A market is a place or environment that allows buyers and sellers to interact and access each other. Both sellers and buyers depend on each other since without the seller the buyer cannot get goods and services when demanded while the seller also cannot survive in the business without the buyer. The seller must identify what the buyer wants, ways to satisfy the customer and how to maintain and keep the customer through marketing strategies. Marketing enables a business to create good relationship with its customers. This is a good technique to win customers hence being ahead of the competitors in the same industry. (Layton, 2007)
For a business to survive in the market economy it must produce what the consumers are willing and able to buy. It is important for a firm to determine and ascertain consumer demand since it is the main factor in establishing the going concern of the firm. Firms in the current markets focus all their activities and production on the consumers needs. Firms’ use various ways of doing this one of them being driving marketing strategies using consumer wants. Consumer researches are conducted and those strategies that suit the result of the research are adopted. There is no need of producing goods and services that will not be needed by the consumers available in the market. A firm also in marketing must ensure that the products produced satisfy the consumers in terms of quality. The prices should be favorable and affordable to the consumers. The location of the business or the supplier of the products should be accessible to the consumers. The mode of marketing should provide all the potential customers with the important information regarding the goods and services produced. (Layton, 2007)
The SWOT of an organization is also a key factor that determines the marketing strategies of a firm. Strengths and opportunities are used to support the marketing strategies. Starbucks Coffee Company which is the leading company in roasting coffee in the world uses its SWOT analysis in planning marketing strategies. The company strength includes the high revenues and earnings acquired every year and one of the generators of such revenues is the nine thousand cafes owned by the company in forty countries worldwide. The company has a good reputation in its employment sector and was ranked top one hundred in 2005 as one of the best employers. The company has also its opportunities which include the ability to expand its business since there are new markets emerging from different countries like India. The company has also an opportunity to co-brand with other manufactures of food and drinks.
The company plans its marketing strategies in way that will enable it cover up for its weaknesses and threats. Some of the company’s weaknesses include the concentration of its markets in one region that is the United States instead of spreading their risks to other regions. The company has also majored in the coffee retail alone it should diversify and engage in production of other products. The major threat of Starbucks is the uncertainty of having coffee as the favorite beverage in the long run because other beverages may come up to replace it. The company uses it mission “To inspire and nature the human spirit one person, one cup, and one neighborhood at a time.” to support its marketing strategies. (Layton, 2007)
Macroeconomic and microeconomic factors must also be involved in marketing. Macroeconomic factor are those from the external environment of the company such as competitors, inflation and changes in the interest rates. Microeconomic factors on the other side result from the internal environment of the firm and they include prices of he products which affect demand and supply. These factors affect the market of different products and services and therefore must be considered when preparing marketing strategies. Those firms that operate in the global market should consider all factors both internal and external when planning on the marketing strategies. (Layton, 2007)