Introduction into Marketing Flashcards
What is marketing?
Marketing is the management process which is responsible for identifying, anticipating, and satisfying consumer requirements profitably
What is the ultimate aim of marketing? List the two ways it tries to achieve those goals?
The main goal of marketing is to create a profit. The way it goes about that is two fold:
- Through volume of sales (by either attracting new customers or encouraging existing customers to by more)
- Convincing consumers that their product is worth the increase in price compared to other products
What is SWOT?
It is an acronym that stands for:
- Strengths
- Weaknesses
- Opportunities
- Threats
What are the two SWOT categories?
- Is the factor helpful or unhelpful to the achievement of the chosen objective?
- Is the factor internal to the organization (such as resource or capability that would provide competitive advantage), or is the factor external, in the wider business environment (such as political, economic, sociological, technological, environmental or legal factor or trend)?
How does SWOT help an organization?
- For a given objective, to what extent do the various factors favor the organization’s success in achieving that objective? (Also known as strategic fit)
- Where the mismatches between the factors and the likelihood of its success, what changes could the organization make in order to achieve a better strategic fit
- Where there are threats, how can the risk be managed? Consider the likelihood and the size of impact of the risk, and the options to avoid entirely, reduce probability or impact, transfer the risk (e.g. by purchasing insurance), or accept the risk and budget for its possible impact.
How does value-curve analysis work?
An analyst selects various factors that differentiate products within a particular market. Rather than evaluating everything separately, it is used to identify common-clusters of consumer demand.
The results can sometimes show that there are clusters of consumer demand that are under-supplied, or even completely ignored by the industry.
Define what a resource is
A resource is a ‘thing’ that the organization has access too, that it can exploit as a tool
What are some things that could be considered a resource in the context of wine production?
- Established reputation in wealthy, growing markets
- Reliable and affordable supply chain relationships
- Vineyards in locations that favor a particular style of wine
- Wine production facilities that are optimized for a particular style of wine
- Access to reliable, affordable support industries
- Strong financial position to enable investment
- Internal expertise and experience, and the ability to make the best use of these
A capability is something that an organization is able to do. Some capabilities include the ability to:
- Build strong new brands or grow existing ones
- Scale production volumes up or down in response to changing demand, or change products to follow the rapid change in demand
- Experiment to innovatively develop and launch new products
- Lobby local, regional, national or global political organizations to achieve favorable political outcomes
What does PESTEL stand for, and how is it used?
- Political
- Economic
- Sociological
- Technical
- Eviormental
- Legal
It is used to make sure that when doing a SWOT analysis that all of the different opportunities and threats are considered, and that nothing is missed.
How can politics affect the introduction of a new wine to the market?
Policies on alcohol can vary dramatically from country to country or even in the USA county by county. With some places having prohibition laws or high taxes in place to discourage drinking. To other places allowing for advertisement of alcohol on billboards, radio and television.
Give some examples of potential threats and opportunities when it comes to economics
- Foreign exchange instabilities can make it hard to plan (threat) but can provide opportunities for those who are able to respond more quickly than their competitors (opportunity)
- National or global recession reduces consumer purchasing power (threat) but could lead consumers away from more expensive comfort products to wine (opportunity)
How can different social factors affect alcohol sales?
- Many countries are seeing generational gaps between what the preferred beverage is. For example: if someones parents drink spirits, then they may drink wine or beer, and then their kids may go back to spirits
- How it is viewed in friend groups or as a whole in some countries can have a lasting impact on the alcohol trade as a whole
- How consumers view natural vs artificial is being coming more prominent and can be an opportunity and a threat
- One that may get missed is that people are leaving small rural towns. Vineyard owners may depend on that labor to help pick at harvest time
How do new vineyard and wine making technology provide opportunities and threats?
- New techniques, equipment and analysis can provide opportunities for increasing quality while decreasing cost
- But at the same time as those techniques become more wide spread, it will be difficult for wines to retain their uniqueness
What are the ramifications of delimiting a region or, putting heavier restrictions on a region?
- When it comes to delimiting a region, the worry is that there could be a drop in quality. The flip side of that is it provides an opportunity for new producers to come into the market.
- By putting heavier restrictions on a region, producers are more handcuffed in either the quantity or styles produced. This could lead to a premiumization of a region, or show that would that the region is trying to keep their integrity.
