Ch 11 - 15 - Mktg Strategy Dev and Execution Flashcards
Marketing Strategy
What are the 4 components of setting mktg strat objective?
- Type of strat
○ Undiff/mass - appeal to whole market w/ single prod - e.g., branded wines in supermarkets
○ Niche - prod targeted to specific segment
○ Multiple - either single brand across segs or multiple brands each targeted to one segment- Goals of marketing strat
○ New prod launch
○ Communicate improvements to existing prod
○ Inc sales
○ Inc market share
○ Imp brand awareness
○ Imp brand identity
○ Attract new cust - Define success and how measure it
- Goals of marketing strat
- Time period to achieve goals
Marketing Strategy
What is the marketing mix?
- Combination of efforts to reach target market and achieve marketing goals
- 5 Ps - Product, Price, Place, People, Promotion
Marketing Strategy - Marketing Mix
How does PRODUCT fit into the mix?
What is it? What is marketing focus?
Key consideration?
- The object or service being marketed, including packaging, branding and experience
- Mktg focus on most salient attributes for target audience w/ key prod elements tailored for them (e.g., label)
- Consider how crowded market is - more compet -> critical to communicate most impt features and their benefits (e.g., biodynamic)
Marketing Strategy - Marketing Mix
How does PRICE fit into the mix?
What is it? What is the ideal? Examples of P strategy?
- Total amt cons pays - for prod + ancillary costs like cost of cons time to buy, delivery, discounts, etc
- Ideal - make reasonable profit that sufficient number of cust willing to pay
- Price shown to have signif impact on cons perception of quality
- Price thressholds - 9.99 vs 10
- Pricing strat
○ Low P/promo price - market entry, gain share, expand audience (switching in crowded mkt) - can be hard to raise
○ Higher P - selective dist - premium positioning
Marketing Strategy - Marketing Mix
How do PEOPLE fit into the mix?
- Can cover both insights about cons attitudes/behaviors -> tailor mix (avoid social if seg not active there)
- Can also focus on capabilities within the org and relationships with partners -> customer service, ability to address mkt oppty
- Helps ID skills/capabilities needed inside org - cust service, market expertise - and among partners - distrib, PR, etc -> org needs to decide which need to be internal vs leverage from outside
Marketing Strategy - Marketing Mix
How does PLACE fit into the mix?
What is it and what does it cover?
Example - high vs low involvement cons
Critical consideration?
- Where prod is sold based on where target market shops AND identifying optimal distribution strategy
○ Type of retailer
○ Which countries
○ Which type of market- High involve - shop at specialty wine stores, high end supermarkets, inc at deep discounters; specialist wine bars, casual and fine dining
○ Want to experiment and expand - storytelling, expertise, service key - Low involve - want lower P wines, expect basic quality standard -> supermarket, general bar, non-dest restaurants
- Distribution - specialist (high involve) vs larger dist (low involve)
- Consideration - legislation, taxation, restrictions on distribution, nature of market (price-sensitivity)
- High involve - shop at specialty wine stores, high end supermarkets, inc at deep discounters; specialist wine bars, casual and fine dining
Marketing Strategy - Marketing Mix
What are 5 types of markets?
Adv/Disadv?
When considering PLACE as part of 5 Ps
-
Mature - wine at max potential - stable, declining vols - old world -> saturated, but reliable trade structures and routes to market and estab wine culture
- Estab - strong historical growth that is slowing - SA, Italy, Hong Kong
- Growth - wine is mainstream product and is still growing - US, Canada, Brazil
- Emerging - growth from low base and shows longer term growth potential - China, Russia, Turkey, Taiwan -> riskier and don’t have estab structures but high upside potential
- New - wine is still new and unknown, showing signs of potential - India, Malaysia, Philippines
Marketing Strategy - Marketing Mix
How does PROMOTION fit in the mix?
What is it? What are 2 basic categories?
Key consideration
- Methods used to promote a product - often need multiple to appeal to a whole seg
- Consideration - different country-specific laws - esp on alc advertising
- 2 broad kinds of promotion - at POS and away from POS
Marketing Strategy - Promotion Options
What are the 6 main types of at-POS promotions?
- Price promos
- Competitions
- Limited edition/packaging
- Consumer tastings
- Staff incentives
- Staff training
Marketing Strategy - Promotion Options
What are goals of price promo?
What are 3 broad kinds of price promos and examples?
How eval success?
Adv/risks?
- Goals - inc sales of existing prod, intro new prod, attract new cust, inc purch vol, sell old stock3 kinds of price promo:
* Straight price promo - $ or % off, seasonal, certain days, groups of people (students)
* Multi-buy - BOGO, 3 for 2, save specific amt for spend over X
* Link-save - discount associated prod, not wine -and promote something other than the wine itself - delivery -> less risk of brand impact- Eval success - total sales before and after, margin of sales, sales trend before/after - net cost of promo meets hurdle
- Adv - inc sales, inc rev, inc brand awareness, inc new cust, multi-buy and link-saves can inc sales w/o impact image of prod
- Risks - promo doesn’t build loyalty, creates beh of waiting for promos to buy, can damage image (not willing to pay full P)
○ Champagne concerned about P promo in supermarkets
○ can be seen as promoting alc cons - banned in sweden and scotland - some places have min pricing
Marketing Strategy - Promotion Options
How are competition/sweeps used promotionally?
Packaging?
Tastings?
- Competitions/sweepstakes - used to incent cons to buy specific prod
- Adv - avoid prod discount, experiential, capture consumer data
- Disadv - data privacy rules
- Packaging - limited edition, premium displays -> may not drive sustained results
- Tastings - trial creates awareness, can inc sales, oppty for brand awareness/storytelling
Marketing Strategy - Promotion Options
How are staff-related promos used at POS?
- Staff incentives - bonus for selling a product - can be illegal in some markets
- Staff training - inc education on key prods
- Good in smaller locations w/ good customer interaction, less viable in bigger outlets
Marketing Strategy - Promotion Options
What are 11 forms of non-POS promotion?
- Advertising (traditional)
- Digital advert
- Social media
- Website
- Mobile apps
- Reviews/awards
- Wine tourism
- PR
- Sponsorships
- Events/festivals
- Free merch
Marketing Strategy - Promotion Options
What are traditional advertising options?
Adv/disadv?
Key constraint?
- TV, prod placement, radio, billboards, print
- Adv - well designed can have signif impact on brand perception and sales for a long time
- Disadv - expensive, hard to measure, cost of ad agency
- Key constraint - signif legal restrictions on alc advertising (Loi Evin in France)
Marketing Strategy - Promotion Options
What are adv/disadv/considerations for:
- TV
- Radio
- Print
- Billboards
- TV - large reach, expensive, prod placement chaper
- Radio - cheaper, less reach and less impactful, can be highly targeted
- Print - good for storytelling (more detail than TV/radio); can choose broad vs narrow reach via wine-specialty media (reach influencers)
- Billboards - roads, train stations - can have high visibility but lower impact, short messages best
Marketing Strategy - Promotion Options
What are 4 digital advert options?
What are considerations for each?
- Online - ads on websites - targetable, measurable, can be expensive
-
Social - enables dialog w/ consumers
○ Critical to have broad content strategy - not just self promotion, but news and other content to not alienate people
○ choose appropriate SM channel (FB/Insta older demos)
○ Content is sharable - reviews, user-created content (influencers), potential for negative publicity/reviews - manage social presence carefully and regularly engage-
Websites - provide info, reinforce brand, storytelling -> invest in quality site and experience, needs to stay updated -> IT costs, cust service, content creation
○ SEO investments so cons can find site
○ Control who accesses - legal age
-
Websites - provide info, reinforce brand, storytelling -> invest in quality site and experience, needs to stay updated -> IT costs, cust service, content creation
- Mobile apps - inc imptc, more specialist sourcing apps get paid commission for driving traffic to retailers
Marketing Strategy - Promotion Options
How do reviews/awards work for promo?
Considerations?
- Professional reviews can make a huge diff - esp w/ less knowledgeable cons
- Prod send samples to critics
- Wine competition - win medal
- Cost of entering contests, sampling and managing logistics
Marketing Strategy - Promotion Options
What is wine tourism?
Who attract?
Adv/disadv?
- Oppty for people to visit producer - experiential, trial
- Generally attract higher-involve consumers; low involve consumers more likely to visit if they are doing something else there
- Range from basic cellar door to sophisticated tourism experiences -> tours, dining, events, accommodation, event spaces
- Some regions create tourism strategies - festivals, umbrella marketing, maps, and destination activities (Napa Wine Train)
- Adv - can attract lots of new cust, generate signif sales
- Disadv - can be very expensive to set up and run
Marketing Strategy - Promotion Options
What is PR?
How differ vs advertising?
How used?
Adv/disadv?
- PR goal is to create most positive image in mind of cons (vs advert which wants to draw attention to a prod)
- Company reps at public events/TV/Radio; press releases w/ important news, newsletters, social media
- Strong social/corp responsibility message can amplify pos message
- Brand ambassador - used by large companies - celebs/influencers/opinion leaders -> shared values bet person and company (China opinion leaders on social)
Adv - tell own story
Disadv - depend on coverage pickup and accuracy
Marketing Strategy - Promotion Options
What are sponsorships?
Key consideration?
- Deals to associate your brand with a broader event/cause; can sponsor TV shows
- Need to assure brand fit, hard to measure outcomes
- Logo display/activation opptys, can be exclusive
- Subject to same legal rules as ads - can be controversial in sports to promote alc
Marketing Strategy - Promotion Options
What are events/festivals?
Adv/disadv/considerations?
- Inc # regions hosting wine-focused festivals to bring together producers; can also attend non wine-focused festivals - larger range of visitors but less likely to acquire new customers/inc sales
- Held in urban areas - cons don’t need to travel, one-stop visit to try multiple
- Mostly attract high involve - but others w/ music food can attract more broadly
- Can be effective way to create awareness with large numbers of people
- Prod have to pay fees, create display, staff and cost of prod samples, have lots of competition from other producers
- Manage drinking age
Marketing Strategy - Promotion Options
How is free merch used?
Considerations?
- Give away that allows prom w/o discounting product - 2 branded glasses packaged w/bottle
- Big prod have an array of branded merch - can inc awareness
- Can be expensive to develop/maintain
Implement and Monitor Strategy
How are campaigns measured?
- Sales data
- Marketing funnel/engagement metrics
- Marketing research (not market research) to get feedback on campaign
What are 4 options for how companies carry out marketing?
* In-house - largest companies, can leverage across brands; can have in diff markets
- Agency - smaller companies, or hire special expertise
- Do it themselves - smallest can’t afford agencies
-
Associations - goal is to promote members products - can have mktg team and/or pool own resources
○ Industry/region association (VDP), generic trade group (wine australia) or informal trade group
○ Usually a fee - but less than hiring own or agency
○ Benefit from being exposed at part of broader portfolio and brand halo of assn/region
