Fashion Merchandising A

1. Fashion Merchandising A Standard 2 Fashion Marketing

2. Fashion Merchandising A Standard 2 • Student will understand the basics of fashion marketing. • Objective 1: Define Marketing Terms • Objective 2: Describe the 4 P’s of Marketing • Objective 3: Describe the methods of market segmentation • Objective 4: Describe the six marketing functions

3. Marketing • The process of developing, promoting, and distributing products to satisfy customers’ needs and wants. It is a series of activities that fashion businesses undertake so that customers will buy products from them instead of their competitors.

4. Marketing Concept • To market effectively, fashion marketers follow the principles of the marketing concept, which is the idea that businesses must satisfy customers’ needs and wants in order to make a profit.

5. Target Market • The specific group of people that a business is trying to reach.

6. Market Segmentation • Identifying a group of consumers, or target market, is achieved through market segmentation, which is a way of analyzing a market by categorizing specific characteristics.

7. Methods of Market Segmentation • Demographics: personal characteristics such as age, gender, income, ethnic background, education, religion, occupation, & lifestyle. For Example: A retailer such as PacSun targets a teen or young adult customer. • Psychographics: based on social & psychological characteristics such as attitudes, interests & opinions. For example: PacSun, many of the customers may be interested in surfing or skateboarding. • Geographics:statistics about where people live. Could include: region, city, county, & climate. For example: PacSun tends to focus its marketing campaigns in warmer & coastal regions rather than in colder climates. • Behavioral Segmentation :statistics about consumers based on their knowledge, attitudes, use, or response to a product. • Purchase Occasion: instance when a consumer might use a product – casual or work attire. • Product Benefits: study of the benefits that consumers desire in a fashion product or service such as stain or wrinkle-resistance. • Usage level & commitment: how often consumers use a product & their loyalty to purchasing it.

13. Market Segmentation Activity

14. Fashion Merchandising • The planning, buying, and selling of fashion apparel and accessories to offer the right merchandise blend to meet consumer demand.

15. The Marketing Mix • To sell a fashion product to target customers, businesses must apply the marketing mix. The marketing mix consists of four basic marketing strategies (4Ps) – product, price, place & promotion.

16. Product Refers to what company is offering for sale to customers to satisfy their needs & wants. Includes goods & services. Fashion marketers develop strategies that include producing, packaging, & naming a product. Examples of Goods: Examples of Services:

17. Price The amount of money consumers will pay for a product. Fashion marketers must determine how much consumers are willing to pay.

18. Place Refers to the way products are distributed and their systems of delivery. Important place decisions include how & where a product will be distributed, where the customer will purchase the item, and when the product is distributed.

19. Promotion Any form of communication that a business or organization uses to inform, persuade, or remind people to buy its product.

20. Marketing Mix Challenge

21. 6 Functions of Marketing • Pricing • Channel Management • Promotion • Selling • Product/Service Management • Marketing-Information Management

22. Product/Service Management • Fashion businesses must develop, maintain, & improve their products in response to customer demands. Fashion producers look for new ways to use existing items or produce new ones that will continue to interest the consumer. For example: a current textile in apparel is spandex. Although this material has been in existence for years, its popularity increased when designers began using it for women’s & men’s active-wear fashions.

23. Pricing Function • A primary goal of any business is to make a profit. A key factor in achieving this goal is to price a product accurately. Pricing includes how much to charge for goods & services in order to maximize profits. Although companies price their merchandise based on what the customer is willing to pay, they must be careful not to set prices so low that business does not make a profit.

24. Channel Management • This marketing function is responsible for identifying, selecting, monitoring, and evaluating sales channels, also known as channels of distribution. • Each channel of distribution is a path or route that goods and services take from the producer to the ultimate consumer or industrial user. These paths or routes aren’t physical, however. Instead, they refer to businesses or people who perform a variety of activities to enable products to be in the right places at the right times. • Effective channel management is often a key to a business’s success because it puts products in the customers’ hands.

25. Marketing-Information Management Function • The world of fashion is ever-changing. Gathering information is critical. Information is obtained primarily through marketing research, which helps fashion businesses determine their customers’ preferences & how to better market products. Businesses are able to effectively use the information through marketing-information management systems. The five main elements are: • Input – reports, past records, or surveys • Storage – storing the information on a computer, jump drive, etc… • Analysis – studying the information gathered • Output – reports of the analysis & conclusions drawn from the information • Decision Making – the final results of the first four elements.

26. Promotion Function • When new or existing products are developed, fashion marketers must promote their products to make sales. Promotion is the communication technique a business uses, such as advertising, and other promotional methods, to interest customers in buying the products. Manufacturers also promote their merchandise to retailers through catalog & Internet methods.

27. Selling Function • The selling function involves the direct personal contact that businesses have with their customers. Developing good selling skills is especially important for selling more expensive apparel and designer fashions. Sales personnel must be able to communicate the benefits & features of the items so that customers are willing to pay higher prices.

28. Channels of Distribution Direct Channel Indirect Channel The path of distribution of products that involves one ore more steps, or intermediaries. For example, a product moves from the manufacturer, to the wholesaler, to the retailer, and then to the consumer. • The path of distribution in which products are sold by the producer directly to the customer.

30. Preparing for the Sale

31. Selling • Personal Selling– any form of direct contact between a salesperson and a customer • Retail Selling– customers come to the store • Business-to-business Selling– takes place in a manufacturer’s or wholesaler’s showroom or a customer’s place of business • Telemarketing– selling over the telephone • National Do Not Call Registry, established by the FTC in 2003

32. Goals of Selling • Help customers make satisfying buying decisions, which create ongoing, profitable relationships between buyer and seller. • Repeat business is crucial to the success of any company

33. Consultative Selling • Providing solutions to customers’ problems by finding products that meet their needs. • Problem – Customer stands all day on her new job and her feet hurt. • Solution – Salesperson suggests shoes designed for comfort and support.

34. Feature-Benefit Selling • Customers don’t buy products – they buy what products can do for them.

35. Product Features • May be basic, physical, or extended attributes • The most basic feature is the product’s intended use • Additional features add more value to the product

36. Obvious Feature This car is a bright shade of red.

37. Customer Benefits • The advantages or personal satisfaction a customer will get from a good or service • Benefits become selling points • How does the feature help the product’s performance? • How does the performance information give the customer a personal reason to buy?

38. ObviousBenefit This bright red car will attract the guys/girls

39. Unique or Exclusive Benefits Our cars are so safe, we guarantee you won’t be crushed in a crash from the side.

40. Feature Benefit Chart • A list of a product’s features and associated benefits.

41. Customer Buying Motives • What motivates the customer to buy? • Rational Motive – a conscious, logical reason for a purchase • Emotional Motive – feelings such as social approval, recognition, power, love, or prestige

42. Customer Decision Making • Extensive Decision Making – used when there has been little or no previous experience with the item • High risk items • Very expensive • High value to the customer

43. Limited Decision Making – when a person buys goods and services that he or she has purchased before but not regularly • Moderate degree of risk • Person needs some information before buying the product

44. Routine Decision Making – person needs little information about a product • High degree of prior experience • Little perceived risk

45. Initiating the Sale

46. Approaching the customer • Determining needs • Presenting the product • Overcoming objections • Closing the sale • Suggestion selling • Relationship building Steps of a Sale

47. The first face-to-face contact with the customer. • Can make or break a sale • Sets the mood or atmosphere • Establishes a relationship Approaching the Customer

48. You never get a second chance to make a first impression!

49. Set up an appointment • Introduce yourself with a firm handshake and a smile. • Be more personal with customers you know. • Use good opening statements with new customers. The Approach in Business-to-Business Selling

50. If customer is in a hurry, approach quickly. • If customer is undecided, let them look. • Encourage customers to look around and to ask questions. The Approach in Retail Selling