Standard 2
Fashion Marketing
•Student will understand the basics of fashion marketing.
•Objective 1: Define Marketing Terms
•Objective 2: Describe the 4 P’s of Marketing
•Objective 3: Describe the 4 methods of market segmentation
•Objective 4: Describe the 6 marketing functions
•Objective 5: Identify careers in the fashion merchandising industry
•The process of developing, promoting, & distributing
to satisfy customers’ needs and wants.
It is a series of activities that fashion businessesundertake so that customers will buy products fromthem instead of their competitors.
•To market effectively, fashion marketers follow theprinciples of the marketing concept,
This is the idea that businesses must satisfy customers’ needs and wants inorder to make a profit.
•The specific group of people that abusiness is trying to reach.
•Identifying a group of consumers, or target market, isachieved through market segmentation,
which is a way of analyzing a market by categorizingspecific characteristics.
•Demographics: personal characteristicssuch as age, gender, income, ethnicbackground, education, religion,occupation, & lifestyle.
•For Example: A retailer such as PacSuntargets a teen or young adult customer.
•Psychographics: based on social &psychological characteristics such asattitudes, interests & opinions.
•For example: PacSun, many of thecustomers may be interested in surfing orskateboarding.
•Geographics: statistics about where peoplelive. Could include: region, city, county, &climate.
•For example: PacSun tends to focus itsmarketing campaigns in warmer & coastalregions rather than in colder
climates.
•Behavioral Segmentation :statistics aboutconsumers based on their knowledge,attitudes, use, or response to a product.
•Purchase Occasion: instance when aconsumer might use a product – casual orwork attire.
•Product Benefits: study of the benefits thatconsumers desire in a fashion product orservice such as stain or wrinkle-resistance.
•Usage level & commitment : how oftenconsumers use a product & their loyalty topurchasing it.
•The planning, buying & selling
of fashion apparel & accessories
to offer the right merchandise
blend to meet consumer demand.
•To sell a fashion product to target customers,businesses must apply the marketing mix.
•The marketing mix consists of four basicmarketing strategies (4Ps) –
•PRODUCT
•PRICE
•PLACE
•PROMOTION
•Refers to what companyis offering for sale tocustomers to satisfy theirneeds & wants.
•Includes goods &services.
•Fashion marketersdevelop strategies thatinclude producing,packaging, & naming aproduct.
•Examples of Goods:
•Examples of Services:
•The amount of moneyconsumers will payfor a product.
•Fashion marketersmust determine howmuch consumers arewilling to pay.
•Refers to the way productsare distributed and theirsystems of delivery.
•Important place decisionsinclude
how & where a product will bedistributed,
where the customer willpurchase the item, and
when the product is distributed.
•Any form ofcommunication that abusiness or organizationuses to
inform,
persuade, or
remind
people to buy its product.
•Product/Service Management
•Pricing
•Distribution
•Marketing-Information Management
•Promotion
•Selling
•Fashion businesses must develop, maintain, & improve theirproducts in response to customer demands.
Fashion producers look for new ways to use existing items orproduce new ones that will continue to interest the consumer.
For example: a current textile in apparel is spandex. Althoughthis material has been in existence for years, its popularityincreased when designers began using it for women’s & men’sactive-wear fashions.
•A primary goal of any business is to make a profit.
•A key factor in achieving this goal is to price a productaccurately.
•Pricing includes how much to charge for goods & services inorder to maximize profits.
•Although companies price their merchandise based on what thecustomer is willing to pay, they must be careful not to set pricesso low that business does not make a profit.
•This marketing function is responsible for identifying,selecting, monitoring, and evaluating sales channels, alsoknown as channels of distribution.
•Each channel of distribution is a path or route that goods andservices take from the producer to the ultimate consumer orindustrial user. These paths or routes aren’t physical, however.Instead, they refer to businesses or people who perform avariety of activities to enable products to be in the right placesat the right times.
•Effective channel management is often a key to a business’ssuccess because it puts products in the customers’ hands.
Direct Channel
•The path of distribution inwhich products are sold bythe producer directly to thecustomer.
Indirect Channel
•The path of distribution ofproducts that involves oneore more steps, orintermediaries. For example,a product moves from themanufacturer, to thewholesaler, to the retailer,and then to the consumer.
•The world of fashion is ever-changing. Gathering informationis critical. Information is obtained primarily through marketingresearch, which helps fashion businesses determine theircustomers’ preferences & how to better market products.Businesses are able to effectively use the information throughmarketing-information management systems. The five mainelements are:
•Input – reports, past records, or surveys
•Storage – storing the information on a computer, jump drive, etc…
•Analysis – studying the information gathered
•Output – reports of the analysis & conclusions drawn from theinformation
•Decision Making – the final results of the first four elements.
•When new or existing products are developed, fashionmarketers must promote their products to make sales.
•Promotion is the communication technique a business uses,such as advertising, and other promotional methods, to interestcustomers in buying the products.
•Manufacturers also promote their merchandise to retailersthrough catalog & Internet methods.
•The selling function involves the direct personal contact thatbusinesses have with their customers.
•Developing good selling skills is especially important forselling more expensive apparel and designer fashions.
•Sales personnel must be able to communicate the benefits &features of the items so that customers are willing to pay higherprices.
•Advertising Director:
•Works for retail stores and publications andoversees the advertising and promotionactivities
•Marketing Analyst:
•Conducts marketing research and evaluatesinformation.
•Sales Representative:
•Presents the company’s products andservices.
•Public Relations Agent:
•Represents and promotes businesses andproducts within the fashion industry.
