UNIVERSIDAD INTERNACIONAL DEL ECUADOR

FACULTAD DE CIENCIAS ADMINISTRATIVAS

DIEGO ROSERO
29/04/2016
Marketing Estratgico
Starbucks
1.- Explain the interrelation between Product/Market and the time frame
Product
Starbucks tried to position themselves in the coffee industry as a premium product
through creating a high standard, providing an excellent service and introducing
innovative products. Schultz knew that his coffee was perishable making them so
fanatical about quality control, and thus they monitored each and every coffee
production step very carefully. They purchased dark-roast, whole bean coffee from
Kenya, Sumatra, Ethiopia, Costa Rica and Ethiopia. They roasted coffee in their own
plants and later sold it through company-owned stores. They applied Total Quality
Management (TQM) that all companys people are constantly involved in improving the
products quality.
Use of introduction of Frappuccino and nonfat milk made a significance presence in the
Starbucks balance sheet. Moreover, they gave seasonal offerings, such as cream
Frappuccino and strawberry in the summer and gingerbread latte was introduced during
Christmas. Gradually, food items such as pastries, cookies, salads and sandwiches made
their way into the stores. They later developed new products with other companies,
which show how cautious they were in maintaining their premium quality image and
keep their standards high.

Place
Place is where the service will be received by customers. Since services production is
inseparable from its consumption, it becomes even more important for service
companies to make a decision where the service will be located as part of strategic
marketing planning process. Decision on place for service providers includes finding of
suitable location, with regard to its accessibility, availability, as well as decision on
distribution channels and distribution coverage.
Distribution decisions for services companies include choice of physical location and
intermediaries to provide the service. Accessibility can be referred to as relative ease of
acquiring the service for customer. Availability for consumers means that the services
are on hand when consumers want to receive them. In international business, the aim of
selecting future distribution channels is building effective international supply channels
and logistics. The process of building supply channels requires to identify and to select
distributors that company wants to use, and then building relations, establishing
contracts and further cooperation with them. International logistics

Quantitative Market Segmentation

There are four types of qualitative and quantitative market segmentation tools used to
determine the factors affecting buying decisions when identifying target markets:
demographic, psychographic, geographic and behavioral influences. Demographic and
geographic factors such as age, location, family income, occupation, education
attainment and ethnicity help to identify market segments. Observable influences help in
making inferences about social, lifestyle and cultural influences that drive consumer
behavior.

Qualitative Market Segmentation

Behavioral and psychographic influences are qualitative, emotional factors explaining
why target markets behaves as it does. Psychographic influences include attitudes,
beliefs, personality, opinions, values, self-image and interests. Behavioral influences
relate to the customers relationship with brands in terms of experience, knowledge,
perceptions and usage. These include perceived brand benefits, brand attributes, usage
rates, brand loyalty and usage occasions. They are essential in terms of assessing
cognitive levels versus intuitive involvement in buying deliberations.

2.- Explain the product penetration process and the existing markets and new
markets
Companys international marketing strategy should be built focusing on taking the
advantages of different markets and, on the other hand, should help company to meet
new global consumers demands. International competition also forces companies to
enter new markets in a short period of time. During companys internationalization
stage, strategic decisions should be made regarding three key dimensions of
international

market

entry

strategy:

standardization/adaptation,

configuration/coordination and strategic integration.

The first dimension - standardization or adaption - refers to uniformity of companys
activities across markets. Management of the international company has to choose
whether and to which range to standardize or to adapt the core of its product or service,
pricing policy, marketing communication and distribution channels in order to win
consumers across borders. Second dimension, configuration or coordination, describes
how companies organize their activities through all their value-adding chain, from
downstream to upstream activities.
Available options are to disperse activities across borders and to concentrate valueadding activities within certain country or region. In case of particular company, both
approaches will have advantages and disadvantages, as well as will affect the design of
value-adding chain and, consequently, organization of marketing activities. And the
third dimension, called strategic integration, refers to how international companies

respond to cross-boarders competition. For a companys success it may be crucialto be

present in all major markets of the world in order to enhance its competitive advantage
and to multiply the effect of performed marketing campaigns. Further decision should
be made regarding the mode of entry that company will exploit in order to enter the
market. Different types of modes of market entry can be divided into three broad
groups: export, non-equity-based cooperation and foreign capital investments. The
decision regarding mode of entry is influenced by the amount of resources that company
has and wants to spend on acquiring new market, various risks it is facing in foreign
environment, available infrastructure in targeted country and the core business of the
company. The first group, export modes, includes non-intensive forms of investment
that