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WSET L4 D2 2024 > 11. Marketing Strategy > Flashcards

11. Marketing Strategy Flashcards

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1
Q

What is the first vital part of the marketing strategy

A

Define the objective

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2
Q

Why do we need to define an objective

A
  • Help people understand their role in the process
  • Make it easy to analyse whether the strategy is working
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3
Q

What areas should the objective cover about the marketing strategy

A
  • Type of marketing strategy
  • Aim of strategy
  • Measure of succes
  • Time
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4
Q

What are the types of marketing strategy

A
  • Undifferentiated (appealing to all/many)
  • Niche (appealing to a specific segment)
  • Multiple (appealing to numerous segments OR several brands appealing to specific segments)
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5
Q

Give examples of aims of the marketing strategy

A
  • Launch a new product
  • Communicate improvements to existing product
  • Increase sales
  • Increase market share
  • Improve brand awareness
  • Improve brand identity
  • Attract new customers
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6
Q

Give examples of how succes of marketing strategy is measured

A
  • Profits
  • Value of sales
  • Market share
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7
Q

What is another important part of marketing strategy

A

Set the marketing budget: should be set by reference to expected profits

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8
Q

Give an overview of the chronological order when creating a marketing strategy

A
  • Understand the product/brand
  • Indentify the target market
  • Understand their needs/wants
  • Set the objective
  • Use SWOT
  • Devise the strategy
  • Implement and monitor the strategy
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9
Q

Define “marketing mix”

A

Combination of factors that must work together for the marketing strategy to work

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10
Q

What are the factors of the marketing mix

A
  • Product
  • Price
  • Place
  • Promotion
    (People)
  • Physical Evidence
  • Process
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11
Q

Define “product” as a factor of the marketing mix

A

The object that is being marketed: liquid, packaging and branding

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12
Q

What should the marketing strategy cover about the product

A

Communicate appealing characteristics:
- Presentation (bottle, label, etc)
- Experience (story)
- Difference (higher quality, better value, organic, vegan, etc)

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13
Q

Define “price” as a factor of the marketing mix

A

The amount a consumer pays, including: shelf price, delivery, discounts, time and effort

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14
Q

What marketing strategies do we know to set a price

A
  • Balance between profit and the price consumers are willing to pay
  • Penetration strategy (enter the market with a low price/promotion)
  • Higher price (More pleasure on brain scans in academic study)
  • Psychological importance of price points (9,99 ipv 10)
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15
Q

Define “people” as a factor of the marketing mix

A

Depends on the model:
- Attitude and behaviour of consumers (e.g. when not active on social media, strategy should not include intense social media campaign)
- Relationship between company, staff, partners and customers (e.g. masterclass by winemaker for retailer employees to tell a consistent story)

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16
Q

Define “place” as a factor of the marketing mix

A

Where a product is sold (type of retailer and which market) + distribution channels to get there

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17
Q

What do we need to take into account when talking about the marketing strategy for place

A
  • High- or low-involvement customers
  • Consumer taste per country
  • Legislation
  • Taxes
  • Restrictions (such as monopoly and three-tier)
  • Price-sensitivity
  • Maturity of the market
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18
Q

Where do high-involvement consumers buy there wine, and what do they look for

A
  • Specialist retailers
  • Premium supermarkets
  • Specialist wine bars
  • Casual and fine-dining
  • Experiment
  • Unknown regions/varieties
  • Good quality
  • Limited supply
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19
Q

Where do low-involvement consumers buy their wine, and what do they look for

A
  • Supermarkets
  • Bars and non-destination

Simple wines with certain quality, at low price point

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20
Q

What is the model of wine market maturity by Wine Intelligence

A
  • Mature market
  • Established market
  • Growth market
  • Emerging market
  • New emerging market
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21
Q

What is a mature market, and give examples

A

Potential is reached, volumes are stable or declining

Germany, France, Switzerland, UK

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22
Q

What is an established market, and give examples

A

Strong historical growth is tailing off

Ireland, South Africa, Italy, Hong Kong

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23
Q

What is a growth market, and give examples

A

Wine is a mainstream product and still growing

USA, Canada, Brazil, Poland

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24
Q

What is an emerging market, and give examples

A

Wine is growing and shows potential from low base

China, Russia, Turkey, Taiwan

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25
Q

What is a new emerging market, and give examples

A

Wine is new and unknown, but shows potential

India, Malaysia, Phillipines, Thailand

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26
Q

What are the advantages of more mature markets

A
  • Reliable trade structures
  • Routes to market
  • Established wine culture, so less risk
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27
Q

What are the disadvantages of a more mature market

A
  • Greatest saturation
  • Least growth
28
Q

Define “promotion” as a factor of the marketing mix

A

All methods used to promote a product:

At the point of sale
- Price promotion
- Competitions
- Limited edition
- Tastings
- Staff incentives
- Staff training

Away from the point of sale
- Advertising
- Social media
- Website
- Apps
- Reviews and awards
- Wine tourism
- Public relations
- Sponsorship
- Events and festivals
- Merchandise

29
Q

What are the difficulties to take into consideration about promotion

A
  • Single type of promotion will not appeal to a whole segment
  • Legal constraints such as advertising
30
Q

What is the aim of price promotions

A
  • Increase sales for existing product
  • Gain sales for new product
  • Attract new customers
  • Sell bin ends (old stock/discontinued lines)
31
Q

Give examples of price promotion

A

Reduce price for limited time:
- Specified discount
- Seasonal sales (e.g. Christmas)
- Certain days (e.g. Hospitality on quieter days)
- Certain people (e.g. Students)

Volume discount:
- Buy …, get … for free

Link saves:
- Buy product, get discount on another category (e.g. food and wine pairing)

Free delivery for orders over a certain amount

32
Q

What are the disadvantages of price promotions

A
  • Consumer loyalty is not guaranteed
  • Damage to image due to low price
  • Encourage exessive consumption
  • Producers need to cover costs (only viable for large producers)
33
Q

Give examples of countries that use price promotions

A

UK supermarkets offer price promotions on Champagne, which concerns the latter for damage to their image

34
Q

Give examples of countries that don’t use a certain type of price promotions

A

Sweden and Scotland have banned volume discounts, because they don’t want to encourage excessive alcohol consumption

35
Q

When is a price promotion succesful

A

Sales will be higher than before the promotion, altough they will drop. Also brand awareness

36
Q

What are the advantages of competitions as promotion

A
  • High-value, attractive
  • Collect contact details for promotions
37
Q

Give an example of a competition as a promotion

A

New-Zealand producer who offers a chance to win a two week holiday in NZ to anyone who buys a bottle of his wine

38
Q

What are the advantages of advertising

A
  • Large and varied segment
  • Can be remembered for years
39
Q

What are the disadvantages of advertising

A
  • Expensive to run
  • Advertising agency is expensive
  • Translation should not offend
  • Laws and restrictions
40
Q

Give examples of countries with laws restricting advertisement of alcohol

A

Prohibition
- United Arab Emirates
- Qatar

Strict control
- Loi Evin, France

Self-regulation by the industry
- UK

41
Q

Explain the channels used for advertising

A
  • Tv/cinema: effective but expensive
  • Product placement: less expensive
  • Radio: lack of images, less expensive
  • Press advertising: more story, less expensive. General press, specialist wine publications, advertorials
  • Billboards: memorable image next to road, more text next to stations and bus stops
42
Q

What are the costs involved with digital advertising

A

Fairly cheap:
- Creating the advert
- If advert is on another company’s site

43
Q

What are the advantages of advertising on social media

A
  • Have a dialogue with consumers
  • Reach younger consumers
  • Share non-promotional activity
  • Ordinary consumer reviews
  • Free
44
Q

What are the disadvantages of advertising on social media

A
  • Alienate followers when only promoting
  • Need to choose appropriate channel for target market (facebook/twitter vs instagram/youtube)
  • Negative publicity and reviews
  • Inapropriate material might be posted by consumers
45
Q

What are the advantages of advertising via websites

A
  • Great deal of information
  • Visual
  • Story, production, food and wine pairing, events
  • Online shop
  • Basic info with a link to more technical (suits different types of involvement consumers)
46
Q

What are the disadvantages of advertising via websites

A
  • Must be consistent with brand image
  • Can not have bugs and crashes
  • Consultants and IT experts are costly
  • search engine optimisation
  • legal drinking age, dependent on honesty
47
Q

What are the advantages of advertising via smartphone apps

A
  • Find, read about, comment on wines
  • Consumers and professionals
  • Keep track of own cellar
  • Promote business (e.g. a shop shares stock information, consumers clicks through to buy wine, shops pays commission to app operator)
48
Q

What are some ways to use reviews and awards as advertisement

A
  • Send samples to critics
  • Some critics prefer to buy their own wine (e.g. Robert Parker)
  • Send samples to competitions (e.g. Decanter World Wine Awards)
  • If a wine wins, buy stickers of medals
  • Influence purchase decision, especially less knowledgeable consumers
49
Q

Give examples of succesful wine tourism strategies

A
  • Alsace: cycle route that links up producers
  • Napa Valley Wine Train: fine dining with Napa Valley wines, on a vintage wine, combined with winery visits
50
Q

What are the advantages of wine tourism as a form of promotion

A
  • Engage with public
  • Tasting increases sales
  • Connection leads to regulars
  • Connection leads to recommendation
  • High-involvement enjoy extended tours and explanation
  • Low-involvement enjoy brief tours or just tastings
51
Q

Give examples of wine tourism experiences

A
  • Tasting rooms
  • Vineyard/winery tour
  • Visitor centres
  • Shops (often also for local produce)
  • Café
  • Casual dining
  • Fine dining
  • Accomodation
  • Events
  • Experience packages (e.g. helping with harvest)
52
Q

What are the disadvantages of wine tourism

A
  • Infrastructure can be expensive
  • Staff
53
Q

What is the aim of PR

A

Public Relations: Give the business the most favourable image in the consumers mind

54
Q

What is the difference between advertising and PR

A
  • Advertising: draw attention to product
  • PR: give business a good image
55
Q

Give examples of PR activities

A
  • Representatives (events, tv, radio)
  • Press release
  • Newsletter
  • Social Media
  • Strong social/corporate responsibility policy
  • Celebrity brand ambassador
  • Key opinion leaders (>1k on social media)
56
Q

Give an example of a Celebrity Brand Ambassador

A
  • Tenniser Roger Federer: Moët et Chandon
57
Q

Give examples of sponsorship deals

A
  • Chilean Cono Sur: Tour de France
  • Mouton Cadet: Ryder Cup
  • Champagne Carbon: Formula One podium celebrations
58
Q

What are the different options for sponsorship

A
  • Display logo on billboards/clothing
  • Exclusive rights to be served at the event
  • Television programmes (cheaper than advert, but same rules)
59
Q

Why is sponsorship a controversial subject

A

Because people question the suitability of linking alcohol with sports, which should promote health

60
Q

What are the advantages of events

A

Broader range of people:
- Urban instead of rural
- Food
- Even if not main focus on wine

61
Q

What are the disadvantages of events

A
  • Cost to exhibit
  • Staff
  • Use stock for samples
  • Cost of stand (from table to popup bar)
  • Trying to stand out against others
  • People who drink instead of tasting
62
Q

What are the advantages of free merch as promotion

A
  • Generate sales without reducing price
  • Brand awareness, also for environment
63
Q

Give examples of merch

A
  • Special presentation pack with branded glasses
  • Branded ice buckets
  • Corckscrews
  • Umbrellas
64
Q

Give examples of ways to measure succes of marketing strategy

A
  • Sales figures
  • Profits
  • Hits on a website
  • Feedback
  • Eye-tracking
  • Social networking potential
65
Q

What is the difference between market research and marketing research

A
  • Marketing research: data analysis to understand how consumers react to marketing strategy
  • Market research: data analysis to understand the wants and needs of certain market segements
66
Q

Who are the people that carry out marketing

A
  • In-house marketing team
  • Outsource marketing to PR- or advertising company
  • As part of one persons job
  • Become member of an organisation
67
Q

Give examples of organisations who help promote their members products

A

Industry Association
- Consorzio: Italy
- VDP: Germany

Generic Trade Body
- Wines of Australia
- Wines of South Africa

Informal Trade Grouping
- VIGNO Vignadores de Carignan: Chile

WSET L4 D2 2024 (14 decks)

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