Service marketing is usually a specialized branch of marketing. When we talk about service marketing we mean a business that typically has both Business to consumer (B2C) and business to business (B2B). It is usually marketing that is based on relationship and value. When talking about the service marketing we mean that the outlet sells the services to both consumers and business. In this case we will look at the marketing dynamics that service marketing employs. We will use the case of Starbucks which is a leading outlet of coffee in the world. Starbucks has over 10000 coffee outlets all over the world today. They open their businesses across the world although it originally started in the United States. Starbucks rose to prominence as a result of their marketing strategy which encompasses service marketing. First they made sure their brand is well recognized something that usually plays a very important role in any business. Starbucks customers pay premium prices to get robust brands. The brand has yielded expression for both external stakeholders and internal environment. By this what is meant is that the brand is strong both internally and externally. This is important because a good business must be good in all aspects that is it satisfies both the customers and those working for it. This will make sure that even when their brand uses premium coffee that is expensive still the workers will treat the customers well and the customers will have a reason to stick to this brand all the time. This brings an edge to market competition something that Starbucks have won in their strategy. This goes across all their outlets they have opened and it becomes part of their culture to always make sure that the two sides have been satisfied. Their brand is recognized by everyone and this created something like a loyalty to their customers who would always seek to have their products as compared to rivals.
Marketing usually connects a company with customers and it goes on to influence the customers' consumption habits. Starbucks worked hard to position itself in the market as a high quality customer experience brand. What Starbucks does is that it sells its high quality products and the services at premium prices. This high quality products and excellent customer experiences are what differentiate Starbucks with other brands in the market. Starbucks focuses so much on customer relationship management and this they do by applying communication with customers. Marketing brand is very important as it offers products promotion in the flooded market and the products become standout. Using their premium high quality brand Starbucks has managed to have a good customer relationship. Their communication to their customers makes them have that loyalty from the customers. The customers always feeling that they are usually a part of the culture at Starbucks. They do interact with their customers and this makes them be more preferred than any other brand. They have entrenched in the customers that aspect of being loyal to mtheir brand and loving the brand all together.
Starbucks marketing usually works on the alignment to cultural attributes as per the local marketing trends and this is done by taking into consideration and having interests in customers' needs. They analyze the market to carefully study the customers' needs and come up with ways of satisfying the customers. When looking at Starbucks marketing strategies we see that there is the use of social media to interact with their customers. This plays a major role in the growth of a business. Starbucks use marketing mix in order to understand the needs of the customers which lead to them providing level of products that match the expectations of the customers. By using the various channels in social media to reach out to the customers it shows that Starbucks want to maintain their customers by making sure that they listen to them and that they keep them close to them. In this 21st century it is very important to create that close relationship with customers via social media. The social media has taken center stage as a way of communication all over the world. With the different channels they can be able to get the customers they want. They make sure that they understand the needs of the customers and by this they always meet what the customers expect. The products will always match what the customers need and this is because of how they keep in touch with their customers. This might sound obvious but when done well it creates that sense of loyalty in these customers.
Starbucks has adopted another strategy where they do brand differentiation strategy. They have adopted this through product uniqueness in order to promote their products. They have employed innovation in all their products and services and this has led to them gaining competitive advantage in the crowded market. Starbucks usually customizes its products and services according to the taste of different regions. Starbucks have opened a lot of outlets outside the United States and this is in order to have its products and services available to the international market. The company usually sells its products through food service operations, consumer packaged goods, licensed stores and the company's owned chain of retail stores. They have formulated strong distribution networks and this makes them interact with their customers well. Through this differentiation where they tailor unique products they make the consumers want to have a taste of their unique offers that they produce daily.
All this we see a unique marketing strategy that starts right from their products. They usually make sure that their outlets are located in high traffic and high visibility settings this increases their customer base. As their philosophy goes, "we want to reach customers where they work, travel, shop and dine" this means that they will make it convenient and they will be where the customers need them and no need to hustle or struggle. This means even when someone is very busy they can always have time to get Starbucks. They will be present in institutions, offices, busy malls, gas stations and all other places that people always frequent. And something else is that Starbucks usually reward their loyal customers through their various avenues that make the customers well served and feeling happy with the services. Starbucks uses all these strategies in a bid to make sure that they have an edge in the market against their competitors
Berry, L. L. (2000). Cultivating service brand equity. Journal of the Academy of marketing Science, 28(1).
Wilson, A., Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2002). Services marketing: Integrating customer focus across the firm. (No. @nd Eu). McGraw Hill
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