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Case Study On Starbucks

5204 words - 21 pages



Contents Page

Acknowledgement 4

Assignment Question 5

Introduction 6

Literature Review 6

Starbucks Corporation 9

Marketing Mix 10

Promotion Mix 13

Southwest Airlines 15

Marketing Mix 16

Promotion Mix 18

Differentiation between the business models 19

Conclusion 22

References 24


Being a working adult and going back to school to learn about Marketing Management is a tall order. The feeling has ...view middle of the document...

Recommend the appropriate marketing and promotion mix which are related to effective planning and marketing of your product as well as providing the selected service.

Under the respective category mix, differentiate clearly the degree of emphasis between your selected product-based and service-based businesses.

Your assignment should be between 2,000 to 2,500 words. Sources and references to support this assignment must be quoted.


The objective of this study is to classify and make a comparison of two global business models in the Marketing and Promotion Mix categories. The organizations that will be used in this study are Starbucks Corporation (Restaurants, Retail Coffee and Tea, Retail Beverages and Entertainment products) and Southwest Airlines (Airline Service). Upon categorizing of the respective different mix, we will make a comparison of the degree of emphasis in the marketing and promotion mix between Starbucks Corporation and Southwest Airlines.

Literature Review

According to marketing guru Philip Kotler, (Kotler, et al (2005) "Marketing Management", Prentice Hall), Marketing Mix consists of 4 basic elements: product, price, place and promotion.

The marketing mix is generally accepted as the use and specification of 'the four Ps', describing the strategic position of a product in the marketplace.
Although the 4Ps form the fundamentals of the marketing mix, there are two other elements, personnel and packaging which have been lightly included. The fundamental of marketing mix typically identifies the four Ps as referring to:
Product -A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are often service based like the tourism and hotel industry. Typical examples of a mass produced tangible object is the motor car and the disposable razor.
Price – The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if their stores have the same product.
Place – Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.
Promotion – Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements - advertising, public relations, word of mouth and point of sale. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion.
Advertising covers any communication that is paid for, from television and cinema commercials, radio and Internet adverts through print media and billboards. One of the most notable means of promotion today is...

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