Objectives • What is marketing? • What are the seven key marketing functions? • What are the customer characteristics used to define a target market? • What is fashion merchandising?
What is Fashion Marketing? Marketing – the process of developing, promoting, and distributing products to satisfy customers’ needs and wants. • Starts at the very beginning of product development and continues until a consumer purchases the product. • A series of activities that fashion businesses undertake so that customers will buy products from them instead of their competitors.
Marketing Concept Marketing concept – the idea that businesses must satisfy customers’ needs and wants in order to make a profit. • Fashion products are presented in a way that makes the customer want to buy merchandise • Fashion marketers must offer the right product at the right time and right price. • Must develop strategies to tell selected market about these products.
Marketing Functions • Marketing – Information Management • Financing • Product/ service management • Pricing • Promotion • Distribution • Selling
Marketing-Information Management • Involves gathering and using information about what consumers want. • Considered critical because it determines what product to produce and sell. Five main elements are: • Input – reports, past records, or surveys • Storage – saving information • Analysis – study information gathered so a decision can be made • Output – reports of the analysis and conclusions • Decision making – the final result of the first four elements.
Financing • Involves planning ways to cover the costs of successfully operating a business. • Includes factors such as, production costs of the product, product pricing for the customer, and everyday expenses such as rent, supplies, and payroll.
Pricing • The process of setting the value or cost at the right level. • The price of a fashion product is dependent on the cost of production plus a profit/ • Customer demand can adjust the price up or down
Pricing • The price must cover all the elements of the key marketing functions: • The costs of gathering information of what the customer wants • The costs of financing the business • The costs of design, fabric, and construction to produce the product • The costs of advertising and promotion • The costs of moving the product to the consumer • The costs of selling the product to the final customer • Some profit for all of the people involved in each of these steps.
Promotion • Communicating with the customers about the product to achieve the desired result – customer demand for and purchase of the product. • Includes advertising, personal selling, publicity, and public relations. • Fashion marketers can create an image of who wears a brand of clothing through promotion. How can marketers do this?
Product/ Service Management • Designing, producing, maintaining, improving, and/or acquiring products or services to meet customer needs.
Distribution • Involves moving the product each step from the design idea to the consumer. • Number of businesses involved in the actual planning and movement of the product • Actual transportation of the product – by truck or by air.
Selling • Assists the customer in identifying and satisfying a want or a need. • Helps the customer understand the benefits of quality.
Review What are the seven functions of marketing? Give example of each.
What is a target market? Target market – the specific group of people that a business is trying to reach. • Identified through research and by the shared characteristics of the specific group of people. How is this done?
Market Segmentation • Market segmentation – a way of analyzing a market by categorizing specific characteristics. • Marketers divide the people into groups of possible consumers based on various shared characteristics. • Fashion marketers to concentrate on meeting the needs of certain types of buyers rather than the needs of all shoppers.
Customer Characteristics • Demographic • Psychographic • Geographic • Behavioristic
Demographics • Demographics – statistics that describe a population in terms of personal characteristics such as age, gender, income, ethnic background, education, religion, occupation, and lifestyle.
Psychographics • Psychographics – studies of consumers based on social and psychological characteristics such as attitudes, interests, and opinions. • Consumers’ attitudes and values are often represented by how they choose to spend their time and money.
Geographics • Statistics about where people live • Region of the country, size of the city or county, the density of the population (urban, suburban, or rural), even climate • Location of where people live has an influence on their buying habits.
Behavioristics • Behavioristics – statistics about consumers based on their knowledge, attitudes, use, or response to a product. - marketers look at the purchase occasion for a product, product benefits, or usage level and commitment.
Behavioristics • Purchase occasion – instance when a customer might use a product. Ex. “after-five” • Product benefits – the benefits that consumers desire in a fashion product or service. Ex. Stain-resistance. • Usage level and commitment – identified by how often they use the product and their loyalty to purchasing it.
What is Fashion Merchandising? • Fashion merchandising – the planning, buying, and selling if fashion apparel and accessories to offer the right merchandise blend to meet customer demand.
Retailers and Fashion Merchandising • Merchandising is the main function of apparel retailing. • Retailers buy at wholesale and then sell then at retail prices. • Other retail responsibilities; store operations, financial control, personnel, and sales promotion
Merchandising Market Factors • Economic issues can influence customer buying habits. How? • New technology. How?
The Marketing Mix and Fashion Fashion Marketing Mrs. Shaw
Objectives • What are the four components of the marketing mix? • What are the four types of promotion?
What is the fashion marketing mix? • marketing mix – consists of our basic marketing strategies known as the four P’s of marketing. • Product • Place • Price • Promotion • These are the basic elements to satisfy a customers needs and wants.
Product • What a company is offering for sale to customers to satisfy their needs and wants. • includes goods and/or services • strategies that include producing, packaging, and naming a product. • Ex. jeans, sweaters, jewelry, hairstyling
Place • the way products are distributed and their systems of delivery • getting the product to consumers and the steps of distribution • how and where a product will be distributed • Where the customer will purchase the item • when the product will be distributed
Price • the amount of money consumers will pay for a product • have to determine how much consumers are willing to pay • depends on the price of producing the item, the markup, and the customer demand. • Goal: Business must make a profit.
Promotion • any form of communication that a business or organization uses to inform, persuade, or remind people to buy it’s product • inform customer about the features of the product and persuade to make a purchase
Types of Promotion • Sales promotion – special contests, displayed merchandise in windows, special coupons • to increase customer traffic in a store • contests, displays, and coupons – do not require any direct contact with the customer
Types of Promotion • public relations and publicity – promote the image and communications a company has with employees, customers, and the public. • publicity – usually unpaid mention of a business, its employees, or its merchandise in the media.
Types of promotion • advertising – paid message that a business sends to the public about the product. • personal selling – requires personal communication and contact with the customer
Marketing Strategies • Three strategies that fashion marketers use to increase their business: • increase the number of customers • increase the average transaction • increase the frequency of repurchase