Starbucks Marketing Mix (Starbucks 7Ps of Marketing) - Research-Methodology (2024)

FAQs

What is the 7Ps process of Starbucks? ›

Starbucks 7Ps of marketing comprises elements of the marketing mix that consists of product, place, price, promotion, process, people and physical evidence as discussed below in more details.

It aims to address the 7Ps of Starbuck which stand for product, price, place, promotion, process, people, and physical evidence. Starbucks is the biggest coffee house chain in the worldwide in terms of number of stores. It is an American coffeehouse chain which was founded in Seattle in 1971.

Starbucks targets high-income, educated customers who are willing to pay more for premium coffee. The company adopts an innovative and adaptive global marketing strategy centred around 4 marketing mix elements - price, product, promotion and place. Starbucks always places quality and customer value first.

These seven are: product, price, promotion, place, packaging, positioning and people. As products, markets, customers and needs change rapidly, you must continually revisit these seven Ps to make sure you're on track and achieving the maximum results possible for you in today's marketplace.

💡 The Key Takeaway: The Starbucks market research strategy utilizes social media monitoring as an effective market research tool to identify areas that the brand can improve, along with increasing customer loyalty strategies.

An example of a company using the 7Ps marketing mix in their strategy. Take a look at HubSpot as an example, which was founded in 2006; Hubspot now boasts over 86,000 total customers in more than 120 countries.

Its loyalty program is one of the most successful marketing strategies for Starbucks. Loyalty is critical to the success of marketing and business. Loyalty and relationships are built with consistently happy and satisfied customers, which can contribute to customer retention and increased profitability.

The marketing mix 7 Ps (i.e., product, price, place, promotion, people, process, and physical evidence) are examples of marketing fundamentals.

In school, we learn that there are 7 Ps in the marketing mix: product, place, people, process, physical evidence, promotion, and price. Traditionally, each of these P's has been an important way to differentiate your company from the competition.

Starbucks follows a chain business model strategy, where most of its revenue comes from its owned stores. For instance, in 2022, with over $32.2 billion in revenue, most of the revenue came from owned stores ($26.57 billion) compared to franchised stores ($3.65 billion) and other revenue sources ($2 billion).

What type of market structure is Starbucks? ›

Answer and Explanation: Starbucks, a US-based firm that has majored in the coffee industry, is considered monopolistic competition.

Use a Multi-Channel Promotional Strategy. Starbucks predominantly uses its website, social media channels and in-store displays to promote the brand and the products. It also uses sales promotions, events, direct marketing, print media, and PR in an integrated manner to multiply the impact of its promotions.

The seven Ps are important because they can help you plan and lead discussions about a business' marketing practices, whether the company sells products, services or both. If you're marketing a service or product, you can consider the seven Ps to help you sell it effectively.

Product positioning refers to what the product means in the mind of the customer. Take for example, Heineken beer. Here in the U.S., Heineken is marketed as a premium, imported beer, so U.S. buyers pay more for it compared to other choices.

Apple marketing mix (Apple's 7Ps of marketing) comprises elements of the marketing mix that consists of product, place, price, promotion, process, people and physical evidence.

Practices includes sustainable agricultural practices and environmental measures that must be in place for managing waste, protecting water quality, conserving water and energy, preserving biodiversity and reducing agrochemical use. We only source, roast and sell the highest quality arabica coffee.

McDonald's, Starbucks, and Subway are three firms that have relied heavily on concentration strategies to become dominant players. Within concentration strategies, there are three sub-strategies: (1) market penetration, (2) market development, and (3) product development (Figure 8.2 “Concentration Strategies”).

The 7 P's of marketing include product, price, promotion, place, people, process, and physical evidence. Moreover, these seven elements comprise the marketing mix. This mix strategically places a business in the market and can be used with varying levels of force.

7 P's is a continuous reevaluation model for business marketing strategies. These seven P's are product, price, promotion, place, packaging, positioning, and people. The products, market, and customer's needs change rapidly.

The additional 3Ps are People, Process and Physical Evidence.

What is the competitive strategy of Starbucks? ›

Selling coffee of the highest quality.

Accordingly, the coffee chain giant focuses on the quality of its products and customers pay premium prices for high quality. Excellent customer services as one of the solid sources of Starbucks competitive advantage further increases the attractiveness of the coffee retailer.

As has been previously mentioned, the positioning of Starbucks is customer-based, allowing the company to provide the best customer service.

The extended marketing mix model contains 7Ps: Physical Evidence, Price, Place, Product, Promotion, Process and People.

The 7 key elements of the marketing mix are Product, Price, Place and Promotion, People, Process and Physical Evidence.

The 5 P's of Marketing – Product, Price, Promotion, Place, and People – are key marketing elements used to position a business strategically.

The difference between 4Ps and 7Ps lies in the purpose we want to achieve. The extended marketing mix helps businesses with a deeper understanding of how to meet the needs and expectations of customers.

Note that one of the defining traits of a monopolistic competitive market is a significant amount of non-price competition. I.e., firms cannot compete on prices. For example, a street vendor offers coffee at $0.5 per coffee cup, but Starbucks charges about $5 for a single cup of coffee.

Starbucks marketing communications mix utilises a number of marketing communications channels such as print and media advertising, sales promotions, events and experiences, public relations and direct marketing in an integrated manner to communicate the marketing message to the target customer segment.

The 7Ps of marketing are – product, pricing, place, promotion, physical evidence, people, and processes. The 7 Ps make up the necessary marketing mix that a business must have to advertise a product or service.

Price is perhaps the most important component of the marketing mix because it ultimately determines the income flow, and with it, the continuity of a company.

How do you create an effective market positioning strategy? ›

The extended marketing mix model contains 7Ps: Physical Evidence, Price, Place, Product, Promotion, Process and People.

Differentiation strategy: Starbucks follows the differentiation strategy and it should follow this strategy in future to deliver unique coffee, quality green coffees, and other new products to the target clients. Focus: It can adopt this strategy to concentrate on its core business by reallocating all business units.

Value Based Pricing Can Boost Margins

For the most part, Starbucks is a master of employingvalue based pricingto maximize profits, and they use research and customer analysis to formulate targeted price increases that capture the greatest amount consumers are willing to pay without driving them off.

The 7 P elements include Product, Promotion, Price, Place, Participant, Physical Evidence, and Process. The 7 Ps framework can assist marketers in making decisions regarding segmentation, positioning, and differentiation.

Ever heard the term “7ps”? No, it's not a movie name! It is your future academic task with which we are making you familiarize, beforehand.

Processes Include Direct Activities And Indirect Activities.

It can also have an integration of processes to create an overall marketing process. For example- Logistics and Internet Marketing can be integrated. Another view is that marketing process is used to define and control the marketing mix to achieve objectives.

The 7 key elements of the marketing mix are Product, Price, Place and Promotion, People, Process and Physical Evidence.

What is the difference between marketing mix 4p 7p? ›

As mentioned above, the 4Ps include Place, Price, Product and Promotion. The 7Ps model, on the other hand, is a combination of the 4Ps with 3 additional segments, which refer to People, Process and Physical evidence. People are presenting how our business works inside.

He uses motivation, influence and referent power to overcome business obstacles and achieve shared success. Evidence of Howard Schultz transformational leadership qualities are a key component of the Starbucks operation.

Starbucks is an excellent example of a company that has successfully embraced a differentiation focus strategy tailored to providing a high quality, focused product, of which, for the company customers, price is in essence, no object.

In this essay, the author

Explains that starbucks has many business-level strategies, such as cost leadership strategy and focused differentiation strategy. Explains that starbucks differentiation strategy is important to the long-term success of the company.

Starbucks uses an impressive pricing strategy. Their strategy can fit the needs of multiple consumers, while maintaining a high quality image. Using a combination of prestige pricing, price skimming, and relative pricing Starbucks can fit the needs of various consumers.