IntroductionThe term "marketing mix" became popular in 1964 after Neil H. Borden published "The Concept of the Marketing Mix." Mr. Borden began using the marketing mix term in his teaching during the late 1940's, after James Cullitan described the marketing manager as a "mixer of ingredients" (NetMBA, 2007). As discussed in Wikemedia, 2008, the marketing mix concept is broken down into the categories we know today as the 4 P's of Marketing; Product, Price, Place, and Promotion.
All are important in defining and fulfilling a target market. Companies use different aspects of marketing mix to help them better serve their target market. Starbucks, who I will focus on in this paper, primary focus is to provide outstanding service and products to their customer, while earning their loyalty. In addition to the price, the convenience, and other benefits, consumers are demanding more.
StarbucksThe history of Starbucks started in Seattle in 1971.
Three friends, Jerry Baldwin, Zev Siegl, and Gordon Bowker, who all had a passion for fresh coffee, opened a small shop and began selling fresh-roasted, gourmet coffee beans and brewing and roasting accessories. "The company did well, but things began to change in the 1980s" (Allison, 2006).
First, Zev Siegl sold out in 1980. At that time, Starbucks was the largest roaster in Washington with six retail outlets. In 1981, a plastics salesman noticed the number of plastic drip-brewing thermoses that Starbucks was buying from Hammarplast, the manufacturer that he represented. Howard Schultz would become to Starbucks what Ray Kroc was to McDonald's, a supporting salesman who saw a great product and a great opportunity.
In 1982, Baldwin hired Schultz as the new head of marketing and shortly thereafter sent him to Milan to attend an international house-wares show in Italy. When he arrived, Schultz found himself infatuated with...