Marketing_Mix

Marketing Mix MKT/421 Marketing April 13, 2011 Marketing Mix Every organization markets their goods or services with the use of marketing mix. The marketing mix includes four elements. The four elements consist of product, price, place, and promotion, known as the four P’s. The marketing mix helps organization with the target market. Organizations use a combination or all of the elements for effectiveness (Perreault & Keller, 2009). Starbucks Coffee, a gourmet retail coffee shop, uses the marketing mix effectively. Product The first P in the marketing mix is product. Product “involves a physical good, a service, or a blend of both” (Perreault, Cannon, & McCarthy, 2009, p. 36). Product also includes “variety of product, quality, design, brand name, packaging, size, or service” (Kotler & Keller, 2009, p. 23). Starbucks offers the “world’s finest fresh-roasted whole bean coffees” (Our Heritage, para. 2). Starbucks’ logo is known around the world. Starbucks offers teas, coffee makers, mugs, and gift cards in the coffee shop. Starbucks whole bean or ground coffee is available in grocery stores. The stores provide Wi-Fi connection for customers who enjoy surfing the web. Starbucks has items for consumers whether he or she drinks coffee or not. Price The second P in the marketing mix is price. The price of a product or service depends on the competition pricing and the demand for the product or service (Perreault, Cannon & McCarthy, 2009). Starbucks offers three drink sizes, tall, grande, and venti. By offering different sizes, consumers purchase his or her drink within their budget. Starbucks drink prices are competitive with other coffee shops. The whole beans or ground coffee sold in grocery stores is comparable to the other brands on the market. When the coffee bean industry rises, Starbucks tries not to pass the increase to the customer. Place The third P in the marketing mix is place. Place also refers to the channel of distribution. “A channel of distribution is any series of firms (or individuals) that participate in the flow of products from producer to final user or consumer” (Perreault, Cannon & McCarthy, 2009, p. 36). “Starbucks focused on creating the third place for everyone to go to between home and work” (SOS eMarketing, 2011, para. 8). Starbucks abound in almost every country. Starbucks merchandise is available in Starbucks retail stores, grocery stores, bookstores, airports, and college campuses. Starbucks has a website for ordering products and coffee. Promotion The fourth P in the marketing mix is promotion. “Promotion includes personal selling, mass selling, and sales promotion” (Perreault, Cannon & McCarthy, 2009, p. 37). Conventional advertising involves commercials, ads, billboards, newspaper, or poster. Starbucks does not use the conventional advertising. Starbucks depends on word of mouth and social media strategies (SOS eMarketing, 2011). Social media strategies include press releases stating Starbucks involvement in local communities, Facebook, Twitter, or donation jars for devastated areas. Conclusion The marketing mix is essential for organizations to be successful. The marketing mix involves the four elements, product, price, place, and promotion. The success of the organization depends on the effective use of the marketing mix. Starbucks uses all four elements for the business’s success. References Kotler, P., & Keller, K. L. (2009). Marketing management (13th ed.). Upper Saddle River, NJ: Prentice-Hall. Perreault, W. D., Cannon, J. P., & McCarthy, E. J., Jr. (2009). Basic marketing: A marketing strategy planning approach (17th ed.). New York, NY: McGraw Hill. SOS eMarketing. (2011). Starbucks. Retrieved from http://www.sosemarketing.com/2011/03/29/starbuck%E2%80%99s-success-is-its-word- of-mouthsocial-mediaviral-marketing-strategy/. Starbucks Coffee. (2011). About Us. Retrieved from http://www.starbucks.com/about-us/our- heritage.