Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
Related questions
Question
100%
Please explain the photo attached. Thank you.
TOPIC: MARKETING STRATEGIES OF STARBUCKS

Transcribed Image Text:FFFFFORMAS
MARKETING STRATEGY #4
IN-STORE MARKETING
Starbucks devotes a significant amount of time and resources to in-store
marketing. Starbucks stores are carefully designed to make people stay longer,
purchase more, and visit them again and again. Everything in the store, from the
lighting to the ordering counters, serves a precise purpose. In-store marketing
strategies are nevertheless the successful marketing strategies of Starbucks. In-
store marketing promotes new products and loyalty program benefits to
customers, raising awareness and increasing demand among current customers.
This contributes to the brand's customer retention goals. The store lighting also
serves to draw customers' attention to Starbucks merchandise, encouraging
impulse purchases.
Between the ordering counter and the counter where you pick up your order.
WWW
advertisements are placed. This is intended to encourage customers to consider
what they might buy when they return on another visit to Starbucks. Starbucks
also uses the data collected from its store locations to do market research,
compiling and evaluating the information on customer sales, behaviors, and
preferences.
MARKETING STRATEGY #5
MOBILE APP
Starbucks has long recognized that the future of retail is inextricably linked to technology. It first
released a mobile app in 2009. In 2011, it began offering in-app payments. Starbucks introduced mobile
pre-ordering and payment in 2014. Customers who use this service can avoid waiting in line (most of the
time) by placing their favorite order from the most convenient place, whether at home or on their way
to work.
Starbucks' loyalty program is also linked to its mobile app. With a single quick scan of the app, you can
pay and earn rewards toward savings on Starbucks purchases. The attraction of earning prizes fast and
effortlessly motivates users to utilize the app frequently. The Mobile app is one of the most successful
marketing strategies of Starbucks.
TAIN
ABLY
Furthermore, the app recommends drinks to customers based on their buying habits and search
histories. It is important to remember that the Starbucks app has been quite user-friendly since its
inception in 2011. The app currently accounts for more than 20% of all Starbucks sales. To provide
maximum coverage, the app is also accessible on all major mobile OS systems.

Transcribed Image Text:MARKETING STRATEGY #2
LOYALTY PROGRAMS
Starbucks has a fantastic way of rewarding customers who buy their products.
Customers are given "stars" as part of the Starbucks Rewards program. Customers
who earn stars receive free coffee and products. Aside from a free treat on their
birthday, there are also bonus rewards such as double star days and access to
exclusive games and offers. Customers can check the balance of their gift cards,
points, and mobile orders via phone, website, in-store, or on the Starbucks user-
friendly app. Real-time communication across multiple channels eliminates the
possibility of a communication lapse. Customers find this omnichannel capability
appealing, as it encourages engagement on multiple levels. However, it is more than
just a free coffee that attracts customers to become loyal Starbucks customers.
Starbucks' ability to envision and deliver true 1:1 customer personalization is what
puts them on a loyalty pedestal. 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. Additionally, repeat customers can
bring a broader network into both implicit and explicit endorsement, allowing for
better interaction and feedback.
MARKETING STRATEGY #3
STRATEGIC ALLIANCES
Starbucks has collaborated with different organizations to build and expand
its business in various nations. Starbucks collaborated with Barnes & Noble,
Nestlé, PepsiCo. iTunes, and other companies. Tata Starbucks, which first
opened its doors in India in 2012, is a joint venture between Starbucks and
India's Tata Consumer Products. Strategic alliances are the most successful
marketing strategies for Starbucks. Starbucks reaps numerous economic
benefits from these strategic collaborations. It aids the organization in
increasing client awareness of various products and expanding its product
portfolio. This technique also makes it easier to serve the company's products
to diverse market segments and boost customer satisfaction. As a result, the
company's retail sales and profitability increased.
Starbucks' alliances are one of the core reasons for the company's long-term
success and expansion. An analysis of Starbucks Corporation's alliance
strategies demonstrates that the company is extremely successful in this
industry.
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