8. Marketing

Question 1

Define “marketing” as given by ..

Answer 1

CIM (Chartered Institute of Marketing)

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

Question 2

Give examples on how marketing does not only regard the product itself

Answer 2

The experience:
- Confirmation of social status
- Ownership of something valuable
- Return on capital investment

Question 3

What is the ultimate aim of marketing, and how is this achieved

Answer 3

Creating profits:
- Volume of sales (new customers + encourage existing ones)
- Value of sales (convincing that higher price is justified)

Question 4

Define “succesful marketing campaign”

Answer 4

One that achieves an adequate level of profit within a specified timetable

Question 5

Name the stages of the marketing strategy

Answer 5

• Indentify the product/brand
• Indentify the target market
• Understand their wants and needs
• Set the objective
• Use SWOT
• Devise (marketing mix)
• Implement and monitor

Question 6

Define “SWOT”

Answer 6

Strengths, Weaknesses, Opportunities, Threats

Used to provide analytical insight into achievement of any objective

Helpful/Unhelpful
Internal/external

Question 7

Explain how to use SWOT to analyse a marketing objective

Answer 7

• Identify objective
• Identify strengths and weaknesses (internal, can be modified)
• Identify opportunities and threats (external, can not be controlled)
• Create an action plan (or an alternative SWOT analysis if objective is not attainable)

Question 8

Explain what insights can be gained from SWOT analysis

Answer 8

How achievable is the objective and what investments will maximise the chance of succes?

Strategic fit
- What changes can be made (e.g. expertise to make a certain style of wine)
- What threats can be managed (e.g. insurance)

Question 9

Name some possible origins for an objective

Answer 9

• Intuition that a particular business oportunity exists
• Individual’s personal bussines dream
• Other business tools (e.g. value-curve analysis to show unmet gaps)

Question 10

Explain value-curve analysis

Answer 10

An analyst evaluates clusters of consumer demand (e.g. price, convenience, packaging) and determines whether any cluster is under-supplied

Question 11

Give an example of value-curve analysis

Answer 11

Premium red wine is always dry and complex, analysis might confirm under-supply for premium sweet red wine with simple fruit flavours

SWOT can be used to show best way to succes

Question 12

Define a “resource”

Answer 12

A thing that the organisation has access to, that it can exploit as a tool

Question 13

Give examples of resources

Answer 13

• Established reputation
• Reliable supply chain relationships
• Reliable support industries (e.g. logistics, bottling)
• Vineyards in optimal locations
• Optimal wine production facilities
• Financial investment
• Expertise and experience

Question 14

How do we determine strengths and weaknesses

Answer 14

Determine whether resources and capabilities provide competetive advantage (better, faster, cheaper?)

Question 15

Define a “capability”

Answer 15

Something an organisation is able to do

Question 16

Give examples of capabilities

Answer 16

• Build a strong brand
• Respond to changing demand (e.g. change volumes, change product)
• Experiment to develop new products
• Lobby for favourable political outcome (e.g. subsidies, regulations)

Question 17

What are subjects to determine opportunities and threats

Answer 17

PESTEL
- Political
- Economic
- Social
- Technological
- Environmental
- Legal

Question 18

Give examples of political factors, when determining opportunities and threats

Answer 18

+ Subsidies
- Taxes

+ Promotional support
- Prohibition

Question 19

Give examples of economic factors, when determining opportunities and threats

Answer 19

Weak local currency
+ Improves price competitiveness of big volume export
- Threats to prestige in luxury sector export
- Expensive import of equipment

Currency exchange instabilities
+ opportunity for those who can respond quickly
- hard to plan ahead

Recession
+ Lead consumers away from more expensive products
- Reduce purchasing power

Question 20

Give examples of social factors, when determining opportunities and threats

Answer 20

Generational preference e.g. creates new opportunity first, becomes a threat when this generation gets older

Affect production e.g. losing labour in rural areas

Cultural attitude e.g. friendship/animosity between nations

Question 21

Give examples of technological factors, when determining opportunities and threats

Answer 21

+ new techniques/equipment/analysis can increase quality or decrease cost
- When shared globally, uniqueness is difficult to maintain

Question 22

Give examples of environmental factors, when determining opportunities and threats

Answer 22

Climate change
+ Cool limit of production
- Hot limit of production
- Established style with restrictions

Pressure for alternative land use
Logistics
Waste management
Use of energy
Synthetic chemicals

Question 23

Give examples of legal factors, when determining opportunities and threats

Answer 23

Product regulation:

Strict
+ Give an advantage to organisation that hass the skill, resources and patience to navigate regulations
+ Product integrity
- Difficult trade
- Limited choices

Relaxed
+ New possibilities
- Undermine advantage of producers that optimised production