Fashion and the Promotional Mix In this unit we will be focusing on the marketing strategy of promotion. This is one of the 4 P’s of marketing. Can you name the other three strategies? PRODUCT, PLACE, PRICE

Lesson Objectives Explain the four components of the promotional mix. Describe a fashion promotion plan. Discuss how designers and manufacturers use branding and licensing. Review objectives.

What is Promotion? Any form of communication a business uses to inform, persuader or remind people about its products or to enhance its image. BEFORE SHOWING DEFINITION: What do you think promotion is? SHARE RESPONSES. Promotion, a component of the marketing mix, uses a variety of communication techniques to inform, persuade and remind potential customers about its products, and to help enhance the company’s and the product’s image. All of the techniques that can be used make up the promotional mix. SHOW NEXT SLIDE.

Promotional Mix Any combination of the four components of promotion: Sales promotion Public relations and publicity Advertising Personal Selling The promotional mix is any combination of the four components of promotion. The four components are sales promotion, public relations and publicity, advertising and personal selling. Each component plays a critical role in promoting fashion businesses and their products. The first three components are all forms of non-personal selling, which is indirect communication with customers. We learned in an earlier lesson that personal selling required DIRECT contact with the customer. Personal selling can take place in any of the fashion industry segments: textile, design and retail. Personal selling is the final stage of a sale after the customer has been prompted by the other three components. There is not just one way to organize a promotional mix. Each business must decide on its promotional mix that is most effective for its products. Let’s first look at sales promotion.

Short-term incentives used to interest customers in buying products Sales Promotion Short-term incentives used to interest customers in buying products Sales promotion is a short-term incentive used to interest customers in buying products. Companies in every segment of the fashion industry promote their fashion products to each other and to their customers. Recall from the distribution lesson that textile manufacturers sell to designers and apparel producers, who in turn sell to retailers. The retailers, of course, sell to the final user – you and me. There are two main types of sales promotion: trade promotion and consumer promotion. Let’s look, first, at trade promotions.

Trade Promotions Promotions WITHIN the industry Trade Shows Conventions Trade promotions occur within the industry. Businesses direct this type of promotion to the next segment in the distribution chain (e.g. a textile manufacturer promoting their fabrics to a designer). Typical trade promotions include trade shows and conventions, like the events at AmericasMart, where businesses can promote their products to other businesses. AmericasMart - Atlanta

Consumer Promotions Targeted to final user Retailers Manufacturers Generate traffic Contests Sales Premiums Free samples Free services Coupons E-mail offers Manufacturers Promote collections and/or lines Fashion Shows Designer appearances Trunk Shows Consumer promotions are directly targeted to the final user. However, consumer promotions may be used by both manufacturers and retailers. Though they do not sell directly to consumers, textile and apparel manufacturers may use consumer promotions to get recognition for their lines. E.g. the cotton textile industry, represented by Cotton, Inc., promotes the benefits of apparel made with cotton to consumers. Other examples of consumer promotions include fashion shows, special appearances by designers at retail stores and trunk shows. Trunk shows are when a complete collection is shown at a store for a limited time in order to promote the designer or manufacturer. SHOW RETAIL BULLETS: Retail stores use different types of sales promotion to target the final user. The purpose of these promotions is to generate traffic to the store or to the online site in order to encourage the customer to buy. Examples of retail consumer promotions include sales (30% off), premiums (buy one, get one free), free samples, free services (makeovers), coupons and special e-mail offers. Let’s see how sales promotions generate traffic: If a store is having a 30% off sale on jeans, what is the only way the customer can get the 30% off? (come into the store and buy jeans). If the customer has a coupon for $15.00 off a purchase of $75.00 or more, what’s the only way they can use the coupon? (come into the store and spend $75.00 or more). See how these promotions get the customers into the stores?

Public Relations Communications used to create a positive image for the business Creates goodwill for the business Encourages customers to buy Revlon Run/Walk for Cancer Research Avon 3-Day Walk for Breast Cancer Public relations is a promotional technique that uses any form of communication to create a positive image for the business. The exposure and goodwill generated by public relations is valuable because it may encourage sales and create a good image. E.g. fashion businesses and marketers often get involved with non-profit organizations and community service activities. These activities may range from hosting various events, such as fashion shows to raise funds for charities. Revlon sponsors the Run/Walk for cancer research, and Avon sponsors the 3-day walk for breast cancer. Companies spend money on these functions, though there is no guarantee of a customer purchase because such activities are a form of public relations.

Promotional Mix Any combination of the four components of promotion: Sales promotion Public relations and publicity Advertising Personal Selling Let’s continue talking about the promotional mix. We have already learned about sales promotion activities. What are some sales promotions that manufacturers do? SHARE RESPONSES: trade shows, conventions What are some sales promotions that retailers do? SHARE RESPONSES: fashion shows, designer appearances, trunk shows, coupons, sales, contests, premiums, free samples, free services, e-mail offers We also learned about public relations. What are some of the public relations activities you learned during the internet activity? SHARE REPSONSES. Today we’re going to learn about another type of public relations activity – publicity.

Publicity Non-paid message giving information about a company Merchandise Services Activities Employees Press release Written news stories sent out to the media Publicity is a form of public relations. It is a non-paid message that communicates information about a company, its merchandise, services, activities, or employees. Typical publicity activities include store openings, announcements of executive promotions or hirings and articles about the public relations events the companies conduct. The most common method of publicity is through press releases, which are written as news stories sent out to newspapers and magazines. People tend to believe new stories more than advertisements, so companies use publicity to be more credible. However, companies do not have any control over the publicity they receive, which is why you often hear bad publicity about some companies.

Writing A Press Release Use this release with a sample press release for students to look at.

What is a Press Release? Short document that provides information about your organization’s events and activities to a newspaper, magazine, TV or radio station. The news agency may use the information in a story, they might contact you for an interview, or they may not use it at all. Sometimes, if the press release is well written, it might get printed with only minor changes. Build relationships with reporters and editors. You’re doing the news agency a service when you provide clear, organized information about community news. They do you an important service by helping you spread the word. Be sure to thank them every time you get good press.

The Elements of a Press Release Heading FOR IMMEDIATE RELEASE For “Immediate release” goes at the top of the page 1. Use this heading to show the document is a press release, not a letter or memo. Can be placed at the top of the release or in the fist sentence of the first paragraph

The Elements of a Press Release To: Rhea Porter, Asheville Citizen-Times From: Center for Participatory Change Contact: Craig White, 828-299-9437 Date: April 20, 2003 You want to list who you are sending it to and your contact information if you know it. 2. List the news agency where you’re sending the release. Whenever you can, use a reporter’s or editor’s name. If you’re doing a general press release to hand out at an event, skip this line. You will notice it is not in the example I have for you. 3. Provide your organization’s name, a contact name, and a phone number so they can get more information. 4. Include the date.

The Elements of a Press Release Provide a headline. “Total Health & Fitness Grand Opening Celebration May 14” You want to provide a headline that tells the reader and the news agency what the story is about. The more eye catching, or interesting the more likely readers will read your story, and more importantly the more likely the paper will run your story.

The Elements of a Press Release Writing the release The first sentence is the ‘lead’--it should grab the reader’s attention. The second sentence gives a factual summary of the article. Some people only read this far, so make your point right away. Read the 1st sentence of the sample release. You are trying to draw the reader in to read further. The second sentence is where you deliver your main message.

The Elements of a Press Release Writing the release Be sure to provide a brief description of your organization for readers who may not know much about you. Use quotes from members, leaders, or other supporters to strengthen your points or provide detailed information. Text carries facts; quotes carry feeling.

The Elements of a Press Release Writing the release Write like a reporter--just the facts. Who, what, when, where and why. Don’t praise yourself--just write objectively, and let your work speak for itself. Point this information out in the press release

The Elements of a Press Release Writing the release Write like you’re talking about someone else--she, they, the organization--not we, us, our organization. Keep it short: 400 words or less. Use short paragraphs of only one or two sentences. Point this information out in the press release

The Elements of a Press Release Writing the release In the last paragraph, explain how people can contact you or get more information. Three to four number signs together signal the end of the press release. Point this information out in the press release