Implementing Market Program Part 1 Flashcards
Marketing Mix theory
Marketing Mix is a set of Controllable Marketing Variable that the company uses to reach its targets on the market
4 P’s
- Product
- Price
- Place
- Promotion
Product range
Total mix of products offered to customers by a winery. Composed of different product lines
Product line
Products that are perceived as homogeneous by the consumer
Product mix (3)
- Width: number of product lines
- Depth: number of products in each line
- Consistency: homogeneity and connection among the products
5 Product development phases
- Introduction
- Growth
First phases categorized by an incline (Organic/orange wines) - Maturity
- Saturation
middle phases showing the top of the bell curve (DOC/DOCG wines) - Decline: Table wines or revitalization
4 types of products for the sales approach
- Key products: Backbone of firm
- Attractive products: bring in new customers
- Aggressive Products: Reaction to competition
- Accessory Products: Complete the line
Economic/financial approach
Innovative products, key products must be self sufficient
Most important of the 4 P’s
Price
3 considerations for price
- Consumer
- Seller
- Competitors
4 considerations for definition of price
- Demand
- Competition
- Price of substitute products
- Cost to the company
Price level considerations
We need to considered if the price is too low resulting in a perceived quality, too high and its seen as prohibitive compared to quality
6 steps for determining price
- Set the target
- Estimate demand
- Calculate costs
- analyze competition
- choose the method
- Fix final price
Price policy must respect two main principles
- Internal: costs and profitability limits
- External: Competition, distribution
Price and demand relationships
Higher the price, lower demand
