The marketing mix is one of the most famous marketing terms.

The marketing mix is the tactical or

operational part of a marketing plan. The marketing mix is also called the 4Ps and the 7Ps. The 4Ps are
price, place, product and promotion. The services marketing mix is also called the 7Ps and includes the
addition of process, people and physical evidence.

The marketing mix is . . . The set of controllable tactical marketing tools – product, price, place, and
promotion – that the firm blends to produce the response it wants in the target market.

Kotler and Armstrong (2010).

The concept is simple. Think about another common mix – a cake mix. All cakes contain eggs, milk, flour,
and sugar. However, you can alter the final cake by altering the amounts of mix elements contained in it.
So for a sweet cake add more sugar!

It is the same with the marketing mix. The offer you make to your customer can be altered by varying the
mix elements. So for a high profile brand, increase the focus on promotion and desensitize the weight
given to price.

Another way to think about the marketing mix is to use the image of an artist’s palette. The marketer
mixes the prime colours (mix elements) in different quantities to deliver a particular final colour. Every
hand painted picture is original in some way, as is every marketing mix. Let’s look at the elements of the
marketing mix in more detail. Click on the links to go to the lesson on each element.

Price

Price is the amount the consumer must exchange to receive the offering .

The company’s goal in terms of price is really to reduce costs through improving manufacturing and
efficiency, and most importantly the marketer needs to increase the perceived value of the benefits of its
products and services to the buyer or consumer.

There are many ways to price a product. Let’s have a look at some of them and try to understand the best
policy/strategy in various situations.

Place

Place includes company activities that make the product available to target consumers.

Kotler and Armstrong (2010).

Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods
and/or services are moved from the manufacturer/ service provider to the user or consumer.

Product

Product means the goods-and-services combination the company offers to the target market.

Kotler and Armstrong (2010).

For many a product is simply the tangible, physical item that we buy or sell. You can also think of the
product as intangible i.e. a service.

In order to actively explore the nature of a product further, let’s consider it as three different products –
the CORE product, the ACTUAL product, and finally the AUGMENTED product.

The Product Life Cycle (PLC) is based upon the biological life cycle. For example, a seed is planted
(introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an
adult (maturity); after a long period as an adult the plant begins to shrink and die out (decline).
The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle (PLC). However, CLC
focuses upon the creation and delivery of lifetime value to the customer i.e. looks at the products or
services that customers NEED throughout their lives.

Promotion

Promotion includes all of the activities marketers undertake to inform consumers about their products
and to encourage potential customers to buy these products.

Promotion includes all of the tools available to the marketer for marketing communication. As with Neil
H. Borden’s marketing mix, marketing communications has its own promotions mix. Whilst there is no
absolute agreement on the specific content of a marketing communications mix, there are many
promotions elements that are often included such as sales, advertising, sales promotion, public relations,
direct marketing, online communications and personal selling.

Physical Evidence (POSITIONING)

(Physical evidence is) . . . The environment in which the service is delivered, and where the firm and
customer interact, and any tangible components that facilitate performance or communication of the
service.

Physical Evidence is the material part of a service. Strictly speaking there are no physical attributes to a
service, so a consumer tends to rely on material cues. There are many examples of physical evidence,
including some of the following buildings, equipment, signs and logos, annual accounts and business
reports, brochures, your website, and even your business cards.

People

(People are) . . . All human actors who play a part in service delivery and thus influence the buyers’
perceptions; namely, the firm’s personnel, the customer, and other customers in the service environment.

People are the most important element of any service or experience. Services tend to be produced and
consumed at the same moment, and aspects of the customer experience are altered to meet the
individual needs of the person consuming it.

Process

Process is) . . . The actual procedures, mechanisms, and flow of activities by which the service is delivered
– this service delivery and operating systems.

There are a number of perceptions of the concept of process within the business and marketing literature.
Some see processes as a means to achieve an outcome, for example – to achieve a 30% market share a
company implements a marketing planning process. However in reality it is more about the customer
interface between the business and consumer and how they deal with each other in a series of steps in
stages, i.e. throughout the process.

Posted onMay 2, 2016Categories* All Marketing (Index), Homepage Grid, Marketing Essentials, Marketing
Mix 4Ps and 7Ps, Popular

Starbucks Marketing Mix

Current CEO Howard Schultz joined the company in 1982 and began pressing to have Starbucks provide
coffee, espresso drinks as well as sell coffee beans in its stores. Schultz left to start his own store called Il
Giornale. This operation experienced success with Schultz suggested offerings. Eventually Starbucks was
sold to Il Giornale which then rebranded itself as Starbucks. By the time the firm went public in 1987 it
had expended to more than 160 outlets.

Today Starbucks is in more than 55 countries and boasts annual revenues in excess of $7 million dollars
for its U.S. operations, as well as 1.9 million from its international operations.

Product

Starbucks specializes in coffee and related beverages. The company sells coffee, Italian-style espresso
beverages, cold blended beverages, as well as a selection of premium teas. In addition, the firm also sells
coffee-related accessories and equipment.
Tazo Tea is the Starbucks brand. There’s many, many different flavors and you can get them as iced teas,
lemonades, lattes, hot or cold.

Some of their most popular teas fall into the Chai tea category. It’s a spicy black tea with cardamom,
cinnamon, black pepper and star anise.

An espresso is a strong, black coffee that is brewed by forcing hot water through coffee grounds. It’s more
concentrated, has more caffeine than regular

A Starbucks Latte is Espresso with steamed milk and foam.

A Caramel Macchiatto is a vanilla latte with less vanilla, extra foam and a caramel sauce on top.

A Starbucks Cappuccino is similar to a latte but with more foam.

Starbucks Mocha is an espresso, steamed milk and chocolate with whipped cream on top.

A Starbucks Coffee Frappuccino is Starbucks coffee, milk and blended with ice.

An example of Starbucks blended creams is the pumpkin spice frappuccino which includes pumpkin and
traditional fall spices, mixed with milk and blended with ice, then topped with whipped cream and
pumpkin spices.

Starbucks Marketing Mix

Introduction

Jerry Baldwin, Zeff Siegl, and Gordon Bowker formed Starbucks in Seattle, Washington in 1971. Its origin
is said to be inspired by another coffee lover and store Owner; Alfred Peet. Starbucks actually began by
purchasing coffee from Peets, but eventually began buying directly from growers. Would you like to take
a lesson on the marketing mix?

Price

On September 22, 2010 Starbucks announced that it would be raising prices due to the increasing price
of coffee beans, dairy and other raw material.

Starbucks expects to maintain or lower the price of some of its most popular beverages, including certain
espresso beverages; and, in most markets, its popular $1.50 tall brewed coffee; and to raise prices of
labor-intensive and larger-sized beverages

Unlike the coffee, tea prices aren’t based on the size, instead it’s based on the number of tea bags, since
water is pretty cheap in non-bottle form.

Place

The Coffee Holding Company, Inc. is located at 3475 Victory Blvd, Staten Island, in Staten Island, New York.

Starbucks Coffee Canada is located in Toronto, Ontario

Starbucks Capital Asset Leasing Company is located in Delaware.

Starbucks has branches in Argentina, Australia, Chile, Singapore, Japan and the UK.

Starbucks coffees and teas were available in approximately 39,000 grocery and warehouse club stores,
33,000 of which were in the US and 5,500 in international markets.

The CPG segment includes packaged coffee and tea as well as branded products sold worldwide through
channels such as, warehouse clubs, convenience stores and grocery stores.

Promotion

Starbucks started a community website, My Starbucks Idea, designed to collect suggestions and feedback
from customers.

My Starbucks reward program allows members to earn a free drink after every 15 purchases at
participating Starbucks stores.

It’s rare (if not none) for you to find a Starbucks ad in a billboard, ad space, newspaper or poster in places
where you can expect to see advertisements for most other establishments, such as McDonalds?
Starbucks stresses quality above price and other features it could emphasize.

The company has went to great lengths to create a “community atmosphere” among premium coffee
lovers.

In 2001 Starbucks introduced the Starbucks Card, a stored-value card for customers to use and reload.

Process

Starbucks operates primarily through joint ventures and licensing arrangements with consumer products
business partners.

The Starbuck Company’s International specialty operations are comprised of retail store licensing
operations in more than 40 countries and foodservice accounts in Canada and the UK.

The company’s US specialty operations include licensed retail stores, food service accounts and other
projects related to Starbucks’s main business strategy.

Starbucks accepts store license applications online, with the initial information centering on the type of
operation being run by the applicant.

Starbucks started a community website, My Starbucks Idea, designed to collect suggestions and feedback
from customers.

Physical Evidence

Starbucks provides information on its products, business partnerships, and career opportunities on its
website .

The famous Starbucks Logo (which is green and features a partially nude siren) has stayed largely
unchanged since its origin, However it has been altered to adjust to international sensibilities.

Starbucks stopped using pre-ground beans in its stores in order that the grinding of whole bean coffee
will "bring aroma, romance and theater" to American stores.

People

Howard Schultz is Chairman, Chief Executive Officer for Starbucks.

Olden Lee Interim Vice President
Barbara Bass Director, Non Executive Board
Cliff Burrows is President of Starbucks Coffee US
Author Rubenfeld, Global Development
Troy Alstead is Chief Financial Officer
John Culver is President of Global Consumer Products