D2W3 QUIZ on Marketing Analysis

Question 1

What is the primary aim of marketing?

Select one:

A. To convey an experience to the consumer.

B. To create profits, through volume of sales and/or value of sales.

C. Identifying the target consumer’s needs.

Answer 1

B. To create profits, through volume of sales and/or value of sales

Question 2

Although the marketing process often isn’t linear, it usually follows a similar pattern. Name and order the steps from first to last.

Answer 2

1. Identifying the product/brand to be marketed.
2. Analysing the current market.
3. Identifying the target market.
4. Setting the objectives of the marketing strategy.
5. Devising the marketing strategy (the ‘marketing mix’).
6. Implementing and monitoring the marketing strategy.

Question 3

Match the appropriate marketing strategies to the point in the product life cycle where they should be implemented, e.g. Introduction, Growth, Maturity, Decline:

1. Steps should be taken to extend the life cycle, perhaps by improving the product, updating the packaging, reducing the price to make it more competitive or seeking new markets.
2. The strategy should highlight the differences between the product and the other competing products which, by now, will have entered the market.
3. The strategy should focus on getting the product into the market and gaining recognition and reputation. Distribution may be limited to a few carefully-selected channels to begin with.
4. The product should be increasingly widely distributed and aimed at a broader target market.

Answer 3

1. Decline
2. Maturity
3. Introduction
4. Growth

Question 4

What is the purpose of branding wine?

Answer 4

• To define the product against the others in the market.
• To demand a higher price than a consumer would pay for an unrecognised wine.
• To make the wine recognisable to the consumer and to define a set of consumer expectations about the product - this is achieved through product consistency.
• To create a close relationship between the consumer and the brand and if possible cultivate consumer trust in the brand.
• To create a ‘story’ around the wine.

Question 5

Define ‘ladder branding’ and identify the kinds of wines that sit within each of the rungs.

Answer 5

Definition: When a brand has a range of the same type of product at different price points and quality levels to encourage the consumer to ‘trade up’ to a more prestigious product. The whole line benefits from the brand identity of the most prestigious product.

1. Accessible - The Lowest rung, which is most widely distributed and purchased by consumers. Often viewed as the most accessible.
2. Stretch - Bought less frequently, and usually reserved for special occasions.
3. Aspiration - In the super-premium price bracket and often too expensive for most consumers to afford. A luxury purchase.

Question 6

What is the correct definition of a soft brand?

Select one:

A. A successful brand that consistently delivers the same level of quality and style.

B. Any cue used by a consumer when choosing to buy one product in preference to another.

C. Super-premium priced wines which only a very few consumers can afford.

Answer 6

B. Any cue used by a consumer when choosing to buy one product in preference to another.

For wine this could be a country of origin, region, geographical indicator, grape variety, or even a style of wine.

Question 7

Briefly describe some of the tactics marketers may use to create the idea of a ‘luxury’ brand wine.

Answer 7

• Luxury brand wines are often portrayed as scarce, and therefore rare and hard to purchase, even if this is not he case. Their supposed rarity makes them seem more appealing to consumers.
• The quality of the wine is often emphasised. This could be the grapes, the vineyard/winemaking techniques, or the vineyard’s location.
• The brand may sponsor luxury events to get the wine seen by the public, therefore associating the wine with high-end occasions.
• The wine will be sold at upmarket restaurants and retailers to promote the idea that the wine is exclusive.

Question 8

Orden the 10 best-selling wine brands from largest company to smallest company.

Answer 8

1. Barefoot
2. Concha y Toro
3. Gallo
4. Changyu
5. Yellow Tail
6. Sutter Home
7. Robert Mondavi
8. Hardys
9. Beringer
10. Great wall

Question 9

Why do wine marketers try and identify market segments?

Answer 9

• To identify the types of consumers who might be interested in their product.
• To make sure they’re targeting the correct consumers with their product.
• Because it’s not profitable to design and produce a specific product for every individual consumer.
• To understand the behaviours of the consumers who are likely to be interested in their product.

Question 10

Below are various variables that are often considered when identifying market segmentation. These variables are generally either considered to be A. geographic, B. demographic, C. psychographic or D. behavioural. Match the variables to their respective category:

1. Age
2. Hobbies & interests
3. Rural or urban home
4. Level of brand loyalty
5. Income
6. Level of education
7. Occupation
8. Country of residence
9. Values & beliefs
10. When they buy wine
11. How often the buy wine and in what volume
12. Level of interest in wine

Answer 10

1. Age — Demographic
2. Hobbies & interests — Psychographic
3. Rural or urban home — Geographic
4. Level of brand loyalty — Behavioural
5. Income — Demographic
6. Level of education — Demographic
7. Occupation — Demographic
8. Country of residence — Geographic
9. Values & beliefs — Psychographic
10. When they buy wine — Behavioural
11. How often the buy wine and in what volume — Behavioural
12. Level of interest in wine — Behavioural

Question 11

Define high-involvement consumers and low-involvement consumers with regard to wine sales.

Answer 11

High-involvement consumers: Have a deep interest in the wine they drink, are keen to try new products and tend to spend more on wine.

Low-involvement consumers: Have little interest in the detail of what they drink, stick to a few products which they know and are unlikely to spend much on the wine they buy.

Question 12

Hall has attempted to split wine consumers into three segments. Match the definitions with the type of consumer.

1. Those with a great interest in wine, moderate wine knowledge, university-educated with moderate income
2. Those with a great interest in, and knowledge of, wine; high income and high level of education.
3. Those with a moderate interest in wine but limited knowledge, moderate income and medium level of education; they see wine as an opportunity to maintain social relations.

Answer 12

1. Wine-interested
2. Wine lovers
3. Wine curious

Question 13

Wine Intelligence has created a series of models of consumer segments for various markets, including the UK, the USA and China. Match the definitions with the names given to the segments:

1. Older drinkers, more preoccupied with price and looking for a cheap deal. Drink wine infrequently, mostly at home. Tend to stick to ‘easy choices’ in terms of brands and varietals
2. Older, less frequent wine drinkers, low spenders, unconfident and unknowledgeable. A relatively affordable and healthy choice for an occasional drink. Consume from a narrow repertoire that is driven by low prices
3. Aged primarily 35-54, higher spenders who are confident in their wine knowledge. Wine allows them to relax or socialise with friends and family, it’s a regular treat for them. Large repertoire, and enjoy trying new styles and regions
4. Frequent, ‘core’ wine drinkers from across the US and across all age groups. A glass of wine at the end of the day is a frequent treat. Looking for good value everyday wine and know their brands
5. Frequent and adventurous wine drinkers, highest spenders. Wine is a part of their social lives, they enjoy it as part of their lifestyle and it’s good for their image. Open to a large repertoire, enjoy trying new styles and regions, yet with limited awareness of brands
6. Middle-aged or older and infrequent wine drinkers, typically disengaged with the category. To relax at home with an informal meal. Like Senior Sippers, consume from a narrow repertoire that is driven by low prices

Answer 13

1. Bargain Hunters
2. Senior Sippers
3. Experienced Explorers
4. Premium Brand Suburbans
5. Millennial Treaters
6. Kitchen Casuals

Question 14

What is one of the main problems with segmentation models?

Select one:

A. Not all consumers fit neatly into one segment.

B. People who share psychological or behavioural characteristics are not likely to behave in a similar way.

C. Segments only consider one type of variable (geographic, demographic, psychographic and behavioural)

Answer 14

A. Not all consumers fit neatly into one segment

For some consumers, multiple models may be applicable, or they may not adhere to all the identifiers within a model.

Question 15

Match the market research methods to their brief descriptions.

1. Market research is carried out by using data already available in the public domain or available as a report from a market research company.
2. A small group of people drawn from the relevant consumer segment, brought together to discuss and comment on the topic being researched.
3. Monitoring and analysing the behaviour of target consumers.
4. One-to-one discussion of the topic being researched.
5. A series of questions designed to investigate the opinions, feelings, actions or behaviours of a large group of people.

Answer 15

1. Secondary research
2. Focus group
3. Observing consumer behaviour
4. Interviews
5. Survey

Question 16

How can consumer behaviour be influenced by marketing?

Answer 16

• Marketing can highlight to the consumer’s attention something that they need or want.
• Letting consumers know where they can buy the product.
• It can highlight the selling points of the product (whether that be a luxury status, the fact that the grapes were organically grown or a competitive price).
• Allows the consumers to evaluate the alternatives available and the final purchase decision.
• Consumer buying patters can be influenced by factors such as the lighting, music or decor in a shop or restaurant.

Question 17

What are the three broad types of marketing strategy and which parts of the market do they target?

Answer 17

• Undifferentiated or mass – appeals to the whole market, or a large section of it, with a single product; for example, many branded wines available in supermarkets and other large retailers.
• Niche – aiming a product at a specific segment of the market; many wines are niche products.
• Multiple – either appeals to numerous segments with one brand (each segment will potentially require a different marketing approach) or launching several brands each targeting different segments.

Question 18

What are the aims of the marketing strategy?

Select one or more:

A. increase market share

B. increase sales

C. create government legislation

D. launch a new product

E. improve brand awareness

F. improve brand identity

G. communicate improvements to existing product

H. attract new customers

Answer 18

All except for C. create government legislation

Question 19

The factors that dictate marketing strategy are often referred to as the 5 P’s. What are these 5 P’s?

Answer 19

1. Product
2. Price
3. People
4. Place
5. Promotion

Some marketers omit ‘People’ and refer only to the ‘4 Ps’. Others use the ‘7 Ps’, adding Physical Evidence and Process.

Question 20

Match the brief descriptions to the 5 P’s.

1. Sometimes this means the attitudes and behaviours of the target consumer and others it refers to the relationship between the company, its staff, its partners, and its customers, and includes aspects such as employee attitudes and skills, and customer service.
2. The item being marketed, including all packaging and branding and any value-added features; for example, gift wrapping in a wine shop and a winery’s wine club.
3. This covers all the methods used to advertise a particular product.
4. This relates to where the product is sold. A company needs to identify where its target market shops, such as supermarkets, deep discounters, specialist wine shops or online, and focus on those outlets.
5. This is the amount which a consumer pays for a product, including any additional costs such as delivery as well as discounts. It also includes the cost (in time or effort) which the consumer is willing to go to in order to buy the product.

Answer 20

1. People
2. Product
3. Promotion
4. Place
5. Price

Question 21

If a market already has enough products to satisfy consumers’ needs and there are few gaps for new products, it’s often described as _____

Answer 21

saturated

This means products have to set themselves aside from others in the market by highlighting their uniqueness when compared to competitors: this could be their percieved quality, value or production ethos (organic, vegetarian, vegan etc.)

Question 22

What is penetration strategy in relation to new wines?

Answer 22

A wine may be introduced to the market at a lower price than it will be sold at in the future, or it may be put on promotion. This is to try and persuade price conscious customers to try a new wine, with the hope that they will permanently switch to this brand (thereby rejecting their preferred brand/s). The low price undercuts competitors and makes the new wine seem more appealing.

Question 23

Wine Intelligence released a model of market maturity. Match the countries with their level of maturity.

1. Ireland
2. Japan
3. Germany
4. Malaysia
5. Philippines
6. France
7. Brazil
8. Canada
9. Taiwan
10. Vietnam
11. Thailand
12. Australia
13. Russia
14. Netherlands
15. Italy
16. Poland
17. Switzerland
18. UK
19. China
20. USA

Answer 23

1. Ireland — Established market
2. Japan — Established market
3. Germany — Mature market
4. Malaysia — New emerging market
5. Philippines — New emerging market
6. France — Mature market
7. Brazil — Emerging market
8. Canada — Growth market
9. Taiwan — Emerging market
10. Vietnam — New emerging market
11. Thailand — New emerging market
12. Australia — Established market
13. Russia — Emerging market
14. Netherlands — Established market
15. Italy — Growth market
16. Poland — Growth market
17. Switzerland — Mature market
18. UK — Mature market
19. China — Emerging market
20. USA — Growth market

Question 24

What is a ‘bin end’?

Select one:

A. The free promotional merchandise that accompanies wines

B. Wines that are old/have been in stock a long time, or that have been discontinued

C. The collection of wines offered by deep discounters

D. BOGOF wines

Answer 24

B. Wines that are old/have been in stock a long time, or that have been discontinued

Question 25

Multi-buy or volume discounts are often introduced to encourage consumers to buy more wine. Which of the following promotions are examples of multi-buy/volume discounts? ## Footnote Select one or more: A. buy one, get one free (also known as ‘BOGOF’) B. discounts on certain days C. buy three for the price of two D. save a specified amount or percentage when spending over a certain amount or buying a certain number of bottles or more F. buy, for example, two large glasses (25cl) of wine and get the rest of the bottle free G. buy one, get one half price

Answer 25

A. buy one, get one free (also known as ‘BOGOF’) C. buy three for the price of two D. save a specified amount or percentage when spending over a certain amount or buying a certain number of bottles or more E. seasonal sales G. buy one, get one half price H. discounts for certain groups of people: e.g. students, members of the armed forces

Question 26

There are pros and cons to all forms of marketing promotion at the point of sale. Fill in the table with the pros and cons of each listed form of promotion. Consider the following when completing the table (although not all of the following factors are applicable to each form of marketing promotion): * social factors * monetary factors * health factors * consumer engagement

Answer 26

**Price promotions** Pros * - If the price promotion is successful, sales of the wine will be higher than before the promotion has ended. * - Increase brand awareness. * - "Link saves" can encourage customers to try other types of product alongside the wine, thereby increasing overall sales. Cons * - Consumers associate the wine with promotions so will only buy it when on sale. The image of the wine is damaged by the reductions, and consumers aren't willing to pay full price. * - Brand loyalty is not created and consumers return to their favourite wines once the promotion ends. * - Have been seen to encourage increased alcohol consumption. * - Producers can be expected to cover the cost of price promotions, so may lose revenue. **Free merchandise** Pros * Sales can increase, particularly around holidays, as these products make good gifts. Cons * Merchandise may not be viewed as exclusive/special because it is available to everyone. Therefore sales don't increase **Limited edition packaging / presentation** Pros * - Collectors and investors may see wines packaged in exclusive packaging as collectable/desirable. * - The packaging is distinctive, and can help raise brand awareness. Cons * Sales don't tend to increase in the long-term, particularly as the wine is not typically presented in this way. **Competitions** Pros * - Wines can appear more attractive given the possibility of winning something. This can increase sales. * Customer details can be collected to be used for other marketing purposes. Cons * - An expensive way of encouraging sales, and few people will benefit from the prize. **Consumer Tastings** Pros * Encourages low-involvement customers to buy wines they may have previously avoided because they wouldn't know what it tastes like. * - Encourages brand engagement. * - Even if the wine at the tasting isn't purchased, it encourages potential customers to come into the retail outlets where they may buy other wines. Cons * Bottles will have to be opened and given away for free, when they could have otherwise been sold. **Staff Training and incentives** Pros * Educating staff helps them effectively sell the product, thereby making it more appealing to consumers. * - Staff can be encouraged to create more sales by personal incentives, making them more invested in their work. Cons * In some regions incentivising staff by awarding prizes is considered bribery, and therefore illegal. * - It may be costly initially to train all staff to a high level.

Question 27

There are pros and cons to all forms of marketing promotion away from the point of sale. Fill in the table with the pros and cons of each listed form of promotion. Consider the following when completing the table (although not all of the following factors are applicable to each form of marketing promotion): * social factors * monetary factors * health factors * consumer engagement

Answer 27

Pros Cons Advertising- Memorable advertising campaigns will make a product stick in consumers' minds after seeing it. This can result in them choosing the wine in shops as they recognise it. - Wider audiences can be reached via many different platforms. - Often very expensive to pay to advertise on TV, websites etc. Also, hiring external advertising agencies to run campaigns also comes at a substantial cost. - Due to health concerns, how and where alcohol can be advertised is often regulated.Sponsorship - The brand's logo is seen widely by people interested in the sport/event they're sponsoring.- Brand has to pay to be the sponsor. - Subject to legislation and restrictions given that its a form of advertising. - Often viewed negatively, given the impact that alcohol can have on health when it's being associated with sporting events.Websites- Provides a platform to give thorough details on a wine. - Can incorporate an online shop to retail the wine without the overheads of a physical store. - It's expensive and difficult to design and maintain websites, both from an aesthetic and technical perspective. Specialist companies often have to be employed to help with this. - It can be difficult to direct consumers to the website, so money has to be spent on making it searchable/accessible. - This information (and therefore promotional material) can be easily accessed by people below the legal drinking age. Social Media- Possible to engage directly with consumers, rather than producing unspecified adverts. - Given the demographic that are most active on social media, it's a good way of reaching younger consumers. - Ordinary consumers can share their thoughts and feelings on a wine publicly. - It's time consuming/costly cultivating a social media presence that may not all relate directly to the product being marketed. - There is an increased danger of bad publicity and reviews. Sites must also be monitored for inappropriate content. Smartphone Apps- Allow customers to get more involved with their interests. - Brands can be publicised on the apps.- Often only used by high-involvement customers, so they don't reach the whole market.Wine Tourism- Provides an opportunity to engage with consumers. - If consumers try wines, the likelihood they'll purchase something is significantly increased. - Appeals to both high-involvement and low-involvement tourists. Tastings/tours can be pitched at different levels. - Developing the infrastructure can be very expensive. Particularly if other activities to tempt tourists to the venue are offered onsite. Events and Festivals - Can attract both high and low-involvement consumers, with the added bonus that they often don't have to travel far to visit. - Exhibiting costs are often high,and the need for staff. - Free samples are often given away which could have otherwise been sold. - There will be lots of other exhibitors, so it's hard to stand out amongst the crowd. - There is the risk of consumer drunkenness , which has to be considered. - It can be hard to generate sales when consumers expect samples. Reviews and Awards - Favourable reviews from respected critics can boost sales. - Medals and awards can be used in promotional material. This can make the wine seem more attractive to the consumer. - Free bottles of wine often have to be given as samples that could have otherwise been sold. - Entering competitions often costs money. Public Relations (PR) - Favourable brand PR makes the wine look good in the eyes of the consumer, therefore they're more likely to buy it. - Brand ambassadors can be used to boost the public profile of the wine, making it more recognisable. - PR campaigns are costly and complicated processes.