Price and promoting Starbucks Essay Example | Topics and Well Written Essays - 500 words

Price and promoting Starbucks - Essay Example e growth in a market with price fluctuations; and upholds Starbucks commitment to purchase high-quality product in a socially responsible manner† (9). Starbucks likewise implements differentiated pricing strategies depending on diverse target markets. Smith disclosed that Starbucks pricing strategy at the lower end of the market as the â€Å"mark-to-market pricing strategy. Basic coffee at Starbucks may be somewhat more expensive than the watered down swill they call coffee at a low end diner, but it is priced competitively within its peer category† (Smith par. 5). On the other hand, at the higher end of the target market, Starbucks implements that â€Å"differentiated-value pricing strategy. In this category, the competition is weaker and Starbucks does have stronger pricing power. They can price in proportion to the value customers place on having a high quality and highly customized product† (Smith par. 7). promotion (Tewell, Odom and Snider 18). The Starbucks Back to Basics article written by NewMyer, et al. has emphasized the organization as implementing a pull promotional strategy; meaning, they promote directly to the customers (NewMyer, Fox and Kelsay 3). Carmichael emphasized that since bulk of their customers return to get the next cup of coffee or purchase some food items at Starbucks, â€Å"company executives feel that improving the in-store customer experience is a much more effective means of advertising than via Starbucks commercials. Starbucks encourages the promotion of their stores as a ‘third home’, providing comfortable chairs for customers to relax and spend time in, playing music and providing outlets for people to plug their laptops into† (Carmichael par. 4). However, Starbucks has also acknowledged that using social media as a means to promote various products and activities. As reported by Noff, â€Å"overall Starbucks’s social media strategy integrates many different elements into the mix and combined together, these elements