Download Chapter 2.2

Case Study Part 2
Closing The Gap?
In 2003, Paul Pressler began to steer Gap, Inc., out of financial difficulty by listening to
customers. Pressler focused on selling products with proven appeal. In addition, he
expanded marketing efforts and online and international business. Pressler
developed a mix of “basic, on-trend, and emerging” fashion products. Gap wanted
to keep core customers while introducing new merchandise. Learning from past
mistakes, the company now uses strict research-based marketing and development
methods. The strategies seem to be working. By the end of 2003, sales had
increased by 94 percent.
Analyze and Write:
1.
Write two sentences about how Gap had tried to find a balance between giving
customers what they want and introducing new products.
2.
What is the importance of having a marketing strategy for fashion businesses?
Write a paragraph to explain your answer.
CHAPTER 2.2
Marketing Strategies
The Marketing Mix and Fashion

The marketing mix consists of four basic marketing
strategies known as the four P’s of marketing:
 Product
 Place
 Price
 Promotion

The marketing mix refers to how the basic elements
are combined to meet consumer needs and wants.
Product




Product refers to what a company is offering for sale to
customers to satisfy their needs and wants.
Products include goods and/or services.
Fashion marketing develop strategies that include
producing, packaging, and naming a product.
Example of products are goods such as jeans, sweaters,
jewelry, cosmetics, and shoes, and services such as
hairstyling and makeup services.
Place



Place refers to the way products are distributed and
their systems of delivery.
Distribution means getting the product to the consumer,
and it includes all the steps of distribution, from getting
the raw material for fabric and manufacturing textiles
to making a garment available to a customer.
Important place decisions include how and where a
produce will be distributed, where the customer will
purchase the item, and when the product is distributed.
Price


Price is the amount of money customers will pay for
a product.
The process of a fashion product depends on the
cost of producing the item, the markup, and
customer demand.
Promotion


Promotion is any form of communication that a
business or organization uses to inform, persuade, or
remind people to buy its product.
There are four types of promotion that all
businesses use and combine in a promotional mix.
1.
2.
3.
4.
Sales promotion
Public Relations and Publicity
Advertisting
Personal Selling
Marketing Strategies

There are three strategies that fashion marketers
use to increase their business:
1.
Increase the number of customers.
2.
Increase the average transaction.
3.
Increase the frequency of repurchase.
Channels of Distribution

The channels of distributions, or the path a product
takes from the producer to the consumer.
This path can also represent place in the marketing mix.

Two types of Channels:

1.
2.
Direct Channel of Distribution – a path of distribution in
which products are sold by the producer directly to the
customer.
Indirect of Channel of Distribution – a path of distribution
of products that involves one or more steps, or
intermediaries.
Fashion and Distribution


For apparel and home furnishings, the movement through the
channels of distribution is called the soft-goods chain.
Chain includes three specific segments:
1.
2.
3.
Textiles segment – the soft-goods chain begins with the textile
segment, which includes fiber, yarn, and fabric production.
Apparel segment – the apparel segment is responsible for
producing the finished garments and accessories. The apparel is
designed, produced by manufacturers, and sold to retailers.
Retail segment – the retail segment includes stores or outlets that
sell that products to customers. Consumers are the end users who
buy and/or use the fashion products.
The Functions of Marketing
Sevens Functions of Marketing
1.
Product/Service Management
2.
Distribution
3.
Financing
4.
Pricing
5.
Marketing-information Management
6.
Promotion
7.
Selling
Quiz
Which of the following are not one of the four P’s of Marketing?
1.
a)
b)
c)
d)
Product
Place
Price
Psychographic
Which of the following is not one of the three marketing strategies used to increase retail business?
2.
a)
b)
c)
d)
Increase number of customers
Increase average transaction
Increase the frequency or repurchase
Increase the quantity
Which of the following is not one of the seven functions of marketing?
3.
a)
b)
c)
d)
Distribution
Finance
Pricing
Quality