As Anthony Miyazaki stated in his video, not every customer is treated the

same way, and I couldn’t agree more. As marketers, we are always finding ways to
appeal to customers, and it is very important to understand that people do not react
or behave the same way as others. Therefore, companies segment their markets and
strategically identify their target market. Segmentation is the first step to
understand the differences in people, where “customers are divided based on
meeting certain criteria or having similar characteristics that lead to them having
the same product needs”. (IMS Marketing, 2022). These market segments could be
chosen based on personality, lifestyles, education levels, technology adoption or
user behaviors, among others. Once this is done, companies can target specific
groups that align with the short-term or long-term success of a product. One of the
benefits and importance of segmenting and targeting include a greater focus when
companies need to create content for these consumers. For example, if a company
is thinking of promoting their products on social media, based on the target they
get to choose the right platforms such as TikTok or Facebook. Yet, they know that
if their product is meant for a younger generation, Facebook will not serve them
for success, whilst TikTok will get them a greater ROI. Furthermore, segmenting
and targeting will help companies understand consumers needs and wants for
various reasons. They can generate or attract high-quality leads that turn into
potential customers and improve their products to better fulfill the needs of
consumers. In doing so, companies gain an advantage in the market by having their
brands stand out from the competition and develop a deeper relationship with
consumers. (Indeed, 2022).

IMS Marketing. (n.d.). The importance of market segmentation. IMS Marketing. Retrieved

October 26, 2022, from https://www.imsmarketing.ie/business-strategy/the-importance-of-
market-segmentation/ 

Indeed. (n.d.). Benefits of targeting in marketing (and how to do it). Retrieved October 26, 2022,
from https://www.indeed.com/career-advice/career-development/benefits-of-targeting 
How did Starbucks become an 80B Business? What were their success and
failures? 

When Starbucks first started, they were known as a coffee bean shop and grocery which was
popular at the time. Consuming coffee was really seen as an activity to do at home, not on the go,
hence the coffee bean shop idea. But, the strategy that really made Starbucks grow was to
become a coffee shop when Schultz joined the company in 1987. He was convinced that
Starbucks could change their concept and “remain premium while becoming ubiquitous.”
(Taylor and Meisenzahl, 2017) People loved the coffee, and in no time, they started to substitute
at home coffee for on-the-go cups personalized with their names. Afterwards, they began to
expand aggressively and opened an average of 1,500 stores each year in the US and expanded
internationally. As mentioned in the video, once the business model worked, it translated into
other geographies helping the brand grow internationally. (CNBC, 2019) Nevertheless, success
was not always the way. After the 2007 recession, many stores like Starbucks took a hit as sales
started to decrease. Buying a drink from a coffee shop meant having a luxury they couldn’t
afford at the time. Starbucks was able to bounce back by changing their tactics once again. Upon
the return of Schultz in 2008, they focused on the customer experience and improved it in many
ways. They re-trained the baristas, got rid of automated machines, and opted for in-house
grinding. The idea was to remind the people what they loved about the brand in the first place.
Furthermore, it wasn’t just about the experience in store, but the values the company had as a
whole. For Schultz change and success was more than just selling coffee. In fact, his leadership
was marked by his continued commitment to social issues. (Taylor and Meisenzahl, 2017). As
years went by, Starbucks, once again, was starting have problems. This was due to product
cannibalization, which did not provide an opportunity to open new stores. (Mourdoukoutas,
2018) With so many stores close to each other, consumers did not become loyal to just one,
which affected same store sales. Likewise, consumers preferences were changing, as they
preferred lighter and less sugary beverages. To combat this, Starbucks added cold brew and
fruity refreshers to their offerings, closed many stores, and introduced a new upscale store:
Starbucks Reserve Roastery. This shifted focus on the consumer experience and aiming to put
Starbucks in a higher light for consumers.

CNBC. (2019, January 10). How starbucks became an $80B business. YouTube. Retrieved
October 28, 2022, from https://www.youtube.com/watch?v=XUBeH7VQaFY&t=209s 

Mourdoukoutas, P. (2018, June 27). Starbucks' problems at home and abroad. Forbes. Retrieved
October 28, 2022, from
https://www.forbes.com/sites/panosmourdoukoutas/2018/06/27/starbucks-problems-at-
home-and-abroad/?sh=6668f14664b5 
Taylor, K., & Meisenzahl, M. (2017, December 13). Howard Schultz is back at Starbucks as
interim CEO. here's how he went from living in Brooklyn public housing to growing the
coffee giant into an $95 billion business. Business Insider. Retrieved October 28, 2022,
from https://www.businessinsider.com/starbucks-howard-schultz-success-story-2017-12 

Based on the article, it is no surprise that consumers across different generations expect different
things from a company or brand. To engage with these consumers, is to understand and leverage
research that tells us what they like, need, or want in a shopping experience. Nevertheless, it is
very challenging to target all these consumers at once. The first thing I would do as a
businesswoman is to depict the segment that would purchase my product or service. It is
important to do this as a first step because “Effective marketing strategies attract and engage the
right person with the right message at the right time”. (LaFleur, 2022) Once I am certain that my
brand will attract that specific type of consumer, I would create a marketing and communications
plan. Part of this plan would include personalization efforts or an improvement of those efforts,
loyalty programs and an omnichannel shopping experience. They key is to understand what the
consumers look for within each category. Personalization or the need for it is an aspect common
among all the generations, although different in terms of perspective. For example, Millennials
have no problem sharing information for better experiences tailored to them. On the other hand,
the Silent Generation has trouble trusting technology and sharing data which correlates to the
fact that only 4% of consumers of the Silent Generation believe that their favorite brands do a
good job at personalization. (Oracle, 2020) Without the consumers help or insight into their
preferences, some tasks become hard for companies. Nevertheless, as Goddard mentions,
“Across the board, consumers want personalized communications and experiences from brands
they have relationships with and are loyal to”. (Talbot, 2021) Having a shopping experience
where consumers feel heard and understood is very important across all generations. Companies
can leverage this no matter the product or service. They can apply different techniques to gather
information and personalize each experience based on the needs and wants of consumers.
Moreover, loyalty programs also provide a benefit in the eyes of consumers. Some look at it as
obtaining free perks like free shipping, while for others it is a way to save money. It is all in the
perspective of each generational consumer. We must be willing to understand, research, and
apply different marketing approaches to succeed in the market.

LaFleur, G. (2022, May 17). Generational marketing explained: Everything you need to know.
WhatIs.com. Retrieved October 30, 2022, from
https://www.techtarget.com/whatis/feature/Generational-marketing-explained-Everything-
you-need-to-know 

Talbot, P. (2021, November 11). How marketers can engage with different generations. Forbes.
Retrieved October 30, 2022, from
 https://www.forbes.com/sites/paultalbot/2021/11/11/how-marketers-can-engage-with-
different-generations/?sh=6d1e3c0f5e4e 

Oracle. (2020). How to Engage Consumers Across Every Generation.