2. UNIT C The Business of Fashion 3.01 Explain the concept of marketing in fashion.

3. Marketing The process of DEVELOPING, PROMOTING, PRICING, and DISTRIBUTING products in order to satisfy customers’ needs and wants.

4. Fashion merchandising Specific marketing activities designed to have fashion- oriented merchandise at the right TIME, PLACE, QUANTITY, and PRICE to meet customer demand.

5. Market The group of ALL potential customers. Businesses must understand who their potential customers are

6. Are you in the market? If you have EVER in your short number of years bought any article of clothing, accessory, food item, or household product… PLEASE STAND UP

7. Target market The SPECIFIC segment of a total market that a company desires to have as customers and toward whom it directs its marketing efforts. I would be an idiot if I made something and tried to sell it to everyone last one of you…

8. Market segmentation DIVIDING the entire market into SMALLER groups having similar characteristics. Demographic segmentation Psychographic segmentation Geographic segmentation Behavioral segmentation Every business must decide which customers it can serve in order to be successful. What Does This Mean?

9. Demographic segmentation Based on vital statistics of the population. Age Race Gender Education level Income level Occupation NO MATTER WHAT…YOU WILL ALWAYS BE A PART OF A DEMOGRAPHIC BREAKDOWN!

10. Psychographic segmentation Based on a consumers’ lifestyles, values, attitudes, and self-concepts. Tries to explain consumer behavior and determine what the consumer is thinking and feeling

11. Geographic segmentation Segmenting a market based on where a person LIVES...DUH

12. Behavioral segmentation Dividing consumers into groups according to their response to a product. WHY THEY BUY THE PRODUCT… THIS SEGMENT IS BASED ON STUFF THAT YOU DON’T BUY EVERYDAY. THINGS FOR HOLIDAYS AND SPECIAL OCCASIONS, SUCH AS: BALLOONS, CAKE, TENT, BUG SPRAY, DIAMOND RING, PROM CORSAGE, ETC.

13. Marketing mix A combination of decisions a business must make in order to best reach its target market; known as “the four Ps” of marketing. Product Place Price Promotion

14. Product considerations Choice of products Brand name Level of quality Packaging Warranties Marketers must decide what is in DEMAND and bring those products to the consumer.

15. Place considerations How and where will products be offered to customers? What is the most efficient method of transportation? Products MUST be available at the right time and location.

16. Distribution channels Direct distribution: A distribution channel in which the producer sells goods or services to the FINAL USER. –Example: A button manufacturer sells directly to garment manufacturers. Indirect distribution: A distribution channel in which goods or services are sold indirectly to us (consumer) thru 1 or more intermediaries. –Manufacturer/producer TO retailer TO consumer (path that most fashion apparel takes.) –Example: Levi Strauss sells jeans to Belk who, in turn, sells to the consumer.

17. Price considerations How high would you go to pay for a glass of lemonade? $0.25? $0.75? $1.50? $2.50? $3.50? How high would you go to pay for a smoothie? $2.00? $4.00? $6.00? $8.00? How high would YOUR PARENTS go to pay for a bottle of wine? $15? $30? $75? $100? Determining a value to charge…

18. Promotion Communication that IPR’s customers of the goods and services available to them. Advertising Publicity Personal selling Public relations

19. People Many businesses also consider “people” (employees) to be an important element in the marketing mix since they can make the difference between success and failure by the way they carry out the other elements of the marketing mix.

20. The 7 Marketing Functions Distribution Financing Marketing-Information Management Pricing Product/Service management Promotion Selling

21. Distribution The transporting, storing, and handling of goods on their way from the manufacturer to the consumer. *Referred to as PLACE in the marketing mix.

22. Financing Obtaining the money needed to cover the costs of operating a business. How are you going to come up with the $10,000 it takes to open your new shoe store?

23. Marketing- Information Management Obtaining information about what consumers want. Example: Marketing research

24. Pricing Determining a value to charge for goods and services. Price must cover Costs of conducting marketing research. Costs of financing the business. Costs of producing the product. Costs of promoting the product. Costs involved in distributing the product. Costs of selling the product to the final consumer. Profit for all people involved in the marketing process.

25. Product/Service Management Concepts and procedures necessary in designing, producing, maintaining (up-keep), improving, and obtaining (getting) products or services to meet customer needs.

26. Promotion Communication used to … IPR … INFORM, PERSUADE and REMIND people about a business’s products.

27. Selling Determining customer needs and wants and responding to those needs and wants. For Ex: What am I looking for in a running shoe? Something comfortable or something cute? INFLUENCE CUSTOMERS TO BUY AND ENSURE SATISFACTION

28. Have you ever been targeted? IF… you own a bra PLEASE STAND UP and know you were just targeted by: __________________________

29. Have you ever been targeted? IF… the idea of buying a new pair of sneakers/shoes/kicks excites you PLEASE STAND UP and know you were just targeted by: __________________________

30. Have you ever been targeted? IF… you can name at least 20 flavors of ice cream PLEASE STAND UP and know you were just targeted by: __________________________

31. Have you ever been targeted? IF… you can locate the carburetor in a car PLEASE STAND UP and know you were just targeted by: __________________________

32. Have you ever been targeted? IF… you’ve ever been called 4-eyes PLEASE STAND UP and know you were just targeted by: __________________________

33. Have you ever been targeted? IF… You own a skateboard PLEASE STAND UP and know you were just targeted by: __________________________

34. Have you ever been targeted? IF… You have ever been to a rap/hip hop concert PLEASE STAND UP and know you were just targeted by: __________________________

35. Have you ever been targeted? IF… Your idea of a good Saturday involves climbing something really high and biking down it PLEASE STAND UP and know you were just targeted by: __________________________

36. Have you ever been targeted? IF… You have ever watched a movie BEFORE it came out in theatres or on video PLEASE STAND UP and know you were just targeted by: __________________________