Consumer Market Segamentaion Variables and Starbucks Number

ConsumerMarket Segamentaion Variables and Starbucks


ConsumerMarket Segamentaion Variables and Starbucks

Marketingpractice has over time gone through tremendous and numerousevolutions, as the organizations try to market their products to thelargest volume number of the desired consumers. This has led to thedevelopment of diverse strategies to reach the consumers wheneverthey are globally. One of such approaches is the ‘Segmentationof the Consumer Market’.Segmentation of the consumer market is defined as the means ofdividing the marketplace into different parts which themselves aredefinable, accessible as well as having growth potential (Robson etal, 2013). It is the division of the customers in the market intogroups with specific and similar characteristics, but relevant tomarketing such as age, gender, spending habits, and consumerinterests (Starbucks,2015).This paper looks into the four major sets of variables used insegmenting the consumer markets, as well as identifying which is/arebeing used by the Starbucks Coffee Chain Business.

VariablesUsed in Consumer Market Segmentation

Differentbusiness entities use different variables in segmenting theirconsumer markets. This greatly depends whether the business isoffering goods or services. There are different factors that areconsidered before a business segments its consumer markets. Suchincludes consumer behavior, income, and geographic location amongothers. On the other hand, there are different variables that areused in consumer market segmentation (Robson et al, 2013). On of themajor variable used in segmentation is the DemographicSegmentation.Through this segmentation, the markets are divided into differentgroups on the basis such as age, gender, income, education, religion,nationality among other aspects. Demographic segmentation id known asthe most popular segmentation variable, as it is easier to measure(Gordon, 2015).

Secondly,there is the GeographicalSegmentation,whether the markets are divided into groups based on geographicalunits such as countries, regions, or cities. Under this segmentation,factors such as population, terrain among others, contributes tovarying consumer needs. In addition, there is also the PsychographicSegmentation (Robsonet al, 2013). This segmentation based on consumer’s lifestyle andpersonality traits. In the recent market trends, lifestyle andconsumer personality has greatly affected the consumer buyingbehaviors. Lastly, there is the BehavioralSegmentationvariable. This is whereby customers are grouped based on buyer’sknowledge of a product, their attitude towards a product, use of theproducts or else, their response to the product. Under this variable,the market is grouped based on user status, usage rate, loyalty,attitude, and buyer readiness among other aspects (Lars,2015).

ConsumerMarket Segmentation Variables Used By Starbucks

StarbucksCorporation globally known as Starbucks coffee is an American coffeecompany and coffee house chain, which since its establishment, hasgrown to be the largest coffeehouse company globally (Robson et al,2013). Starbucks has been one of the prominent business enterprisesto effectively use the initiative of consumer segmentation is toincrease it,s coverage, and consumer satisfaction. Over the time, thecompany has applied all the segmentation variables as identifiedabove.

Theirinitial segmentation was a geographical segmentation. This was donethrough the establishment of the company’s outlets in other partsof America as well as outside the country into other nations andcities such as Dubai among other countries. In a span of 20 years,the company has expanded their customer base through theestablishment of over 15000 stores in dozens of countries (Starbucks,2015).On the other hand, Starbucks has over time applied the demographicsegmentation because of a consumer’s income, age, gender etc., aswell as psychographics segmentation (Kotler&amp Armstrong, 2012).For example, the company offers the Gold card, which is used torecognize loyal customers as well as their usage. Their productscover a wide range of age and income bracket. They also offerspecialized drinks to cater for behavioural and geographicalvariables. They also have products for special lifestyles and socialclasses. This in turn explains the idea Starbucks uses multipleconsumer segmentation approaches (TheNewYork Times, 2015).

Inconclusion, consumer, market segmentation has become an integralelement used by business organizations in their marketing strategies.Different variables are deployed when implementing the segmentationprocess by business entities. These include Demographic, Geographic,Psychographic, and Behavior segmentation variables, are commonlyused. These segmentations are used to meet consumer needs to asincrease and maintain the number of buyers.


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