2Objectives 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?
3What 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.
4Marketing ConceptMarketing 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 merchandiseFashion marketers must offer the right product at the right time and right price.Must develop strategies to tell selected market about these products.
5Marketing Functions Marketing – Information Management Financing Product/ service managementPricingPromotionDistributionSelling
6Marketing-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 surveysStorage – saving informationAnalysis – study information gathered so a decision can be madeOutput – reports of the analysis and conclusionsDecision making – the final result of the first four elements.
7FinancingInvolves 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.
8Pricing 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
9PricingThe price must cover all the elements of the key marketing functions:The costs of gathering information of what the customer wantsThe costs of financing the businessThe costs of design, fabric, and construction to produce the productThe costs of advertising and promotionThe costs of moving the product to the consumerThe costs of selling the product to the final customerSome profit for all of the people involved in each of these steps.
10How can marketers do this? PromotionCommunicating 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?
11Product/ Service Management Designing, producing, maintaining, improving, and/or acquiring products or services to meet customer needs.
12DistributionInvolves moving the product each step from the design idea to the consumer.Number of businesses involved in the actual planning and movement of the productActual transportation of the product – by truck or by air.
13SellingAssists the customer in identifying and satisfying a want or a need.Helps the customer understand the benefits of quality.
14What are the seven functions of marketing? Give example of each. ReviewWhat are the seven functions of marketing? Give example of each.
15What 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?
16Market SegmentationMarket 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.
18DemographicsDemographics – statistics that describe a population in terms of personal characteristics such as age, gender, income, ethnic background, education, religion, occupation, and lifestyle.
19PsychographicsPsychographics – 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.
20Psychographic Trends Women in the workforce Urban population Home and family activitiesTravelWork at homeHome computer useCasual dress for home and officeValue of time over moneyLarge clothing sizes
21Geographics 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 climateLocation of where people live has an influence on their buying habits.
22BehavioristicsBehavioristics – 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.
23BehavioristicsPurchase 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.
24What 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.
25Retailers 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
27The Marketing Mix and Fashion Fashion MarketingMrs. Shaw
28Objectives What are the four components of the marketing mix? What are the four types of promotion?
29What is the fashion marketing mix? marketing mix – consists of our basic marketing strategies known as the four P’s of marketing.ProductPlacePricePromotionThese are the basic elements to satisfy a customers needs and wants.
30ProductWhat a company is offering for sale to customers to satisfy their needs and wants.includes goods and/or servicesstrategies that include producing, packaging, and naming a product.Ex. jeans, sweaters, jewelry, hairstyling
31Place the way products are distributed and their systems of delivery getting the product to consumers and the steps of distributionhow and where a product will be distributedWhere the customer will purchase the itemwhen the product will be distributed
32Price the amount of money consumers will pay for a product have to determine how much consumers are willing to paydepends on the price of producing the item, the markup, and the customer demand.Goal: Business must make a profit.
33Promotionany form of communication that a business or organization uses to inform, persuade, or remind people to buy it’s productinform customer about the features of the product and persuade to make a purchase
34Types of PromotionSales promotion – special contests, displayed merchandise in windows, special couponsto increase customer traffic in a storecontests, displays, and coupons – do not require any direct contact with the customer
35Types of Promotionpublic 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.
36Types of promotionadvertising – paid message that a business sends to the public about the product.personal selling – requires personal communication and contact with the customer
37Marketing StrategiesThree strategies that fashion marketers use to increase their business:increase the number of customersincrease the average transactionincrease the frequency of repurchase