Fashion Marketing Basics Chapter 2 Fashion and Marketing Fashion Marketing Basics Marketing Strategies

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.

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: marketing the process of developing, promoting, and distributing products to satisfy customers’ needs and wants Section 2.1

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

Determine what customers want The Marketing Concept Identify customers Business Determine what customers want Make the right products available at the right time and at the right price Communicate to customers Section 2.1 5

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

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

Target Market 1. Demographics 2. Psychographics 3. Geographics demographics statistics that describe a population in terms of personal characteristics age, gender, income, ethnic background, education, religion, occupation, lifestyle Target Market Specific customer characteristics that are expressed as statistics include: psychographics studies 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 geographics statistics about where people live behavioristics statistics about consumers, attitudes, use, or response to a product Section 2.1

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

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

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

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

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

What customer characteristics are used to segment markets? 2.1 A. What is a target market? What customer characteristics are used to segment markets? What is fashion merchandising? B. Quick Check Answers It is the specific group of people that a business is trying to reach. demographics, psychographics, geographics, and behavioristics It is the planning, buying, and selling of fashion apparel and accessories to offer the right merchandise blend to meet consumer demand. C. Section 2.1

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 Promotion Sales Promotion Place The Four Ps Publicity Price Public Relations SEE page 33 in book Personal Selling Section 2.2

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

Channels of Distribution Before merchandise reaches the consumer, it goes through the channel of distribution. 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: Textile segment – fiber, yarn, fabrics Apparel segment – design, manufacture, wholesale Retail segment- stores selling to consumers Section 2.2 Section 2.2

The Functions of Marketing There are seven functions 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

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

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 Section 2.2

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

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

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

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

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

Checking Concepts Name the components of the marketing mix. product, place, price, and promotion 4. Name the components of the marketing mix. Sales promotion Publicity Public relations Advertising Personal selling 5. List the different methods of promotion. Checking Concepts Answers product, place, price, and promotion Different methods include sales promotion, publicity and public relations, advertising, and personal selling. A direct channel of distribution is a path of distribution in which products are sold by the producer directly to the customers. An indirect channel of distribution is a path of distribution of product that involves one or more steps or intermediaries. continued

Checking Concepts Critical Thinking 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. Activities include product/service management, distribution, financing, pricing, marketing-information management, promotion, and selling. 6. 7. Compare the marketing mix with the functions of marketing. Critical Thinking Checking Concepts Answers Activities include product/service management, distribution, financing, pricing, marketing-information management, promotion, and selling. 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.