Question

Product offering and targeting (15 marks, 150 words)

Discuss the four targeting strategies. Which targeting strategy does Starbucks use for its Vanilla Latte beverage? Justify your answer. (Check Starbucks website if you are not familiar with this product)

Answer 1

Four targeting strategies are as follows:

1. Undifferentiated marketing:

Under this type of targeting strategy, there is no substantial difference between the characteristics inherited by the consumers.

There is an absence of any form of segmentation, and the company develops a single marketing mix for the market.

2. Differentiated marketing:

Also known as multi-segment targeting, this targeting strategy reveals several target segments for the company and a specific marketing mix are developed by the company to appeal all or some segments of the market.

3. Focus or concentrated targeting:

This targeting strategy is for a particular segment marketing mix while understanding the target market's needs and motives and designing a specialized marketing mix for them by focusing on them only.

4. Customized marketing:

Customized marketing is a market strategy where individual customers' requirements are unique from every customer, and the company decides to design a separate marketing mix for every customer.

Starbucks use focus targeting for its Vanilla latte beverage, since Starbucks focuses exclusively on the target market who want coffee products with vanilla.