Chapter 2 Fashion and Marketing Fashion Marketing Basics

Chapter 2 Fashion and Marketing Fashion Marketing Basics Marketing Strategies 1

Fashion and Marketing Chapter Objectives Define the term marketing. Explain types of customer characteristics used to define a target market. Explain fashion merchandising. Describe the four components of the marketing mix. Identify the four types of promotion. Identify the seven functions of marketing. 2

Fashion and Marketing How Fashion Is Marketed? Marketing is a series of activities that fashion businesses undertake so that customers will buy products from them instead of their competitors. Section 2. 1 Definition: marketing the process of developing, promoting, and distributing products to satisfy customers’ needs and wants 3

Fashion and Marketing The Marketing Concept To market effectively, fashion marketers follow the principles of the marketing concept. Section 2. 1 marketing concept the idea that businesses must satisfy customer needs and wants in order to make a profit 4

The Marketing Concept Identify customers Business Determine what customers want Make the right products available at the right time and at the right price Section 2. 1 Communicate to customers 5

Fashion and Marketing The Marketing Concept Retailers must consider the location atmosphere, and image of the store. Products must match style, quality, and price to their customers. Section 2. 1 6

Fashion and Marketing Target Market Fashion marketers can conduct research to identify a target market. Identifying a target market is achieved through market segmentation. Section 2. 1 target market the specific group of people that a business is trying to reach market segmentation a way of analyzing a market by categorizing specific characteristics 7

Fashion and Marketing Target Market Specific customer characteristics that are expressed as statistics include: 1. Demographics 2. Psychographics 3. Geographics 4. Behavioristics – Purchase occasion – Product benefits – Usage level and commitment Section 2. 1 demographics statistics that describe a population in terms of personal characteristics age, gender, income, ethnic background, education, religion, occupation, lifestyle psychographics studies of consumers based on social and psychological characteristics such as attitude, interests, and opinions geographics statistics about where people live behavioristics statistics about consumers, attitudes, use, or response to a product 8

Fashion and Marketing Diverse and Changing Markets The fashion market is too large and too diverse to reach with a single marketing approach. Consumer buying habits do not always remain the same. Businesses must offer new products and develop strategies that affect their diverse customer bases. Section 2. 1 9

Fashion and Marketing Fashion Merchandising Fashion merchandising involves developing plans to make products available. Section 2. 1 fashion merchandising the planning, buying, and selling of fashion apparel and accessories to offer the right merchandise blend to meet consumer demand 10

Fashion and Marketing Fashion Merchandising is the main function of apparel retailing. Retailers buy large quantities of goods at wholesale prices. Retailers sell the goods individually at retail prices. Retailers are also responsible for store operations, financial control, personnel, and sales promotion. Section 2. 1 11

Fashion and Marketing Fashion Merchandising market factors include: Economic issues that influence customer buying habits New technology developed by a competitor Section 2. 1 12

Fashion and Marketing Fashion Online Operating an e-tail business on an electronic channel—the Walking past attractively displayed fashions in store windows Web—can be costly, due to design, delivery, returns, and canoperating easily lure you into a store to shop. However, it’s not so expenses. easy to draw customers online. Though Many larger dot-com companies crashed in the 1990’s, indicates small stores of West Newton, Research thatlike 99 Harris percent. Cyclery of pop-up or banner ads Massachusetts, actually increase sales using a basic Web do not get clicked. One solution is linking through Web sites site. Today, a third of Harris’s bicycle business rides in on that already an established the Web toattract get hard-to-find partsdemographic. and personal service. Describe an e-business’s home page to your class after viewing one through marketingseries. glencoe. com. For more information, go to marketingseries. glencoe. com. Section 2. 1 13

Fashion and Marketing 2. 1 A. What is a target market? B. What customer characteristics are used to segment markets? C. What is fashion merchandising? Section 2. 1 14

Fashion and Marketing The Marketing Mix and Fashion marketing mix four basic marketing To successfully sell a fashion strategies, known as the four Ps of product to target customers, marketing—product, place, price, and Businesses must apply the promotion Advertising marketing mix. Product Place The Four Ps Publicity Price SEE page 33 in book Section 2. 2 Sales Promotion Public Relations Personal Selling Promotion 15

Fashion and Marketing Strategies There are three strategies that fashion marketers use to increase their business: 1. Increase the number of customers. 2. Increase the average transaction. 3. Increase the frequency of repurchase. SEE page 33 in book Section 2. 2 16

Fashion and Marketing Channels of Distribution Before merchandise reaches the consumer, it goes through the channel of distribution the path a product takes from the producer to the consumer For apparel and home furnishings, the movement through the channels of distribution is called the soft-goods chain. This chain includes three specific segments: 1. Textile segment – fiber, yarn, fabrics 2. Apparel segment – design, manufacture, wholesale 3. Retail segment- stores selling to consumers Section 2. 2 17

Fashion and Marketing The Functions of Marketing There are seven functions of marketing. In order to have a successful fashion business, business owners follow the principles of these functions. Section 2. 2 functions of marketing the activities that include product/service management, distribution, financing, pricing, marketing-information management, promotion, and selling 18

Fashion and Marketing The 7 Functions of Marketing 1. Product/Service Management Function Fashion producers must look for new ways to use existing items or produce new ones that will continue to interest the consumer. 2. Distribution Function The distribution of goods includes the methods of physically moving and storing goods. Distribution technology allows businesses to track and monitor merchandise all the way from the manufacturer to the retail outlet to the customer. Section 2. 2 19

Fashion and Marketing The 7 Functions of Marketing 3. Financing Function Financial planning can include many factors, such as production costs of the product, product pricing for the customer, and everyday expenses such as rent, supplies, and payroll. 4. Pricing Function Pricing includes determining how much to charge for goods and services in order to maximize profits. Section 2. 2 20

Fashion and Marketing The 7 Functions of Marketing 5. Marketing-Information Management Function There are five main elements in a marketinginformation system: 1. 2. 3. 4. 5. Section 2. 2 Input Storage Analysis Output Decision making 21

Fashion and Marketing The 7 Functions of Marketing 6. Promotion Function Promotion is the communication technique a business uses, such as advertising and other promotional methods, to interest customers in buying the products. 7. Selling Function The selling function involves the direct personal contact that businesses have with their customers. Sales personnel must be able to communicate the benefits and features of the items so that customers are willing to pay higher prices. Section 2. 2 22

Fashion and Marketing the Fashion Product Successful fashion marketers combine the marketing mix and the functions of marketing to develop, distribute, and promote their fashion products. Name the P’s of the marketing mix List the 7 functions of marketing • • • Section 2. 2 23

Fashion and Marketing Recall and write: What are the 3 marketing strategies used to increase retail business 1. increasing # of customers 2. increasing the average transaction 3. increasing frequency of repurchase 24

Fashion and Marketing Checking Concepts 1. Explain the term marketing. 1. Fashion 2. Marketing is demographic, 3. the psychographic, process ofis merchandising developing, geographic, the planning, and promoting, behavioristic and buying, and selling 2. List four types of customer ofdistributing fashion apparel characteristics used to identify a products to satisfy and accessories to target market. customers’ offer the rightneeds and wants. blend merchandise to meet consumer 3. Describe fashion merchandising. demand. continued 25

Fashion and Marketing Checking Concepts 4. Name the components of the marketing mix. 4. place, Sales promotion 5. product, price, and Publicity promotion Public relations Advertising Personal selling 5. List the different methods of promotion. continued 26

Fashion and Marketing Checking Concepts 6. Identify the activities associated with the functions of marketing. Critical Thinking 7. Compare the marketing mix with the functions of marketing. The marketing mix 6. 7. Activities includes four basic product/service marketing strategies also management, called the four Ps of distribution, marketing—product, place, price, andpricing, financing, promotion. To sell and marketingmarket products, all information businesses conduct management, marketing activities listed in #7 that can be and promotion, classified into seven selling. basic functions that include the four Ps. 27