Free DipWSET D2: Wine Business Flashcards (Deck 9)

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[h] DipWSET D2 SET 9

[i] DipWSET D2 – Wine Business Flashcards

SET 9

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[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] Return to page view

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