Identifying the Target Market / Setting the Objectives

Question 1

What will a successful segmentation exercise help with?

Answer 1

1. Identifying a consumer who might buy a particular product
2. Making a realistic estimate of how much consumer may be willing to pay
3. Where it is likely to sell
4. How best to market

Question 2

Segmentation

What are four sets of variables used in segmentation?

Answer 2

Geographic
Demographic
Psychographic
Behavioural

WSET says last 2 more predictive of similarity

Question 3

Segmentation: Pyschographic

What are 4 psychographic characteristics (example of each)?

Answer 3

1. Lifestyle (e.g. go out a lot)
2. Personality (e.g. show off wealth)
3. Values and beliefs (e.g. organic)
4. Interests (e.g. in particular region)

Question 4

Segmentation: Behavioural

What are 5 variables based on observable behaviour?

Answer 4

1. Benefit wanted from wine (e.g. VFM)? When do they buy (e.g. special occassions)?
2. Where do they buy? How often?
3. Level of brand loyalty
4. Level of interest in wine
5. Early vs. late adopters

This is inaccurate in practice

Question 5

Segmentation

Describe Hall’s 3 consumer groups

What is the criticism

Answer 5

1. Wine-lovers - great interest & knowledge. High income and education
2. Wine-interested - great interest, moderate knowledge, uni educated & moderate income
3. Wine-curious - moderate interest, limited knowledge. Moderate income & medium education. Wine is to maintain social relations.

Criticism: Too simplistic to link wine interest & knowledge to income and education

Question 6

Segmentation

Describe high and low involvement consumers

Answer 6

High involvement - Deep interest, try new products, spend more

Low involvement - Little interest, stick to few products, spend little

Question 7

Segmentation

What is a typical disadvantage of wine segmentation models?

Answer 7

Result of academic studies with small sample size, don’t extend to market as a whole

Question 8

Market Research

What is market research?

Answer 8

The gathering and analysis of data about a particular market segment in order to understand what they want or need

Question 9

Market Research

3 important things to clarify before starting research

Answer 9

1. What info is needed
2. From whom will data be gathered
3. How will research be carried out

Question 10

Market Research: Observing consumer behaviour

Name 5 methods of observing and recording consumer behaviour

Answer 10

1. Observing how consumer move around a shop
2. Interacting with consumers
3. Store loyalty cards
4. Web analytics
5. Academic studies (e.g. into music)

Question 11

Market Research: Observing consumer behaviour

How can marketing influence consumer behaviour?

Answer 11

1. Focus attention on something people need or want
2. Direct people to where they can buy
3. Highlight selling points of product
4. Influence evaluation of alternatives

No idea why all this was put in this section

Question 12

What four areas should the objectives cover?

Answer 12

1. Type of marketing strategy (mass / niche / multiple)
2. Aims of marketing strategy (e.g. launch, sales, awareness etc)
3. How will success be measured
4. Within what time period should objectives be achieved