The Marketing Mix consists of product, price, promotion and place/distribution strategies. Give a description of the marketing mix for a company you are familiar with. What products/services are offered? What pricing approaches are used? How do they promote to customers (e.g., advertising, personal selling, sales promotion, etc.)? How do they distribute to customers (or locate their business)? Approximately 1 paragraph for each of the P’s.
The Correct Answer and Explanation is :
Let’s use Starbucks as an example to explain the Marketing Mix:
Product:
Starbucks offers a wide range of products, primarily centered around coffee and other beverages. They also provide a variety of pastries, snacks, and merchandise such as mugs and coffee beans. Their product line includes hot and cold drinks, seasonal drinks, plant-based options, and a selection of ready-to-eat food. Starbucks is known for continuously innovating its menu, introducing new flavors, and responding to trends such as plant-based diets and health-conscious preferences. In addition to regular products, they offer loyalty programs like Starbucks Rewards, which includes exclusive offers and customization features for frequent customers.
Price:
Starbucks follows a premium pricing strategy. They position themselves as a high-quality brand with products that come at a higher price point than many of their competitors. Their pricing strategy is based on value perception, quality ingredients, and the overall Starbucks experience. They often have a tiered pricing system based on size and customization options (e.g., adding syrups or milk alternatives). Additionally, Starbucks uses psychological pricing, such as pricing items like drinks just under the next dollar (e.g., $4.95 instead of $5).
Promotion:
Starbucks uses various promotional tactics to engage with customers. Advertising is done through multiple channels such as TV commercials, social media, and digital ads. Personal selling plays a role in the form of baristas who provide recommendations and create personalized experiences. Starbucks also heavily utilizes sales promotions like limited-time offers, holiday specials (e.g., Pumpkin Spice Latte in fall), and discounts for members. They have a strong social media presence, where they share new product launches, promotions, and engage with customer feedback.
Place (Distribution):
Starbucks uses a combination of physical locations and digital platforms for distribution. The company operates thousands of retail stores worldwide, strategically located in high-traffic areas like malls, shopping centers, and city centers. Additionally, Starbucks has a strong presence in drive-thru locations for convenience. Online, Starbucks allows customers to order via their mobile app or delivery services, making it easy to access their products from anywhere. Their stores create an experience, which encourages customers to stay and socialize, enhancing the overall brand connection.
This breakdown demonstrates how Starbucks strategically employs each element of the marketing mix to attract and retain customers, differentiating itself in a competitive market.