D2C12 Devising Marketing Strategy Flashcards

1
Q

What is the marketing mix

A

Elements of the marketing strategy, a combination of factors that must work together for the strategy to work
5Ps: product, price, people, place, promotions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the product in the context of marketing mix

A

The product being marketed, including all packaging and branding and any value-added features, e.g., gift wrapping in a wine shop and a winery’s wine club

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What should marketing communicate with regard to the product

A

Characteristics that will appeal to target consumers and how it will satisfy their needs and wants
Presentation appeal to consumer
Experience delivered

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What does saturated market mean

A

There are already enough products to satisfy consumers’ needs and there are few gaps in the market
Strong competition between relatively similar products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What should companies try to explain with regard to the product in a saturated market

A

How their product is different to that of competitor, e.g., better quality, better value for money, organic, Fairtrade etc

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is price in the context of marketing mix

A

The amount which a consumer pays for a product
Includes price of the product on the shelf, and any additional costs such as delivery and discounts
Also includes cost in time and effort which the consumer is willing to go to in order to buy the product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

List some pricing strategies

A

Penetration strategy: Low price for new product - undercut competition and rapidly reach a wider section of the market, expecting consumer to permanently to switch to new brand. May be difficult to raise price later
High price: linked to more pleasure. Consumer with low wine knowledge buying for someone with more knowledge are likely to buy more expensive bottle
Certain price points have psychological importance: 9. Producer may reduce price slightly so retailers can hit desired price point

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What does people mean in the context of marketing mix

A

Attitudes and behaviors of target consumers;
Relationship between company, staff, partners, customers, and includes aspects such a s employee attitudes and skill, and customer service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Key features of people

A

Ensure to have sufficiently knowledgeable and trained staff to sell
Any companies, such as distributors and PR, share producer’s image and vision
Present consistent message at all stages of supply chain

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is place in the context of marketing mix

A

Where the product is sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

List elements to consider regarding place in the marketing mix

A

Where target market shop, supermarkets? Specialist wine shops?
Identify most effective distribution channels: bulk? Specialist intermediaries?
Consumer tastes change between countries: produce wines with different aroma/flavor, sweetness and alcohol
Legislation, taxation and duty or restriction on distribution make some markets less attractive
Market maturity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Briefly compare mature and emerging markets

A

Mature and established markets show the greatest amount of saturation and least growth; reliable trade structures and routes to market; established wine culture
Emerging and new emerging markets hold potential for most growth; carry most risk; often do not have the structures in place for an easy route-to-market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

List major types of market, describe and give examples according to WI’s market maturity

A

Mature market: markets where wine appears to have reached its potential with stable or declining volumes. E.g., Germany, France, Switzerland, UK
Established market: markets with strong historical growth which is tailing off. E.g., Australia, Netherlands, Ireland, Japan
Growth markets: markets where wine is a mainstream product and experiencing growth. E.g., USA, Canada, Italy, Poland
Emerging markets: markets where wine is experiencing growth and shows potential from a relatively low base. E.g., China, Russia, Brazil
New emerging markets: Markets where wine is still a relatively new and unknown beverage, but showing some potential. E.g., Malaysia, Philippines, Vietnam, Thailand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is promotion in the context of marketing mix

A

All methods used to promote a particular product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Two categories of promotional activities

A

Those take place at point of sale

Those happen elsewhere

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

List promotions at POS

A
Price promotion
Free merchandise
Limited edition packaging/presentation
Competitions
Consumer tastings
Staff training and incentives
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

The aim of price promotions

A

Increase sales of existing products, gain volume sales for new products or attract new customers
Shift old stock or discontinued lines

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What are bin ends

A

Shift old stock or discontinued lines

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

List major types of price promotions

A

Effectively reduce the price of a product, usually for a limited period
Multi-buy or volume discount
Link saves
Discount on delivery cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Examples of price reduction

A

Specified amount or percentage discount on all or selected items
Seasonal sales
Discounts on certain days
Discounts for certain groups of people

21
Q

Give examples of multi-buy or volume discount

A

BOGOF
Buy one get one half price
Buy three for the price of two
Save a specified amount when spending over a certain amount, buying a certain number of bottles or more
Buy two glasses and get the rest of the bottle free

22
Q

How to fudge the success of price promotion

A

If price reduction has worked, although sales will drop once it has increased again, they will still be higher than they were before the promotional period

23
Q

Risk of price reduction

A

Promotion does not build consumer loyalty to the product or even the retailer, when price returns to normal
Consumers view promotion simply as ways of buying products cheaply and switch to the next similar product to be on promotion
Damage image of product in the mind of consumer (direct reduction, not multi-buy)
Multi-buy and volume discounts encourage excessive alcohol consumption

24
Q

What is link saves

A

Off consumers who buy one product a reduced price on another product from a different category

25
Q

Adv and disadvantages of price promotion for producers

A

Highly beneficial: increase sales, brand awareness
Dis: big retailers expect producers to meet the cost of promotions including loss in sales revenue, resulting that they may only be financially viable for large producers

26
Q

Adv and disadvantages of free merchandise for producers

A

Adv: generate sales without the need to reduce price of product
Dis: available to everyone, rarely seen as anything valuable by consumers, unlikely to create many additional sales

27
Q

Adv and disadvantages of limited edition packaging/presentation

A

Contribute to brand image: exclusive, elaborately designed presentation cases for particular wines; packaging linked to sponsorship of major events promote brand image if regular
Dis: most seen by consumers as little more than a bit of fun; may be introduced to the brand in this way and buy again, but does not tend to increase sales in the longer term

28
Q

Advantages of competitions to producers

A

Encourage to buy a product because it is a more attractive, higher-value proposition as it gives the chance to win something exclusive; collect consumers’ contact details, which are used for further promotion

29
Q

Adv and disadvantages of consumer tastings

A

Adv: studies show that offering tastings increases sales; consumers,especially low-involvement, nervous about buying when they do not know if they will like it. Many will buy now and future, those who don’t may buy something else
Dis: cost of bottles which could have been sold, sometimes provided by retailer, sometimes by distributor and producers

30
Q

Benefit and disadvantages of using staff as promotional tool

A

Education help promotes the product with more confidence and enthusiasm, allow them to tell story of wine
Incentives may not be illegal in certain markets (China)
Not suitable for large retail outlets

31
Q

In what kind of market is using staff as promotional tool

A

Where there is personal contact between sales staff and consumer, such as specialist wine shops, bars, restaurants
Not appropriate for larger retail outlets such as supermarkets

32
Q

List promotions away from point of sale

A
Advertising
Sponsorship
Website
Social media
Smartphone apps
Wine tourism
Events and festivals
Reviews and awards
Public relations
33
Q

Major benefits and disadvantages of advertising

A

Benefit: well-designed advertising campaign can be very powerful tool for promoting a product to a potentially large and varied group of consumers. Can remain in minds for long time after withdrawn
Dis: can be very expensive, esp on TV, cinemas or national press; need advertising agency which can be very costly
Many countries have laws restricting advertising of alcoholic beverages

34
Q

Major channels of advertising campaign. Compare

A

TV or cinema: most powerful, reach largest number of people; very expensive, only for large companies
Radio: slightly less effective than TV; less expensive; lack of images
Press: striking image to promote brand; can give more detailed story. Important to put in right place to reach the target consumer. “Advertorials”
Online: easy, in the form of company website, advert on another website or YouTube; lower cost
Billboards: most people do not stare for long - striking effect is important; railway stations and bus stops can contain a more detailed message - people spend longer

35
Q

Forms of sponsorship

A

Display company logo on billboards or participants’ clothing
Exclusive rights to be served in bars and hospitality venues at event
TV program sponsorship

36
Q

Advantages of websites as promotion

A

Give great deal of information, enhanced through use of photographs and videos
Website can tell story, give details, offer paring suggestions, incorporate online shops, provide details of upcoming events
Provide different levels of information to satisfy different types of consumer: basic details for most; link to technical specification for high-involvement consumers

37
Q

Key features of websites

A

Attractive and easy to navigate - building can be costly
Ensure as many as possible find website - search engine optimization
Access by people below drinking age - filter, depend on visitor honesty

38
Q

Benefit of social media promotion

A

Benefit: have a dialogue with consumers rather than talking to them

39
Q

How should companies utilize social media for promotion

A

Non-promotional activity equally important - even if not related to wine, such as what is going on in the vineyard
Use the most appropriate social media channels to communicate with target market
Allow to leave reviews: peer review increasingly important on wine purchase decisions, esp among millennials; negative publicity and reviews need to be sealed with in a positive way

40
Q

How can smart apps be used for promotion

A

User find, read about and comment on individual wines -free publicity
Shops can allow stock info to be shared through apps so that consumers can find who stocks the wine they want to buy

41
Q

Benefits and issues of wine tourism

A

Benefit: particularly beneficial for new producers and those in up-and-combing regions, provides opportunity to engage with public; increase sales through tasting
Issues: infrastructure can be expensive; get in the way of day-to-day operations; staff requirement

42
Q

Forms of wine tourism

A

Simple cellar door
Winery tour, visitor center
shops selling local produce, art and wine-related paraphernalia as well as wine
Cafe, casual dining and fine dining
Experience packages: participate in harvest or become winemaker
Hire space for events
Bring together other tourist business: wine trails, specialist tourist attractions (Napa Valley Wine Train)

43
Q

Reasons for high-involvement and low-involvement consumers to become wine toursists

A

High-involvement: keen to widen wine knowledge

Low-involvement: winery is in the region they are visiting

44
Q

Adv and disadvantages of using events and festivals as promotion

A

Adv: take place in urban areas, chance to taste a variety of wine without having to travel to vineyards; attract mostly high-involvement consumers but can engage with new customers because of other attractions
Issues: cost - pay to exhibit, additional staff, use up stock that could have been sold, prepare stand; competition - need something distinctive; management - consumers drink too much (vouchers);

45
Q

Compare advertising and PR

A

Advertising seeks to draw attention to and promote a specific product or a range of products
PR gives business the most favorable image possible in the mind of consumers

46
Q

List forms of PR activities

A
Representatives of company attending public events or appearing on TV or radio news programs to comment on issues relevant to the business
Press releases
Newsletters
Social media
Brand ambassador
47
Q

Who could be brand ambassadors

A

Full time employees of company, chosen for excellent brand knowledge and social and presentations skills
Celebrities who the company believes share value and image of their products; feature in campaigns / videos on brand website
Key opinion leaders hired to create social media content about the company’s brands shared with their huge number of followers; can be very powerful where word of mouth and peer recommendation is highly valued

48
Q

What are KOLs

A

Person, community or organization that creates high quality content on social media and has a large group of loyal follower, ranging from thousands to millions