Chapter 10 Fashion Distribution Buying Fashion Selling Fashion

Chapter 10 Fashion Distribution Buying Fashion Selling Fashion 1

Fashion Distribution Chapter Objectives Explain the role of the fashion buyer. Discuss the steps in the buying process or merchandising cycle. Identify the types of fashion retailers. Discuss buying motives. Identify the difference between personal and nonpersonal selling. 2

Fashion Distribution Fashion Buyer’s Job Buyers make sure merchandise consumers want is available in stores Buyers purchase goods from vendors Must be able to predict what consumers want six months to a year before the goods reach stores Monitor styles and trends and which items are selling – like those featured in Vogue and Bazaar Read trade publications like Women’s Wear Daily Must have good fashion sense and keen business skills May specialize in a specific category of goods, such as shoes, athletic wear, handbags, etc. 3

Fashion Distribution The Buying Process There are three steps in the buying process, also known as the merchandising cycle: starting with predicting what customers will purchase. 3 2 1 Merchandise Buying. Selling. Planningbuying goods from exchanging of Estimating vendors or goods for styles, colors, manufacturers money from sizes and prices for resale retailer to customer Section 10. 1 4

Fashion Distribution Types of Fashion Retailers Macy’s is an example of a large department store. üDept. stores employ at least 25 people üSell apparel/accessories, home furnishings, and household linens A specialty store will generally emphasize a certain style, such as classic or trendy. It targets its merchandising to specific age groups and price ranges. Examples: Pac. Sun, Claire’s Section 10. 1 department store a retail operation that carries different kinds of merchandise and houses them in separate sections, or departments specialty store a retail operation that offers only one category or related categories of fashion merchandise 5

Fashion Distribution Types of Fashion Retailers Because the target market for a boutique is smaller, the buyer must plan purchases carefully. ü Apparel and accessories carried by boutiques tend to be more trendy. Example: Main St. shops in Clinton The designer store concept is called vertical retailing. ü By selling directly to the consumer, designer stores earn bigger profits. ü Examples: Gucci, Guess, Coach, Talbots Section 10. 1 boutique a type of small specialty store that offers a more limited selection of merchandise and may focus on few-of-a-kind items designer store a designermanufacturer retail operation that owns and operates the retail store and carries only its own lines 6

Fashion Distribution Types of Fashion Retailers The goods offered at an outlet may be overruns, damaged items, or leftovers from a prior season. ü Another term for outlet is off-price retailer A discount store operates like a department store, but offers discount prices ü purchases manufacturer overruns and end-of-season goods. ü special deals from manufacturers because of large quantities purchased ü Examples: Marshalls, Target, Walmart Section 10. 1 outlet a discount store that is owned by a manufacturer that sells its own merchandise in the store discount store a retail operation that offers volume merchandise and limited service and sells goods below usual retail prices 7

Fashion Distribution Types of Fashion Retailers Mail-order, or direct-mail, marketing is a type of retail operation in which a business sells merchandise in a catalog and sends it by mail to consumers who purchase it. ü People use catalogs because of convenience. Online shopping, or Internet shopping, is a fast-growing trend. Customers are able to shop at any time of the day or night, seven days a week, and have the merchandise shipped directly to their homes. ü Some retailers offer discounts for online shopping Section 10. 1 8

Fashion Distribution Why People Buy Fashion Cultural, social, and psychological factors affect buying behavior the way consumers react to satisfying a need or want when making a purchase Buying behavior can be rational or emotional. Which type of behavior do you think marketing is trying to influence? Section 10. 2 9

Fashion Distribution Buyer’s Questions: What problems occur when fashion buyers make inaccurate predictions? Do you think it is difficult for buyers to separate their personal likes and dislikes from the trends and consumer desires they need to purchase? What recent fashion item do you think would be a wrong choice because it may be about to go out of style? Do you like stores with sales associates or ones with no help? Do you find most are trained and helpful? What is important to you? Describe some of your online purchase experiences 10

Fashion Distribution Influences on Fashion The role of fashion in popular culture has a significant impact on people’s lives and the purchases they make. People are influenced by: Television Films Magazines Street fashions Section 10. 2 11

Fashion Distribution Personal Selling Advertising, sales, promotion, and publicity are types of nonpersonal selling. The selling process occurs when sales associates communicate through personal selling. (see page 212) ü Suggestion selling techniques: ü Add-on ü Trading up ü More than one ü Special offer Section 10. 2 nonpersonal selling the type of selling that does not involve interaction between people personal selling the type of selling that involves direct interaction between sales associates and potential buyers by telephone or in person 12

The Steps of Selling-see p. 209 Successful sales associates use the Steps of Selling Follow Up Perform Suggestion Selling Close the Sale Overcome Objections Present the Product Determine Needs Approach Section 10. 2 13

Fashion Distribution Selling Questions: Do you think the media is an important influence on fashion? Loaded Question: In what ways can sales people be similar to teachers? How can a sales associate best determine a customer’s needs? What selling step do you think is most important? Why? What new or emerging technology can a sales staff use to improve and increase business What does “closing the sale” meaning Describe a situation in which you made additional purchases because the sales associate made suggestions to do so… 14

Fashion Distribution 10. 1 What is the job of the fashion buyer? 1. The fashion buyer is responsible for making sure the merchandise that consumers want is available in stores. They purchase goods from manufacturers and vendors. 2. What are three steps of the buying process or merchandising cycle? merchandise planning, buying, and selling 3. Compare and contrast at least two different types of retailers. Section 10. 1 15

Fashion Distribution 10. 2 4. What are the two types of buying behavior? rational and emotional buying 5. What are the seven steps in the selling process? approach, determine needs, present the product, overcome objections, close the sale, perform suggestion selling, and follow up. 6. Describe the difference between personal selling and non-personal selling. Personal: add on, trading up, more than one, and special offer. Non-Personal: Advertising, Promotions, Publicity Section 10. 2 16

Fashion Distribution Steps of Selling Role Play: Groups of 3 at your table. *See page 209 -212 in book Review the Steps of Selling descriptions in the book. Now assume you are being sent to Chicago for a sales training seminar. Your are a salesperson who gets commission. You are going to role play the 7 steps of selling in your groups. Think of 3 open ended questions that would help you learn about your customers preference. Then outline and write down scripts for all the 7 steps of the selling process, assuming you are selling a particular item to a client. You may use the fashion item you presented last week or pick a new one. You may bring or make any props you want to go with your skit Be ready to present role-plays to class Friday 17