9 Flashcards
Marketing mix factors
The elements of the strategy are often referred to as ______
Product Price
People Place
Promotion
Once need/ wants/ objective has been identified, then company can devise the marketing strategy to achieve objectives.
Marketing strategy – Product -defined
What is being marketed?
Includes all the packaging
Branding
Any value added features?
Marketing strategy – Product
-should communicate appealing characteristics
-how will this satisfy their needs / wants
- label appeal- who consumer attracted to what kind of label
- marketing should describe the experience that product will deliver
- story of wine in branding
Marketing strategy- Product
Describe Saturated?
Already enough products to satisfy consumers’ needs
– few gaps between product types/ strong competition
- companies need to clearly explain differential than competitor
- higher quality/ better value, organic, vegetarian/ Fairtrade
Marketing strategy – Price
Cost includes product on shelf & includes delivery, discounts, consumer’s time & willingness to go and buy product
-ideally ____ is a balance reasonable profit for producer and a sufficient # of consumers willing to purchase
____ is affected by supply / demand & costs in supply chain
Marketing strategy – Price
-penetration strategies
A new product comes to market and price is set relatively low 0r enter the market on a price promotion
T0 undercut the competition
To reach a wider section of people
Expectation is that consumers will permanently switch to the new brand because of the lower price
-subsequent attempts to raise the price may or may not be successful
Marketing strategy – Price
-psychology of a price point
- people get more pleasure from wine they think is expensive
- consumers w/ lower wine knowledge who are buying wine for someone w/ greater knowledge may likely buy a more expensive bottle to meet the recipient’s expectations
Consumers may be more likely to buy wine priced at 9.95 than 10
Producers may reduce their price of their wine slightly to have retailer hit that desired price point.
Marketing strategy – People
1 The attitude and behavior of the target consumer
Or -depending on model
2 Refers to the relationship between the company, staff, partners, customers
-includes attitudes, skills, customer service
Marketing strategy – People
Wine producers should ensure they have sufficient trained staff to sell
- at cellar door or consumer events
- to distributors/ retailers
- make it easier to present a consistent message -producer’s vision
- may have winemaker or sales rep to highlight brand image & tell story
Marketing strategy – Place
-relates to where the product is sold: Target market shops:
Do G S S C H O W
Deep discounters Convinence
Global Travel Hybrids
Suppermarkets Online
Specialist shops Wine Inv Co
Marketing strategy – Place
High involvement buyers
- buy wine at independent specialist retailers
- premium supermarket chains but are increasingly attracted to deep discounters
- drink at specialist wine bars & fine dining establishment
- buyer is more experimental and would buy lessor know varieties
- distribution channels- often sold through specialist intermediaries
Marketing strategy – Place
-low involvement buyers
- supermarket, general bars, outlets
- simple aroma/ flavors profile that meet a certain quality standard
- tend to buy wine at supermarket and eat at general bars & non-destination restaurants
- products should be placed in outlets
- distribution channels- larger intermediaries, bulk shipped
Marketing strategy – Place
-consideration on country
Tastes vary from ____ to _____
May be necessary to produce wine with different aroma/ flavors, level of sweetness, alcohol
Legislation, taxation, and duty, or restriction on distribution may make some ____ more attractive than others
-producer may decide not to sell in a so-called price sensitive market
Maturity of market -focus on more or less mature market
Marketing strategy – Place
Model of wine market maturity by Wine Intelligence
-Markets can move up and down categorization M E G E N
Mature Market
Established Markets
Growth Markets
Emerging Markets
New Emerging Markets
Marketing strategy – Place
Mature market
Market where wine appears to have reached its potential with stable or decline volumes
-mature & established show greatest saturation and least growth but have the advantage of reliable trade & routes, & established culture
Germany, France, Switzerland, UK
