8. Introduction to Marketing Flashcards

1
Q

CIM definition of Marketing:

A

The management process which is responsible for identifying, anticipating and satisfying consumer requirements profitably.

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2
Q

In terms of marketing, what kind of ‘experience’ can a wine offer to the drinker ?

A

‘Experience’ a wine can offer to the drinker :

  • Pleasure of drinking the wine !
  • Confirmation of social status.
  • Ownership of something perceived as valuable.
  • Return on capital investment.
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3
Q

What is the ultimate aim of marketing?

What determines the success of a marketing campaign?

A

Ultimate aim of marketing :

  • To create profits by volume (attracting new customers, customers buying more) and/or value (convincing people to spend more money vs lower priced competitors) of sales.
  • The success is determined by comparing the profits made within set timeline in relation to money/resources spent on campaign.
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4
Q

What are the 5 key steps of the Marketing Process?

A

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.
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5
Q

What is a SWOT table?

What is its purpose?

Which elements are helpful/unhelpful? internal/external?

A

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.

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6
Q

In what ways can a SWOT analysis help an organization ?

A

SWOT analysis help an organization

  • 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 company understand that an objective is not realistically achievable, and that a different one should be pursued.
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7
Q

What is meant by ‘value-curve analysis” ?

What is an example ?

A

Value-curve analysis

  • 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.

Example :

  • 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.
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8
Q

In terms of SWOT, what is a ‘resource’?

Some examples (7)?

PRESS FEVer

A

RESOURCE: A ‘thing’ that an org has access to which can be used as a tool for achieving a goal.

  1. Established REPUTATION in growing markets.
  2. Good SUPPLY Chain relationships.
  3. VINEYARDS that favor a specific style of wine.
  4. PRODUCTION facilities.
  5. Access to SUPPORT Industries, e.g. logistics, bottling, research, etc..
  6. Strong FINANCIAL position.
  7. Internal Expertise/Experience.
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9
Q

In terms of SWOT, what is a ‘capability’?

some examples (4)?

A

CAPABILITY: Something the organization is able to do.

  1. Build new brands or grow existing ones.
  2. Scale production volumes up/down in reaction to changing demand.
  3. Innovative experimentation to develop/launch products.
  4. Lobbying; local/regional/national/global organizations to achieve favorable outcomes, e.g. subsidies, regulations, etc..
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10
Q

What are the categories of factors within the external business environment that must be considered in a SWOT analysis?

PESTEL

A

Factors within the external business environment:

PESTEL

  • POLITICAL
  • ECONOMIC
  • SOCIAL (inc. cultural/demographic)
  • TECHNOLOGICAL
  • ENVIRONMENTAL
  • LEGAL/REGULATORY
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11
Q

POLITICAL factors that affect Opportunities/Threats ?

A

POLITICAL factors that affect Opportunities/Threats :

  • Heavy political involvement with alcohol sales.
  • Taxation, prohibition, taxes to discourage consumption (threat).
  • Financial subsidies to support production of prestigious cultural products (opportunity).
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12
Q

ECONOMIC factors that affect Opportunities/Threats ?

A

ECONOMIC factors that affect Opportunities/Threats :

  • Local currency strength :
    • If weak, improve competitiveness of exports (opp) but make importing equipment more expensive (threat), and vice versa.
    • Exchange rate fluctuations can be hard to plan (threat) but also provide opportunties to fast responders.
  • Economy strength :
    • Recession reduces disposable income (threat) but could also lead consumers from expensive goods to more affordable wine (opportunity).
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13
Q

SOCIAL factors that affect Opportunities/Threats ?

A

SOCIAL factors that affect Opportunities/Threats :

  • Trend of younger drinkers avoiding preferences of parents (threat) but then becoming more infatuated with other beverage categories (opp).
  • Cultural attitudes towards alcohol consumption, including 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 between nations) = threats/opps
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14
Q

TECHNOLOGICAL factors that affect Opportunities/Threats ?

A

TECHNOLOGICAL factors that affect Opportunities/Threats :

  • New production techniques can increase quality and decrease costs = opp.
  • As tech becomes used more globally, may reduce uniqueness of local style and brand = threat.
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15
Q

ENVIRONMENTAL factors that affect Opportunities/Threats ?

A

ENVIRONMENTAL factors that affect Opportunities/Threats :

  • Climate change; ripening of grapes, changing of wine styles
    • Threats to some regions (established regions with restrictive production laws or on the hot end of temperatures)
    • Opps for others (cooler wine regions, those which typically struggle to ripen grapes).
  • Pressure for alternative land use (urban, agro, reforestation) = both threats / opps.
  • Environmental laws can affect logistics, waste mgmt, energy + synthetic chemical use.
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16
Q

LEGAL / REGULATORY factors that affect Opportunities/Threats ?

A

LEGAL / REGULATORY factors that affect Opportunities/Threats :

  • Production / trade more regulated in some regions than others.
  • Regulation of trade (threat) can create difficulties but give advantage to organizations that have skills, resources and patience to navigate (opp).
  • Regulation of production limits choices (threat) but could also be used to promote integrity (opp).
  • Relaxing of regulations creates new possibilities (opps) but could undermine advantages or producers who’ve already conformed to regulations (threat).
17
Q

What questions does a SWOT analysis answer when concerning a business objective ?

A

SWOT analysis answers :

  • How achievable is the objective?
  • What further investment in resources/capabilities are needed?
  • Which external factors help (opportunities) or hinder (threat)?