A core marketing strategy analysis looks at segmentation, targeting positioning,

and differentiation. This type of analysis allows the company to aunderstand the typ of
service they want to provide, which product type they are selling and to whom.

Segmentation
Starbucks’ demographic segmentation’s main group is between 25 and 40 years of
age with high incomes, the second target group is18 to 24 year of age and belongs to
richer families. When targeting, starbucks is situated between mass marketing and
segment marketing; they are targeting a broader public; however, there are some
criteria that the customers should have, suchas higher incomes or younger age.

Location Planning for Producing Services

in planning low-contact services, companies have some options. Services can be
located near resource supplies, labour, costumers, or transportation outlets. For
example, the typical Walmart distribution centre is located near the hundreds of
Walmart stores it supplies, not near the companies that supply distribution centre.
High-contact services are more restricted, because they must locate near the
customers who are a part of the system. Accordingly, fast-food restaurants such as
Taco Bell, McDonald’s, and Burger King have begun moving into non-traditional
locations with high traffic-dormitories, hospital cafetarias, museums, and shopping
malls.

Reasons for Success

In addition to the specific findings of the CIBC study, four general factors typically
explain the success of small business owners: 1. Hard work, drive, and dedication.Small
business owners must be committed to succeeding and be willing to put in the time and
effort to make it happen. Long hours and few vacations generally characterize the first
few years of new business ownership. 2. Market demand for the product or service.
Careful analysis of market conditions can help small business owners assess the
probable reception of their products. If the area around a college has only one pizza
parlour, a new pizzeria is more likely to succeed than if there are already 10 in
operation. 3. Managerial competence. Successful small business people have a solid
understanding of how to manage a business. They may acquire competence through
training (taking courses), experience, or by using the expertise of others. Few, however,
succeed alone or straight out of university or college. Most spend time in successful
companies or partner with others to bring expertise to a new business. 4. Luck. Luck
also plays a role in the success of some firms. For example, after one entrepreneur
started an environmental clean-up firm, he struggled to keep his business afloat. Then
the government committed a large sum of money for toxic waste cleanup. He was able
to get several large contracts and his business is now thriving.