Marketing Flashcards
Define Marketing
A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others
Kolter 2001
UK Institute of Marketing’s definition
The management process which is responsible for identifying, anticipating and satisfying consumer requirements PROFITABLY
What does marketing include?
- identifying unmet consumer needs.
- Coordinating the production of products and services to identify those needs.
- Pricing, distributing and promoting those products/ services to produce a profit.
What are the 6 stages of the marketing strategy?
- Identify the product/ brand to be marketed.
- Analyzing the current market
- Identify the target market.
- Set the objectives of the marketing strategy.
- Divide the marketing strategy (marketing mix).
- Implement and monitor the marketing strategy.
What is a marketing plan?
- Marketing objective:
Financial, volume or positioning - Marketing strategy
Designed to meet objectives.
Sets targets for profit/ volume: turnover - Marketing tactics (marketing mix)
Used to achieve strategy and objectives.
Uses the 5 p’s
Product, price, place, promotion, people - Regular review, research and revision.
What are the 5 P’s?
Product Price Place Promotion People
What is consumer behavior and what is the process?
‘Human responses in a commercial world’ East 1997
- Need recognition
- Information search
- Evaluation of alternatives
- Purchasing decisions
- Post purchase behavior
What is a brand?
‘A brand is a set of physical attributes of a product or service together with the beliefs and expectations surrounding it - a unique combination which the name or logo should evoke in the mind of the consumer’
A name, term, sign, symbol or design or combination of these intended to identify the goods or services of one seller and differentiate them from competitors’
Kolter 2001
Why are brands important?
Implies high level of customer involvement. Involvement in,it’s a greater chance of trading up and building loyalty.
Successful brands give producers a greater chance of increasing profits.
‘People use brands as shortcuts to make purchase decisions’ - Adamson In 2006
What does a brand need?
- Substance
- Consumer trust
- Consumer engagement
- A brand story
Brand equity implies a a serious level of consumer loyalty.
What effect does a brand have?
Brands make products distinct from commodities. People will pay more than the cheapest price.
Brands imply a level of quality that will make consumers pay more than the minimum price.
Product is believed to have substance and will deliver a consistent style and quality.
What is important to a brand name?
Easy to remember Culturally appropriate Easy to pronounce Ties into the brand identity: May use a geographic indicator I.e. Jacobs Creek or invoke an historic name of a producer I.e. Krug Champagne, Taylor’s port
Both tie into the brand story
What is brand equity?
The intangible value of the brand.
Increases the value of the business
What are the world’s strongest wine brands?
Yellow Tail
Casillero del Diablo
What is marketing trying to achieve?
Awareness - of a product
Interest - in the product
Desire - for the product
Action - buy the product
What is the problem many consumers have with buying wine?
Buying is seen as risky due to the complex nature of the category.
100,000 different wine labels from 10,000 different producers
25,000 different SKUs in UK market.
2,000 wineries in Australia - lots of choice
What is the wine category complexity model?
Category complexity - large range of stock keeping units (sku).
Social complexity - aspiration product, status symbol
Situational complexity - social or special occasion, food pairing.
Product complexity - variability of brand, style, variety, region, vintage.
What does a brand represent? Why is it valuable?
‘At it’s simplest a brand is a recognizable and trustworthy badge of origin and a promise of performance.
A brand is simply a collection of perceptions in the mind of the consumer’ - Feldwick 1991
‘Always remember a brand is the most valuable piece of real estate in the world - a corner of someone’s mind’ sir John Hegarty
What is brand identity? Why is it important?
Brand identity provides -
direction
Purpose
Meaning
‘Customers must recognise that you stand for something’ Howard Schultz, Starbucks
It should indicate core values, a personality and how it should be perceived.
What is Brand positioning?
Demonstrates advantages over competitors.
Actively communicated to target market.
What should be considered when constructing a brand identity?
Who is the target market?
What do they look like?
How do they like to be communicated with?
What emotional and rational needs do they have?
Why will this audience care about the brand?
What are 15 tools of marketing?
Consumer tastings. Staff incentives
Staff education & training. TV Adverting
Press adverting Radio ads
P.R. Websites
Social Media. Smart phone apps
Consumer fairs. Trade Fairs
Wine tourism. Sponsorship
Brand ambassadors
What are some PR tools?
Public events TV appearances Press releases Newsletters Social Media Strong corporate social responsibility policies - make a positive image.
Name 10 promotional tactics?
Multi buys - buy 1 get 1 free Volume discounts - buy a 6pk for 5% off each bottle. Link save - buy one wine product and get a discount off food. Free merchandise Charity donations Gift presentation packs Limited editions Competitions Send offs
What are the 3 categories of brand ambassadors?
The expert sales person
Highly respected industry expert
Eg. Richard Geoffrey, created Dom Perignon
The celebrity
What are trends in the wine market?
Low calorie wine Low alcohol options Fruit flavoured wines/ fruit infused wine 30million litres in France in 2014 Ready to drink cocktails (jd & coke)
What is ladder branding? What are the 3 levels?
Give an example
Give consumer rungs to help them trade up in price and quality.
Enables the entire range to benefit from the prestige of the aspirational product.
Accessible - cheapest most widely distributed.
Stretch - more expensive, special occasions
Aspiration- most expensive, rare, super premium
NV Pol Roger
2008 Vintage Pol Roger
Cuvée Winston Churchill
What is a soft brand?
Other cues that consumers use to purchase one product over another.
Doesn’t conform to standard brand structure
May include; Country of origin eg. Brand Australia Region eg. Rioja Grape eg merlot Style eg. Bourbon
Reasons for over supply of wine?
Grafting post phylloxera
Modern winemaking - increased production
More juice per tonne of fruit
Problems of branding with still wines?
Over production - cheap wine seen as a commodity
Fragmented production base -10 largest producers only account for 14% of global sales
Too many labels
Buyers market (because of fragmented production base)
Why is marketing sparkling wine different to still wine?
Category behaves more like spirits.
Brand laddering - helps consumers trade up
Easily recognisable names.
High profit margins
Product blend with image - celebrations, luxury, fun
What is a wine brand?
’A wine brand is a product cue given in wine packaging or information such as origin, grape variety, region, etc., for which consumers search during their decision making process’ (Halstead, 2002)
