Fashion and Marketing

Marketing Mix
&
Marketing Environment

1
 Fashion and Marketing

Chapter Objectives

Define the term marketing.

Explain types of customer characteristics used
to define a target market.
Explain fashion merchandising.
Describe the four components of the marketing
mix.
Identify the four types of promotion.
Identify the seven functions of marketing.

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 Fashion and Marketing

How Fashion Is Marketed

Marketing is a series of marketing the

activities that fashion process of developing,
promoting, and
businesses undertake so distributing products to
that customers will buy satisfy customers
products from them instead needs and wants

of their competitors.

Section 2.1 3
 Fashion and Marketing

The Marketing Concept

To market effectively, marketing concept the

fashion marketers follow idea that businesses
must satisfy customer
the principles of the needs and wants in order
marketing concept. to make a profit

Section 2.1 4
 The Marketing Concept

Identify
customers

Determine what
Business customers want

Make the right products

Communicate to
available at the right time
customers
and at the right price

Section 2.1 5
 Fashion and Marketing

The Marketing Concept

Retailers must consider the location, atmosphere,

and the image of the store.

Products must match style, quality, and price to

their customers.

Section 2.1 6
 Fashion and Marketing

Target Market

Fashion marketers can target market the

conduct research to identify specific group of people
that a business is trying
a target market. to reach

Identifying a target market market segmentation

a way of analyzing a
is achieved through market market by categorizing
segmentation. specific characteristics

Section 2.1 7
 Fashion and Marketing

Target Market

Specific customer demographic statistics

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

Section 2.1 8
 Fashion and Marketing

Target Market

Specific customer psychographics

characteristics that are
expressed as statistics
include:
Psychographics
studies of consumers
based on social and
psychological
characteristics such as
attitude, interests, and
opinions

geographics statistics
Geographics about where people live

Section 2.1 9
 Fashion and Marketing

Target Market

Specific customer behavioristics statistics

characteristics that are about consumers,
attitudes, use, or
expressed as statistics response to a product
include:
Behavioristics
Purchase occasion
Product benefits
Usage level and
commitment
Section 2.1 10
 Fashion and Marketing

Diverse and Changing

Markets
The fashion market is too large and too diverse to
reach with a single marketing approach.

Consumer buying habits do not always remain the

same.

Businesses must offer new products and develop

strategies that affect their diverse customer bases.

Section 2.1 11
 Fashion and Marketing

Fashion Merchandising

Fashion merchandising fashion merchandising

involves developing plans to
make products available.
the planning, buying, and
selling of fashion apparel
and accessories to offer
the right merchandise
blend to meet consumer
demand

Section 2.1 12
 Fashion and Marketing

Fashion Merchandising

Merchandising is the main function of apparel

retailing.

Retailers buy large quantities of goods at wholesale

prices.
Retailers sell the goods individually at retail prices.
Retailers are also responsible for store operations,
financial control, personnel, and sales promotion.

Section 2.1 13
 Fashion and Marketing

Fashion Merchandising

Merchandising market factors include:

Economic issues that influence customer buying habits
New technology developed by a competitor

Section 2.1 14
 Fashion and Marketing

Fashion Online
Operating an e-tail business on an electronic channelthe
Walking
Webcanpast attractively displayed
be costly, due fashions
to design, in store
delivery, windows
returns, and
canoperating
easily lure you into a store to shop. However, its not so
expenses.
easy to draw customers online.
Though Many larger dot-com companies crashed in the
1990s, indicates
Research small stores
thatlike
99 Harris
percentCyclery of West
of pop-up Newton,
or banner ads
doMassachusetts, actually
not get clicked. One increase
solution salesthrough
is linking using a Web
basicsites
Web
site. Today, a third of Harriss bicycle business rides in on
that already attract an established demographic.
the Web to get hard-to-find parts and personal service.

Describe an e-businesss home page to your class after

viewing one through marketingseries.glencoe.com.
For more information, go to marketingseries.glencoe.com.
Section 2.1 15
 Fashion and Marketing

2.1

1. What is a target market?

2. What customer characteristics are used to

segment markets?

3. What is fashion merchandising?

Section 2.1 16
 Fashion and Marketing

The Marketing Mix

and Fashion
To successfully sell a marketing mix four
fashion product to target basic marketing
strategies, known as the
customers, businesses must four Ps of marketing
apply the marketing mix. product, place, price, and
promotion

Section 2.2 17
 The Marketing Mix and Fashion

Product
Advertising

Sales Promotion
Place
The Four Ps Publicity

Price Public Relations

Personal Selling
Promotion
Section 2.2 18
 Fashion and Marketing

Marketing Strategies

There are three strategies that fashion marketers

use to increase their business:

1. Increase the number of customers.

2. Increase the average transaction.
3. Increase the frequency of repurchase.

Section 2.2 19
 Fashion and Marketing

Channels of Distribution

Before merchandise channel of distribution

reaches the consumer, it the path a product takes
from the producer to the
goes through the channel consumer
of distribution.

Section 2.2 20
 Fashion and Marketing

Channels of Distribution

A direct channel of distribution is a path of

distribution in which products are sold by the
producer directly to the consumer.

An indirect channel of distribution is a path of

distribution of products that involves one or more
steps, or intermediaries.

Section 2.2 21
 Fashion and Marketing

Channels of Distribution

For apparel and home furnishings, the movement

through the channels of distribution is called the
soft-goods chain.

This chain includes three specific segments:

1. Textile segment
2. Apparel segment
3. Retail segment
Section 2.2 22
 Fashion and Marketing

The Functions of
Marketing
There are seven functions
of marketing.
In order to have a successful
fashion business, business
owners follow the principles
of these functions.
functions of marketing
the activities that include
product/service
management, distribution,
financing, pricing,
marketing-information
management, promotion,
and selling

Section 2.2 23
 Fashion and Marketing

The Functions of
Marketing
Product/Service Management Function

Fashion producers must look for new ways to use

existing items or produce new ones that will
continue to interest the consumer.

Section 2.2 24
 Fashion and Marketing

The Functions of
Marketing
Distribution Function

The distribution of goods includes the methods of

physically moving and storing goods.

Distribution technology allows businesses to track

and monitor merchandise all the way from the
manufacturer to the retail outlet to the customer.

Section 2.2 25
 Fashion and Marketing

The Functions of
Marketing
Financing Function

Financial planning can include many factors, such

as production costs of the product, product pricing
for the customer, and everyday expenses such as
rent, supplies, and payroll.

Section 2.2 26
 Fashion and Marketing

The Functions of
Marketing
Pricing Function

Pricing includes determining how much to charge

for goods and services in order to maximize
profits.

Section 2.2 27
 Fashion and Marketing

The Functions of
Marketing
Marketing-Information Management Function

There are five main elements in a marketing-

information system:
1. Input
2. Storage
3. Analysis
4. Output
5. Decision making
Section 2.2 28
 Fashion and Marketing

The Functions of
Marketing
Promotion Function

Promotion is the communication technique a

business uses, such as advertising and other
promotional methods, to interest customers in
buying the products.

Section 2.2 29
 Fashion and Marketing

The Functions of
Marketing
Selling Function

The selling function involves the direct personal

contact that businesses have with their customers.

Sales personnel must be able to communicate

the benefits and features of the items so that
customers are willing to pay higher prices.

Section 2.2 30
 Fashion and Marketing

Marketing the Fashion

Product
Successful fashion marketers combine the
marketing mix and the functions of marketing to
develop, distribute, and promote their fashion
products.

Section 2.2 31
 Fashion and Marketing

2.2

1. What are the four Ps of marketing?

2. What three marketing strategies are used to

increase retail business?

3. What are the seven functions of marketing?

Section 2.2 32
 Fashion and Marketing

Checking Concepts

1. Explain the term 1. demographic,

2.
3. Fashion is
Marketing
marketing. the
psychographic,
merchandising
process of is
developing,
geographic,
the planning,and
2. List four types of promoting,
behavioristic
buying, andand
selling
customer characteristics distributing
of fashion apparel
products
and accessories
to satisfy
to
used to identify a target
customers
offer the right
needs
market. and
merchandise
wants. blend
to meet consumer
3. Describe fashion
demand.
merchandising.
continued 33
 Fashion and Marketing

Checking Concepts

4. Name the components 4. A

5.
6. direct channel
product,
Different place, of
methods
distribution
include
price, and is a path of
sales
of the marketing mix. distribution in which
promotion,
promotion publicity
products are sold by
and public directly to
the producer
5. List the different methods relations,
the customers. An
of promotion. indirect channel
advertising, of
and
distribution is a path of
personal selling.
distribution of product
6. Explain the different that involves one or
channels of distribution. more steps or
intermediaries.

continued 34
 Fashion and Marketing

Checking Concepts

7. Identify the activities 7. The

8. marketing
Activities mix
include
includes four basic
associated with the product/service
marketing strategies
management,
functions of marketing. also called the four Ps of
distribution,
marketingproduct,
place, price, and
financing, pricing,
Critical Thinking promotion. To sell and
marketing-
market products, all
information
businesses conduct
8. Compare the marketing management,
marketing activities listed
mix with the functions of in #7 that can be
promotion, and
classified into seven
marketing. selling.
basic functions that
include the four Ps.

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 What
What is
Fashionis aa Product?
and Product?
Marketing

Anything that can be offered to a market for

attention, acquisition, use or consumption.

Satisfies a want or a need.

Includes:
Physical Products, Services, Persons
Places, Organizations, Ideas
Combinations

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 Levels of Product Augmented Product
Levels of Product Additional Attributes
Fashion and Augmented
Marketing Product
Additional Attributes

Installation

Packaging
Brand Features
Name Core
Core After-
Delivery Benefit
Benefit
or
or
Sale
& Credit
Quality Service
Service Service
Design
Level

Warranty
Actual Core
Core
Actual
Product Product
Product
Product
Fundamental
Fundamental Need
Need
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Product
Product Attribute
Attribute
Fashion and Marketing
Decisions
Decisions

Quality
Quality Features
Features

Design
Design

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 Fashion and Marketing

What is a Service?
A form of product that consists of activities,
benefits, or satisfactions offered for sale that are
essentially intangible and do not result in the
ownership of anything.

Examples: banking, hotel, airline, retail, tax preparation,

home repairs.

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Fashion and Marketing

Nature and Characteristics

of a Service

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 Fashion and Marketing

The Product-Service
Continuum
College
Sugar Restaurant
Education

Pure Tangible Pure Service

Good

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 Fashion and Marketing

Brand Defined

A brand is a name, term, sign,

symbol, or design, or a combination
of these, that identifies the maker
or seller of a product or service
Branding:
Creating, maintaining, protecting,
and enhancing products and
services.
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 Fashion and Marketing

Brand is a product, that adds dimensio

differentiate from other products desig
satisfy the same need.
Differences could be rational,
tangible,
functional OR
Symbolic, emotional, intangible

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 Fashion and Marketing

Principles of
Marketing
The Marketing Environment
(Micro and Macro environment )

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 Fashion and Marketing

Marketing Environment
Two types of marketing environment:
Micro-environment
Consists of factors close to the company that affect its ability
to serve its customers. The company itself, marketing
channel firms, customer markets & a broad range of publics
Macro-environment
Consists of the larger societal forces that affect the entire
microenvironment.
Demographic, economic, natural, technological, political,
competitor, and cultural forces

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 Fashion and Marketing

COMPANYS
MICROENVIRONMENT
Marketing managements job is to build relationships
by creating customer value & satisfaction.
The success of marketing plans requires working
closely with the companys microenvironment.

46
 Fashion and Marketing

Companys Microenvironment
Suppliers Suppliers are firms &
individuals providing
Company resources needed by the
company to produce goods
Competitors & services.

Marketing Some hotels have

Intermediaries
contracted with restaurant
companies to supply their
food &beverage services

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 Fashion and Marketing
Companys Microenvironments

Suppliers Marketing managers must work closely

with top management and the various
company departments.
Company The finance department is concerned with
finding & using funds required to carry out
Competitors the marketing plan.
Top management sets the company mission,
broad strategies, objectives, and policies.
Marketing Under the marketing concept, all managers,
Intermediaries supervisors, and employees should work in
harmony to provide superior customer value
and satisfaction.
all departments impact marketing plans & actions

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 Fashion and Marketing
Companys Microenvironment
Suppliers The marketing concept
holds a successful
company must satisfy the
Company needs and wants of
consumers better than its
Competitors
competitors.

Both large and small firms

Marketing Intermediaries must find marketing
strategies that give them
specific advantages over
competitors operating in
their markets.

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 Fashion and Marketing
Companys Microenvironment
Suppliers Marketing intermediaries help
the company promote, sell, and
distribute its goods to the final
Company buyers.

Competitors The Internet as a booking

engine has created many
opportunities, but it has also
Marketing made interactions with
intermediaries more complex.
Intermediaries
Marketing services agencies are
suppliers that help formulate &
implement marketing strategy &
tactics..
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 Fashion and Marketing

THE COMPANY MACRO-ENVIRONMENT

The company and all of the other actors operate in a
larger macro-environment of forces that shape
opportunities and pose threats to the company.

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 Fashion and Marketing

Competitors
competitive products, substitute products
for one another, companies competing for
your consumers purchasing power.
A major effect on a business.
High barriers to exit from the industry
present a different set of competitive
problems.

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 Fashion and Marketing

Direct Competitive
Products

Which would
you buy?

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 Fashion and Marketing

Indirectly Competitive Products

products than can be substituted for one
another

Plastic Containers vs. Glass vs. Tin vs.

Aluminum
Sugar vs. Artificial Sweeteners
Typewriter vs. PC
Ocean Liner Vs. Air Travel

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 Fashion and Marketing

Demographic Forces

Demography is the study of human

populations in terms of size, location, age,
gender, race, occupation, and other statistics.

The demographic environment is of major

interest to marketers because it involves people,
and people make up markets

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 Fashion and Marketing

Generation Y: Born between 1979 and 1994, size =

marketing impact, fickle and skeptical group,
technos
Generation X: Born between 1965 and 1978, time
premium, majority have children and houses, savvy
and cynical consumers
Baby Boomers: Born between 1946 and 1964
Younger Boomers (ages 41 to 49)
Home is the castle, spend on kids
Older Boomers (ages 50 to 59)
Spend on home upgrades & Holidays

3 56
 Fashion and Marketing

Economic Forces
Factors influencing consumer buying power
and strategies (stage of the business cycle,
inflation, unemployment, resources, income
etc)

Affecting consumer purchasing power &

spending patterns.

Marketers must pay close attention to major

trends and consumer spending patterns both
across and within their world markets.
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 Fashion and Marketing

Inflation and Deflation

Inflation: The devaluation of money by reducing
what it can buy through continued price
increases.
Deflation: Falling prices

Unemployment
The proportion of people in the economy who do
not have jobs and are actively looking for work.

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 Fashion and Marketing

Income
Discretionary income: the amount of money
people have to spend after paying bills and
necessities.

Resource Availability
Demarketing: reducing consumer demand for
a good or service to a level that the firm can
supply.
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 Fashion and Marketing

Natural Forces
The natural environment consists of many
amenities that attract tourists, such as Conserve
natural habitats, resources, endangered species,
minimise environmental impact, recycling, energy
efficient products and clean air.

The natural environment involves natural

resources needed as inputs by marketers or that
are affected by marketing activities.
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 Fashion and Marketing

Technological Forces
The technological environment: application of knowledge
in science, inventions, and innovations to solve problems

The most dramatic force shaping our destiny is technology

which has given us wireless Internet, the ability to send documents
around the globe electronically & inexpensive worldwide transportation
Technology has affected hospitality in many ways:
e-Tickets allow customers to check themselves in at the airport. This
saves time for the customer and
labor for the airlines made communication easier

61
 Fashion and Marketing

Toyota Prius
Heating
Technologies

Technology Advances Consumer Needs 62

 Fashion and Marketing

Technology increases exponentially

New technology as a key to long-term
competitive advantage
create more efficient operation or
better products
may render existing products
obsolete

6 63
 Fashion and Marketing

Political Forces
Marketing decisions are strongly affected by
developments in the political environment.
laws, government agencies, and pressure groups that influence
& limit the activities of various organizations and individuals
in society
Legislation and regulation affecting business have been
enacted for three reasons.
Protects companies from each others
Customer from unfair business practices
Societys interest against unrestrained business behavior

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 Fashion and Marketing

Cultural Forces
Core beliefs and values are passed on from
parents to children and are reinforced by
schools, churches, business, and government.

The cultural environment includes institutions

and other forces that affect societys basic
values, perceptions, preferences, and behaviors.
people in any society hold persisting core beliefs &
values

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Fashion and Marketing

Issues:
Obesity in Children
Negative Body Images
Video Games
Healthy Eating etc ..

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 Fashion and Marketing

Elements of Culture
1. Language
2. Manners & Customs
3. Technology & Material Culture
4. Social Institutions business, family
5. Education transmitting values, skills, attitudes etc
6. Aesthetics attitude toward beauty, art, music etc
7. Religion

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 Fashion and Marketing

Worlds Religions (2014)

Religion can affect marketing strategy

68