D2C12 Devising Marketing Strategy Flashcards
What is the marketing mix
Elements of the marketing strategy, a combination of factors that must work together for the strategy to work
5Ps: product, price, people, place, promotions
What is the product in the context of marketing mix
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
What should marketing communicate with regard to the product
Characteristics that will appeal to target consumers and how it will satisfy their needs and wants
Presentation appeal to consumer
Experience delivered
What does saturated market mean
There are already enough products to satisfy consumers’ needs and there are few gaps in the market
Strong competition between relatively similar products
What should companies try to explain with regard to the product in a saturated market
How their product is different to that of competitor, e.g., better quality, better value for money, organic, Fairtrade etc
What is price in the context of marketing mix
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
List some pricing strategies
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
What does people mean in the context of marketing mix
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
Key features of people
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
What is place in the context of marketing mix
Where the product is sold
List elements to consider regarding place in the marketing mix
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
Briefly compare mature and emerging markets
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
List major types of market, describe and give examples according to WI’s market maturity
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
What is promotion in the context of marketing mix
All methods used to promote a particular product
Two categories of promotional activities
Those take place at point of sale
Those happen elsewhere
List promotions at POS
Price promotion Free merchandise Limited edition packaging/presentation Competitions Consumer tastings Staff training and incentives
The aim of price promotions
Increase sales of existing products, gain volume sales for new products or attract new customers
Shift old stock or discontinued lines
What are bin ends
Shift old stock or discontinued lines
List major types of price promotions
Effectively reduce the price of a product, usually for a limited period
Multi-buy or volume discount
Link saves
Discount on delivery cost