Download Fashion Marketing Basics

Fashion Marketing Basics
Objectives
1. What is marketing?
2. What are the seven key marketing
functions?
3. What are the customer characteristics
used to define a target market?
4. 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
1.
2.
3.
4.
5.
6.
7.
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:
1.
2.
3.
4.
5.
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:
1.
2.
3.
4.
5.
6.
7.
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.
Psychographic Trends
Women in the
workforce
Urban
population
Home and
family
activities
Travel
Work at home
Home
computer use
Casual dress
for home and
office
Value of time Large clothing
over money
sizes
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. “afterfive”
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
1. What are the four components of the
marketing mix?
2. 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.
1. Product
2. Place
3. Price
4. 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
1. 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:
1. increase the number of customers
2. increase the average transaction
3. increase the frequency of repurchase