Transcript 03.01 PowerPoint (Edited)

UNIT C
The Business of
Fashion
3.01 Explain the concept of
marketing in fashion.
Marketing
The process of
DEVELOPING,
PROMOTING, PRICING,
and DISTRIBUTING
products in order to
satisfy customers’ needs
and wants.
Fashion merchandising
Specific marketing
activities designed
to have fashionoriented
merchandise at
the right TIME,
PLACE,
QUANTITY, and
PRICE to meet
customer demand.
Market
The group of
ALL
potential
customers.
Businesses must
understand who their
potential customers are
Are you in the market?
If you have EVER in your short number
of years bought any article of
clothing, accessory, food item, or
household product…
PLEASE STAND UP
Target market
I would be an idiot if I made
something and tried to sell it to
everyone last one of you…
The
SPECIFIC
segment of a total market that a
company desires to have as
customers and toward whom it
directs its marketing efforts.
Market segmentation
DIVIDING the entire market into
SMALLER groups having similar
characteristics.
•Demographic
segmentation
•Psychographic
segmentation
•Geographic
segmentation
•Behavioral
segmentation
•Every business must
decide which customers
it can serve in order to
be successful.
What Does This Mean?
Demographic segmentation
Based on vital statistics of the
population.
•Age
•Education level
•Race
•Income level
•Gender
•Occupation
NO MATTER WHAT…YOU WILL
ALWAYS BE A PART OF A
DEMOGRAPHIC BREAKDOWN!
Psychographic segmentation
Based on a consumers’ lifestyles,
values, attitudes, and self-concepts.
•Tries to explain consumer behavior
and determine what the consumer is
thinking and feeling
Geographic segmentation
Segmenting a market based on where
a person LIVES...DUH
Behavioral segmentation
Dividing consumers into groups
according to their response to a
product.
WHY THEY BUY THE PRODUCT…
THIS SEGMENT IS BASED ON STUFF THAT YOU
DON’T BUY EVERYDAY. THINGS FOR HOLIDAYS
AND SPECIAL OCCASIONS, SUCH AS:
BALLOONS, CAKE, TENT, BUG SPRAY,
DIAMOND RING, PROM CORSAGE, ETC.
Marketing mix
A combination of decisions a business must
make in order to best reach its target
market; known as “the four Ps” of
marketing.
•Product
•Place
•Price
•Promotion
Product considerations
Marketers must decide what is in
DEMAND and bring those products to
the consumer.
•
•
•
•
•
Choice of products
Brand name
Level of quality
Packaging
Warranties
Place considerations
Products MUST be available at the right
time and location.
•How and where will
products be offered to
customers?
What is the most efficient
method of transportation?
Distribution channels
• Direct distribution: A distribution channel
in which the producer sells goods or
services to the FINAL USER.
– Example: A button manufacturer sells directly to
garment manufacturers.
• Indirect distribution: A distribution channel
in which goods or services are sold
indirectly to us (consumer) thru 1 or more
intermediaries.
– Manufacturer/producer TO retailer TO consumer
(path that most fashion apparel takes.)
– Example: Levi Strauss sells jeans to Belk who,
in turn, sells to the consumer.
Price
considerations
Determining a value to charge…
How high would you go to pay for a glass of lemonade?
$0.25?
$0.75?
$1.50?
$2.50?
$3.50?
How high would you go to pay for a smoothie?
$2.00?
$4.00?
$6.00?
$8.00?
How high would YOUR PARENTS go to pay for a bottle of wine?
$15?
$30?
$75?
$100?
Promotion
Communication that IPR’s customers
of the goods and services available
to them.
•Advertising
•Publicity
•Personal selling
•Public relations
People
Many businesses also consider “people”
(employees) to be an important element in
the marketing mix since they can make
the difference between success and
failure by the way they carry out the other
elements of the marketing mix.
The 7 Marketing Functions
•
•
•
•
•
•
•
Distribution
Financing
Marketing-Information Management
Pricing
Product/Service management
Promotion
Selling
Distribution
The transporting, storing, and handling
of goods on their way from the
manufacturer to the consumer.
*Referred to as PLACE in the marketing mix.
Financing
Obtaining the money
needed to cover the
costs of operating a
business.
How are you going to come up
with the $10,000 it takes to
open your new shoe store?
MarketingInformation
Management
Obtaining information
about what
consumers want.
Example: Marketing research
Pricing
Determining a value to
charge for goods and
services.
Price must cover
•Costs of conducting marketing research.
•Costs of financing the business.
•Costs of producing the product.
•Costs of promoting the product.
•Costs involved in distributing the product.
•Costs of selling the product to the final consumer.
•Profit for all people involved in the marketing process.
Product/Service Management
Concepts and
procedures necessary
in designing,
producing, maintaining
(up-keep), improving,
and obtaining (getting)
products or services to
meet customer needs.
Promotion
Communication used to
…
IPR…
INFORM, PERSUADE and
REMIND people about a
business’s products.
Selling
Determining customer needs and wants and
responding to those needs and wants.
For Ex: What am I looking for in a running shoe?
Something comfortable or something cute?
INFLUENCE CUSTOMERS TO BUY AND ENSURE
SATISFACTION
Have you ever been targeted?
IF…
you own a bra
PLEASE STAND UP
and know you were just targeted by:
__________________________
Have you ever been targeted?
IF…
the idea of buying a new pair of
sneakers/shoes/kicks excites you
PLEASE STAND UP
and know you were just targeted by:
__________________________
Have you ever been targeted?
IF…
you can name at least 20 flavors
of ice cream
PLEASE STAND UP
and know you were just targeted by:
__________________________
Have you ever been targeted?
IF…
you can locate the
carburetor in a car
PLEASE STAND UP
and know you were just targeted by:
__________________________
Have you ever been targeted?
IF…
you’ve ever been called 4-eyes
PLEASE STAND UP
and know you were just targeted by:
__________________________
Have you ever been targeted?
IF…
You own a skateboard
PLEASE STAND UP
and know you were just targeted by:
__________________________
Have you ever been targeted?
IF…
You have ever been to
a rap/hip hop concert
PLEASE STAND UP
and know you were just targeted by:
__________________________
Have you ever been targeted?
IF…
Your idea of a good Saturday
involves climbing something really
high and biking down it
PLEASE STAND UP
and know you were just targeted by:
__________________________
Have you ever been targeted?
IF…
You have ever watched a movie
BEFORE it came out in
theatres or on video
PLEASE STAND UP
and know you were just targeted by:
__________________________