8. Introduction to Marketing Flashcards
CIM definition of Marketing:
The management process which is responsible for identifying, anticipating and satisfying consumer requirements profitably.
In terms of marketing, what kind of ‘experience’ can a wine offer other the drinker (3)?
- confirmation of social status.
- ownership of something perceived as valuable.
- return on investment capital.
What is the ultimate aim of marketing?
What determines the success of a marketing campaign?
to create profits by volume (attracting new customers, customers buying more) and/or value (convincing ppl to spend more money vs lower priced competitors) of sales.
SUCCESS = achievement of adequate profits within set timeline in relation to money/resources spent on campaign.
What are the 5 key steps of the Marketing Process?
- ID the product/brand to market.
- ID the target marget.
- Set objectives of strategy.
- Devise the strategy (‘marketing mix’).
- Implement and monitor the marketing strategy.
What is a SWOT table?
What is its purpose?
Which elements are helpful/unhelpful? internal/external?
Strengths / Weaknesses / Opportunities / Threats.
Provides analytical insights into the achievement of any business objective.
HELPFUL: Strengths/Opportunities.
UNHELPFUL: Weaknesses/Threats.
INTERNAL: Strengths/Weaknesses.
EXTERNAL: Opportunities/Threats.
In what ways can a SWOT analysis help an organization (4)?
- determining the ‘strategic fit’, or the extent to which various factors favor the company in acheiving the objective.
- determining changes that could be made in order to achieve the goal, e.g. investment in resources (vineyards, equipment) or capabilities (winemaking staff, packaging, gov’t lobbying).
- management of threats; avoiding impacts of risk, lessening probability or impact, transferring risk or accept and budget for risk’s impact.
- may also help the co. understand that an objective is not realistically achievable, and that a different one should be pursued.
What is meant by ‘value-curve analysis” (2)?
What is an example (3)?
An analysis that specifically seeks out unmet gaps in the market.
Various factors (price, convenience, prestige, etc…) are considered in clusters, vs seperately, to see if there is a cluster that is under-supplied/completely ignored.
e.g. it is assumed that the demand for premium red wines is specifically for those that are dry/complex.
someone may conjecture that there is a demand for premium reds that are off-dry/simple.
value-curve analysis will confirm this or not, leading to possible business plan.
In terms of SWOT, what is a ‘resource’?
Some eg.s (7)?
PRESS FEVer
RESOURCE: A ‘thing’ that an org has access to which can be used as a tool for achieving a goal.
- Established REPUTATION in growing markets.
- Good SUPPLY Chain relationships.
- VINEYARDS that favor a specific style of wine.
- PRODUCTION facilities.
- Access to SUPPORT Industries, e.g. logistics, bottling, research, etc..
- Strong FINANCIAL position.
- Internal Expertise/Experience.
In terms of SWOT, what is a ‘capability’?
some e.gs (4)?
CAPABILITY: Something the orginization if able to do.
- Build new brands or grow existing ones.
- Scale production vols up/down in reaction to changing demand.
- Innovative experimentation to develop/launch products.
- Lobbying; local/regional/national/global orgs to achieve favorable outcomes, e.g. subsidies, regulations, etc..
What are the categories of factors within the external business environment that must be considered in a SWOT analysis?
PESTEL
POLITICAL
ECONOMIC
SOCIAL (inc. cultural/demographic)
TECHNOLOGICAL
ENVIRONMENTAL
LEGAL/REGULATORY
POLITICAL factors that affect Opportunities/Threats (3)?
- heavy political involvement w/alcohol sales.
- taxation, prohibition, taxes to discourage consumption (threat).
- financial subsidies to support production of prestigious cultural products (opportunity).
ECONOMIC factors that affect Opportunities/Threats (4)?
- weak local $ can improve competitiveness of exports in foreign markets = opportunity for big vol brand, threat for niche, luxury sector.
- weak $ can make importing equipment more $$$
- Exchange rate fluctuations can be hard to plan (threat) but also provide opportunties to fast responders.
- Nat’l/Global recession reduces disposable income (threat) but could also lead consumers from expensive goods to more affordable wine (opportunity).
SOCIAL factors that affect Opportunities/Threats (4)?
- trend of younger drinkers avoiding preferences of parents (threat) but then becoming more infatuated with other bev categories (opp).
- cultural attitudes towards alcohol consumption, inc. views towards specific categories (wine, beer, etc…)
- factors that affect production, e.g. younger gen moving away from rural areas to more urban, cities etc…
- changing cultural attitudes (e.g. towards global trade, synthetic chem use, animosity btw/nations) = threats/opps
TECHNOLOGICAL factors that affect Opportunities/Threats (2)?
- new prod. techniques, e.g. equipment, analyses can increase quality and decrease costs = opp.
- as tech becomes used more globally, may reduce uniqueness of local style and brand = threat.
ENVIRONMENTAL factors that affect Opportunities/Threats (3)?
- climate change; ripening of grapes, changing of wine styles = threats to some regions (estab. regions w/restrictive prod. laws or on the hot end of temps) opps for others (cooler wine regions, those which typically struggle to ripen grapes).
- pressure for alt land use (urban, agro, reforestation) = both threats / opps.
- enviro laws can affect logistics, waste mgmt, energy + synthetic chem use.
