Segmentation and Target Market
Michael Edenburgh
University Of Phoenix
Marketing
MKT/571
Nancy Mac Issac
May 5, 2014
Segmentation and Target Market
The most important task for marketing is identifying the customer base. This is accomplished through market segmentation or STP analysis. Being people oriented is important because establishing long time relationships is what makes a successful business. Understanding whom the company is trying and want to reach is important, as most people are not interested in every product or service (Grewal & Levy, 2011). There are various ways to develop a market strategy, which Grewal and Levy outlined, based on the company’s unique product line or service, as always there are other strategies to consider. Starbucks is successful because of their skill to recognize who the majority of their customers are, with relation to the demographic segmentation and worked to target the individuals in effort to maintaining those relationships.
To identify Starbucks’ primary target audience for their brand name, high quality coffee, one has to look at the demographics of Starbucks consumption. One essential demographic-segmentation is characterizing within the company customer base is income. When a company produces a product, that particular product must be marketed in accordance with their targeted audience(Grewal & Levy, 2011). Mercedes for example wouldn’t market their luxury lines of automobiles on a billboard in neighborhoods with low income, because the audience that they are targeting must be able to afford their products. Starbuck as done just that, they’ve focused their efforts on extensive advertisements and opening stores in neighborhoods that have are in a higher income bracket. This is obvious when looking at Starbucks chain of stores. There are more Starbucks in neighborhood’s and cities where the living expensed is substantial. The trend that emerged is that Starbucks customers tend to lean...