Marketing Report: Understanding Marketing Concepts

This report provides a comprehensive analysis of marketing concepts, with a specific focus on Starbucks and Costa. It begins by defining marketing and exploring current and future trends, including social and relationship marketing. The report then delves into different marketing processes, such as production, product, selling, marketing, and societal concepts. It also examines the roles and responsibilities of a marketing manager, emphasizing customer engagement, information dissemination, and understanding customer requirements. The report evaluates the key elements of the marketing function, including research, strategy, planning, and tactics, and analyzes their interrelation with other functional departments like finance, HR, and IT. Part B of the report compares Starbucks and Costa, using the marketing mix to highlight their strategic approaches. Finally, it underscores the importance of effective interrelationships between different functional departments for achieving organizational objectives and maintaining a competitive edge in the market.

Marketing
Understanding

Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Concept of marketing, including current and future trends....................................................3
Overview of different marketing processes............................................................................4
Explanation and analysis of the role and responsibilities of a marketing manager in the context
of the organisation..................................................................................................................4
Value and importance of marketing role in the context of organisation................................5
Evaluation of the key elements of marketing function and how it interrelates with other
functional departments of the organisation............................................................................6
CONCLUSION................................................................................................................................7
PART B............................................................................................................................................8
Background of the company...................................................................................................8
Marketing mix of STARBUCKS and COSTA......................................................................8
Strategic marketing plan.........................................................................................................8
CONCLUSION................................................................................................................................9

INTRODUCTION
Marketing is an important tool in the modern business organization as it include
understanding of marketplace, developing profitable relations, demand of consumers, provide
quality among customers and driven market strategy. It is important for an organization to
conduct marketing activities so that they can aware large number of people about its offerings
that impact positively on its sales as well as profitability (Cork and Eddy, 2017). For the present
report, Starbucks is taken into consideration. It is an American multinational chain of roastery
reserves and coffee houses that headquartered in Washington. The company was established in
year 1971 and at present it operates in more than 30,000 locations which shows it has high
market presence and share as well. The report is divided into 2 parts, In the first part there is a
description about concept of marketing along with current and future trends. In addition to this, it
overview different marketing procedure. Moreover, analysis of roles and responsibilities of
marketing manager along with the importance of marketing role is elaborated. Furthermore, there
is evaluation of marketing function and how it relates to other functional department of
company. In the second part, there is a comparison of two companies with the help of marketing
mix. Along with this, strategic plan is developed that help in attaining objectives of an
organization timely and effectively.
PART A
Concept of marketing, including current and future trends
Marketing is defined as collection of activities that is undertaken by an organization to relate
profitability to its market. In addition to this, it help businesses to reach and develop relationship
with customers which has a positive influence on profitability and growth of a company.
In context to current trends in marketing, one of the trend is social marketing that is used
by an organization within objective to generate customer satisfaction and enhanced sales.
Another trend is relationship marketing, it is the procedure of developing long term trusting with
customers, suppliers and dealers (Deepak and Jeyakumar, 2019). This help company to maintain
its brand image level and performance in an effective manner.

In context to future trends in marketing, digital marketing is one of the trend which is used
by companies in order to communicate, provide and reach customers rapidly. In addition to this,
prioritize customer or providing them products as well as services as per the requirements can be
the future trend of marketing. This will help company to retain and satisfy its customer which in
turn impact positively on future sales and performance level.
Overview of different marketing processes
Marketing concept is categorized into five major aspects that depict the core of marketing.
The marketing process in context to respective organization is given below:
Production concept: it is mainly based on the perception of consumer and assume that
consumers are inclined towards the project which is easily available to them in reasonable prices.
Product concept: Here in, customer choose those product that provide value for money,
quality as well as innovative approach. In addition to this, such concept assumes that consumers
can be retained by the product as well as services which is beneficial for them.
Selling concept: It is analyzed that mind set of consumers attracts by promotions that tends
to emphasize on products as well as services that are aggressively promoted at marketplace.
Marketing concept: This concept elaborates the needs of focus over target consumers for
the delivery of goods and service (Ekici and Toksoz, 2021). Along with this, it is important for a
business entity to deliver effective value of goods and services to customer in order to maintain
its brand value as well as enhance its market share. Moreover, it is analyze that if brand value is
improved then customers will automatically select the brand over the competition at
marketplace.
Societal concept: This concept mainly emphasizes over requirements and needs of target
consumer. In addition to this, it aims that customer will prefer brand over the contemporaries
prevailing at market place.
Explanation and analysis of the role and responsibilities of a marketing manager in the context of
the organisation.
Identification of customers requirement: It is important for an organization to identify its
customers requirement as it is one of the main reason of an organizational growth and success.
The marketing department conduct market research in order to analyze customer requirements
and market trends that help in development of products accordingly (Eletxigerra, Barrutia and
Echebarria, 2018). In relation to Starbucks, its marketing manager conduct research and offer

product and services as per customer's requirement. This assist company to attract large number
of customers and gain higher profitability at marketplace.
Developing marketing strategies: It is determined that marketing department develop
strategies regarding awareness of its goods and services to target customers. In addition to this, it
develops strategies to reach and maintain relation with customers. With reference to Starbucks,
it's marketing manager conduct campaign's in order to make people aware about it offering’s and
quality it provide as compared to its competitors.
Monitoring marketing environment: In order to retain and sustain at marketplace, it is
important for an organization to monitor marketing environment as the requirements and demand
of customer changes with the passage of time. In relation to Starbucks, it’s marketing team
monitor the overall marketing environment and analyze demand of customers so that company it
can develop those offerings that satisfy customers which has positive impact on it performance
and profitability level.
Developing awareness: Another role and responsibility of marketing manager is to develop
awareness and knowledge to customers about its offerings (Grönroos, 2020). It is analyze that
marketing team of Starbucks conduct promotional activities and campaigns in order to aware
people about it offering’s. In addition to this, the company make use of social media tools such
as Facebook, Instagram and many more as it help them to reach large number of customers and
enhance it sales rapidly.
Value and importance of marketing role in the context of organisation
Marketing is the process through which a product or service is introduce as well as promoted
to target customers. In addition to this, it is the heart of an organization success and growth at
marketplace. The value and importance of marketing role is discussed below:
Customer engagement: It is significant for an organization to engage its customer for
longer time period in order to gain growth at marketplace. The marketing Department of
Starbucks remain in touch with its employees and also provide them loyalty programs that help
in satisfying and engaging customers for longer timeframe.
Inform customers: Marketing inform customer about the product and service offering by an
organization. In addition to this, it help company to make its employees aware about any new
product or feature add in it. Starbucks make use of social media tools as a communication

channel in order to inform customers. This help company to reach large number of customers
and increase sales and profitability level.
Providing insight about customer requirements: At the present time, it is important for an
organization to have idea about requirements of its customers as it helps in retaining and
satisfying them in an effective manner (Hoque, Hashim and Azmi, 2018). With reference to
Starbucks, it is determined that Company conduct market research in order to know about its
customer needs so that they can provide services accordingly.
Evaluation of the key elements of marketing function and how it interrelates with other
functional departments of the organisation
Key elements of marketing function:
Marketing function encloses different functions that is advertising, distribution system but
all these activities that come under the process of marketing procedure. The elements of
marketing function is given below:
Research: It is undertaken as one of the significant marketing function that help company to
gain insight about customer requirements. In relation to Starbucks, it conduct market research in
order to know about customer requirements as well as market trends so that they can offer
product which satisfy its customers.
Strategy: It take place after the results of collection of data, it is process in order to judge all
the possible strength as well as weakness is among the business operations. In relation to
Starbucks, it help company in guidance to competing it's competitor and gain success within
market environment.
Planning: After the successful completion of data collection and strategy procedure, other
element is planning process. It helps Starbucks to utilize a particular time plan to develop major
strategies that impact positively on its productivity and profitability (Kotoua and Ilkan, 2017).
Tactics: Another key role of marketing function is tactics that can be short term plans which
assist company to attract its target customers. In context to Starbucks, it provides various offers
to its customers that help in attracting large number of people and boost its sales as well.
Marketing function is referred as role of business organization that help to identify and
source potentially successful products for market. There are various functions involve in an
organization such as finance, human resource, IT department, sales and so on. The interrelation
among marketing function and other functions of organisation is given below:

Marketing and finance: It is determined that marketing Department perform various
activities such as promotion, conducting campaign, advertisement and so on. On the other hand,
finance Department provide budget to the marketing Department in order to implement activities
in a proper manner. This interrelation among marketing and finance Department assist Starbucks
to execute all its activities within budget and boos sales as well as profitability level.
Marketing and HR: The key role of human resource department is to recruit right person,
who has the capability to perform all the activities and operations of an organization. It is
analyze that the marketing department of Starbucks require marketing assistant and for this they
provide detail to it’s HR Department (Kumar, 2017). This assist in finding the appropriate
employee who perform activities properly and impact positively on performance of organization.
Marketing and IT: Marketing Department consists of large number of information of it's
customers which required to be kept properly and systematically. The IT department provide
software to marketing department so that they can record information and search it easily when
ever they want. This Inter relationship help in finding customers easily and reach them in an
effective manner.
CONCLUSION
From the above discussion, it has been concluded that marketing is one of the crucial role
for an organization in order to gain higher growth and success in this competitive business
environment. In addition to this, it is significant for an organization to maintain an effective
relationship between marketing department and other departments such as finance, operation,
HR and many more. This help organization to implement all the activities in a smooth and proper
manner which in turn impact positively on productivity and performance level of a business
entity. Moreover, it also help company to adapt changes that take place in market and also
manage it’s operations as well as activities in a timely and effective manner. Furthermore, it help
an organization to maintain its performance level and achieve organizational objectives within
stipulated time period.

PART B
Introduction
Marketing mix is defined as a set of marketing tools which a company uses for selling its
product and services to target customers. In addition to this, marketing mix help business entity
to enhance its strength and decline its weaknesses which impact positively on its performance
level. In this part, there is a comparison of two organazation with the help of marketing mix
(Peñalba-Aguirrezabalaga, Sáenz and Ritala, 2020). In addition to this, a strategic plan is
developed that help in attaining marketing objectives and gain success of an organization at
marketplace.
Marketing mix of STARBUCKS and COSTA
One of the major competitor of Starbucks is Costa that effect negatively on it sales and
performance. The marketing mix of Starbucks and Costa is given below:
Factors STARBUCKS COSTA
Product Starbucks provide variety of
products that is ranging from hot
and cold beverages to eatables
such as wraps, salads,
sandwiches and so on. Its
products are well designed and
serve in different measures, not
on basis of quantity.
Costa coffee offer wide range of
products in retail outlets such as
tea, iced coffee, hot chocolate
and so on. In addition to this, it
provides customized products to
customer without taking any
extra charge.
Price Starbucks follow Skimming
pricing policy that help in
attaining economies of scale. In
addition to this, it begins with
high price and then skim the
cream of market (Saad, 2020).
It is determined that the pricing
policy of Costa coffee is not
touch upper cream of society and
is lower as compared to
Starbucks.

Place The company offer its products
and services in more than 30,000
locations and is located outlets in
malls, main markets and family
entertainment centers.
Costa coffee is generally found
near shopping malls, colleges,
petrol pumps and the areas that
are easily approachable and
visible.
Promotion The company carries out Mass
promotion campaign and did not
rely heavily on advertising as it
relies more on strategic alliances
and sponsorship. In addition to
this, it also take part in different
sale promotion activities in order
to enhance sales such as
Starbucks membership card,
collaborations and many more.
It is determined that respective
organization does not believe in
mass media promotions as it used
promotion techniques such as
cost of coffee Club card, offering
points and so on.
Physical evidence The employees at store of
Starbucks is undergo with the
training procedure so that they
can gain in depth knowledge
about companies offering and is
able to provide effective
customer service.
The employees at costa coffee
are trained, positive and polite
with its customers in order to
make their visit memorable and
effective.
Process The order and delivery procedure
of Starbucks is mainly based on
self-service as company believe
that one hand over the counter to
present Cup to another hand
develops a connection among the
company and customers.
The procedure of order and
delivery of Costa is not based on
self service as the employees
fetches order from table and
provide it at same place.
People The outlets of Starbucks is well
designed and systematic which
provide customers effective and
valued services.
The outlets of Costa coffee is
attractive and very well design
that over customer quality and
proper service.

Strategic marketing plan
In the present time period, people are more concerned towards their health and focus on
consuming those products which is good for their health (Stalmirska, 2020). For this, the higher
authorities of Starbucks is planning to bring “Herbal Coffee” at marketplace with an objective of
customer health and sustainability at marketplace. The marketing plan associated to its new
product is given below:
Section Chapter Why it matters
Executive
summary
 Marketing plan is basically a blueprint of activities that
involve all plan, strategies, tactics associated to a product. In
addition to this, it help Starbucks to properly and
systematically implement its activities in order to bring out
Herbal coffee at marketplace.
State of the
union
Marketing Vision The vision is to offer something healthy to customers and attain
sustainability at marketplace.
Recent business
results overall
 In the present time period, the overall sales of Starbuck is
decline due to COVID-19 pandemic and is not able to operate
all its outlets in a proper manner.
Business challenge  One of the major challenge that is face by Starbucks is decline
of sales and temporarily shut down of its outlets. This affect
adversely on profitability and market share of respective
organization.
Marketing
objectives and
strategy
Objectives  To increase sales 7% by providing healthy offerings to
customer in 6 months.
 To Improve market share 5% by reaching large number of
customers in coming 4 months.
 To increase awareness of its new product by using social
media tools properly.
Strategy  One of the major strategy used by company to attain objective
is using of digital marketing tools as it help increasing
awareness of new product to large number of customers within
less time period.

 The company can make use of product development strategy
and enter into new market as it help in raising customer base
level and boots sales as well.
 Another strategy is offering product at reasonable price as it
assist in raising sales of Herbal Coffee in an effective manner.
 Moreover, targeting people who are more conscious towards
their health can be one of the effective strategy to make new
product effective at marketplace.
Summary By the assistance of high promotions and targeting right customer, the
company can successfully bring its new product at marketplace. (Xu
and Gao, 2021) In addition to this, it help company to make people
aware that company is concerned of their health which in turn develop
positive mind set of customers towards brand and retain them for
longer time frame.
Risks One of the major risk associated with new product non-acceptance by
customers as in the present time, many of the customers did not prefer
to consume new products offer at marketplace as they remain loyal
with their existing product.
Mitigation
strategies
In order to decline such kind of risk, Starbucks can highly promote its
new product and also conduct market research as it help in gaining
knowledge about view point of customers regarding new product.
Timeline Milestones In order to create awareness about the new product that is “Herbal Coffee”,
company is conducting promotional campaign and use social media as it help in
reaching large number of customers in less time period. In addition to this, it also
assist in raising sales and profitability level in an effective manner.
CONCLUSION
From the above study, it is analyzed that marketing mix is basically a set of marketing tools
which an organization uses in order to sell products as well as services to its potential customers.
In addition to this, it allow business to identify and arrange elements in order to make a
profitable marketing decision. It is determined that all this decision help business entity to
develop its strength and also limit its weaknesses is in an effective manner. Moreover, it is

analyzed that marketing mix enhance profitable collaboration among partners and department’s.
In the last, it is determined that conducting marketing mix is important as it make business to
become more adaptable and competitive at marketplace.