Starbucks Coffee Case
The team discussed some of the objectives for week two: target market, market segmentation, internal/external factors, and positioning. During our discussion, we discussed topics we felt comfortable with, topics we struggled with, and how the topics relate to our fields and personal experiences.
An interesting concept we have learned in class is Target Market. Ward (2013), “Target Marketing involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments” (Target Marketing). The target market of an organization focuses on a variety of different aspects of the consumers purchasing their goods. The first focus of the target market is referred to as the Geographic, and this part of the target market looks at where the consumer lives based on a variety of different factors such as climate or physical location. The next section of the target market is the Demographic, which is based off of things such as gender, age, income, education, and so on. The next section is based on values and lifestyles, and is called psychographic. The final portion of the target market called the behavioral segment, which refers to a person’s behavioral pattern such as the degree of loyalty.
After last week’s class and writing the market segmentation and targeting paper about Starbucks Coffee, the team has good understanding of the four market segments. In addition, how companies decide which segments of their product they should target. Market segmentation divides the customers of a certain market into portions. Every portion, shares certain characteristics, buying power, and product response are closely relate to these characteristics. After having the four segments defined for a company, marketers examine which segments they should target. Market targeting and segmentation helps companies define their target market and consider adding more segments to their market to increasing their consumers.
There are internal and external factors that shape how consumers make decisions on what to purchase. These influences are used to develop the best way to build, distribute, promote, and determine value of a product