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WSET Diploma D2 > 12. Devising the Marketing Strategy > Flashcards

12. Devising the Marketing Strategy Flashcards

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1
Q

What is the Marketing Mix? What are the 5Ps?

A

The elements of the strategy; a combination of factors that must work together for the strategy to work.

Product, Price, People, Place, Promotion

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2
Q

What is the Product aspect of the marketing mix? For wine?

A

The object, service or system being marketed; with wine it’s the liquid, packaging and branding.

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3
Q

What should be considered with Product presentation in the marketing mix?

A

The bottle, label and packaging should be designed to appeal to the target market.

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4
Q

What is the Price aspect in the marketing mix?

A

The retail price, including delivery and discounts, and cost in terms of time and effort that the consumer is willing to go to to purchase. (Impacted by factors outlined in Ch 1 & 2.)

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5
Q

What are 3 pricing strategies that might be employed?

A
  1. Penetration Strategy: new product price set low to undercut competition and rapidly reach wider audience (can backfire)
  2. People may gain more pleasure from a wine they think is expensive.
  3. Psychological considerations of certain price points, ie. 9.99 vs 10.00
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6
Q

What is the People aspect of the marketing mix?

A

In some models, the attitudes and behaviours of target consumers.

In others, the relationship between the company and its staff, partners, and customers; includes employee attitudes/skills, and customer service.

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7
Q

What are 3 People strategies that should be employed?

A
  1. Staff should be knowledgeable and well trained
  2. Partner companies should share brand image/vision for consistent messaging
  3. Invest in people resources like sales reps and brand ambassadors
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8
Q

What is the Place aspect of the Marketing Mix?

A

Where the product is sold.

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9
Q

What are 6 considerations for the Place aspect of the marketing mix?

A
  1. Where the target market shops
  2. What distribution channels are most effective
  3. Regional consumer tastes
  4. Regional legislation, taxation, duty and distribution policies
  5. Regional price sensitivty
  6. Maturity of market
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10
Q

What are the 5 levels of Market Maturity.

A
  1. Mature
  2. Established
  3. Growth
  4. Emerging
  5. New Emerging
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11
Q

What is a Mature market, plus examples?

A

Wine has reached its potential with stable or declining sales volumes.

UK, Germany, France, Switzerland

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12
Q

What is a Established market, plus examples?

A

Strong recent historical growth that is tailing off.

Ireland, South Africa, Italy, Hong Kong

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13
Q

What is a Growth market, plus examples?

A

Wine is mainstream and/or experiencing growth

USA, Canada, Brazil, Poland

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14
Q

What is a Emerging market, plus examples?

A

Experiencing growth and shows potential, from a fairly low base

China, Russia, Turkey, Taiwan

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15
Q

What is a New Emerging market, plus examples?

A

Wine is still fairly new and unknown, but showing potential

India, Malaysia, Philippines, Thailand

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16
Q

What is the advantage and disadvantage of a more Mature market?

A

Reliable trade structure, routes to market, and established wine culture.

But more saturated/low growth.

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17
Q

What is the advantage and disadvantage of a more Emerging market?

A

Most growth potential.

Higher risk and often don’t have structures in place for easy route-to-market.

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18
Q

What is the Promotion aspect of the Marketing Mix?

A

All methods used to promote product.

Multiple activities should be used to reach a segment, and regional legal constraints of alc. ads must be considered.

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19
Q

What are 6 Promotion activities that occur at the Point of Sale?

A
  1. Price promotions
  2. Competitions
  3. Limited edition packaging/presentation
  4. Consumer tastings
  5. Staff incentives
  6. Staff training
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20
Q

What are 4 possible goals of a price promotion?

A

To increase sales of existing products; gain volume for new products; attract new customers; or shift old or discontinued products (aka bin ends)

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21
Q

What are 5 types of Price Reductions?

A
  1. Specified amount or % discount on all or select items
  2. Seasonal sales
  3. Discounts on specified days
  4. Discounts for certain groups (ie. Students)
  5. Link Saves: discount on a different category product with purchase of wine
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22
Q

What are 5 types of Multi-Buy/Volume Promotions?

A
  1. Buy 1 get 1 free
  2. Buy 1 get 1 half-price
  3. 3 for price of 2
  4. Save specified amount or % when buying a min amt of $ or units
  5. Buy 2 glasses and get the rest of the bottle free
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23
Q

What are the main 2 downsides of Price Promotion? How can this be mitigated?

A
  1. Large retailers expect producers to cover the reduction.
  2. Devaluation of product
    Link saves, volume promotions (not legal everywhere), and delivery discounts are less damaging
24
Q

How is success measured with a Price Promotion?

A

Measuring sales AFTER the promotion is over. If they increase, loyalty has grown.

25
Q

What is a Competition in promotions? What is a benefit, and an example?

A

Chance at a high-value proposition with purchase. Therefore may be more effective than merchandise

Allows producer to collect personal data.

Example: Buy a bottle and entered to win a trip to NZ

26
Q

What are the upsides and downsides of Limited Edition Packaging/Presentation?

A
  • Can contribute to sense of “luxury” (ie. elaborate cases) or improve brand image (ie. association with major event)
  • Can introduce new customers to the brand
  • Unlikely to result in major LT affect on sales
27
Q

What is a consumer tasting?

A

In-store tastings or restaurant wine tasting dinners covered by the retailer or producer, potentially with a company rep or winemaker. Might be ticketed.

28
Q

What is the benefit of consumer tastings?

A

Helps remove uncertainty around buying, and is shown to increase sales and repeat purchases among consumers (incl low involvement).

29
Q

What type of producers are consumer tastings not suited to?

A
  1. High-volume, inexpensive brands as where they are sold are not suitable in terms of level of staff knowledge and setting (ie, supermarkets)
  2. Super premium wines due to value of liquid
30
Q

What is an example of a Staff Incentive and when is it most effective? When is it not allowed?

A
  • Most effective where handselling is common. Ie., trip to Champagne for most producer bottles sold. (Illegal in China = bribery)
31
Q

What is the benefit of a Staff Training and when is it most effective?

A

Encourages more confidence/enthusiasm and storytelling with selling of the product.

Most effective in handselling environments

32
Q

List 11 Promotion activities away from the POS.

A
  1. Traditional advertising (billboards, print ads, tv/cinema, radio)
  2. Digital Advertising
  3. Social Media
  4. Website
  5. Apps
  6. Reviews & Awards
  7. Wine Tourism
  8. PR
  9. Sponsorship
  10. Events & Festivals
  11. Free Merchandise
33
Q

What are the 2 advantages of traditional advertising?

A
  • Can reach a large and varied consumer group

- Can be powerful and memorable

34
Q

What are the 2 disadvantages of traditional advertising?

A
  • Expensive to produce and buy ad space

- Most countries have laws restricting ads of alcohol

35
Q

What are the 4 methods of traditional advertising?

A

TV or Cinema
Radio
Press Ads (Print)
Billboard

36
Q

What are 3 considerations of TV or Cinema advertising?

A
  • Can be the most powerful and reach the largest number of people, but is also the most expensive
  • Primetime is most expensive but product placements can cost the least
  • Suited to large companies with big budgets
37
Q

What are 2 considerations of radio advertising?

A
  • Less expensive than TV; more suited to moderate budgets

- Not as effective or memorable as TV as it lacks imagery

38
Q

What might press ads consist of?

A
  • Ads in newspapers or magazines
  • Images only, or with text
  • Paying a writer for a sponsored article (advertorial)
39
Q

What are 2 considerations of press ads?

A
  • Storytelling can be more effective than a short TV spot, but far less expensive
  • Large companies may advertise in general press (wide audience), while most will in specialist food/wine publications (high involvement consumers)
40
Q

What are 2 considerations of billboards?

A
  • On roads, they must be striking and memorable as they’re viewed briefly
  • At railway and bus stations, ads can be more detailed as they’re viewed longer
41
Q

What are the 2 benefits of digital advertising?

A
  • Reach a large global audience

- Inexpensive

42
Q

What are the benefits of social media?

A
  • Allows engagement with consumers rather than “talking at,” building relationship
  • Targets younger consumers
  • Has enabled public experiences and reviews (Peer Reviews), often trusted over critic reviews among millenials
43
Q

What are 3 considerations with social media?

A
  • Channel should be selected according to target market (youtube & IG for younger)
  • Promotional and non-promotional activity is equally important
  • Enables peer reviews, which can result in positive or negative publicity
44
Q

What are the 2 benefits and 1 downside of websites in promotion?

A
  • Communicates to a large number of people, globally
  • Provides an array of info and functions appealing to both low and high involvement consumers
  • Expensive especially if custom
45
Q

What are 4 key features of a successful website (for marketing)?

A
  • Attractive, fast, and easy to navigate
  • Consistent with branding
  • Minors may access. Filter can help
  • SEO is critical to appearing in search
46
Q

Who can a smartphone app target?

A

High involvement consumers who want to hear from another enthusiast or professional;

Or those who want to manage their cellars

47
Q

How can a company promote on an app?

A

Engage with the app to advertise

Or a retailer may link a product to their webstore

48
Q

Who is most attracted by reviews and awards?

A

Can significantly boost sales, especially among low-involvement consumers and wine buyers

49
Q

What is the benefit and downside of Wine Tourism in promotion?

A

Allows customers to taste, builds loyalty and encourages referrals

Infrastructure is expensive; a lot of staff and resources are needed

50
Q

What is the difference between high and low involvement consumers in Wine Tourism?

A

Low involvement visit a winery because they’re already in the area. They just want a tasting or quick tour. Will buy and provide referrals.

High involvement travel to a region for the wine tasting. Keen on tours and speaking with makers.

51
Q

What is the aim of PR in Promotion?

A

To give the business the most favourable image possible to the consumer.

52
Q

What are 7 PR activities?

A
  1. Public event, TV or radio appearances by company reps
  2. Press releases
  3. Newsletters
  4. Social Media
  5. Social/Corporate responsibility policy
  6. Brand ambassadors
  7. Key opinion leaders (aka influencers)
53
Q

What are the different forms of Sponsorship and some examples?

A
  • Sponsoring an event, with display of branding on billboards or clothing; maybe exclusive right to be served at the event
  • Sponsoring a TV program, with mention at start using still image or video (Cheaper than a tv ad).

Cono Sur - Tour de France; Mouton Cadet - Ryder Cup

54
Q

What are advantages of Events & Festivals in Promotion?

A
  • Wine focused events attract high involvement consumers

- A wider audience may be present if the focus is on wine and/or music or food, etc. These can attract new customers

55
Q

What are some downsides of Events & Festivals?

A
  • Cost of attendance, staff, stock, display
  • Being among competition and having to standout in some way
  • Risk of intoxicated guests
  • Non-wine focused events may not result in increased sales. (Can be offset by charging)
56
Q

What are some pros of Free Merchandise?

A
  • Encourages sales without reducing price
  • Promotion for customers
  • Also acts as a billboard to others

WSET Diploma D2 (15 decks)

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