Accountant Essay examples

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Marketing Plan Phase 2

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MKT/421

March 18, 2012

When Starbucks looks to introduce a new frozen coffee dessert to the market, research time will be invested to ensure that this
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93). The second step is aggregating the market. Perrault, Cannon and McCarthy define aggregating as, “Clustering people with similar needs into a ‘market segment’” (Perrault, Cannon & McCarthy, p. 93). Starbucks will look for similarities in needs. Step three involves identifying criteria. Good market segments have four criteria. 1. They are homogeneous (similar within each segment). 2. They are heterogeneous (different between each segment). 3. They are large enough to be profitable. 4. They are operational meaning segments should identify customers, demographics, and the appropriate marketing mix to use. The ideal approach for Starbucks is the multiple target market approach. Starbucks creates an individual marketing mix for each homogeneous segment. Aiming a separate marketing mix at each segment allows Starbucks to offer superior value to the needs of each segment. According to Perrault, Cannon, and McCarthy, “A segmenter that offers a marketing mix precisely matched to the needs of the target market can often charge a higher price that produces higher profits” (Perrault, Cannon, & McCarthy, p. 97). If Starbucks meets the needs of its target markets, the company will face little competition. Customers become loyal at that point. The result of a proper segmentation is the identification of the target market. For Starbucks, the ideal

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