12 Devising Marketing Strategy - Product, price, people, place Flashcards
Product, price, people, place
Define Product
The product which is being marketed,
Includes:
* Packaging
* Branding
* Value-added features (eg gift wrapping in a wine shop, a winery's wine club)What should the marketing communicate about the product to the target consumers
- The characteristics of the product that will appeal.
* How it will satisfy their needs and wants.
What is the presentation of the product and how should it be designed (with consumers in mind)
Presentation:
- Bottle
- Label
- Any other packaging
Design:
- Appeal to the target consumer (different types of consumers are often attracted to different features on labels)
- Describe the experience that the product will deliver.
What is a ‘saturated’ market and what does this mean.
What should the marketing strategy do to combat this (5)
Saturated:
* Already enough products to satisfy consumers’ needs and there are few gaps in the market.
Means:
* Strong competition between similar products
Strategy:
- Explain clearly how their product is different to that of a competitor i.e:
- higher quality
- better value for money
- organic
- vegetarian/vegan
- Fairtrade, etc
Define Price and what it includes (4)
- The amount a consumer pays for a product
2
a) The price of a product on the shelf
b) Any additional costs - delivery
c) Discounts (supermarket for example)
d) Time and effort cost for consumer to purchase.
What would a pricing strategy bet balanced between in a world without supply and demand factors
The producer’s wish to make a reasonable profit
The price that enough consumers are willing to pay for it.
There are a number of pricing strategies that can be used. Explain a Penetration pricing strategy and it’s effects and potential side effects.
Set entry price of a product low (or enter the market on a price promotion) with the intention of raising it later.
This will:
Undercut the competition and rapidly reach a wider section of the market
Consumers will permanently switch to the new brand because of the lower price.
Potential side effect:
Attempts to then raise the price of the product may not work if the consumer feels that the product now offers less value for money than its competitors.
Psychologically how to consumers respond to price (3)
- Psychological effect - Many people get more pleasure from a wine they think is expensive than from the same wine if they think it is cheap (brain scan study)
- Lower wine knowledge - buying for someone with greater knowledge more likely to buy an expensive bottle (hope to meet recipiants expectations)
- Price points (varies by country) consumers more likely to buy a wine priced at USD 9.95 than USD 10, simply because it is in single figures. Producer may reduce price slightly to hit this.
Define “marketing mix”
A combination of factors that can be controlled by a company to influence consumers to purchase its products
What are the two definitions of “people” in terms of marketing
- Attitudes and behaviours of target consumer (if target consumers not online no point w/ social media campaign)
- Relationship between the company, staff, partners, customers
- Includes employee attitudes and skills,
- Customer service (target consumers and business customers).
(attitudes and behavours considered separately, at initial stage)
If defining people as relationships between staff, company, customers etc, how should this be approached by the producer
- Have enough sufficiently knowledgeable and trained staff to sell their products (final consumers at cellar door, distributors, retailers)
- Image and vision - ensure this is shared by companies the producer works with (distributors and PR agencies).
- Present a consistent message at all stages of the supply chain (may require producer to supply resources see example)
Example: A winemaker or a sales representative of the producer may conduct a complimentary masterclass for the employees of the distributor or retailer to highlight the brand image and story as well as showcase the products.
Place - define (5) types of markets
- Mature market - Appears to have reached its potential with stable or declining volumes. - Germany, France, Switzerland, UK
- Established markets - Strong historical growth which is tailing off. - Australia, Netherlands, Ireland, Japan
- Growth markets - Mainstream product and/or experiencing growth. - USA, Canada, Italy, Poland
- Emerging markets - Experiencing growth and shows potential from a relatively low base. - China, Russia, Brazil, Taiwan
- New emerging markets - Relatively new and unknown beverage, but showing some potential. - Malaysia, Philippines, Vietnam, Thailand
Define “place” in terms of marketing strategy
- Where the product is sold.
A company needs to identify where its target market shops, such as supermarkets, deep discounters, specialist wine shops or online, and focus on those outlets.
Give an example of place being used in marketing strategy for high involvement consumers
High-involvement consumers:
- Buy wine in independent specialist retailers.
- They are more likely to shop at the premium supermarket chains but are being increasingly attracted to the deep discounters.
- They drink at specialist wine bars and dine out at casual and fine dining establishments.
Types of product:
- These consumers are keen to experiment and expand their repertoire - ideal to place wines (of suitable quality) from lesser known regions and/or grape varieties at these outlets.
- Even if there is only a limited supply, that does not matter as such outlets will tend to sell low volumes.
Distribution Channels
* Specialist Intermediaries
Give an example of place being used in marketing strategy for low involvement consumers
Low-involvement consumers:
- Looking for wines with a simple aroma/flavour profile but which meet a certain quality standard.
- Buy wine at the supermarket and eat and drink in general bars and non-destination restaurants.
Type of product:
* Products likely to appeal to the low-involvement consumer should therefore be placed in such outlets
Distributon channel:
- Larger intermediaries
- More likely to be shipped in bulk
