Principles of Marketing: Segmentation, Targeting & Positioning for Vineyard Business

This report discusses the principles of marketing for a vineyard business, including segmentation, targeting, and positioning strategies. It covers PESTEL analysis, marketing mix analysis, and the components of the marketing planning process. The report also includes a discussion on market orientation and the overall market segmentation for tourists looking to book a vineyard tour in the UK.

PRINCIPLE OF
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
SECTIION 1 - Marketing Environment and Planning Process...................................................................3
Section 2- Segmentation, Targeting & Positioning..................................................................................7
Section 3 – Marketing Mix Analysis.........................................................................................................9
Conclusion.................................................................................................................................................12
REFERENCES..............................................................................................................................................13

INTRODUCTION
Marketing is a border concept which starts when the company decide to produce a
product. It is an activity where the organization promote or advertise their good or services. It
includes various activities that are advertising, selling, delivering and after sale services to the
consumers. This is done by the companies so that they can attract more customers toward them.
Marketing is the process through which organization try to build interest of customers toward
their product and services (McDermott, M, and et. al, 2021). With the constant change in the
environment the taste and preference of the people also changes very frequently so if the
organization want to bring growth than they need to adopt various strategy of promoting their
product. Marketing principles are those ideas and thought that company adopts so that they can
do effective promotional activities for their organizational image and growth. This report is made
so that a detailed understanding can be made about various marketingprinciples and the issue
which are being faced by the organization. This report will also consist what marketing mix will
be used by Jamie and Megan so that they can promote their vineyard business in all over the
world and attract the foreign clients toward them (Usacheva, 2019).
MAIN BODY
SECTIION 1 - Marketing Environment and Planning Process
a) Components of marketing planning process
There are eight components of marketing planning process these are as follow:
 Market research and analysis: The first components of marketing plan are to gather
all the information and data about the market. So vineyard first need to have to do a
detail research and analysis about what strength and weakness they possess and who
will be the target audience for the company.
 Marketing and financial goals and objectives: This is the second component of
marketing. In this the organization design their marketing financial goals and
objective. This will help the vineyard to focus on the marketing efforts which will
help them to gain long term goals (Sahaf, 2019)

 Marketing mix: Marketing mix is the third components which pronounce the
particular strategy which help vineyard to reach with their target customer. Marketing
mix is includes the seven P’s.
 Marketing budget. This is the most important component while making a marketing
plan. In this a budget is prepared for the marketing activities so that a clear picture
can be get about the expenses that will occur will promoting the wines by the
vineyards
 Monitoring the market response: In this components vineyard will see what tools and
techniques they will use to see the revert of the customer about their wines. This is
done so that actual result can be obtained.
 Contingency plan: This plan is prepared for the vineyard so that if their strategies
goes wrong while marketing their wine then a second back up can be used by them
(Beirman, 2020).
 Marketing plan checklist: This is the last components which is used by the vineyard
so that they can prioritize their task and put those task into action which is important
for marketing at early stage.
Marketorientation is a business belief which helps the vineyard by keeping their focus on
identifying the needs and want of the customer by looking at the market scenario. If the vineyard
will have their marketing orientation, then this would help them in effective way as they can
design and sale the wines in such a manner that will satisfy their consumer desire and gain profit
out of it. In today’s era market orientation play a vital role because it will help the organization
to recognize their clients’ needs and work accordingly which will help them to gain more brand
loyalty toward them. There are four stages of market orientation which are as Initiation,
Reconstitution, Institutionalization, Maintenance(Luu, 2019).
b) PESTEL analysis:
PESTEL analysis is used when the organization want to evaluate their external environment
so that they can see the opportunity and threats that lies outside. PESTEL Political,
Economic, Social, Technological, Environmental, Legal.

PESTEL analysis factors are:
 Political: Theses are those factor which is impacted by the government of the nation.
Some of the factors that are included in it are Laws, Taxation policy etc. some
vineyard also looks at this factor before diversifying their business in the parts of the
nation so that they can see what kind of political stability are there, tax rate prevailing
for the industry, terms of government etc (Rahman, 2018).
 Economical factor: This factor plays a vital role for the success of the firm. Some
elements that are to be see when vineyard evaluate the external surrounding:
economic growth, current trade cycle is in the state of expansion, depression, inflation
rate, unemployment rate etc., these all will help to know them whether they will
survive or not.
 Social: Society and culture is very important factor for the business. There values,
belief, norms and ethics greatly affects the company. Demographic condition.
Customer preferences, society religious are some of the factor which need to be
analyzed by the Vineyard so that they can gain advantage out of it (Davi, 2019).
 Technological: With the fast changing technology the companies should also invest
in them so that they can effectively enhance their production. This factor can be a
great opportunity as well as threat for the company.
 Environmental: This factor directly impacts the firm ability to function well. Some
of environmental factors are environmental issue, energy, natural resources hazardous
material etc.
 Legal: There are various laws, rules and regulation which are imposed by the
government to the companies which they need to be obey. Business laws, health and
safety laws, environmental safety laws.
There is some micro environmental factor which is to be evaluated by the vineyard so that
they can know what are their strength and weakness.
 Competitor: Every industry has their competitor which fight with them in the
toughest way they can. With reference to the vineyard their rivalry is the champagne
producer that is situated in France. They need to adopt those strategies that will help
them to gain the competitive advantage from their competitor.

 Suppliers and distributors: Vineyards is selling their wines in UK only so they need
to careful analysis the distributor channel so that theycan market their wines in the
foreign country as well(Kwok Tang and Yu, 2020).
c) Marketing mix
Earlier there were only four pillars of marketing mix that is Price, Place, Product and
promotion, but with the time marketing mix extended. So extended marketing mix is just an
addition of the earlier four pillars of marketing mix. Now there are seven pillars of marketing
mix. Three more elements join that are people, physical evidence and processes. These were
added by the marketer when they came to know that the other three components are equally
important for marketing of goods and services. With the time theses 7 P’s provides a clear
picture and idea to the marketers(Elias, 2018).
b) Some of the reason why this marketing mix is useful are:
 Make informed decision: These seven pillars of the marketing mix help the
organization to make a informed decision about the strategy and plans that can be
used to promote the goods and services. As the extended marketing mix cover all
the aspects so it help them to observe all the circumstances from numerous
perspectives. So if all the majors are identified then a better decision can be made
by the company which also helps them to differentiate themselves by other
competitor and increase their effectiveness.
 Designing a budget: As all the components are being covered in the extension
marketing mix so if all of them are analyzed properly then organization can
develop a budget which will help for Various marketing operation for their new
product.. The entire seven pillars give the marketer different information which
can help them to better decides where to utilize the resources in how much
quantity. Optimal utilization of resources can be made out of this. Prioritising the
task on the basis of resources can also be made by these extended marketing
mixes(Dolnicar, 2020).
 Creating complete plan: Seven pillar of marketing mix are directly connect with
the planning, so these help the marketer to design a plan accordingly. The plans
which are made on the basis of extended marketing mix also highlights those

areas where there is need to do improvement. This will also help in utilizing the
time. Money and resources of the company.
So with the help of these marketing mixes company can use them in designing their new
products (Dolnicar, 2019).
Section 2- Segmentation, Targeting & Positioning
a) The overall market could be segmented for Tourists coming to the UK looking to book a
vineyard tour in following ways:
All the tourist who come UK is not same, some belong to different culture, region, visitor
also vary from age, gender, income etc. There taste and preferences also differ and depend upon
the condition they live. In fact the choices are also different. So marketer divides them according
to the segmentation. Market segmentation is a process where the consumers are being divided
according to their need and wants. So the market researcher of the wine industry also segmented
them so that they gather the information and uses them to gain the opportunity for the
competitor. So the vineyard tour tourism is also separated so that they can satisfy the tourism
needs accordingly. This is done by then so that they can get the advantages of: understanding the
particular demand of the tourist client, helps them to distribute expenses effectively and design
the strategies on the basis of the target audience of various segments. In the wine industry of the
vineyards the tourist are segmented on the following ways (Hajibaba, Grün and Dolnicar, 2019).
 Demographic factor: The vineyard hill segment there tourist on the basis of gender, age,
caste, occupation, income, education. So that they can reach to the target audience are
prepared the marketing content on the basis of this. the company give more importance to
this market segment so that decision of the marketing strategy can be made properly.
 Psychographic: The marketing agents can also use this factor as the segmentation where
they see the psyche of the visitor in proper manner. In this Vineyard marketers can collect
the data about the people interest, attitude, behavior and living life and then make ides
which can directly influence their buying pattern toward them.
 Tourist class: Vineyard can also segment their tourist on the bases of class. There are so
many visitor class such as single tourist, business visitor, tourist with friends, Incentive

tourist so that they can attract them by using the strategy which directly influence their
class(Jiang, Dan and Jie, 2020).
b) B2C marketing refers to business to consumer marketing. In this type of market targeting the
business directly target the customer to sell their goods and services. The vineyard hills is a wine
producer, so they will target those consumer who will belong to the middle age. This target
audience is been chosen by them because in the whole world people between this age is
more(Suh and Kim, 2021). Some of the characteristic that will be chosen by the company to
target their consumer market is:
 Demographic elements: This is the B2C target market approach where audience will be
targeted on the basis of individual attitude. Targeting the consumer of vineyard will be
simpler as target consumer will be chosen on the basis of income level. Wines are sale at
very high price. So those target strategy will be selected by them who will directly attract
the consumer of the business on the basis of their income level. As the business will be
running for the first time so decision criteria will be based on this approach.
Behavioral elements: This is the other component of B2C target market where respondent are
selected on the bases of their lifestyle, usage. Here consumer of vineyard will be targeted on the
basis of benefit type, which means the clients are aimed on the basis of benefit they will procure
from the good. Purchasing pattern and lifestyle also play a role in this. Target marketing strategy
will be more advance as their purchase behavior will help the hill vineyard to target them in
effective and efficient manner(Mackelprang and et. al, 2018).
c) Market Positioning is an approach where the whole perception of the consumer is being
altered towards the company’s product relative to competitor. The main aim behind the
positioning is to build the brand identity in client mind so that they can see the company in
certain manner. There are certain types of marketing positioning that can be used by the vineyard
tour positioned themselves in the consumer market, these are as follow (Iyer, and et. al, 2019).
 Product price: They can use this strategy where they will charge low price from the
Visitor in comparison with the champagne seller of France.
 Product quality: one of the important market positioning strategy is the providing high
quality wine to the tourist so that they can attract toward you.

 Product use: This will also help the vineyard hills as they can use those positioning
strategy that will tell the visitor about the use of wines indifferent way.
To market positioning the wine they first also look at customer need and produce accordingly
which help them to change toe clients mind and attract them towards them (Saqib, 2020).
Section 3 – Marketing Mix Analysis
Marketing mix pillar Hill’s vineyard
Product Sparkling and table wine which is produced
in Chalky soil with High quality taste.
Various flavors are being planted at 20 acres
of land. The smell and color of wine is so
perfect that will smell like flower. Vineyard
hills produce five color wines that are red,
white, rose, brown and dessert. The
packaging of the wine is extraordinary. In
fact they come in different Milo liter, so that
customer can pick whatever ML they want to
drink.
Price This is the second P. It is define as the
amount which will be payee by the customer
to get the wine. The pricing strategy of
vineyard is economy pricing. Because the
firm is located on some parts. So they cannot
high more prices. The price set for vineyard
wines are reasonable which can be purchased
by more customers as compared to the
champagne (Ndofirepi, Farinloye and
Mogaji, 2020).
Place Place refer to the market were the consumer
can buy the wines. It can be virtual location

as well as physical location. Recently the
buyer can get it from local shops or some
shops in UK. But now the company is
planning to sale their product online. So that
they can enhance their market share. Earlier
they are selling at the local shops because
there is high competition in the market but as
the article published in the market so they
starting thinking of selling it online. As the
wine is exotic drink so they need to evaluate
market so that source channel can be
selected.
Promotion Earlier the company is advertising their
product on local market were they sale
pamphlets and aware their clients about the
product. But now a article is published on the
newspaper so they think of promoting their
wine by using various social media platform.
They also use various hash tag for the
product which intensely promote the wine in
foreign country as well. They are adopting
the print media strategy after an article
published on that. They also providing wine
fest which help them a lot (Othman Harun
and Nazeer, 2018).
People Earlier only Jamie and Megan was the only
employee but as their supplies change is
enhancing, so they are thinking of recruiting
varies employee so that they can expand in
the market. Customer, employee, and
investor all the three is useful as people of

the company. Employee are useful so that
they can enhance their production in effective
manner and the cost of producing will also be
low, customer are also important as they will
ultimately consume the wine. Investors are
those people who will raise their capital in
the business. As they are planning to
diversify their business so they need investor
who can raise the source of capital.
Physical evidence The physical evidence that will position them
in the market. In recent the market
positioning is done by one of the UK
newspaper editor which help them to change
the client perception in the favor of the
vineyard product. This also helps them as
they are providing various support to the
vineyard by telling them the strategy which
will help them to diversify in international
market.
Process There are selling the product in the local
stores and small retailers but now they are
think of making the website which will the
help customer to order the fruit online. With
the help of website they can interact with
many consumers and it will be easy for the
employee to order and delivery the wine all
over the customer on one go and will
enhance their market share(Tirto, 2020).

Conclusion
From the above report it is been concluded that marketing principle plays a vital role in
every type of business. Without marketing the goods and services no one can enhance their
market share. Marketing is the promotional activity which helps them to advertise their goods
on different platform and can reach to the target consumer. They also help the company to
gain the benefit of competitive advantage and can enhance their market share by proper
analyzing the market circumstance. This report is consist s of three sections. In the first
section they talk about the environmental condition and the marketing planning process. A
detail study is being made about the components of marketing mix and market orientation. A
PESTEL analysis is also made for the vineyard so that they can evaluate the outside
environment in effective and efficient manner and a summary is made of extended marketing
mix. The second part is all about market segmentation, targeting and positioning, which will
help the vineyard to divide the task and target the audience on the basis of geographical and
demographic favors. The last part is all about the 7 P’s of marketing and business idea is
made on how vineyard will use effective marketing mix strategy of the vineyard business. A
proper report is made on marketing mix strategy.

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