What is the definition of “marketing” according to the Chartered Institute of Marketing?
“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.
What are the five key stages of a marketing strategy?
- Identifying the product/brand to be marketed;
- Identifying the target market;
- Setting the objectives of the marketing strategy;
- Devising the marketing strategy (the ‘marketing mix’);
- Implementing and monitoring the marketing strategy.
What is the life cycle, or the four stages, of a product?
- Introduction/Launch
- Growth
- Maturity/stabilization
- Decline
Each stage needs its own marketing strategy for the product or brand to remain competitive.
Give two reasons why brands seek to differentiate themselves from commodities.
- 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.
Name seven ways brands can create positive perception of their identity in consumers’ minds.
- Substance (consistent quality);
- Consumer trust (brand reliability);
- Consumer engagement (get consumer to ask for brand by name);
- Story of the brand (create emotional attachment);
- Price premium (charging higher prices for their product);
- Longevity;
- Strength of brand name (should be easy to pronounce and remember).
Name five terms used to describe aspects of branding or types of brands.
- Brand position (is it value, standard, premium, or super-premium?);
- Private label;
- Ladder brand;
- Soft brand;
- Luxury brand.
Describe a ladder brand.
A brand that has three rungs of affordability:
- Accessible;
- Stretch;
- Aspiration.
What is a SWOT analysis?
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.
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?
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.
Segmentation is shaped by what four variables?
- Geographic (where consumers live);
- Demographic (e.g. age, gender, income, occupation);
- Psychographic (lifestyle and interests);
- Behavioral (benefits sought, early adopters, where and when do they buy wine?).
Why is market research so important prior to creating a marketing strategy?
It can confirm whether or not the marketing approach suggested by the segmentation exercise is on point.
Name three ways how marketing can influence consumer behavior.
- Brings a product to the attention of the consumer, and hopefully it’s something they need or want;
- Directs consumers where to buy a product;
- Highlights the strengths and benefits of a product.
A good marketing strategy needs to define its objectives, and those objectives must cover four key areas:
- What type of marketing strategy is the company using?;
- The aims of the marketing strategy;
- How the success of the marketing strategy will be measured;
- Within what time period or is there a deadline by which the objectives ought to be achieved?
What are the three general types of marketing strategies?
- Undifferentiated or mass;
- Niche;
- Multiple.
What or whom does an undifferentiated or mass marketing strategy appeal to?
Appeals to entire market or a large section of the market with a single product.
What does a niche marketing strategy do?
Aims a product at a specific segment of the market.
What are the two approaches of a multiple marketing strategy?
- Appeal to several segments with one brand (requiring a different marketing approach for each segment);
- Launch several brands, each targeting different segments.
Give seven examples of what a marketing strategy aims to do.
- Launch a new product;
- Publicize improvements to an existing product;
- Increase sales;
- Increase market share;
- Improve brand awareness;
- Improve brand identity;
- Attract new consumers.
What are the five “Ps” of marketing?
- Product;
- Price;
- People;
- Place;
- Promotion.
What are the five types of markets within the wine market maturity model?
- Mature market;
- Established markets;
- Growth markets;
- Emerging markets;
- New emerging markets.
In what two places do promotional activities happen?
- At the point of sale;
- Away from the point of sale.
Give 5 examples of promotions at the point of sale.
- Price promotions (e.g. for a limited time, Buy One Get One, 3 for the price of 2);
- Free merchandise;
- Limited edition;
- Competitions amongst consumers;
- Staff incentives.
Give nine examples of promotions away from the point of sale.
- Advertising (e.g. billboards, TV, radio);
- Sponsorship;
- Websites;
- Social media;
- Smartphone apps;
- Wine tourism;
- Events/festivals;
- Reviews + awards;
- Public Relations.
In most countries, a wine company’s sponsorship is treated as a form of advertising and is therefore subject to the same legal restrictions.
Why is this sometimes considered to be a controversial topic?
Some people question the suitability of linking alcohol with activities that are intended to promote health and well-being.
