An article in The Weekend Australian on 9-10 July 2011 shows the Australian wine industry professionals use the marketing concepts of (a) targeting, (b) distribution channel and (c) economic environment in helping to increase their sales.

The wine suppliers are aware that the lifestyle of consumers is changing-- the consumers seek for finer things, like imported goods. Besides, they are also aware that they can cut off the middlemen to gain more profit. The currency boom is also believed to have increased the purchasing power of consumers.

Hence, the first concept used by the wine suppliers is targeting. Market targeting carries the idea of grouping the consumers with significant characteristics within the market into segments. Then the company targets on the different segments that they are interested in with offerings that meet the requirements of consumers closely within the segment (see Kotler et al 2010, p. 86-87). In this example, the wine suppliers import wines from Europe to meet the needs of Australian consumers. The wine suppliers are bringing in more variety of wines from different country to widen their offerings for the Australian consumers who have developed an exquisite taste and are more willing to try exotic wines. In addition, the Australian winemakers are also targeting the wine market in China. This is because they spotted an opportunity to improve the exportation of wines as the wine market of China is blossoming rapidly.

Besides, the article also shows that the wine suppliers are using distribution channel to sell the wines to customers. Distribution channel is the intermediaries involved in the process of offering products or services to the customers. There are several distribution channels with different stages involved, and in this case, the ‘direct marketing’ channel is used. The wine supplier is direct purchasing the wine and selling them directly to the customers too with no intermediaries involved. Without intermediaries...