Starbucks coffee and Jamaica Blue Mountain coffee company are used as the bases of reference. Target markets for Starbucks coffee and Jamaica Blue Mountain coffee Starbucks coffee targets a general local market. Its initial target market was young college students, neighborhoods and social classes that would spend time with friends at their stores and gladly accept the idea of buying a $3 a cup of coffee. The initial focus included small towns, ethnic neighborhoods, highway rest shops, rural communities and even towns saturated with coffee shops. As a result of rapid growth, this target market has expanded quickly to include local buyers of all ages. On the other hand, the Jamaica Blue Mountain focuses on the export market. Its main target market is Japan though it wants to expand to include Canada. How the choice of target market influences the company's promotion and pricing A company has to consider the buying power of its market. Miller (2006) explains that customers have different disposable income and this means they are different in terms of their sensitivity to prices. Market segmentation is therefore important in determining if a company can raise its prices or not. If the company has to raise its prices, the type of target market will determine the level to which the company will raise its average prices. If the target market is very sensitive to prices, then a company could consider dropping its prices slightly so as to gain an extra market share. If it is insensitive to prices, then a slight increase for purposes of increasing profits margins will benefit since the increase will be indiscernible. According to Aaker et al (2000), the type of target market also determines promotion methods used. A company has to choose the promotion methods that will enable it to reach its target market quickly and adequately. Alternative methods include the TV, radio, billboards, direct marketing mail shot or the Internet. At the same time, the company has to consider how competitors do their promotions. They should then evaluate the efficiency of these methods and compare with those they use or intend to use. The type of target market also determines the frequency of these promotions. For example, markets that are highly competitive require frequent promotions in order to retain customer loyalty. Effects of introducing a new target market on consumer perceptions A company can introduce a new target market in a market that is already captured by its competitor. For example, Starbucks coffee can start producing brands for export to Japan, a market segment that is already captured by Jamaica Blue Mountain coffee. According to Kotler (2003) the perception here will be that the company has performed well in terms of pricing and its expansion is a sign that it is now focusing on the quality of its products and expansion of its image. As a result of this, customers will tend to associate more with the company products so as to enjoy the anticipated high quality products and form part of this international or wide region market. The influenced of economic changes on purchase trends of customers The customers will not be influenced by changes in the economy because they will have already formed a perception that the company is already working on the quality of its products. This means that at fair prices, they will be enjoying more quality products and variety as well. This situation is reinforced by the
Segmentation and Targeting In the current competitive environment, every business is aiming at attaining a higher competitive advantage. Segmentation and targeting is important in the achievement of this. One of the advantages of segmentation is that it enhances the levels to which a business matches its products with customer needs…
Perhaps one of the biggest reasons that McDonalds has proven to be so successful is due to the fact that this particular company has mastered the art of marketing to its consumers. In order to better understand McDonald’s marketing strategy, it is important to define several elements of marketing itself.
The business operated one facility in Seattle, Washington, until 1984 when the business was sold to Schultz’s II Giornale. By 1987, Starbucks had 165 different sales centers of operation. In the late 1990s, Starbucks had a dedicated American following, and the business began its expansion into international countries, where it is now present in 55 different countries.
The concept of market segmentation helps a firm to effectively market its products or services without exerting much effort. This paper will analyze the scope of market segmentation for a coffee market in Baton Rouge, Louisiana area. Market Segmentation While analyzing the demographics of Baton Rouge, it seems that income based market segmentation would the most effective strategy for the proposed coffee market.
Arguably, marketing is predominantly susceptible to disapproval of moral practices. Marketing subdisciplines offer extensive opportunities for unethical conduct (Arnold, 2009, p. 123). Commercialism and marketing activities have not fared well in view of most ethicists, and it is only in recent times that a more thorough evaluation of business ethics occurred.
Sony group has many segments like electronics, music, motion pictures and financial services. These include Sony Electronics, Sony Computer Entertainment, Sony Pictures Entertainment, Sony music entertainment, Sony Financial. Sony is the third-largest manufacturer of television in the world after Samsung Electronics and LG Electronics.
oes into the marketing of each product is rather extensive as companies try to figure out who to sell their product to, how much to sell their product for, and how to go about pushing their product into the forefront of the public’s increasingly short attention span. One of
Market positioning involves establishment of a competitive edge for products through the use of an appropriate marketing mix. Market planning will be necessary after positioning to ensure development of
A secondary stakeholder group is the established Physician’s Leadership Group at RRMC. This group now maintained responsibility for deciding strategic direction as shared decision-makers at the organization. These
5 pages (1250 words)Research Paper
Get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Apply my DISCOUNT
Got a tricky question? Receive an answer from students like you!Try us!
Didn't find an essay?
Contact us via Live Chat, call us at +16312120006or send an email to email@example.com