Marketing Management

1. Using the full spectrum of segmentation variables, describe how Starbucks initially segmented and targeted the coffee market.
2. What changed first, the Starbucks customer or the Starbucks experience? Explain your response by discussing principles of market targeting.
3. Is Starbucks’ “value” positioning targeting a new type of customer or simply appealing to existing customer types?
4. Will Starbucks’ “value” efforts work? What alternatives did Starbucks have?

Mr. Demeke Endalamaw wants to segment markets in order to serve customers as per their interest. For the purpose of dividing up buyers, he begins his work by conducting marketing survey on customers thinking, attitudes and buying motives. Some of them are crazy for novel design or products of new fashion that may increase their prestige in the society and the motto of some of other customers is simple living and high thinking and they never aspire for showy-items. Some of the customers are family oriented and want to spend their time and money on family issues. Finally, he becomes confuse on which bases/s to use for segmenting the buyers and he needs your advice.

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So, what should you advise Demeke to use as a base for segmenting? Why?


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