Fashion Marketing Basics

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Fashion Marketing Basics
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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?

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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.

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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.

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Marketing Functions

• Marketing Information Management
• Financing
• Product/ service management
• Pricing
• Promotion
• Distribution
• Selling

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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
• 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.

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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.

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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

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Pricing

• The price must cover all the elements of the key
  marketing functions
• 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.

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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?

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Product/ Service Management

• Designing, producing, maintaining, improving,
  and/or acquiring products or services to meet
  customer needs.

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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.

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Selling

• Assists the customer in identifying and
  satisfying a want or a need.
• Helps the customer understand the benefits of
  quality.

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Review

• What are the seven functions of marketing? Give
  example of each.

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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?

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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.

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Customer Characteristics

• Demographic
• Psychographic
• Geographic
• Behavioristic

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Demographics

• Demographics statistics that describe a
  population in terms of personal characteristics
  such as age, gender, income, ethnic background,
  education, religion, occupation, and lifestyle.

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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.

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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 over money Large clothing sizes
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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.

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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.

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Behavioristics

• Purchase 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.

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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.

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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

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Merchandising Market Factors

• Economic issues can influence customer buying
  habits. How?
• New technology. How?

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The Marketing Mix and Fashion

• Fashion Marketing
• Mrs. Shaw

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Objectives

• What are the four components of the marketing
  mix?
• What are the four types of promotion?

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What is the fashion marketing mix?

• marketing mix consists of our basic marketing
  strategies known as the four Ps of marketing.
• Product
• Place
• Price
• Promotion
• These are the basic elements to satisfy a
  customers needs and wants.

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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

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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

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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.

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Promotion

• any form of communication that a business or
  organization uses to inform, persuade, or remind
  people to buy its product
• inform customer about the features of the product
  and persuade to make a purchase

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Types of Promotion

• 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

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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.

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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

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Marketing Strategies

• Three strategies that fashion marketers use to
  increase their business
• increase the number of customers
• increase the average transaction
• increase the frequency of repurchase