Marketing and Branding

Question 1

What is the definition of “marketing” according to the Chartered Institute of Marketing?

Answer 1

“The management process which is responsible for identifying, anticipating and satisfying consumer requirements profitably.”

Basically, marketing companies (or a company’s marketing department) must identify their client (or company’s) target consumer and understand those consumers’ needs and wants, both tangible and intangible, and to create profits.

Question 2

What are the five key stages of a marketing strategy?

Answer 2

1. Identifying the target market;
2. Identifying the product/brand to be marketed;
3. Setting the objectives of the marketing strategy;
4. Devising the marketing strategy (the ‘marketing mix’);
5. Implementing and monitoring the marketing strategy.

Question 3

What is the life cycle, or the four stages, of a product?

Answer 3

1. Introduction/Launch
2. Growth
3. Maturity/stabilization
4. Decline

Each stage needs its own marketing strategy for the product or brand to remain competitive.

Question 4

Give two reasons why brands seek to differentiate themselves from commodities.

Answer 4

• So that consumers will want to buy their product even if it costs more than competitors’ brands at lesser prices;
• Create a positive image in the consumer’s mind.

Question 5

Name seven ways brands can create positive perception of their identity in consumers’ minds.

Answer 5

1. Substance (consistent quality);
2. Consumer trust (brand reliability);
3. Consumer engagement (get consumer to ask for brand by name);
4. Story of the brand (create emotional attachment);
5. Price premium (charging higher prices for their product);
6. Longevity;
7. Strength of brand name (should be easy to pronounce and remember).

Question 6

Name five terms used to describe aspects of branding or types of brands.

Answer 6

1. Brand position (is it value, premium, super-premium?);
2. Private label;
3. Ladder brand;
4. Soft brand;
5. Luxury brand.

Question 7

Describe a ladder brand.

Answer 7

A brand that has three rungs of affordability:

• Accessible;
• Stretch;
• Aspiration.

Question 8

What is a SWOT analysis?

Answer 8

When you identify the Strengths, Weaknesses, Opportunities and Threats via an objective analysis of the health of the business, its current and potential customers, trends within a particular market, and the position of the business within that market.

• The strengths and weaknesses are for the product or company, which you want to make the most of.
• The opportunities and threats are external factors which affect the entirety of the market, which you want to mitigate or eliminate.

Question 9

When a brand is trying to identify its target consumers, what process do they have to go through to understand the needs and wants of those consumers?

Answer 9

Segmentation

It’s when a brand defines the group of consumers who will be allured by their product, and then tailors the product and the marketing of that product to this identified group or groups.

Question 10

Segmentation is shaped by what four variables?

Answer 10

1. Geographic (where consumers live);
2. Demographic (e.g. age, gender, income, occupation);
3. Psychographic (lifestyle and interests);
4. Behavioral (benefits sought, early adopters, where and when do they buy wine?).

Question 11

Why is market research so important prior to creating a marketing strategy?

Answer 11

It can confirm whether or not the marketing approach suggested by the segmentation exercise is on point.

Question 12

Name three ways how marketing can influence consumer behavior.

Answer 12

1. Brings a product to the attention of the consumer, and hopefully it’s something they need or want;
2. Directs consumers where to buy a product;
3. Highlights the strengths and benefits of a product.

Question 13

A good marketing strategy needs to define its objectives, and those objectives must cover four key areas:

Answer 13

1. What type of marketing strategy is the company using?;
2. The aims of the marketing strategy;
3. How the success of the marketing strategy will be measured;
4. Within what time period or is there a deadline by which the objectives ought to be achieved?

Question 14

What are the three general types of marketing strategies?

Answer 14

1. Undifferentiated or mass;
2. Niche;
3. Multiple.

Question 15

What or whom does an undifferentiated or mass marketing strategy appeal to?

Answer 15

Appeals to entire market or a large section of the market with a single product.

Question 16

What does a niche marketing strategy do?

Answer 16

Aims a product at a specific segment of the market.

Question 17

What are the two approaches of a multiple marketing strategy?

Answer 17

1. Appeal to several segments with one brand (requiring a different marketing approach for each segment);
2. Launch several brands, each targeting different segments.

Question 18

Give seven examples of what a marketing strategy aims to do.

Answer 18

1. Launch a new product;
2. Publicize improvements to an existing product;
3. Increase sales;
4. Increase market share;
5. Improve brand awareness;
6. Improve brand identity;
7. Attract new consumers.

Question 19

What are the five “Ps” of marketing?

Answer 19

1. Product;
2. Price;
3. People;
4. Place;
5. Promotion.

Question 20

What are the five types of markets within the wine market maturity model?

Answer 20

1. Mature market;
2. Established markets;
3. Growth markets;
4. Emerging markets;
5. New emerging markets.

Question 21

In what two places do promotional activities happen?

Answer 21

1. At the point of sale;
2. Away from the point of sale.

Question 22

Give examples of promotions at the point of sale.

Answer 22

1. Price promotions (e.g. for a limited time, Buy One Get One, 3 for the price of 2);
2. Free merchandise;
3. Limited edition;
4. Competitions amongst consumers;
5. Staff incentives.

Question 23

Give nine examples of promotions away from the point of sale.

Answer 23

1. Advertising (e.g. billboards, TV, radio);
2. Sponsorship;
3. Websites;
4. Social media;
5. Smartphone apps;
6. Wine tourism;
7. Events/festivals;
8. Reviews + awards;
9. Public Relations.