fashion marketing ch 2

Fashion andMarketingFashion andMarketing

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Fashion and MarketingFashion and Marketing

2

Chapter 2


Fashion Marketing BasicsFashion Marketing Basics

Marketing StrategiesMarketing Strategies


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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.


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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.

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

Section 2.1


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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


Section 2.1

Business Determine whatcustomers want

Identify customers

Make the right productsavailable at the right time

and at the right price

Communicate to customers

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Retailers must consider the location, atmosphere, and the image of the store.

Products must match style, quality, and price to their customers.

Section 2.1


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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

Section 2.1

Identifying a target market is achieved through market segmentation.

market segmentation a way of analyzing a market by categorizing specific characteristics


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Target Market

Specific customer characteristics that are expressed as statistics include:

demographic statistics that describe a population in terms of personal characteristics such as age, gender, income, ethnic background, education, religion, occupation, and lifestyle

Section 2.1

Demographics


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Target Market


psychographics studies of consumers based on social and psychological characteristics such as attitude, interests, and opinions

Section 2.1

Psychographics

Geographicsgeographics statistics about where people live


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Target Market


behavioristics statistics about consumers, attitudes, use, or response to a product

Section 2.1

Behavioristics– Purchase occasion

– Product benefits

– Usage level and commitment


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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


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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


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Merchandising is the main function of apparel retailing.

Section 2.1

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.


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Merchandising market factors include:

Section 2.1

Economic issues that influence customer buying habits

New technology developed by a competitor


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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.

Section 2.1

For more information, go to marketingseries.glencoe.com.

Fashion Online

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http://www.marketingseries.glencoe.com/






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What is a target market?

What customer characteristics are used to segment markets?

What is fashion merchandising?

1.

2.

3.

Section 2.1

2.12.1


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The Marketing Mix and Fashion

To successfully sell a fashion product to target customers, businesses must apply the marketing mix.

Section 2.2

marketing mix four basic marketing strategies, known as the four Ps of marketing—product, place, price, and promotion

The Marketing Mix and Fashion

Section 2.2

The Four Ps

Product

Place

Price

Advertising

Sales Promotion

Publicity

Public Relations

Personal Selling

Promotion

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Marketing Strategies

There are three strategies that fashion marketers use to increase their business:

Section 2.2

1. Increase the number of customers.

2. Increase the average transaction.

3. Increase the frequency of repurchase.


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Channels of Distribution

Before merchandise reaches the consumer, it goes through the channel of distribution.

Section 2.2

channel of distribution the path a product takes from the producer to the consumer


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A direct channel of distribution is a path of distribution in which products are sold by the producer directly to the consumer.

An indirect channel of distribution is a path of distribution of products that involves one or more steps, or intermediaries.

Section 2.2


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For apparel and home furnishings, the movement through the channels of distribution is called the soft-goods chain.

This chain includes three specific segments:

Section 2.2

1. Textile segment

2. Apparel segment

3. Retail segment


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The Functions of Marketing

There are seven functions of marketing.

Section 2.2

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.


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Product/Service Management Function

Section 2.2

Fashion producers must look for new ways to use existing items or produce new ones that will continue to interest the consumer.


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Distribution Function

Section 2.2

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.


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Financing Function

Section 2.2

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.


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Pricing Function

Section 2.2

Pricing includes determining how much to charge for goods and services in order to maximize profits.


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Marketing-Information Management Function

Section 2.2

There are five main elements in a marketing- information system:

1. Input

2. Storage

3. Analysis

4. Output

5. Decision making


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Promotion Function

Section 2.2

Promotion is the communication technique a business uses, such as advertising and other promotional methods, to interest customers in buying the products.


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Selling Function

Section 2.2

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.


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Marketing the Fashion Product

Successful fashion marketers combine the marketing mix and the functions of marketing to develop, distribute, and promote their fashion products.

Section 2.2


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What are the four Ps of marketing?

What three marketing strategies are used to increase retail business?

What are the seven functions of marketing?

1.

2.

3.

Section 2.2

2.22.2


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1. Explain the term marketing.

Marketing is the process of developing, promoting, and distributing products to satisfy customers’ needs and wants.

1. demographic, psychographic, geographic, and behavioristic

2. Fashion merchandising is the planning, buying, and selling of fashion apparel and accessories to offer the right merchandise blend to meet consumer demand.

3.

continued

Checking Concepts

2. List four types of customer characteristics used to identify a target market.

3. Describe fashion merchandising.


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4. Name the components of the marketing mix.

product, place, price, and promotion

4.

continued

Checking Concepts

5. List the different methods of promotion.

6. Explain the different channels of distribution.

Different methods include sales promotion, publicity and public relations, advertising, and personal selling.

5. 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.

6.


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8. Compare the marketing mix with the functions of marketing.

Critical Thinking

Checking Concepts

7. Identify the activities associated with the functions of marketing.

Activities include product/service management, distribution, financing, pricing, marketing-information management, promotion, and selling.

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.

8.

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fashion marketing ch 2

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term marketing

functions of marketing

market market

marketing concept retailers

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