Chapter 2

1. Chapter 2 Fashion and Marketing Marketing Strategies Fashion Marketing Basics

2. 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.

3. 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. Definition: marketingthe process of developing, promoting, and distributing products to satisfy customers’ needs and wants Section 2.1

4. The Marketing Concept To market effectively, fashion marketers follow the principles of the marketing concept. marketing conceptthe idea that businesses must satisfy customer needs and wants in order to make a profit Section 2.1

5. Identify customers Determine whatcustomers want Make the right productsavailable at the right timeand at the right price Communicate to customers The Marketing Concept Business Section 2.1 5

6. 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

7. Target Market Fashion marketers can conduct research to identify a target market. target marketthe specific group of people that a business is trying to reach Identifying a target market is achieved through market segmentation. market segmentationa way of analyzing a market by categorizing specific characteristics Section 2.1

8. Target Market demographicsstatistics that describe a population in terms of personal characteristics age, gender, income, ethnic background, education, religion, occupation, lifestyle Specific customer characteristics that are expressed as statistics include: psychographicsstudies of consumers based on social and psychological characteristics such as attitude, interests, and opinions • 1. Demographics • 2. Psychographics • 3. Geographics • 4. Behavioristics • Purchase occasion • Product benefits • Usage level and commitment geographicsstatistics about where people live behavioristicsstatistics about consumers, attitudes, use, or response to a product Section 2.1

9. 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

10. Fashion Merchandising Fashion merchandisinginvolves developing plans to make products available. fashion merchandisingthe planning, buying, and selling of fashion apparel and accessories to offer the right merchandise blend to meet consumer demand Section 2.1

11. Fashion Merchandising 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

12. Fashion Merchandising Merchandising market factors include: • Economic issues that influence customer buying habits • New technology developed by a competitor Section 2.1

13. Fashion Online Operating an e-tail business on an electronic channel—the Web—can be costly, due to design, delivery, returns, and operating expenses. Though Many larger dot-com companies crashed in the 1990’s, small stores like Harris Cyclery of West Newton, Massachusetts, actually increase sales using a basic Web site. Today, a third of Harris’s bicycle business rides in on the Web to get hard-to-find parts and personal service. Describe an e-business’s home page to your class after viewing one through marketingseries.glencoe.com. Walking past attractively displayed fashions in store windows can easily lure you into a store to shop. However, it’s not so easy to draw customers online. Research indicates that 99 percent of pop-up or banner ads do not get clicked. One solution is linking through Web sites that already attract an established demographic. For more information, go to marketingseries.glencoe.com. Section 2.1 13

14. 2.1 What is a target market? What customer characteristics are used to segment markets? What is fashion merchandising? A. B. C. Section 2.1

15. Place Price Promotion The Marketing Mix and Fashion marketing mix four basic marketing strategies, known as the four Ps of marketing—product, place, price, and promotion To successfully sell a fashion product to target customers, Businesses must apply the marketing mix. Advertising Product Sales Promotion Publicity The Four Ps Public Relations SEE page 33 in book Personal Selling Section 2.2

16. Marketing Strategies There are three strategies that fashion marketers use to increase their business: • Increase the numberof customers. • Increase the average transaction. • Increase the frequency of repurchase. SEE page 33 in book Section 2.2

17. Channels of Distribution Channels of Distribution channel of distribution the path a product takes from the producer to the consumer Before merchandise reaches the consumer, it goes through the channel of distribution. For apparel and home furnishings, the movement through the channels of distribution is called the soft-goods chain. This chain includes three specific segments: • Textile segment – fiber, yarn, fabrics • Apparel segment – design, manufacture, wholesale • Retail segment- stores selling to consumers Section 2.2 Section 2.2

18. The Functions of Marketing There are sevenfunctions of marketing. functions of marketing the activities that include product/service management, distribution, financing, pricing, marketing-information management, promotion, and selling In order to have a successful fashion business, business owners follow the principles of these functions. Section 2.2

19. 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 Section 2.2

20. The 7 Functions of Marketing 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. 3. Financing Function 4. Pricing Function Pricing includes determining how much to charge for goods and services in order to maximize profits. Section 2.2 Section 2.2

21. The 7 Functions of Marketing 5. Marketing-Information Management Function There are five main elements in a marketing- information system: • Input • Storage • Analysis • Output • Decision making Section 2.2

22. 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 Section 2.2

23. Marketing the Fashion Product Successful fashion marketers combine the marketing mix and the functions of marketing to develop, distribute, and promote their fashion products. List the 7 functions of marketing Name the P’s of the marketing mix Section 2.2

24. 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

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

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

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