8. An introduction to marketing wine Flashcards
What is marketing?
‘The management process which is responsible for identifying, anticipating and satisfying consumer requirements profitably.’ - CIM
Other than the wine itself, what are three perceived marketing benefits of wine to a consumer?
1) Social status.
2) Ownership of something perceived of value.
3) Return on investment capital.
What are two ways that marketing might generate profit?
1) Volume of sales - new or existing customers.
2) Value of sales - convincing customers one product is worth spending more on than another.
What are the five stages of creating and implementing a marketing strategy?
1) Identifying the gap and product/brand to be marketed.
2) Identifying the target market.
3) Setting the objectives of the marketing strategy.
4) Devising the marketing strategy (the ‘marketing mix’).
5) Implementing the marketing strategy.
6) Monitoring the marketing strategy.
What does SWOT stand for?
Strengths
Weaknesses
Opportunities
Threats
Name two legal/regulatory threats/opportunities
1) Increased regulation of trade markets makes trade more difficult (threat) but can improve the relative competitive advantage of an organisation with the skills, resources, patience to navigate regulations (opportunity).
2) Increasing regulation of production limits a producer’s choice (threat) but could be used for marketing to express integrity (opportunity) - GI.
Name four social threats/opportunities
1) Younger generations avoiding the drinks of their parents.
2) Cultural changes towards alcohol.
3) Trends in availability of affordable vineyard labour especially in rural regions that are losing population to towns and cities.
4) Changing cultural attitudes towards global trades, synthetic chemicals, aesthetics of ‘artificial vs natural’, friendships or animosities between nations.
Name three environmental threats/opportunities
1) Climate change impacts how grapes ripen and the resulting styles of wine produced.
2) Pressure for alternative land use (urban growth, other agriculture).
3) Environmental change can affect logistics, waste management, energy use, chemical use.
Name three economic threats/opportunities
1) Weak/strong local currency alters price competitiveness.
2) Foreign exchange instabilities can make it hard to plan (threat) but can provide opportunities for those who are quick to respond.
3) Recession reduces purchasing power (threat) but may drive purchasing towards certain wine.
Name a technological opportunities and consequent threat.
1) New production techniques, types of equipment, analyses techniques can provide opportunity to increase quality and/or decrease costs.
2) As techniques become shared, wines may lose their unique appeal (threat).
What does PESTEL stand for?
Political
Economic
Social
Technological
Environmental
Legistlative
Name two political threats and one opportunity.
1) Prohibition.
2) Taxation
1) Subsidy and promotional support
In the context of wine production, a capability (something an organisation is able to do) could be the ability to (5):
1) Build strong new brands or grow existing ones.
2) Scale production volumes up or down in response to demand.
3) Change products to following rapid changes in demand.
4) Experiment to innovatively develop and launch new products.
5) Lobby local, regional, national or global political organisations to achieve favourable political outcomes.
The three origins of the analysed objective could be:
1) Someone’s intuition that a business opportunity exists.
2) An individual’s personal business dream or aspiration.
3) Something generated by other business tools, such as that analyse unmet market gaps.
What favourable political outcomes might a winery seek when lobbying local, regional, national or global political organisations?
Subsidies, favourable regulations, governmental promotions.
