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: Write two sentences about how Gap had tried to find a balance between giving customers what they want and introducing new products. 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. Sales promotion Public Relations and Publicity Advertisting Personal Selling

Marketing Strategies There are three strategies that fashion marketers use to increase their business: Increase the number of customers. Increase the average transaction. 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: 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: 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 Product/Service Management Distribution Financing Pricing Marketing-information Management Promotion Selling

Quiz Which of the following are not one of the four P’s of Marketing? Product Place Price Psychographic Which of the following is not one of the three marketing strategies used to increase retail business? 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? Distribution Finance Pricing Quality