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UK COLLEGEOF BUSINESS AND COMPUTING

Module Booklet

Course: EDEXCEL BTEC (HND) BUSINESS
Group: Ed excel Level
Module: Unit 4- MARKETING PRINCIPLES
Module type: Module Code: F/601/0556
Module Credit: 15
Teaching Period: (15+6 weeks)
Level: 4 (QCF)
Contact Hours: (15*3 = 45 + 6*3=15)
Lecturers: 15 weeks
Revision Clinic: 3 weeks
Feedback and assignment guidance: 3 weeks
Module Leader: Magdalena Wronska
Lecturer: Andrew Wiggan
Start date: 27/01/14
Day: Monday
Time: 18:00 21:00
Group, Room and Campus: Business WH EVE3
Term:Winter Term





CONTENTS

1. INTRODUCTION, AIMS AND OBJECTIVES

2. MODULE OUTLINE AND TEACHING METHODS

3. READING AND COURSE PREPRATION

4. LECTURE WITH DETAILED COURSE PROGRAMME AND OBJECTIVES

5. ASSESSMENT DETAILS


1. INTRODUCTION

This is a broad-based unit which gives learners the opportunity apply the key
principles of marketing.
Firstly, the unit looks at the definitions of marketing, and what is meant by a
marketing orientation and the marketing process.
Next, learners consider the use of environmental analysis in marketing and carry
out their own analyses at both macro and micro levels. They will also investigate
the importance of market segmentation and how this leads to the identification
and full specification of target groups. Learners then consider buyer behaviour
and positioning.
The unit looks at the main elements of both the original and the extended
marketing mix. This includes an introduction to the concept of the product life
cycle, new product development, pricing strategies, distribution options and the
promotion mix.
Finally, learners will develop their own marketing mixes to meet the needs of
different target groups. This includes considering the differences when
marketing services as opposed to goods. A range of other contexts is examined
including marketing to businesses instead of consumers and the development of
international markets.
Aim:
This unit aims to provide learners with understanding and skills relating to the
fundamental concepts and principles that underpin the marketing process.
Learning Outcomes and assessment criteria:

On successful completion of this unit a learner will:


1 Understand the concept and process of marketing
1.1 Explain the various elements of the marketing process
1.2 Evaluate the benefits and costs of a marketing orientation for a selected
organisation


2 Be able to use the concepts of segmentation, targeting and positioning
2.1 Show macro and micro environmental factors which influence marketing
decisions
2.2 Propose segmentation criteria to be used for products in different markets
2.3 Choose a targeting strategy for a selected product/service
2.4 Demonstrate how buyer behavior affects marketing activities in different
buying situations
2.5 Propose new positioning for as elected product/service

3 Understand the individual elements of the extended marketing mix
3.1 Explain how products are developed to sustain competitive advantage
3.2 Explain how distribution is arranged to provide customer convenience
3.3 Explain how prices are set to reflect an organisations objectives and market
conditions
3.4 Illustratehowpromotionalactivityisintegratedto achieve marketing objectives
3.5 Analysetheadditionalelementsoftheextended marketing mix

4 Be able to use the marketing mix in different contexts
4.1 planmarketingmixesfortwodifferentsegmentsin consumer markets
4.2 illustratedifferencesinmarketingproductsandservices to businesses rather
thanconsumers
4.3 showhowandwhyinternationalmarketingdiffersfrom domestic marketing.

On successful completion of this unit a learner will:
Be able to write a formal report based on own research and industry information
gathered through visits at different cultural and heritage sights.






Knowledge and Understanding

Indicative content:

1 Understand the concept and process of marketing
Definitions: alternative definitions including those of the Chartered Institute of
Marketing and the American Marketing Association; satisfying customer
needs and wants; value and satisfaction; exchange relationships; the changing
emphasis of marketing
Marketing concept: evolution of marketing; marketing orientations; societal
issues and emergent philosophies; customer and competitor orientation;
efficiency and effectiveness; limitations of the marketing concept
Marketing process overview: marketing audit; integrated marketing;
environmental analysis; SWOT analysis; marketing objectives; constraints;
options; plans to include target markets and marketing mix; scope of
marketing
Costs and benefits: links between marketing orientation and building
competitive advantage; benefits of building customer satisfaction; desired
quality; service and customer care; relationship marketing; customer
retention; customer profitability; costs of a too narrow marketing focus
2 Be able to use the concepts of segmentation, targeting and positioning
Macro environment: environmental scanning; political, legal, economic, socio-
cultural, ecological and technological factors
Micro environment: stakeholders (organisations own employees, suppliers,
customers, intermediaries, owners, financiers, local residents, pressure groups
and competitors); direct and indirect competitors; Porters competitive forces
Buyer behaviour: dimensions of buyer behaviour; environmental influences;
personal variables demographic, sociological, psychological motivation,
perception and learning; social factors; physiological stimuli; attitudes; other
lifestyle and life cycle variables; consumer and organisational buying
Segmentation: process of market selection; macro and micro segmentation;
bases for segmenting markets, (geographic, demographic, psychographic and
behavioural); multi- variable segmentation and typologies; benefits of
segmentation; evaluation of segments and targeting strategies; positioning;
segmenting industrial markets; size; value; standards; industrial classification
Positioning: definition and meaning; influence over marketing mix factors
3 Understand the individual elements of the extended marketing mix
Product: products and brands features, advantages and benefits; the total
product concept; product mix; product life cycle and its effect on other
elements of the marketing mix; product strategy; new product development;
adoption process
Place: customer convenience and availability; definition of channels; types and
functions of intermediaries; channel selection; integration and distribution
systems; franchising; physical distribution management and logistics; ethical
issues
Price: perceived value; pricing context and process; pricing strategies; demand
elasticity; competition; costs, psychological, discriminatory; ethical issues
Promotion: awareness and image; effective communication; integrated
communication process (SOSTT + 4Ms); promotional mix elements; push and
pull strategies; advertising above and below the line including packaging;
public relations and sponsorship; sales promotion; direct marketing and
personal selling; branding, internet and online marketing
The shift from the 4Ps to the 7Ps: product-service continuum; concept of the
extended marketing mix; the significance of the soft elements of marketing
(people, physical evidence and process management)
4 Be able to use the marketing mix in different contexts
Consumer markets: fast moving consumer goods; consumer durables;
coordinated marketing mix to achieve objectives
Organisational markets: differences from consumer markets; adding value
through service; industrial; non-profit making; government; re-seller
Services: nature and characteristics of service products (intangibility,
ownership, inseparability, perishability, variability, heterogeneity the 7Ps);
strategies; service quality; elements of physical product marketing; tangible
and intangible benefits
International markets: globalisation; cultural differences; standardisation versus
adaptation; the EU; benefits and risks; market attractiveness; international
marketing mix strategies






Programme Specification
Accrediting Body: EDEXCEL
Course: BTEC HND IN BUSINESS
Unit: 4 MARKETING PRINCPLES
Wk Lecture Schedule Outcome of session Activity/seminar
and formative
assessment
Resources
1

Introduction to the module
Address the mode of assessment
Group discussion about the scenario with regards to the
assignment and relevant tasks to be addressed
Awareness to the
module content
Challenges to the LO
to be addressed


Case study and
group discussion
Module outline and
qualification frame
work
2

Concept and process of marketing Defining marketing,
evaluating of concept of
marketing, analysing
marketing orientation,
marketing process- elements
and evaluation
Case study,
activities, group
discussion, research,
addressing AC1.1
Power Point
presentation, activities,
Internet websites
3

Costs and benefits of a marketing orientation Analysing costs and benefits
of marketing orientation
competitive advantage
orientation and costs,
perceived value for money,
quality approach, analysing
costs and profitability
Case study,
activities, group
discussion, research,
addressing AC1.2
Power Point
presentation, activities,
Internet websites
4

Macro and micro environmental factors affecting
marketing decisions
Analysing micro and macro
environments of chosen
organisations, stakeholder
analysis, PEST analysis,
Porters five forces
Case studies,
addressing Ac 2.1
Power Point
presentation, activities,
Internet websites
5

Buyer behaviour affecting marketing strategies Evaluating dimensions of
buyer behaviour, analysing
environmental influences,
motivations and perceptions,
PLC analysis
Case study,
activities, group
discussion, research,
addressing AC2.4
Power Point
presentation, activities,
Internet websites,
movies
6

Segmentation of customers Evaluating and analysing
Segmentation criteria,
proposing different criteria
for segmentation, recognition
of different customers and
their needs
Case study,
activities, group
discussion, research,
addressing AC2.2
Power Point
presentation, activities,
Internet websites
7

Targeting and positioning Analysing targeting and
positing strategies, choosing
relevant strategies for
different products, evaluating
influence over marketing mix
factors
Visits, group
discussion, research,
addressing AC2.3,
2.5
Power Point
presentation, activities,
Internet websites, visits
8

Product development Analysing total product
concept, evaluating different
products according to needs,
analysing branding
strategies, PLC, analysing
new product strategies
Case study,
activities, group
discussion, research,
addressing AC3.1
Power Point
presentation, activities,
Internet websites
9

Place distribution, location

Analysing different
distribution strategies,
importance of accessibility,
convenience and availability,
distribution channel analysis,
logistics importance
Case study,
activities, group
discussion, research,
addressing AC3.2
Power Point
presentation, activities,
Internet websites
10

Price strategies Analysing importance of
price, pricing strategies
evaluation, choosing the best
strategy for organisation,
importance of price elasticity,
cost consideration
Case study,
activities, group
discussion, research,
addressing AC3.3
Power Point
presentation, activities,
Internet websites
11

Promotion strategies Evaluating promotional mix
elements and importance,
designing promotional
campaign, analysis of
integrative communication,
PR strategies, e-marketing
analysis
Case study, visit,
activities, group
discussion, research,
addressing Ac 3.4
Power Point
presentation, activities,
Internet websites, visits
12

Marketing mix 7P approach







Evaluating extended
marketing mix 7p,
importance of 7p in service,
planning marketing mix for
organisations operating in
different segments
Case study, visit,
activities, group
discussion, research,
addressing Ac 3.5
4.1
Power Point
presentation, activities,
Internet websites, visits
13

Products vs services marketing differences

Evaluating service
characteristics, analysing
importance of quality in
service provision, analysing
strategies for marketing of
products and services
Case study, visit,
activities, group
discussion, research,
addressing Ac 4.2
Power Point
presentation, activities,
Internet websites, visits
14

International marketing Analysing cultural
differences influencing
marketing, defining
globalisation, examples of
international mix strategies in
global markets
Case study, visit,
activities, group
discussion, research,
addressing Ac 4.2
Power Point
presentation, activities,
Internet websites, visits
15 Revision, summarising Revising and summarising
unit
Case study,
activities, group
discussion, research,
addressing all ACs
Power Point
presentation,
16

Revision, summarising Revising and summarising
unit
Case study,
activities, group
discussion, research,
addressing all ACs
Power Point
presentation,
17 Assessment Evaluating assessment tasks All ACs
18 Assessment Evaluating assessment tasks All ACs
19 Assessment Evaluating assessment tasks All ACs
20 Feedback Providing feedback LO AC


Recommended text and links:


Kotler P et al, Principles of Marketing, 4th European Edition (Pearson, 2005) ISBN-13: 978-0-273-68456-5
Baines, P., Fill, C. and Page, K. (2010) Marketing 2nd edition. Oxford, Oxford University Press.
Fill, C. (2011) Essentials of marketing communications. Harlow, Financial Times/Prentice
Bradley, N (2010) Marketing Research: tools and techniques.2nd edition. Oxford, Oxford
Roman, K. and Maas, J. (2005) How to advertise what works, what doesnt and why.3rd edition. London, Kogan Page.
Davis, A. (2007) Mastering public relations.2nd revised edition. London,
Brassington F and Pettitt S Principles of Marketing 4th Edition (Financial Times/Prentice Hall, 2006) ISBN: 9780273695592

Journals
Campaign (Haymarket Publishing)
Harvard Business Review (Harvard Business Publishing)
The Marketing Review (Westburn Publishers Ltd)
The Marketer (Journal of the Chartered Institute of Marketing Magazine)
Marketing Business (The Chartered Institute of Marketing Magazine)
Marketing Week (Centaur Communications Ltd)
The Financial Times and other daily newspapers which contain a business section and market reports
Websites
www.bized.co.uk Bized provides a selection of teaching and learning resources
www.cim.co.uk The Chartered Institute of Marketings site contains a useful knowledge centre
www.ft.com The Financial Times business sections
www.thetimes100.co.uk multimedia resource




Wk Session Update Date Signature
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Lecturer: Andrew Wiggan
Campus: Wentworth house
Contact details: awigggan@gmail.com


Assessment:
The module will be assessed meeting all the LO as specified by the awarding body, Ed Excel.
Please read the instructions carefully while addressing the tasks specified.
Contribution: of the module 100%
Outline Details: report approx.4000 to 4500 words. Details enclosed in the assignment brief.

Teaching and Learning Activities
The module tutor(s) will aim to combine lectures with tutorial activities. This environment will provide opportunities for the student to
understand the course material through case study and text and to apply it in a practical way. The intent is to facilitate interactive class activities,
and discussion about the significant role of research in a global and local business environment.

2.3 Teaching Ethos
The colleges approach towards teaching and learning is simple and effective. The main aim of UKCBC is to assist learners in maximising their
potential by ensuring that they are taught clearly and effectively. This will enable students to engage in the learning environment and promote
success in both their academic studies and subsequent career.

2.3.1 Methods of Delivery:

LECTURES:
These will be developed around the key concepts as mentioned in the indicative course content and will use a range of live examples and cases
from business practice to demonstrate the application of theoretical concepts. This method is primarily used to identify and explain key aspects
of the subject so that learners can utilise their private study time more effectively.

SEMINARS:
These are in addition to the lectures. The seminars are designed to give learners the opportunity to test their understanding of the material
covered in the lectures and private study with the help of reference books. This methodology usually carries a set of questions identified in
advance. Seminars are interactive sessions led by the learners. This method of study gives the learner an excellent opportunity to clarify any
points of difficulty with the tutor and simultaneously develop their oral communication skills.

CASE STUDIES:An important learning methodology is the extensive use of case studies. They enable learners to apply the concepts that they
learn in their subjects. The learners have to study the case, analyse the facts presented and arrive at conclusions and recommendations. This
assists in the assessment of the learners ability to apply to the real world the tools and techniques of analysis which they have learnt. The case
study serves as a supplement to the theoretical knowledge imparted through the course work.

Plagiarism:
Any act of plagiarism will be seriously dealt with according to the colleges and awarding bodies regulations. In this context the definition and
scope of plagiarism are presented below:
Plagiarism is presenting someones work as your won. It includes copying information directly from the web or books without referencing the
material; submitting joint coursework as an individual effort; copying another students coursework; stealing coursework form another student
and submitting it as your own work.Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the
college procedure. (For further details please refer to the plagiarism policy and the student code of conduct.)

Assessment:
The module will be assessed meeting all the LO as specified by the awarding body, Ed Excel.
Please read the instructions carefully while addressing the tasks specified.
Contribution: 100% of the module
Outline Details: report approx. 4000 to 4500 words. Details enclosed in the assignment brief


15




ASSESSEMENT SHEET
Unit: 4 Marketing Principles(F/601/0556) - CORE UNIT
Learning Hours: 63 Hours. Self-learning hours: 87 hours.
Course: HND Business Level 4 CREDIT VALUE: 15 CREDITS
Term:
Module Leader:Andrew Wiggan
Lecturer:
Internal Verifier: Mrs Sunita Kotta

Learners Name
Registration Number
Learners Declaration: I certify that the work submitted for this unit is my own:
Signed:
Hand out Date: Submission Date:

The Following Sections to be completed by the assessor:
Center Name: UKCBC
Center Number:
Please note that the assessors signature below denotes conformation that he/she has in
no way influenced the outcome of the assessment:
Assessors Name:
Assessors Signature:
Has the unit been Internally Verified? Y/N
Date of verification:
Internal verifiers signature:
Internal verifiers assignment brief:




Due Dates
Issue Date
Due Task- 1 January 27, 2014 Due date February 28
th
, 2014
Due Task- 2 March 28
th
2014 Final Due
Date for
September
2013 intake
05/08/14
Due Task- 3 April 28
th
, 2014 Final due date
for Jan 2014
intake
6
TH
WEEK OF THE
ASSIGNMENT TERM
Due Task - 4 May 23
rd
, 2014

16



Unit Outcomes
Outcome Evidence for the criteria to
pass.
Assessors
decision
Internal
verification
decision.
(agree,
disagree)

Task 1The Key objective of this task is to exhibit an understanding to the concept
and process of marketing.
Please refer to the case studyandstart your report by explaining two elements of
marketing process based on the example of Starbucks. You are to prepare a SWOT
analysis of the organization and explain the importance of using SWOT analysis as
marketing tool. Next present and evaluate the marketing objectives of Starbucks and
explain how defining marketing objectives can help a business to develop marketing
strategies. How does this contribute to the benefits and costs such as market
orientation, customer satisfaction, desired quality, relationship marketing etc.---
LO1 Understand
the concept and
process of
marketing

P1.1 Explain the various
elements of the marketing
process of star bucks
P1.1
(P,M,D)
P1.1
(P,M,D)

P1.2 Evaluate the benefits
and costs of a marketing
orientation for Star Bucks
P1.2
(P,M,D)
P1.2
(P,M,D)

Summarized
Feedback for Task
1(reflecting 1.1, 1.2,
Pass merit and
distinction.)

IV comments
towards
Task 1


17

Task 2
In the next task you will focus on the concepts of segmentation, targeting and positioning
(STP strategy).
-Start this task by analysing three micro and three macro environmental factors influencing
marketing decisions in Starbucks.
- After that propose which segmentation criteria would be the most applicable for Starbucks
to use for their products in different markets. (use examples of at least two different
segmentation criteria)
- Thinking about a range of products and services Starbucks offer choose a targeting strategy
for a one of them and propose a positioning strategy for this product.
- Demonstrate how buyingbehaviour affects marketing activities in different buying
situations. Provide here two examples of buying situations which marketing managers in
Starbucks should in your opinion especially consider.
-Finish Task 2 by proposing a new positioning for the service or product of Star Bucks.
LO 2 Be able to
use the concepts of
segmentation,
targeting and
positioning

P 2.1 Show macro and
micro environmental
factors which influence
marketing decisions for
Star buck

P2.1
(P,M,D)

P2.1
(P,M,D)


P2.2 Propose
segmentation criteria to be
used for products in
different markets
P2.2
(P,M,D)
P2.2
(P,M,D)

P2.3 Choose a targeting
strategy for a selected
product/service
P2.3
(P,M,D)
P2.3
(P,M,D)

P2.4 Demonstrate how
buyer behavior affects
marketing activities in
different buying situations
P2.4
(P,M,D)
P2.4
(P,M,D)

P2.5 Propose new
positioning for a selected
product/service
P2.5
(P,M,D)
P2.5
(P,M,D)

18

Summarized
Feedback for Task
2(reflecting 2.1, 2.2,
2.3, 2.4, 2.5 Pass
merit and
distinction.)

IV comments
towards
Task 2

Task 3: In this task you will start analysing marketing mix elements, which are in the heart
of all marketing strategies. As before, think about Starbucks while addressing all the
elements of this task.
- Start by explaining how products in Starbucks are developed in order to make sure
that competitive advantage is sustained. You should focus here on the differences in
products between Starbuck and different coffee shop. Provide at least two examples.
- Next you are to explain distribution strategies used by Starbucks. Think about
customers convenience and satisfaction in relation to distribution channels used.
- In the next part you are to analyse pricing strategies used by Starbucks. Provide an
explanation how prices are set in relation to companys objectives and market
conditions (competition, current economic situation etc.).
- Promotional activity is a must for every organization. Make a research into
promotional activities of Starbucks and illustrate how promotional strategies used by
this organization are integrated and related to marketing objectives of the
organization.
- Finally at the end of this task you were asked to provide short analysis of additional
elements of the extended marketing mix based on the example of Starbucks.

P3 Understand
the individual
elements of the
extended
marketing mix

P 3.1 Explain how
products are developed to
sustain competitive
advantage

P3.1
(P,M,D)
P3.1
(P,M,D)

P 3.2 Explain how
distribution is arranged to
provide customer
convenience
P3.2
(P,M,D)
P3.2
(P,M,D)

P 3.3 Explain how prices
are set to reflect Star Bucks
objectives and market
conditions
P3.3
(P,M,D)
P3.3
(P,M,D)

19

P3.4 Illustrate how
promotional activity is
integrated to achieve
marketing objectives
P3.4
(P,M,D)
P3.4
(P,M,D)

P 3.5 Analyse the
additional elements of the
extended marketing mix
P3.5
(P,M,D)
P3.5
(P,M,D)

Summarized
Feedback for Task
3(reflecting 3.1, 3.2,
3.3, 3.4, 3.5 Pass
merit and
distinction.)

IV comments
towards
Task 3

Task 4: Last task is to present your ability to use the marketing mix in different contexts.
- To begin with you are asked to plan and prepare marketing mix for two different
segments of market in Starbucks. Use here an example of one existing segment and
propose the second, new one. Design for both segments marketing mix plan (4P).
- Your task is also to illustrate differences in marketing products and services to
business rather than consumers. Next to Starbucks use here an example of another
organization.
- Finally your report will end with the evaluation how and why international
marketing differs from domestic one use here at least two examples of marketing
strategies Starbuck used to market their products internationally.

TASK 4
4 Be able to use
the marketing mix
in different
contexts.

P 4.1 Plan marketing
mixes for two different
segments in consumer
markets
P4.1
(P,M,D)
P4.1
(P,M,D)

P 4.2 Illustrate differences
in marketing products and
services to businesses
rather than consumers
P4.2
(P,M,D)
P4.2
(P,M,D)

P4.3 Show how and why
international marketing
differs from domestic
marketing
P4.3
(P,M,D)
P4.3
(P,M,D)

20

Summarized
Feedback for Task
4(reflecting 4.1 4.2
4.3, Pass merit and
distinction.)

IV comments
towards
Task 4

Merit grades
awarded
M1 M2 M3 P1 P2 P3 P4
Distinction
grades awarded
D1 D2 D3 Resubmit :
Any other comments

Grade given by the Assessor:
Pass Merit Distinction
Assessors Signature: Date:
IV Grading Check: Comments if any:
Agree
Disagree Modify grade to
IV signature:
Date:
Student feedback:

Student signature:

Plagiarism:
Any act of plagiarism will be seriously dealt with according to the colleges and
awarding bodies regulations. In this context the definition and scope of plagiarism
are presented below:

Plagiarism is presenting someones work as your won. It includes copying
information directly from the web or books without referencing the material;
submitting joint coursework as an individual effort; copying another students
coursework; stealing coursework form another student and submitting it as your own
work. Suspected plagiarism will be investigated and if found to have occurred will be
dealt with according to the college procedure. (For further details please refer to the
plagiarism policy and the student code of conduct.)





21



ASSIGNMENT


Starbucks Case Study

The first Starbucks location opened in 1971. The name is inspired
by Moby Dicks first mate. This name and the mermaid logo were inspired by the love of the
sea, from Starbucks original location in Seattle Washington in the heart of Pike Place Market.
Starting as a single shop specializing in high quality coffee and brewing products the company
grew to be the largest roaster in Washington with multiple locations until the early 80s.

In 1981, current CEO Howard Schultz, recognized a great opportunity and began working with
the founder Jerry Baldwin. After a trip to Italy to find new products, Schultz realized an
opportunity to bring the caf community environment he found in Italy to the United states and
the Starbucks brand we know today began to take form. Selling espresso by the cup was the
first test. Schultz left Baldwin to open his own Italian coffee house Il Giornale which found
outrageous success and in 1987 when Starbucks decided to sell the original 6 locations, Schultz
raised the money with investors and purchased the company and fused them with his Italian
bistro locations. The company experienced rapid growth going public in 1992, and growing
tenfold by 1997, with locations around the United States, Japan and Singapore. Starbucks also
began expanding its brand.

In the history of Starbucks the following product lines were added:
Offering Starbucks coffee on United Airlines flights.
Selling premium teas through Starbucks own Tazo Tea Company.
Using the Internet to offer people the option to purchase Starbucks coffee online.
Distributing whole bean and ground coffee to supermarkets.
Producing premium coffee ice cream with Dreyers.
Selling CDs in Starbucks retail stores.

Starbucks uses minimal advertising and has grown on word of mouth and brand recognition. In
2004 Starbucks had reached 1,344 locations.
22

Today Starbucks has 16,706 stores (as of Dec. 27, 2009) in 50 countries. In 2009 they made strives
socially as they opened the Farmer Support Centre in Kigali, Rwanda and became the worlds
largest buyer of Fair Trade CertifiedTM coffee.
Their mission statement from the company profile is as follows:
Our mission is to inspire and nurture the human spirit one person, one cup, and one
neighbourhood at a time.
Their core competencies can be defined as high quality coffee and products at accessible
locations and affordable prices, provided a community to share in the coffee drinking
experience, and variety of choices. The also value ethics and good business practices and are a
leader being voted one of 2010s most ethical businesses by Ethisphere magazine for the 4
th
year
running.
Starbucks is facing its own struggles however as it saw sales start slipping before other
companies did in the recent recession. According to Melissa Allison in her article Starbucks has
a new growth strategy more revenue with lower costs, Starbucks has closed 900 stores and
eliminated 34,000 jobs. Starbucks new strategy is to refocus on some of the areas that decrease
risk and upfront investment. This includes expanding foreign stores, with aid of partnerships
that share risk and costs, selling VIA instant coffee and other products in retail and convenience
stores, and reinvigorating the Seattles Best Brand coffee.
A statement from CFO Troy Alstead this March paints this picture:
We clearly hit a wall and didnt do very well in the 2007/2008 time period. From here forward,
when we grow Via, Seattles Best Coffee and consumer products, theres less investment for
each dollar of revenue.

This new strategy has inspired some optimistic feedback. Morningstar investment research firm
has increased estimate of Starbucks shares from $4 a share to $24 after the statement of
revamping the brand.
Morningstar analyst had this to say R.J. Hottovy:
Im surprised it wasnt ramped up in earlier years. Product innovations and international
expansion not only make the business potentially more profitable, but defend them against
competition.
International partnerships increase challenges but also create new ideas in new markets that can
then be translated back to US markets.
Starbucks in a mature stage of its lifecycle. It was founded over 20 years ago and it has
experienced rapid growth in the last 2 decades. However within the last few years its growth
has slowed and has even had to close locations. They are now focusing efforts on previous
endeavours and international expansion.
23

After expanding and growing in the U.S. markets, the need of the hour is global expansion for
continuous growth of Starbucks and that is why International Marketing Strategies were being
framed. Starbucks coffee International has hired multi lingual and multinational managers to
work towards the worldwide expansion in a planned manner. This group has the
responsibilities like:
Developing new businesses
Financing and planning new stores across the world
Managing operation and logistics
Merchandising
Developing trained International mangers for Starbucks
Starbucks hold the honour of opening first non-North American store in Tokyo , Japan in 1996
and here its no-smoking policy served as an oasis in Japan and helped in creating a brand
recognition in Japan. From 1996 off shore Starbucks stores are a force to wrecken with as now
they have more than 7,800 units worldwide and mostly on the prime locations like shopping
centres and airports.
Most of the products offered overseas are seasonal and locality specific across various countries.
A global Marketing Strategy Mix has been designed for effective global growth and impact.
This says:
Follow the same retailing formula all across the world
The product offerings are modified and catered to local tastes and it tries to make them
according to the local taste.
The advertising strategy of Starbucks is quite unique as it does not follow any international
campaign or formula for advertising rather it focuses on using stores as their brand
ambassadors. Thus the strategy of advertising is differentiated and localized rather than
standard.
It follows the store expansion very rapidly all over the world thus not giving any time to other
local organizations to imitate their concept. They follow the strategy of Starbucks
Everywhere approach while expanding their span (Tewell, Odom & Snider 2006).
Follow extensive employee training and recruitment programmes where they have a proper
system of recruiting, hiring and training baristas and store managers.
Focussing on the store design, planning and proper construction of the stores across the world.
There is a broad range of formats which are adopted for store designs. Mostly the stores are
located or planned in high traffic and high visibility and most prominent areas of the city.
The bottom-line of the strategy is to spread the American flavour of coffee all around the world
by developing a diverse international business portfolio along with profitability and growth.
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Thus Starbucks keeps on adding new stores and that too in all the prime locations across all the
fastest growing economies of the world (Starbucks International Strategy, slideshare.net).
Starbucks does not introduce its products in one go; it follows the product innovation and
introduction in phases. Thus introduces the whole range of products of coffee and tea one by
one, so that all the products get visibility and the customers get to relish the taste of every
product of Starbucks and then choose and decide their favourite one. Starbucks is selective
about introducing certain specific products which are not introduced worldwide like the ready-
to-drink coffee beverages in just few countries like Japan, Taiwan, and Korea etc. to increase its
profits.
Since North America just caters to just 20% of coffee markets so it was imperative for Starbucks
to enter markets which had dedicated coffee and tea drinkers.
Starbucks is undoubtedly one of the most if not the single most successful coffee chains of
the last few decades. This assessment seeks to explore the Starbucks brandscape through an
external analysis of the economic, competitive, social, demographic and legal and regulatory
factors of the coffee market. Application of the Marketing Mix, a detailed consumer analysis, as
well as an examination of future implications for the brand will also be addressed.
In a market of 1.5 billion, the Canadian coffee and tea industry accounts for nearly 1.1% of the
total value of food and beverage sales of goods manufactured in the sector. A growing target
market for this industry includes university and post-graduate students ages 18-29 living in
urban areas. These two segments account for the largest portion of gourmet coffee drinkers
Starbucks has capitalized on this target market and has become one of the most dominant forces
in the coffee and tea industry.
Besides their commitment to selling quality products, Starbucks is one of the most socially
engaged companies in North America. From ethical outsourcing, promoting diversity within
the company, community involvement and youth leadership, as well as being environmentally
conscious, Starbucks has created a brand that has proven to be extremely marketable and
profitable in the ever-growing socially conscious society.
The future of Starbucks is promising. However, in order to continue being market leaders
Starbucks needs to continually strive to be innovative and creative. Starbucks must continue to
take progressive leaps such as: technological and social media engagement, as well as remain
committed to the socially conscious pillars the brand has been founded upon.





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As the introduction to this assignment you will find a case study about Starbucks. Based on
the information provided as well as on your knowledge and research about the company you
are to address 4 main tasks in the report.
Task 1
Start your report by explaining the various elements of marketing process based on the
Starbucks.
1.1You are to prepare a SWOT analysis of the organization and explain the importance of using
SWOT analysis as marketing tool.
1.2Next present and evaluate the marketing objectives of Starbucks and explain how defining
marketing objectives can help a business to develop marketing strategies. How does this
contribute to the benefits of costs such as market orientation as customer satisfaction, desired
quality, service or customer care, relationship marketing etc---
Task 2
In the next task you will focus on the concepts of segmentation, targeting and positioning (STP
strategy).
2.1 -Start this task by analysingany three micro and three macro environmental factors
influencing marketing decisions in Starbucks.
2.2 -After that propose which segmentation criteria would be the most applicable for Starbucks
to use for their products in different markets. (use examples of at least two different
segmentation criteria)
2.3- Thinking about a range of products and services Starbucks offer choose a targeting strategy
for a one of them and propose a positioning strategy for this product.
2.4- Demonstrate how buyer behaviour affects marketing activities in different buying
situations. Provide here two examples of buying situations which marketing managers in
Starbucks should in your opinion especially consider
- Finish Task 2 by proposing a new positioning for the service or product for star bucks.
Task 3
In task 3 you will start analysing marketing mix elements, which are in the heart of all
marketing strategies. As before, think about Starbucks while addressing all the elements of this
task.
3.1 -Start by explaining how products in Starbucks are developed in order to make sure that
competitive advantage is sustained. You should focus here on the differences in products
between Starbuck and different coffee shop. Provide at least two examples.
3.2 - Next you are to explain distribution strategies used by Starbucks. Think about customers
convenience and satisfaction in relation to distribution channels used.
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3.3 In the next part you are to analyse pricing strategies used by Starbucks. Provide an
explanation how prices are set in relation to companys objectives and market conditions
(competition, current economic situation etc.)
3.4 Promotional activity is a must for every organization. Make a research into promotional
activities of Starbucks and illustrate how promotional strategies used by this organization
are integrated and related to marketing objectives of the organization.
3.5 - Finally at the end of this task you were asked to provide short analysis of additional
elements of the extended marketing mix based on the example of Starbucks.

Task 4
Last task is to present your ability to use the marketing mix in different contexts.
4.1 -To begin with you are asked to plan and prepare marketing mix for two different segments
of market in Starbucks. Use here an example of one existing segment and propose the second,
new one. Design for both segments marketing mix plan (4P).
4.2 Your task is also to illustrate differences in marketing products and services to business
rather than consumers. Next to Starbucks use here an example of another organization.
4.3 Finally your report will end with the evaluation how and why international marketing
differs from domestic one use here at least two examples of marketing strategies
Starbuck used to market their products internationally.


Assignment Guidelines:
Use a standard report structure, Word-process the report and use Normal script of a
proper font size 12.
Produce an academic report, detailing the above issues with a word limit of 4000 to 4500
words.
Complete the title page and sign the statement of authenticity.
The Assignment sheet should be attached in the front.
Submit the document in a folder in the form of a file as well as a soft copy on the
submission date.
It should be uploaded on E-Learning platform before the deadline and submitted to -----
--- and sign the submission form of the college.
Assignments submitted after the deadline will not be accepted unless mitigating and
may be entitled for a late fee.
Collusion and Plagiarism must be avoided.
Start each answer on a new page and pages should be numbered.Highlight each
question clearly.
Include a Bibliography at the end of the assignment and use the Harvard referencing
system.
All work should be comprehensively referenced and all sources must be fully
acknowledged, such as books and journals, websites (include the date of visit), etc.
Try to give the page numbers, publishers' details and the year of publication
In order to pass you need to address all the LO
In order to get a merit you need to first pass and also address the characteristics of M1,
M2,M3
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In order to get a Distinction you need to first pass, meet all the merit characteristics and
then address the characteristics of D1, D2 and D3.Use a common format for the
questions, for example:
Introduction (analyze the question.)
Underpinning Knowledge (write about the relevant theory/points)
Applied knowledge(Data Analysis)
Conclusions and Recommendations (summarizing the whole scenario keeping in view
pass, merit, distinction criteria.)


Student feedback form with the Assessment Grid indicating their pass, merit and
distinction:
Name: Registration Number:
Unit: Marketing Principles
Outcomes/criteria: Indicative characteristics Possible
evidence
Feedback
P1 Understand the
concept and process of
marketing
P2 Be able to use the
concepts of
segmentation, targeting
and positioning
P3 Understand the
individual elements of
the extended marketing
mix
P4 Be able to use the
marketing mix in
different contexts.


As per the assessment
criteria specified for pass


Do


Do



Do
Task 1


Task 2




Task 3



Task 4

Merit Description:
M. Identify and apply
strategies to find
appropriate solutions.
Relevant theories and
techniques have been
applied.

Effective judgments have
been made.

Complex problems with
more than one variable
have been explored.

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An effective approach to
study and research has
been used.

M2. Select/ design and
apply appropriate
methods/ techniques.
A range of methods and
techniques has been
applied.

A range of sources of
information used.

The selection of methods
and techniques justified.

Complex information/data
have been synthesized and
processed.

Appropriate learning
methods/ techniques
applied.


M3. Present and
communicate appropriate
findings.
Appropriate structure and
approach has been used.

Logical and coherent
arguments have been
presented

Technical language
accurately used.

A range of methods of
presentation has been used.

Familiar and unfamiliar
contexts have been used.

It is appropriate for
familiar and unfamiliar
audiences.

Distinction Description:
D1. Use critical reflection
to evaluate own work and
justify valid conclusion.
Synthesis has been used to
generate and justify valid
conclusions

The validity of results has
been judged

Self-criticism of approach
has taken place.

Evaluation has taken place
using defined criteria

Realistic improvements
have been proposed against
defined characteristics for
success.

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D2. Take responsibility for
managing and organizing
activities.
Autonomy/independence
demonstrated

Substantial
activities/projects or
investigations have been
planned, managed and
organized.

The unforeseen has been
accommodated.

The importance of
interdependence has been
recognized.

D3. Demonstrate
convergent, lateral and
creative thinking
Ideas generate and
decisions taken








Convergent and lateral
thinking have been applied

Capacity for innovation
and creative thought has
been used.

Receptiveness to new ideas
has demonstrated.

Unfamiliar contexts have
been applied.