Customer-Drive Marketing

In Week 10, we go into the topic of marketing and how it’s defined as well as what its true purpose is. We also learn how marketing drives the consumer to buy a product. In today’s society a product can be sold from so many avenues - within a location, and online. The possibilities are endless and the consumer is driven to the simplest and most convenient form of obtaining it. I enjoyed reading about the marketing mix, (4) P’s - Product, Price, Place and Promoting: the main goal is to develop and implement a marketing strategy. 

In our case analysis, it was interesting to read about the strategies that Starbucks has and what makes them successful in today’s market. They have been able to provide a product and service that consumers are driven to purchase all the time. They cater to their customers in a way that satisfies their impulse while nurturing what they deem important in their daily activities. I like that they offered a piece of the company to their employees. In my opinion, it creates a circle of trust from the first day they become a partner. As turnover rates increase in most industries, Starbucks was able to customize how and what they provide for their employees. When employees feel safe, they anticipate staying with the company long term as well as seek to find advancement opportunities. 

• Give examples of different products you know about that are priced using each of the following approaches: cost-based pricing, demand-based pricing, target costing, and prestige pricing. Explain whether you think the company is using the right approach for each of the products you mentioned.

Cost-based pricing - 

Demand-based pricing - 

Target costing - 

Prestige pricing - 

• What are the 4 P's of Marketing? Summarize ways that marketing creates utility for business in each area.  a good or a service for each of the following product development categories: new-to-the-market, new-to-the-company, improvement of existing product, and extension of product line. To come up with the products, you might visit a grocery store or a mall. Don’t use the Just Born examples presented in the chapter.

Product: Developing a product that meets the needs of the target market, marketing provides the ability to create products from all shapes and sizes and there maybe similar products out there but the business is to differentiate yourselves from the competition. 

Price: Setting a price for the product, a price will determine how a company can compete with the economy as well as competitors who will find the best way to advocate their product to ensure sales continue in a positive direction. 

Place: Distributing the product—getting it to a place where customers can buy it. Location is everything, if you are providing a product or service, it has to accessible and simplistic. This will ensure the product is available and sales are continuous. 

Promotion: Promoting the product—informing potential buyers about it. A marketing strategy as well as a a catchy phrase will create the opportunity to grab a consumer’s interest so they are persuaded to go out and find your product/service. 

All (4) P’s in the marketing mix need to be met in order for a product/service to survive the market. The market can be unstable in that other factors come into play, but it is important to find and solidify these (4) areas before anything else can be addressed.