Market Segmentation and the Disintegration of an Entire Market Assignment - 7

Market Segmentation and the Disintegration of an Entire Market - Assignment Example Demographic Variables concern the characteristics of customers, for instance, marital status, gender, age, occupation, income, education, and religion among others. Market segmentation can also be done on geographical variables deals with the regional placement of customers for instance countries, states, and urban centers while behavioral variables concerns brand loyalty, product usage rate, and willingness to purchase (Cahill, 7). Initially, Starbucks targeted the entire coffee market and but tried to differentiate its coffee by developing fitting personal service and thus the Starbucks Experience. It also applied Geographical Segmentation principle by distributing it's over 17,000 outlets in different countries. The principle of market targeting requires a business to recognize the diversity of its customers and thus should offer them diverse services or goods that meet their varied tastes. The firm should be able to move at the same pace as the demands of consumers changes. The Starbucks experience first changed due to its attempts to meet the dynamic needs of the ever-increasing number of customers. It had to reconstitute its operations, as well as open new coffee outlets in potential market segments. After realizing that the business was losing most of its customers to the competitors, Schult came up with new policies for strategizing the future of the organization. It was no longer appealing to the traditional customer, thus lost its specialty, and finally became different. Starbucks now aims at meeting the unique and ever-changing needs of its customers. Stiff competition from other coffee houses forced the company to change the brand of their products in order to differentiate them from those offered by the competitors. The firm is now more focused on the benefits that customers will generate from consuming its coffee, which includes personal satisfaction, quality services beyond the  customers’ expectations, timely delivery of services amongst others.