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WSET L4 D2 2024 > 11. Marketing Strategy > Flashcards

11. Marketing Strategy Flashcards

(67 cards)

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1
Q

What is the first vital part of the marketing strategy

A

Define the objective

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2
Q

Why do we need to define an objective

A
  • Help people understand their role in the process
  • Make it easy to analyse whether the strategy is working
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3
Q

What areas should the objective cover about the marketing strategy

A
  • Type of marketing strategy
  • Aim of strategy
  • Measure of succes
  • Time
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4
Q

What are the types of marketing strategy

A
  • Undifferentiated (appealing to all/many)
  • Niche (appealing to a specific segment)
  • Multiple (appealing to numerous segments OR several brands appealing to specific segments)
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5
Q

Give examples of aims of the marketing strategy

A
  • Launch a new product
  • Communicate improvements to existing product
  • Increase sales
  • Increase market share
  • Improve brand awareness
  • Improve brand identity
  • Attract new customers
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6
Q

Give examples of how succes of marketing strategy is measured

A
  • Profits
  • Value of sales
  • Market share
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7
Q

What is another important part of marketing strategy

A

Set the marketing budget: should be set by reference to expected profits

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8
Q

Give an overview of the chronological order when creating a marketing strategy

A
  • Understand the product/brand
  • Indentify the target market
  • Understand their needs/wants
  • Set the objective
  • Use SWOT
  • Devise the strategy
  • Implement and monitor the strategy
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9
Q

Define “marketing mix”

A

Combination of factors that must work together for the marketing strategy to work

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10
Q

What are the factors of the marketing mix

A
  • Product
  • Price
  • Place
  • Promotion
    (People)
  • Physical Evidence
  • Process
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11
Q

Define “product” as a factor of the marketing mix

A

The object that is being marketed: liquid, packaging and branding

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12
Q

What should the marketing strategy cover about the product

A

Communicate appealing characteristics:
- Presentation (bottle, label, etc)
- Experience (story)
- Difference (higher quality, better value, organic, vegan, etc)

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13
Q

Define “price” as a factor of the marketing mix

A

The amount a consumer pays, including: shelf price, delivery, discounts, time and effort

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14
Q

What marketing strategies do we know to set a price

A
  • Balance between profit and the price consumers are willing to pay
  • Penetration strategy (enter the market with a low price/promotion)
  • Higher price (More pleasure on brain scans in academic study)
  • Psychological importance of price points (9,99 ipv 10)
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15
Q

Define “people” as a factor of the marketing mix

A

Depends on the model:
- Attitude and behaviour of consumers (e.g. when not active on social media, strategy should not include intense social media campaign)
- Relationship between company, staff, partners and customers (e.g. masterclass by winemaker for retailer employees to tell a consistent story)

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16
Q

Define “place” as a factor of the marketing mix

A

Where a product is sold (type of retailer and which market) + distribution channels to get there

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17
Q

What do we need to take into account when talking about the marketing strategy for place

A
  • High- or low-involvement customers
  • Consumer taste per country
  • Legislation
  • Taxes
  • Restrictions (such as monopoly and three-tier)
  • Price-sensitivity
  • Maturity of the market
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18
Q

Where do high-involvement consumers buy there wine, and what do they look for

A
  • Specialist retailers
  • Premium supermarkets
  • Specialist wine bars
  • Casual and fine-dining
  • Experiment
  • Unknown regions/varieties
  • Good quality
  • Limited supply
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19
Q

Where do low-involvement consumers buy their wine, and what do they look for

A
  • Supermarkets
  • Bars and non-destination

Simple wines with certain quality, at low price point

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20
Q

What is the model of wine market maturity by Wine Intelligence

A
  • Mature market
  • Established market
  • Growth market
  • Emerging market
  • New emerging market
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21
Q

What is a mature market, and give examples

A

Potential is reached, volumes are stable or declining

Germany, France, Switzerland, UK

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22
Q

What is an established market, and give examples

A

Strong historical growth is tailing off

Ireland, South Africa, Italy, Hong Kong

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23
Q

What is a growth market, and give examples

A

Wine is a mainstream product and still growing

USA, Canada, Brazil, Poland

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24
Q

What is an emerging market, and give examples

A

Wine is growing and shows potential from low base

China, Russia, Turkey, Taiwan

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25
What is a new emerging market, and give examples
Wine is new and unknown, but shows potential India, Malaysia, Phillipines, Thailand
26
What are the advantages of more mature markets
- Reliable trade structures - Routes to market - Established wine culture, so less risk
27
What are the disadvantages of a more mature market
- Greatest saturation - Least growth
28
Define "promotion" as a factor of the marketing mix
All methods used to promote a product: At the point of sale - Price promotion - Competitions - Limited edition - Tastings - Staff incentives - Staff training Away from the point of sale - Advertising - Social media - Website - Apps - Reviews and awards - Wine tourism - Public relations - Sponsorship - Events and festivals - Merchandise
29
What are the difficulties to take into consideration about promotion
- Single type of promotion will not appeal to a whole segment - Legal constraints such as advertising
30
What is the aim of price promotions
- Increase sales for existing product - Gain sales for new product - Attract new customers - Sell bin ends (old stock/discontinued lines)
31
Give examples of price promotion
Reduce price for limited time: - Specified discount - Seasonal sales (e.g. Christmas) - Certain days (e.g. Hospitality on quieter days) - Certain people (e.g. Students) Volume discount: - Buy ..., get ... for free Link saves: - Buy product, get discount on another category (e.g. food and wine pairing) Free delivery for orders over a certain amount
32
What are the disadvantages of price promotions
- Consumer loyalty is not guaranteed - Damage to image due to low price - Encourage exessive consumption - Producers need to cover costs (only viable for large producers)
33
Give examples of countries that use price promotions
UK supermarkets offer price promotions on Champagne, which concerns the latter for damage to their image
34
Give examples of countries that don't use a certain type of price promotions
Sweden and Scotland have banned volume discounts, because they don't want to encourage excessive alcohol consumption
35
When is a price promotion succesful
Sales will be higher than before the promotion, altough they will drop. Also brand awareness
36
What are the advantages of competitions as promotion
- High-value, attractive - Collect contact details for promotions
37
Give an example of a competition as a promotion
New-Zealand producer who offers a chance to win a two week holiday in NZ to anyone who buys a bottle of his wine
38
What are the advantages of advertising
- Large and varied segment - Can be remembered for years
39
What are the disadvantages of advertising
- Expensive to run - Advertising agency is expensive - Translation should not offend - Laws and restrictions
40
Give examples of countries with laws restricting advertisement of alcohol
Prohibition - United Arab Emirates - Qatar Strict control - Loi Evin, France Self-regulation by the industry - UK
41
Explain the channels used for advertising
- Tv/cinema: effective but expensive - Product placement: less expensive - Radio: lack of images, less expensive - Press advertising: more story, less expensive. General press, specialist wine publications, advertorials - Billboards: memorable image next to road, more text next to stations and bus stops
42
What are the costs involved with digital advertising
Fairly cheap: - Creating the advert - If advert is on another company's site
43
What are the advantages of advertising on social media
- Have a dialogue with consumers - Reach younger consumers - Share non-promotional activity - Ordinary consumer reviews - Free
44
What are the disadvantages of advertising on social media
- Alienate followers when only promoting - Need to choose appropriate channel for target market (facebook/twitter vs instagram/youtube) - Negative publicity and reviews - Inapropriate material might be posted by consumers
45
What are the advantages of advertising via websites
- Great deal of information - Visual - Story, production, food and wine pairing, events - Online shop - Basic info with a link to more technical (suits different types of involvement consumers)
46
What are the disadvantages of advertising via websites
- Must be consistent with brand image - Can not have bugs and crashes - Consultants and IT experts are costly - search engine optimisation - legal drinking age, dependent on honesty
47
What are the advantages of advertising via smartphone apps
- Find, read about, comment on wines - Consumers and professionals - Keep track of own cellar - Promote business (e.g. a shop shares stock information, consumers clicks through to buy wine, shops pays commission to app operator)
48
What are some ways to use reviews and awards as advertisement
- Send samples to critics - Some critics prefer to buy their own wine (e.g. Robert Parker) - Send samples to competitions (e.g. Decanter World Wine Awards) - If a wine wins, buy stickers of medals - Influence purchase decision, especially less knowledgeable consumers
49
Give examples of succesful wine tourism strategies
- Alsace: cycle route that links up producers - Napa Valley Wine Train: fine dining with Napa Valley wines, on a vintage wine, combined with winery visits
50
What are the advantages of wine tourism as a form of promotion
- Engage with public - Tasting increases sales - Connection leads to regulars - Connection leads to recommendation - High-involvement enjoy extended tours and explanation - Low-involvement enjoy brief tours or just tastings
51
Give examples of wine tourism experiences
- Tasting rooms - Vineyard/winery tour - Visitor centres - Shops (often also for local produce) - Café - Casual dining - Fine dining - Accomodation - Events - Experience packages (e.g. helping with harvest)
52
What are the disadvantages of wine tourism
- Infrastructure can be expensive - Staff
53
What is the aim of PR
Public Relations: Give the business the most favourable image in the consumers mind
54
What is the difference between advertising and PR
- Advertising: draw attention to product - PR: give business a good image
55
Give examples of PR activities
- Representatives (events, tv, radio) - Press release - Newsletter - Social Media - Strong social/corporate responsibility policy - Celebrity brand ambassador - Key opinion leaders (>1k on social media)
56
Give an example of a Celebrity Brand Ambassador
- Tenniser Roger Federer: Moët et Chandon
57
Give examples of sponsorship deals
- Chilean Cono Sur: Tour de France - Mouton Cadet: Ryder Cup - Champagne Carbon: Formula One podium celebrations
58
What are the different options for sponsorship
- Display logo on billboards/clothing - Exclusive rights to be served at the event - Television programmes (cheaper than advert, but same rules)
59
Why is sponsorship a controversial subject
Because people question the suitability of linking alcohol with sports, which should promote health
60
What are the advantages of events
Broader range of people: - Urban instead of rural - Food - Even if not main focus on wine
61
What are the disadvantages of events
- Cost to exhibit - Staff - Use stock for samples - Cost of stand (from table to popup bar) - Trying to stand out against others - People who drink instead of tasting
62
What are the advantages of free merch as promotion
- Generate sales without reducing price - Brand awareness, also for environment
63
Give examples of merch
- Special presentation pack with branded glasses - Branded ice buckets - Corckscrews - Umbrellas
64
Give examples of ways to measure succes of marketing strategy
- Sales figures - Profits - Hits on a website - Feedback - Eye-tracking - Social networking potential
65
What is the difference between market research and marketing research
- Marketing research: data analysis to understand how consumers react to marketing strategy - Market research: data analysis to understand the wants and needs of certain market segements
66
Who are the people that carry out marketing
- In-house marketing team - Outsource marketing to PR- or advertising company - As part of one persons job - Become member of an organisation
67
Give examples of organisations who help promote their members products
Industry Association - Consorzio: Italy - VDP: Germany Generic Trade Body - Wines of Australia - Wines of South Africa Informal Trade Grouping - VIGNO Vignadores de Carignan: Chile

WSET L4 D2 2024 (14 decks)

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