Marketing Flashcards
Strategy for maturity/stabilisation in product cycle?
The strategy should highlight the differences between the product and the other competing products which, by now, will have entered the market.
Strategy for growth in product cycle?
The product should be increasingly widely distributed and aimed at a broader target market.
Strategy for introduction in product cycle?
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.
Strategy for decline in product cycle?
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.
5 Purposes to introduce branding?
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.
reasons to segment?
To identify the types of consumers who might be interested in their product.
targeting the correct consumers with their product.
not profitable to design and produce a specific product for every individual
To understand the behaviours of the consumers who are likely to be interested in their product.
5 ways to do market research
survey
focus group
individual interview
secondary research
observing consumers
How can customer behaviour be influenced by marketing?
highlight something that they need or want.
Letting know where they can buy
highlight the selling points of the product (luxury status, organically grown or a competitive price).
evaluate the alternatives available and influence the final purchase decision.
buying patterns can be influenced by factors such as the lighting, music or decor in a shop or restaurant.
Pros and cons of price promotions
Pros:
if 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; consumers aren’t willing to pay full price.
Possible scenario: brand loyalty not created and consumers return to their favourite wines once the promotion ends.
Seen to encourage increased alcohol consumption.
Producers can be expected to cover the cost of price promotions, so may lose revenue.
Pros and cons of free marchendise
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 pros and cons
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
Pros and cons of 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 and cons
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.
Pros and cons of Incentives and staff training?
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.
Pros and cons od adverts
Pros:
* 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.
Cons:
* 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.
Pros and Cons of sponsorship
Pros:
* The brand’s logo is seen widely by people interested in the sport/event they’re sponsoring.
Cons:
* 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
Pros and Cons of websites
Pros:
* 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.
measure
Cons:
* 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.
Pros and Cons of Social Media
Pros:
* 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.
Cons:
* 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.
Pros and Cons of Smartphone Apps
Pros:
* Allow customers to get more involved with their interests.
* Brands can be publicised on the apps.
possible additional revenue from ads
Cons:
* Often only used by high-involvement customers, so they don’t reach the whole market.
long and costly development
maintenance
Wine tourism Pros and Cons
Pros:
* 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.
Cons:
* Developing the infrastructure can be very expensive. Particularly if other activities to tempt tourists to the venue are offered onsite
Pros and cons of Events/Festivals
Pros:
* Can attract both high and low-involvement consumers, with the added bonus that they often don’t have to travel far to visit.
Cons:
* 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 Pros and Cons
Pros:
* 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.
Cons:
* Free bottles of wine often have to be given as samples that could have otherwise been sold.
* Entering competitions often costs money.
Pros and cons of PR
Pros:
* 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.
Cons:
* PR campaigns are costly and complicated processes.
