Chapter 2 Fashion And Marketing

Chapter 2Fashion &MarketingChapter 2.1 FashionMarketing Basics

Fashion Marketing BasicsKey Terms:MarketingMarketing ConceptTarget MarketingMarket ehavioristicsFashion Merchandising

How Fashion Is MarketedMarketing is one of mostimportant aspects ofbusinessMarketing is the process ofdeveloping, promoting, anddistributing products tosatisfy customer’customer’s needsand wants

The Marketing ConceptFashion marketers follow the principles pfthe marketing concept.Marketing concept is the idea thatbusinesses must satisfy the customersneeds and wants in order to make a profitBusinesses must:Identify the customersIdentify the products they wantMake the products available at a pricecustomers are willing to payFashion products are presented in a waythat makes the customer want to buy themerchandise.

Target MarketA target market is the specific group ofpeople that a business is trying to reach.Businesses identify a target market theirshared characteristicsMarket segmentation is a way ofanalyzing a market by categorizing theirspecific characteristicsSpecific characteristics ioristic

Target MarketDemographics are statistics that describe apopulation in terms of personalcharacteristics such as age, gender, income,ethnic background, education, religion, andlifestylePsychographics are studies of consumersbased on social and psychologicalcharacteristics such as attitudes, interests,and opinions.Geographics are statistics about where peopleliveBehavioristics are statistics about consumersbased on their knowledge, attitudes, use, orresponse to a product

Target MarketMarketers may look at the purchaseoccasion for a product, the product benefitssought by consumers, or usage level andcommitment towards a product:Purchase Occasion:Occasion: identifies theinstance when a consumer might use aproductProduct Benefits:Benefits: identifies the benefitsthat consumers desire in a fashionproduct or serviceUsage level and commitment:commitment: identifieshow often they use a product and theirloyalty to purchasing it.

Target MarketPurchase Occasion: “afterafter-five”five”, or work attireProduct Benefits: StainStain-resistance or wrinklewrinkle-freeUsage level and commitment: will you buy a replacement

Diverse and ChangingMarketsMost fashion marketers try to attractseveral market segments at once.Ex. Gap sells to men, women, andchildrenConsumer buying habits don’don’t remain thesame.Changes in economic or social conditionscan affect the consumer’consumer’s choices.

FashionMerchandisingAfter fashion marketers haveidentified their target customers anddesired products, they must developplans to have the products available.Fashion merchandising is theplanning, buying, and selling offashion apparel and accessories tooffer the right merchandise blend tomeet consumer demand.

Retailers and FashionMerchandisingMerchandising is the main function ofapparel retailingRetailers not only focus of styles andfashion merchandising, they also conductbusiness at their stores.Other retail responsibilities include:Store OperationsFinancial ControlPersonnelSales Promotions

MerchandisingMarket FactorsIts important to understand internalfactors (can be controlled) and externalfactors (can not be controlled) inmerchandising.Examples:Economic IssuesTechnology Advances

Chapter 2 Fashion & MarketingChapter 2.2: MarketingStrategies

Fashion Marketing BasicsKey Terms:Marketing MixProductPlacePricePromotionPromotional MixChannel of DistributionFunctions of Marketing

The Marketing Mix &FashionTo successfully sell a fashion product totarget customers, business must apply themarketing mixThe marketing mix consists of four basicmarketing strategies known as the 4 P’P’sof marketingProductPlacePricePromotion

ProductProduct refers to what a company isoffering for sale to customers to satisfytheir needs and wants.Products include goods and servicesFashion marketers develop strategiesthat include producing, packaging,and naming a product

PlacePlace refers to the way products aredistributed and their systems of delivery.Distribution means getting the product tothe consumerWhere will the customer purchase theproduct?How will it get to the store?Where is the store?

PricePrice is the amount of moneyconsumers will pay for aproductPrice depends on:Cost of ProductionThe MarkupCustomer DemandBusinesses must make aprofit

PromotionPromotion is any form ofcommunication that a business ororganization uses to inform,persuade, or remind people to buy itsproduct.There are 4 types of promotions thatall businesses use and combine in apromotional mix:mix:Sales promotionPublic Relations and PublicityAdvertisingPersonal Selling

Sales PromotionFashion retailers use:Special contestsDisplayed merchandisein windowsCouponsThey want to increasecustomer traffic in a storeso people will buy theproductsNone of these promotionsrequire direct contact withthe customer

Public Relations & PublicityBusinesses that attempt to create a demandfor their products by securing news innewspapers or on radio or television use publicrelations and publicityPublic relations are activities that promote theimage and communications a company haswith employees, customers, and the public.Publicity is any unpaid mention of abusiness, its employees, or merchandise inthe mediaRetail stores sponsor charitable events forpublic relations and publicity

AdvertisingAdvertising is a paid message that abusiness sends to the public aboutthe productThe messages appear in:MagazinesNewspapersBrochuresTelevision CommercialsOutdoor SignageFashion merchandisers use print adsin fashion magazines targeted tospecific customers

Personal SellingPersonal selling requires personalcommunication and contact withcustomers by the sales personnel.

Marketing Strategies1.2.3.There are three strategies that fashionmarketers use to increase theirbusiness:Increase the number of customersCustomers must be aware of thelocation and products offeredIncrease the average transactionSuggesting other products whencustomers purchase merchandiseIncrease the frequency of repurchaseSend special mailing offeringdiscounts and coupons, as well ashosting fashion events

Channels of DistributionChannel of distribution is the path a producttakes from the producer to the consumerThis path represents place in the marketingmixDirect channel of distribution is a path inwhich products are sold by the producerdirectly to the customerIndirect channel of distribution is a path ofdistribution of products that involves one ormore steps, or intermediaries

Fashion & DistributionFor apparel and home furnishings, themovement through the channels ofdistribution is called the soft-goodschain.The chain includes:Textile segment- includes fiber,yarn, and fabric productionApparel segment- produces thefinished garments and accessoriesRetail segment- includes storesand outlets that sell directly tocustomers

The Functions of MarketingAll business conduct marketingactivities that can be classifiedinto the 7 basic categoriesThe 7 functions of marketing;Product/ ting-informationmanagementPromotionselling

The Functions of MarketingProduct/Service Management FunctionConsumers are always seeking newfashionsBusinesses must develop, maintain,and improve their productsDistribution FunctionThe methods of physically moving theproducts In a timely manner to reachthe customers

The Functions of MarketingFinancing FunctionGetting money to pay for theoperation of a businessPricing FunctionHow much will be chargedfor goods and services tomaximize profit

The Functions of MarketingMarketing Information management functionGathering market informationThe 5 main elements in an informationsystem are:1. Input- reports, past records, or surveys2. Storage- placing information if a diskor hard drive of a computer3. Analysis- study the information andmake decisions based on it4. Output- reports of the analysis andconclusions5. Decision making- the final result

The Functions of MarketingPromotion FunctionIncludes advertising and otherpromotional methodsSelling FunctionThe direct personal contact that abusiness has with their customers

The End

Fashion Marketing Basics Key Terms: Marketing Marketing Concept Target Marketing Market Segmentation Demographics Psychographics Geographics Behavioristics Fashion Merchandising. . Retail segment- includes stores and outlets that sell directly to customers Fashion & Distribution. All business conduct marketing