Segmentation

Segmentation and Target Market Paper

Marketing /571

November 25, 2014

Segmentation and Target Market Paper

The most important job for marketing is recognizing customer base. These performances are based on market segmentation or STP analysis. Having people positioned plays a vital role because establishing an extended rapport is what makes profitable organizations. Realizing who an organization is attempting to influence is important because everyone is not concerned about each creation or service (Grewal, p.245). Though there are several ways to determine segmenting strategy, as outlined by Grewal and Levy, depending on the organization distinctive merchandise line or service, there may be a mixture of practical approaches to consider. Starbucks continues to be productive because of the organizations capability to determine who their customers are, with knowledge of demographic and psychographic segmentation, and focus on targeting these kinds of persons for exertion to create extended lines of communication.

The Primary Target Market

Starbuck’ main focus for their product label, high quality coffee roast, some people may focus on the demographic distribution of Starbucks consumption. One demographic-segmentation charactering within a company’s consumer base is customer income. When a company produces a product they must market the product price in accordance with their target audience (Grewal, p250). Porsche for example would not market their automobiles on billboards in low-income neighborhoods, because their target audience has to be able to afford the product. Acting on this principle, Starbucks has focused its efforts on advertising and opening stores in areas of higher income. This is evident when looking at the Starbucks store chain’s national geographic distribution. There are more Starbucks stores in areas of high income, especially cities where living expenses are high. The trend that merges is that Starbucks’ customers “lean toward...