Fashion Marketing: INFO Required!

Who is the Customer? Market Segments: Demographic information: customers are divided based upon age, gender, ethic group, nationality, education, and income Psychographic information: uses characteristics such as ideology, values, attitudes, and interests

Who is the Customer? Target Market: the group of people characterized by demographics and psychographics that a business purposes seeks as customers

Managing Information Collecting information about consumer groups Focusing on consumption habits of target markets Analyzing how the group is acting toward the merchandise

Importance of the Marketing Concept Successful businesses always keep customer needs in mind during design, production, and distribution of products

Successful Fashion Marketers Ask customers what they want then exceed their expectations Methods of gathering information: Market Research Focus Groups Surveys Observations Study Competitions Sales (Point of SalesP

Global Markets Due to the nature of the fashion industry: Increase knowledge of cultures Collect information about needs and wants of diverse cultures Study trends in areas known for trendsetting in order to better prepare for upcoming trends in your market Use of internet, use of other markets for manufacturing, ease of shipping on a global basis

Product and Place Predicting Fashions: Merchandiser: plans the styles, prices, and number of garments to be produced or purchased based upon the information available Forecasters: predicts trends and decides on colors and details that make the next season’s fashions different and exciting Predictions are made up to 18 months in advance

Fashion Channels Channels of Distribution: paths and businesses involved in moving the product from the idea stage to the consumer Indirect Channels: require intermediaries who help get the product to the consumer. Intermediaries add value to the product by increasing the availability of the product Direct Channels: involve both producing the goods and selling them directly to the consumer

Distributing Fashions Manufacturing Retailers: manage, finance, and market garments, but contractors are hired to produce the product (ZARA) Contractors: businesses hired to provide the equipment and labor to cut and sew garments Economy of Scale: the price per garment is low due to large volume production (start-up costs)

Distributing Fashions Vertical Integration: when companies perform more than one business activity such as managing, financing, and marketing.

It’s All in the Name Private Labels: a line of garments produced for only one retailer Brand Names: identifies the product for retailers Licensing Agreement: legal contract in which a manufacturer agrees to produce garments with the brand name and pay the original owner of the brand name a royalty fee (% of the sales)