Understand the individual elements of the extended marketing mix: Starbucks
The company factors the costs of raw materials and water in determining the retail prices of coffee. One of the core objectives of the company is to make a profit thus a considerable mark up is included in the final consumer prices (Pride 2011). In order to attract demand during off-peak seasons, the company lowers its prices in certain market segments. The company has been able to remain competitive in pricing through keeping its coffee prices lower that prices charged by competitors like McDonalds. The company has adhered to all ethical requirements in its business processes by avoiding discrimination on pricing and respecting all employees (Pride 2011).
Starbuck is committed to aggressive marketing communications and maintaining cordial relationships with all customers. Promotional activities mainly include personal selling through passionate baristas and word of mouth from satisfied customers. The company also engages in public relations activities through charitable contributions, parties, nationwide coffee break and juicy paintings. Starbuck utilizes the pull strategy model by promoting and advertising directly to the consumer (Pride 2011). Sales promotions to consumers include sample vans, short coffee cups, holiday websites, newspaper advertisements and radio advertisements. ...