APP 004

• Marketing Mix - a key foundation on which most modern marketing strategies and business activities are based.
• The concept of Marketing Mix came about in the 1960s when Neil H. Borden, professor and academic, elaborated on James Culliton's concept of the marketing mix.
• James Culliton - he described business executives as mixers of ingredients': the ingredients being different marketing concepts, aspects, and procedures.
• Jerome McCarthy - widely accepted that he founded the marketing mix concept.
• James McCarthy - he offered the marketing mix, in the form of "4P's of Marketing."
• 4P's of Marketing according to James McCarthy: Product, Place, Price, and Promotion
• 7P's of Marketing Mix: Product, Place, Price, Promotion, Physical, People, and Process
• Product - this could refer to a physical product, a service or an experience. Basically, anything that's being sold.
• Place - signifies where you choose to distribute or allow access to your product or service.
• Price - what you set should reflect your customer's perceived value of your product and should correlate with your budget.
• Promotion - the way that you choose to communicate with your audience and promote your offerings will have a direct impact on the success of your brand.
• Physical - it's important for consumers to know that the brand they're purchasing from or interacting with, are legitimate and, well, actually exist in real life.
• People - involves anyone directly, or indirectly, involved in the business side of the enterprise.
• Process - describes a series of actions that are taken in delivering the product or service to the customer.
• Coffee and related beverages, also sells coffee related accessories and equipment.

  Product
• Tazo Tea, Chai Tea, Espresso, Starbucks Latte, Caramel Macchiato, Starbucks Cappuccino, Starbuck Mocha, Starbucks Coffee Frappuccino, blended creams.

  Product
• The Coffee Holding Company, Inc. is located at 3475 Victory Blvd, Staten Island, in Staten Island, New York.

  Place
• Starbucks coffees and teas were available in approximately 39,000 grocery and warehouse club stores, 33,000 of which were in the US and 5,500 in international markets.

  Place
• Starbucks expects to maintain or lower the price of some of its most popular beverages, including certain espresso beverages; and, in most markets, its popular $1.50 tall brewed coffee, and to raise prices of labor-intensive and larger-sized beverages.

  Price
• Starbucks started a community website, My Starbucks Idea, designed to collect suggestions and feedback from customers.

  Promotion and Process
• My Starbucks reward program allows members to earn a free drink after every 15 purchases at participating Starbucks stores.

  Promotion
• Starbucks provides information on its products, business partnerships, and career opportunities on its website.

  Physical
• The famous Starbucks Logo (which is green and features a partially nude siren) has stayed largely unchanged since its origin, However it has been altered to adjust to international sensibilities.

  Physical
• Howard Schultz is Chairman, Chief Executive Officer for Starbucks.

  People
• Olden Lee Interim Vice President.

  People
• Barbara Bass Director, Non-Executive Board.

  People
• Cliff Burrows is President of Starbucks Coffee US.

  People
• Author Rubenfeld, Global Development.

  People
• Troy Alstead is Chief Financial Officer.

  People
• John Culver is President of Global Consumer Product.

  People
• Specialty operations are comprised of retail store licensing operations in more than 40 countries and food service accounts in Canada and the UK.

  Process
• The company's US specialty operations include licensed retail stores, food service accounts and other projects related to Starbucks's main business strategy.

  Process
• 3 levels of Product: Core, Actual, and Augmented
• Core Product - not the tangible physical product, you can't touch it, and this makes the product valuable to you.
• Actual Product - the tangible, physical product where you can get some use of it.
• Augmented Product - the non-physical part of the product.
• Augmented Product - usually consists of lots of added value, for which you may or may not pay a premium.
• Augmented Product - an important way to tailor the core or actual product to the needs of an individual customer.
• 4M's of Business: Man, Machine, Material, and Method
• Man, Machine, Material, and Method - these four critical domains are also applicable to business opportunities since business is in essence tied to manufacturing as well.