Free DipWSET D2: Wine Business Flashcards
DECK Number 9
Instructions before starting:
I RECOMMEND YOU LEAVE THE CARDS IN THE INITIAL ORDER AND USE THE “SHUFFLE” OPTION ONLY WHEN YOU MASTER THE WHOLE DECK (= 0 MISTAKE)
Read the Term on the Card and give your answer Click on “Check the Answer” button to check your knowledge Click on “Got It!” if your answer was correct
Click on “Need more practice” to review the card at the end of the deck and try answering another time
Click on “Shuffle” button to change cards order
GOOD LUCK!!
[qdeck]
[h] DipWSET D2 SET 9
[i] DipWSET D2 – Wine Business Flashcards
SET 9
I RECOMMEND YOU LEAVE THE CARDS IN THE INITIAL ORDER AND USE THE “SHUFFLE” OPTION ONLY WHEN YOU MASTER THE WHOLE DECK (= 0 MISTAKE)
– Read the Term on the Card and give your answer
– Click on “Check the Answer” button to check your knowledge
– Click on “Got It!” if your answer was correct
– Click on “Need more practice” to review the card at the end of the deck and try answering another time
– Click on “Shuffle” button to change cards order
[start]
[q unit=”2″ topic=”9″] CONSUMER SEGMENTATION USUALLY USED IN THE WINE INDUSTRY
(2 factors)
[a] HIGH INVOLVEMENT CUSTOMERS
vs.
LOW INVOLVEMENT CUSTOMERS
(but not valid in all countries)
[q unit=”2″ topic=”9″] HIGH INVOLVEMENT CUSTOMERS
(definition)
[a] 1- HAVE DEEP INTEREST IN THE WINES THEY DRINK
2- USUALLY KEEN ON TRYING NEW PRODUCTS
3- CAN SPEND MORE ON WINES
[q unit=”2″ topic=”9″] LOW INVOLVEMENT CUSTOMERS
(definition)
[a] 1- HAVE LITTLE INTEREST IN THE WINES THEY DRINK
2- USUALLY STICK TO FEW PRODUCTS THEY KNOW
3- UNLIKELY RO SPEND MUCH
[q unit=”2″ topic=”9″] ANOTHER CONSUMER SEGMENTATION USED IN THE WINE INDUSTRY
(3 factors)
[a] 1- WINE LOVERS
– great interest
– great knowledge
– high income
– high level of education
2- WINE INTERESTED
– great interest
– moderate knowledge
– university educated
– moderate income
3- WINE CURIOUS
– moderate interest
– limited knowledge
– moderate income
– medium level of education
– see wine as a way to socialize
[q unit=”2″ topic=”9″] SUCCESSFUL SEGMENTATION
[a] IDENTIFY THE TYPE OF CUSTOMERS WHO MIGHT BUY THE PRODUCT
[q unit=”2″ topic=”9″] SUCCESSFUL SEGMENTATION HELPS FORECASTING
[a] 1- HOW MUCH CUSTOMERS ARE WILLING TO PAY
2- WHERE THE PRODUCT IS LIKELY TO SELL
3- HOW TO BEST MARKET IT
[q unit=”2″ topic=”9″] MARKET RESEARCH
(definition)
[a] THE GATHERING OF DATA AND ANALYSIS ON A SEGMENT
TO IDENTIFY NEEDS & WANTS
[q unit=”2″ topic=”9″] MARKET RESEARCH CAN BEN USED TO
[a] 1- DEMAND EXISTS FOR A NEW PRODUCT
2- WHAT FEATURES PEOPLE WOULD LIKE
3- HOW MUCH THEY ARE WILLING TO PAY
[q unit=”2″ topic=”9″] MARKETING RESEARCH IS IMPORTANT FOR
[a] CREATING A MARKETING STRATEGY
[q unit=”2″ topic=”9″] BEFORE STARTING MARKET RESEARCH
[a] 1- BE CLEAR ABOUT GOALS OF THE MARKET RESEARCH
2- IDENTIFY WHAT INFORMATION IS NEEDED
3- FROM WHOM
4- DETERMINE WHICH METHODS SHOULD BE USED
– surveys
– focus groups
– interviews
– observations
– secondary research
[q unit=”2″ topic=”9″] OBSERVING CUSTOMER BEHAVIOUR HELPS
[a] 1- FINDING OUT NEEDS & WANTS OF CUSTOMERS
2- MONITORING THE SUCCESS OF A CAMPAIGN
AND MAKE ADJUSTMENTS
3- UNDERSTANDING WHAT APPEALS
TO TARGETED CUSTOMERS
4- UNDERSTANDING DECISION MAKING PROCESS
[q unit=”2″ topic=”9″] MARKETING CAN INFLUENCE CUSTOMERS ON
[a] 1- SOMETHING THEY NEED or WANT
2- SOMETHING THEY DID NOT KNOW THEY WANTED
3- WHERE TO FIND A PRODUCT
4- HIGHLIGHTING FEATURES / SELLING POINTS OF A PRODUCT
[q unit=”2″ topic=”9″] EXAMPLES OF METHODS OF OBSERVATION
(for studies on consumer behaviours)
[a] 1- WATCHING CUSTOMERS MOVES IN SHOPS
2- STUDYING INTERACTIONS WITH CUSTOMERS
3- ANALYZING DATA FROM STORES’ LOYALTY CARDS
4- USING WEB ANALYTICS
5- STUDYING HOW MUSIC / LIGHTING INFLUENCE CUSTOMERS
[q unit=”2″ topic=”9″] THE PORTRAIT MODEL from Wine Intelligence
(6 U.S. portraits)
[a] 1- ENGAGED EXPLORERS
2- PREMIUM BRANDS / SUBURBANS
3- CONTENTED TREATERS
4- SOCIAL NEWBIES
5- SENIOR BARGAIN HUNTERS
6- KITCHEN CASUALS
[q unit=”2″ topic=”9″] 1st STEP TO CREATE A MARKETING STRATEGY
[a] DEFINE ITS OBJECTIVES
[q unit=”2″ topic=”9″] THE 4 KEY AREAS NEEDED TO BE COVERED BY MARKETING STRATEGY
[a] 1- WHAT TYPE?
– undifferenciated / mass
– niche
-multiple
2- WHAT AIMS?
– launch new product
– increase sales of existing product
– increase market share
…
3- HOW SUCCESS WILL BE MEASURED
– profits
– market share
– value of sales
…
4- THE TIMETABLE
– short term
-long term
[q unit=”2″ topic=”9″] HOW A MARKETING BUDGET SHOULD BE SET
[a] IN REFERENCE TO THE PROFITS EXPECTED FROM THE MARKETING CAMPAIGN
[q unit=”2″ topic=”9″] THE 4 STEPS OF MAKETING STRATEGY
[a] 1- UNDERSTANDING THE PRODUCT / BRAND TO BE MARKETED
2- IDENTIFYING THE TARGET MARKET
3- SETTING THE OBJECTIVES
4- DEVISING THE MARKETING STRATEGY
(5 Ps)
[q unit=”2″ topic=”9″] THE MARKETING MIX
[a] = 5 Ps
– PRODUCT
– PRICE
-PROMOTION
-PEOPLE
-PLACE
[q unit=”2″ topic=”9″] PRODUCT
(from the Marketing Mix)
[a] 1- THE OBJECT / SERVICE / SYSTEM TO BE MARKETED
2- INCLUDES THE LIQUID, PACKAGING, BRANDING
[q unit=”2″ topic=”9″] COMMUNICATION ON THE PRODUCT
[a] 1- COMMUNICATE THE CHARACTERISTICS OF THE PRODUCT
& HOW IT SATISFY NEEDS & WANTS
2- DIFFERENT TYPES OF CUSTOMERS ARE ATTRACTED
TO DIFFERENT FEATURES
3- DESCRIBE THE EXPERIENCE THAT THE PRODUCT
WILL DELIVER
4- EXPLAIN CLEARLY HOW THE PRODUCT IS DIFFERENT
FROM THE COMPETITION
[q unit=”2″ topic=”9″] WINE MARKET PECULIARITIES
[a] IS A SATURATED MARKET
MEANING THAT THERE IS A STRONG COMPETITION
BETWEEN SIMILAR PRODUCTS
[q unit=”2″ topic=”9″] PRICE
(from the Marketing Mix)
[a] 1- INCLUDES ANY ADDITIONAL COSTS
2- INCLUDES TIME & EFFORTS NEEDED BY THE CUSTOMER
TO FIND / BUY THE PRODUCT
[q unit=”2″ topic=”9″] PRICE STRATEGY TO ENTER A MARKET WITH A PRODUCT
[a] 1- LOW PRICE = ATTRACT NEW CUSTOMERS
2- CAN BE DIFFICULT TO RAISE SUBSEQUENTLY
[q unit=”2″ topic=”9″] PRICE INFLUENCE ON CONSUMER BEHAVIOUR
[a] 1- CUSTOMERS DECISION MAKING STRONGLY INFLUENCED BY PRICE
2- MORE PLEASURE IS FELT WHEN CONSUMING EXPENSIVE WINES
3- ASSUMPTION THAT THE PRICE IS BETTER IF EXPENSIVE
(especially if low knowledge)
[q unit=”2″ topic=”9″] PEOPLE
(from Marketing Mix)
[a] 1- ATTITUDES & BEHAVIOURS OF TARGET CUSTOMERS
2- EMPLOYEES ATTITUDE, SKILLS, CUSTOMER SUPPORT
& CUSTOMER SERVICE
[q unit=”2″ topic=”9″] PLACE
(from Marketing Mix)
[a] 1- WHERE THE PRODUCT IS SOLD / TO WHOM
(e.g. independant specialized retailers,
high involvement customers)
2- IDENTIFY THE MOST EFFECTIVE DISTRIBUTION CHANNELS
FOR THE TARGETED SEGMENTS
3- TAKE INTO ACCOUNT THE DIFFERENT TYPES OF MARKETS
(maturity…)
[q unit=”2″ topic=”9″] PROMOTION
(from Marketing Mix)
[a] 1- ALL METHODS USED TO PROMOTE A PARTICULAR PRODUCT
2- DIVIDED IN
– point of sale promotion
– promotion outside point of sale
3- A SINGLE TYPE OF PROMOTION IS NOT ENOUGH
FOR A WHOLE SEGMENT
4- SHOULD CONSIST IN A VARIETY OF ELEMENTS TO CONNECT
WITH A LARGE AUDIENCE
[q unit=”2″ topic=”9″] 5 TYPES OF MARKETS
(based on Maturity)
[a] 1- MATURE MARKET
2- ESTABLISHED MARKET
3- GROWTH MARKET
4- EMERGING MARKET
5- NEW EMERGING MARKET
[q unit=”2″ topic=”9″] MATURE MARKET
[a] 1- REACH ITS FULL POTENTIAL
2- STABLE / DECLINING
EXAMPLES: FRANCE, GERMANY
[q unit=”2″ topic=”9″] ESTABLISHED MARKET
[a] = STRONG HISTORICAL GROWTH TAILING OFF
EXAMPLES: ITALY, SOUTH AFRICA
[q unit=”2″ topic=”9″] GROWTH MARKET
[a] 1- WINE IS THE MAINSTREAM PRODUCT
2- MARKET IS EXPERIENCING GROWTH
EXAMPLES: USA, CANADA, BRAZIL, POLAND
[q unit=”2″ topic=”9″] EMERGING MARKET
[a] = SHOW GROWTH POTENTIAL FROM A RELATIVELY LOW BASE
EXAMPLES: CHINA, RUSSIA, TAIWAN
[q unit=”2″ topic=”9″] NEW EMERGING MARKET
[a] = WINE RELATIVELY NEW & UNKNOWN
(with potential)
EXAMPLES: INDIA, THAILAND
[q unit=”2″ topic=”9″] MATURE MARKETS CHARACTERISTICS
(positive & negative)
[a] 1- POSITIVE
– reliable trade structures
– reliable route to market
– established wine structure
2- NEGATIVE
– highest saturation
– least growth
[q unit=”2″ topic=”9″] EMERGING & NEW EMERGING MARKETS CHARACTERISTICS
(positive & negative)
[a] 1- POSITIVE
– potential for large growth
2- NEGATIVE
– carry the most risks
– do not have trade structures
– no easy route to market
[q unit=”2″ topic=”9″] AIMS OF SALE PROMOTION
[a] 1- INCREASE SALES OF EXISTING PRODUCTS
2- GAIN VOLUME SALES FOR NEW PRODUCTS
3- ATTRACT NEW CUSTOMERS
4- BIN ENDS
[q unit=”2″ topic=”9″] BIN ENDS
(definition)
[a] SALE OF OLD STOCKS / DISCONTINUED LINES
[q unit=”2″ topic=”9″] EXAMPLES OF POINT OF SALE PROMOTION
(by types)
[a] 1- % DISCOUNT
2- SEASONAL SALE
3- DISCOUNT CERTAIN DAYS
4- MULTI-BUYS
5- DISCOUNT FOR A GROUP OF PEOPLE
6- VOLUME DISCOUNT
[q unit=”2″ topic=”9″] MULTI-BUYS
(definition & examples)
[a] CONSUMERS PAY LESS IF THEY BUY MORE
(volume discount)
examples: 1+ 1free
1+ 1 at 50%
3= price of 2
…
[q unit=”2″ topic=”9″] TIMING TO ASSESS THE SUCCESS OF PRICE PROMOTION
[a] CANNOT BE JUDGED UNTIL THE PROMOTIONAL PERIOD HAS ENDED
AND PRICE HAS RETURNED TO NORMAL
[q unit=”2″ topic=”9″] EFFECT ON SALES OF A PRICE PROMOTION THAT WORKED
[a] VOLUME OF SALES POST-PROMOTION SHOULD BE HIGHER
THAN THE VOLUME OF SALES PRE-PROMOTION
[q unit=”2″ topic=”9″] RISK OF PRICE PROMOTION
[a] 1- NO CUSTOMER LOYALTY BUILT
2- JUST OPPORTUNITY PURCHASES
in that case, volume of sales post-promotion
will not be higher than pre-promotion
[q unit=”2″ topic=”9″] OTHER RISKS ASSOCIATED WITH PRICE PROMOTION
[a] 1- DAMAGED BRAND IMAGE
2- DISCOUNTED PRICE SEEN AS THE CORRECT PRICE
[q unit=”2″ topic=”9″] MULTI-BUYS & VOLUME DISCOUNT ARE CONTROVERSIAL BECAUSE
[a] THEY ENCOURAGE ALCOHOL CONSUMPTION
they are banned in Sweden & Scotland
[q unit=”2″ topic=”9″] 2 TYPES OF PROMOTION CARRYING THE LESS RISK OF DEVALUING THE PRODUCT / BRAND IMAGE
[a] 1- LINK SAVES
2- DISCOUNT ON DELIVERY COSTS
[q unit=”2″ topic=”9″] LINK SAVES
(definition)
[a] BUY ONE PRODUCT AND GET A REDUCED PRICE ON ANOTHER FROM A DIFFERENT CATEGORY
[q unit=”2″ topic=”9″] BENEFITS OF PROMOTION
(from the Marketing Mix)
[a] 1- INCREASE SALES
2- IMPROVE BRAND AWARNESS
[x] GOOD JOB!! [restart]
[/qdeck]
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