in diverse conditions both in
the context of local and international markets. Apart from the general perspective, researcher has
also discussed the use of societal marketing concept for Starbucks.
Background of the organization
The topic of the research study is Starbucks which is known to be an American coffee
company. Starbucks was founded in 1971 in Seattle, Washington. Starbucks is known to be
serving a brand of coffee which is different from the other competitors in US, it is known as
representative of second wave coffee. Starbucks has a base in more than 24464 countries around
the world. Starbucks operates with automated espresso machines which provide efficiency and
safety.
The business is also involved in serving variety of drinks including loose- leaf teas and
Teavana tea products (Stahlberg and Maila, 2013). From historical point of view, despite of the
downturn in economy Starbucks became profitable in the 1980's. When the company expanded
into California, it experienced a re energising experience. The business has been using different
marketing concepts for the purpose of managing all the operations effectively in numerous areas.
USE OF MARKETING CONCEPTS FOR STARBUCKS Production concept: The concept believes in the philosophy that cost of production needs
to be reduced so that distribution system of organization could be enhanced (Dibb and

Simkin, 2013). This is also useful apparently only when demand exceeds the supply
aspect. Product concept: As per this concept, organization believes in producing and selling
quality products so that customers can be easily persuaded towards the variety of
products and services. Selling concept: The concept believes that consumers should be delivered better services
as that will only assist them to facilitate repeat purchase. Further, it is also useful for
business entity to emphasize on selling right products to the consumers on right time. Marketing concept: This concept helps business entity to emphasize more on customer
satisfaction so that success can be enhanced. The basis of this concept states that
demands of consumers should be met as per the requirements (Brady, 2014).
 Societal marketing concept: This specific concept stresses not only on customer
satisfaction; but also it gives more importance to consumer and social welfare. The main
motive of adopting this concept is to show that Starbucks is highly emphasized towards
social welfare.
Thus, it is clear that Starbucks chiefly focuses on societal marketing concept in which the
business entity ensures that proper services is being delivered to society people. Thus,

considering the same aspect the coffee brand focuses on meeting all the social responsibilities. It
is an essential element to increase the image of the brand in the eyes of the consumers and also
the other competitors.
From the above discussion, it can be said that Starbucks is focusing on Societal
marketing concept in which the entity emphasizes on needs and wants of target markets and
according to that they deliver valuable services to the clients (Stahlberg and Maila, 2013). This
helps the entity to become more competitive as compared to other rivalries. As a result, it also
aids in preserving consumer’s and society wellbeing. Starbucks views this concept as a practice
through which better decisions related to product marketing can be done. The concept grasps that
the company work is to find the needs and interests of the target consumers so as to provide with
the products to satisfy consumers. As far as social welfare is concerned, it is crucial for
Starbucks to focus on needs and demands of customers and along with that, business entity
should also emphasize on serving quality products to the end users.
The above discussion states that all the marketing concepts are needed to be followed by
the company in order to get success in the in external market. For instance- in order to create
awareness among the customers Starbucks must centre on marketing concept under which many
marketing strategies are required. This will help Starbucks promote the product as well as the
company's way for service delivery procedure is also facilitated.
In order to intensify the image and value of the business the company needs to focus
societal concept of marketing which implies to give focus on values and norms of the society.
This is also known to promote sustainability of the business which will help Starbucks gain a
competitive edge in the long run.
Therefore, considering the same concept, Starbucks is engaged in endeavouring to satisfy
the needs and demands of customers in such ways that preserve and enhance the wellbeing of
consumers and society as a whole (Wirtz, 2012). It is also closely linked with the principle of
Corporate Social Responsibility and Sustainable Development. Social responsibility implies that
business (Starbucks) needs to promote consumer value so that new customers can be attracted to
the brand. This also facilitates the view of the customer which promotes repeat purchasing ,
which ultimately leads to customer loyalty towards the brand. Further, apart from generalized
roles, Starbucks also needs to adopt the role of leadership in the advancement of the society to

new levels of moral conduct (Siu, 2012). This, as a whole could assist Starbucks to enhance the
opportunities of growth and prosperity.
HOW CONSUMERS MAKE THEIR BUYING DECISION UNDER VARIOUS SITUATIONS
Buying behaviour of consumers changes frequently as per the types of business and
categories of services. In present scenario, consumers changes their buying pattern due to
advancement in online services (Silver and et.al., 2012). Starbucks is engaged in delivering
online services to the end users which allows the consumers to get the products and services
conveniently. Online and offline both the types of services are useful for Starbucks because that
helps the end users to get appropriate products when required.
Stating about the process of buying behaviour of customers, it can be said that there are
various stages that influences the mind-set of customers and as a result it changes their decision.
 At the initial stage, consumers focuses on the reason that drives to purchase any specific
product or service. At this stage, their desire is specific and this clarifies what they want
to purchase.
 Next is to search for different options that are available to buy a product; hence focus is
laid on all such sources.

 At the next stage, consumer evaluates the alternatives so as to select the best option to
purchase the requisite product and service.
 Afterwards, deciding the source, consumer makes purchase decision which states that
finally the end user needs such product.
 At last, a need has been created and the process of search completes which then leads to
purchase of a product.
However, buying behaviour of customers of Starbucks usually changes due to variety
seeking habits (wherein consumers prefers to have various products as per the availability of
brands). There are numerous customers of Starbucks who tend to prefer international products
because of availability of large number of varieties (Reynoso, 2013). Starbucks gets more profits
and success at the time when the business involves in international marketing of products. This
also aids the business entity to amend the scope of profits and as a result, the business becomes
able to enhance the ratio of customer satisfaction.
CONCLUSION AND RECOMMENDATIONS
Therefore, on the basis of above study, it can be articulated that prior marketing the
products and services in the market place, business entity must have to focus on needs and
requirements of customers. This is also useful in terms of analysing the level of competition at
the market place. Moreover, in this facet it can also be said that the decision making process of
purchasing a product keeps on changing; therefore focus should be laid on all the available
alternatives.
Concluding the entire research work, I can be said that all the concepts of marketing are
useful for Starbucks especially for managing diverse business operations. With the help of
societal marketing concept, it is vital for Starbucks to depict more responsibility towards
consumers and their demands. Along with this, focus should also be laid on delivering quality
products and services. This is also beneficial for the purpose of attracting more customers
towards existing business products. Moreover, in terms of recommendations, it can be said that
Starbucks should emphasize on bringing innovative and quality associated products so that it
could meet the changing requirements of clients.

REFERENCES
Brady, D. L., 2014. Essentials of international marketing. Routledge.
Dibb, S. and Simkin, L., 2013. Marketing essentials. Cengage Learning.
Reynoso, J., 2013. Essentials of Services Marketing. Journal of Service Management.
Silver, L. and et.al., 2012. The essentials of marketing research. Routledge.
Siu, N.Y., 2012. Essentials of Services Marketing. Managing Service Quality: An International
Journal.
Stahlberg, M. and Maila, V., 2013. Multichannel marketing ecosystems: Creating Connected
Customer experiences. Kogan Page Ltd.
Wirtz, J., 2012. Essentials of services marketing. FT Press.