8. Introduction to Marketing Flashcards
CIM definition of Marketing:
The management process which is responsible for identifying, anticipating and satisfying consumer requirements profitably.
In terms of marketing, what kind of ‘experience’ can a wine offer to the drinker ?
‘Experience’ a wine can offer to the drinker :
- Pleasure of drinking the wine !
- Confirmation of social status.
- Ownership of something perceived as valuable.
- Return on capital investment.
What is the ultimate aim of marketing?
What determines the success of a marketing campaign?
Ultimate aim of marketing :
- To create profits by volume (attracting new customers, customers buying more) and/or value (convincing people to spend more money vs lower priced competitors) of sales.
- The success is determined by comparing the profits made within set timeline in relation to money/resources spent on campaign.
What are the 5 key steps of the Marketing Process?
5 key steps of the Marketing Process :
- ID the product/brand to market.
- ID the target marget.
- Set objectives of strategy.
- Devise the strategy (‘marketing mix’).
- Implement and monitor the marketing strategy.
What is a SWOT table?
What is its purpose?
Which elements are helpful/unhelpful? internal/external?
Strengths / Weaknesses / Opportunities / Threats.
Provides analytical insights into the achievement of any business objective.
HELPFUL: Strengths/Opportunities.
UNHELPFUL: Weaknesses/Threats.
INTERNAL: Strengths/Weaknesses.
EXTERNAL: Opportunities/Threats.
In what ways can a SWOT analysis help an organization ?
SWOT analysis help an organization
- Determining the ‘strategic fit’, or the extent to which various factors favor the company in acheiving the objective.
- Determining changes that could be made in order to achieve the goal, e.g. investment in resources (vineyards, equipment) or capabilities (winemaking staff, packaging, gov’t lobbying).
- Management of threats; avoiding impacts of risk, lessening probability or impact, transferring risk or accept and budget for risk’s impact.
- May also help the company understand that an objective is not realistically achievable, and that a different one should be pursued.
What is meant by ‘value-curve analysis” ?
What is an example ?
Value-curve analysis
- Analysis that specifically seeks out unmet gaps in the market.
- Various factors (price, convenience, prestige, etc…) are considered in clusters, vs seperately, to see if there is a cluster that is under-supplied/completely ignored.
Example :
- it is assumed that the demand for premium red wines is specifically for those that are dry/complex.
- Someone may conjecture that there is a demand for premium reds that are off-dry/simple.
- Value-curve analysis will confirm this or not, leading to possible business plan.
In terms of SWOT, what is a ‘resource’?
Some examples (7)?
PRESS FEVer
RESOURCE: A ‘thing’ that an org has access to which can be used as a tool for achieving a goal.
- Established REPUTATION in growing markets.
- Good SUPPLY Chain relationships.
- VINEYARDS that favor a specific style of wine.
- PRODUCTION facilities.
- Access to SUPPORT Industries, e.g. logistics, bottling, research, etc..
- Strong FINANCIAL position.
- Internal Expertise/Experience.
In terms of SWOT, what is a ‘capability’?
some examples (4)?
CAPABILITY: Something the organization is able to do.
- Build new brands or grow existing ones.
- Scale production volumes up/down in reaction to changing demand.
- Innovative experimentation to develop/launch products.
- Lobbying; local/regional/national/global organizations to achieve favorable outcomes, e.g. subsidies, regulations, etc..
What are the categories of factors within the external business environment that must be considered in a SWOT analysis?
PESTEL
Factors within the external business environment:
PESTEL
- POLITICAL
- ECONOMIC
- SOCIAL (inc. cultural/demographic)
- TECHNOLOGICAL
- ENVIRONMENTAL
- LEGAL/REGULATORY
POLITICAL factors that affect Opportunities/Threats ?
POLITICAL factors that affect Opportunities/Threats :
- Heavy political involvement with alcohol sales.
- Taxation, prohibition, taxes to discourage consumption (threat).
- Financial subsidies to support production of prestigious cultural products (opportunity).
ECONOMIC factors that affect Opportunities/Threats ?
ECONOMIC factors that affect Opportunities/Threats :
-
Local currency strength :
- If weak, improve competitiveness of exports (opp) but make importing equipment more expensive (threat), and vice versa.
- Exchange rate fluctuations can be hard to plan (threat) but also provide opportunties to fast responders.
-
Economy strength :
- Recession reduces disposable income (threat) but could also lead consumers from expensive goods to more affordable wine (opportunity).
SOCIAL factors that affect Opportunities/Threats ?
SOCIAL factors that affect Opportunities/Threats :
- Trend of younger drinkers avoiding preferences of parents (threat) but then becoming more infatuated with other beverage categories (opp).
- Cultural attitudes towards alcohol consumption, including views towards specific categories (wine, beer, etc…)
- Factors that affect production, e.g. younger gen moving away from rural areas to more urban, cities etc…
- Changing cultural attitudes (e.g. towards global trade, synthetic chem use, animosity between nations) = threats/opps
TECHNOLOGICAL factors that affect Opportunities/Threats ?
TECHNOLOGICAL factors that affect Opportunities/Threats :
- New production techniques can increase quality and decrease costs = opp.
- As tech becomes used more globally, may reduce uniqueness of local style and brand = threat.
ENVIRONMENTAL factors that affect Opportunities/Threats ?
ENVIRONMENTAL factors that affect Opportunities/Threats :
- Climate change; ripening of grapes, changing of wine styles
- Threats to some regions (established regions with restrictive production laws or on the hot end of temperatures)
- Opps for others (cooler wine regions, those which typically struggle to ripen grapes).
- Pressure for alternative land use (urban, agro, reforestation) = both threats / opps.
- Environmental laws can affect logistics, waste mgmt, energy + synthetic chemical use.
