Devising the Marketing Strategy Flashcards
What are the 5 P’s of marketing?
- Product
- Price
- People
- Place
- Promotion
Explain the ‘Product’ portion of the 5 P’s
The product is the service, object or system being marketed.
In terms of wine as an object, it includes the liquid itself and, all packaging and branding.
What all goes into the marketing of a product?
Marketing should communicate the characteristics of the product that will appeal to target consumers and how it will satisfy their needs.
The presentation of the product (the bottle and label) should be designed to appeal to the target consumer.
The marketing should also describe the experience that the product will deliver to the consumer. (This is seen as increasingly important to the consumer.)
What things are included in the price?
This is the amount which a consumer pays for a product. It is not just the price of a product on the shelf; it includes any additional cost such as delivery as well as discounts.
How does the Penetration Strategy work?
When trying to introduce a new product into the market, companies may offer the wine at a low or promotional rate. This is done to undercut the competition and rapidly reach a wider section of the market.
The expectation is that consumers will permanently switch to the new brand because of the lower price
What is one of the potential drawbacks to using the Penetration Strategy?
The problem that certain products that are brought in using the penetration strategy is that any subsequent efforts to raise the price may not be successful if the consumer doesn’t feel that it still offers the same value as the product did at the lower price.
What are the two ways that ‘People’ may be interpreted depending on the model?
Sometimes marketers will view ‘people’ to mean the attitudes and behaviors of the target consumer.
In other models, ‘people’ will refer to the relationship between the company, its staff, its partners, and its customers. It also includes aspects such as employee attitudes, skills, and customer service.
What is an important component of ‘people’ that may get overlooked?
Wine producers should make sure that they have sufficiently knowledgeable and trained staff to help sell their products. Whether it is out the cellar door, at consumer events, or to distributors/retailers.
What are some options for producers to make sure that their staff, or a distributors staff, are adequately trained on their product?
The producer can hold a master class where they go into the history of the estate, where and how the wine is made, and any unique talking points.
What does ‘Place’ refer too
It refers to where the product is sold.
Why is place important for a marketing strategy?
Companies need to identify where their target consumer(s) shops. Where it be online, at supermarkets/deep discounters, or at specialist wine shops, and focus on those outlets.
What are some of the different places that low-involvement consumers and high-involvement consumers shop or drink at?
High-involvement drinks tend to shop at specialist retailers, or premium supermarket chains. They also go out to high end wine bars, and eat out at casual or high fine dining establishments. (More suited lesser known regions/grape varieties, or limited supply options)
Low-involvement drinkers tend to look for wines at lower price points, with simple flavors/aromas that meet a certain quality standard. They tend to buy wines at the supermarket and eat out at non-destination establishments.
What things should be considered if a wine is going to be sold in multiple countries? (think flavor profiles, not laws)
Flavors can change from country to country, so it may be beneficial to produce different wines for each country. The differences could include flavors, aromas, and varying levels of sweetness and alcohol.
What other issues can arise when selling wines to other countries? (Think laws and distribution)
Legislation, taxation and duties, and restrictions on distribution (i.e. monopolies or the Three-Tier System) can make some markets more attractive than others.
Producers may choose to not sell their wines in price sensitive markets if they don’t think they can make a profit.
Define what a Mature market is? Give some examples of countries that fit this definition
Markets where wine appears to have reached it’s potential with stable or declining volumes.
Countries that fit this definition would be Germany, France, Switzerland, UK
