Info is critical to deciding how to make a product that will sell. Fashion changes from season to season and from year to year. Determining what will sell requires fashion marketers to keep in touch with their customers. They must decide far in advance on the design of a garment, acquire the fabric and other materials, produce the garment, sell it to retailers, and deliver it for customer viewing when the customer wants it and is ready to buy it.
Planning includes how to cover operating expenses while waiting for income from the first sales. A textile manufacturer may require payment for fabric when it is delivered to a fashion designer, which is long before the customer pays for the garment. The designer may need to borrow money and pay finance fees, which adds costs to the price of the final product. It takes careful budget planning to assure that the product is priced to cover all costs plus a profit and is what a customer is willing to pay.
Objectives may be to increase demand, to buy, to inform, etc. Fashion marketers create an image of who wears a brand of clothing though promotion. Using celebrities to advertise a brand leads consumers to believe they can be like the celebrity if they wear that brand.
With information about what the customer wants and financing to make it happen, fashion marketers can start to work on the product.
The number of businesses involved in the actual planning and movement of the product is a major factor in the final price. The channels of distribution can include intermediaries who help a designer or manufacturer get the product into retail stores. Distribution also includes the actual transportation of the product – for example, by truck or by air.
Transcript of "Chapter 1 Fashion Marketing"
Chapter 1 <ul><li>An Introduction to Fashion Marketing </li></ul>
<ul><li>“ Fashion is not art, it is industry ” </li></ul><ul><ul><li>Jean Muir </li></ul></ul>
Some Marketing definitions… <ul><li>“ Marketing is a human activity, directed at satisfying needs and wants through exchange processes” </li></ul><ul><li>Kotler </li></ul>
Chartered Institute of Marketing <ul><li>“ Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably” </li></ul>
Drucker <ul><li>“ Marketing is the whole business seen from the point of view of its final result, that is from the customer’s point of view” </li></ul>
<ul><li>Marketing is about making it easy for the customer to say “YES” </li></ul><ul><li>Write down what makes it easy for you to say ‘YES’ and make a purchase </li></ul><ul><li>The aim of marketing is to eliminate the need for selling </li></ul>
What is fashion? <ul><li>Fashion involves change, accepted change, defined as a succession of short-term trends or fads. </li></ul><ul><li>Styles do not become fashions unless they win acceptance amongst consumers. </li></ul><ul><li>Fashion is not just about clothing. </li></ul>
Related Fashion Services Advice on garment coordination Cosmetic surgery Tattoos Hairdressing Garment alteration, cleaning, repairs Sun tanning CLOTHING Underwear...Outerwear Formal……..Informal Bespoke… ..Ready-made Natural……..Man-made Fashion-related products Shoes Hats Hosiery Jewellery Belts Bags Scarves Cosmetics Fragrances Wigs USAGE SITUATIONS Work/School Leisure Domestic FASHION PRODUCTS AND SERVICES
<ul><li>But fashion fulfills more than just a basic need of clothing and home furnishings. </li></ul><ul><li>Fashion fulfills a need to reflect an image of oneself to the world. </li></ul>
What is Fashion Marketing? <ul><li>“… . the application of a range of techniques and a business philosophy that centres upon the customer and potential customer clothing and clothing-related products and services in order to meet the long-term goals of the organisation” </li></ul><ul><li>Mike Easey </li></ul>
Two Views of Fashion Marketing <ul><li>Sample statements </li></ul><ul><li>Assumption </li></ul><ul><li>Orientation </li></ul><ul><li>Alleged drawbacks </li></ul><ul><li>Design should be based solely on marketing research </li></ul><ul><li>Make what we can sell </li></ul><ul><li>Marketing centred </li></ul><ul><li>Bland designs </li></ul><ul><li>Stifles creativity </li></ul>Fashion marketing is the same as promotion Sell what we can make Design centred High failure rates Relies on intuition
The Fashion Marketing Concept DESIGN CENTRED FASHION MARKETING CONCEPT FAILURE MARKETING CENTRED High Low Concern for Fashion Design Concern for customers and profit
Fashion Merchandising <ul><li>The retailers role in fashion marketing is very important. </li></ul><ul><li>Merchandising = the buying and selling of goods. </li></ul><ul><li>Fashion Merchandising aims to have: </li></ul><ul><ul><li>The right fashion merchandise, at the right place, at the right time, in the right quantities at the right price </li></ul></ul>
Marketing Mix – 4 P’s <ul><li>Product – what a business offers customers to satisfy needs </li></ul><ul><li>Price – the amount the customer pays for products </li></ul><ul><li>Promotion – the ways a customer is informed and encouraged to buy the product </li></ul><ul><li>Place (distribution) – involves getting the product to the customer </li></ul>
Key Marketing Functions Functions of Marketing Marketing Information Management Financing Pricing Promotion Product/Service Management Distribution
Marketing-Information Management <ul><li>Involves gathering and using information about what consumers want. </li></ul>
Financing <ul><li>Involves planning ways to cover the costs of successfully operating the business. </li></ul>
Pricing <ul><li>Is the process of setting the value or cost at the right level. </li></ul><ul><li>Must cover costs of all other marketing functions. </li></ul><ul><li>Is the only element of the mix which brings in cash. </li></ul><ul><li>Depends on the costs of production plus a margin for profit. </li></ul><ul><li>Needs to reflect demand. </li></ul>
Promotion <ul><li>Is communicating with the customers about the product to achieve the desired objective </li></ul><ul><li>Methods of promotion include: </li></ul><ul><ul><li>Advertising </li></ul></ul><ul><ul><li>Personal selling </li></ul></ul><ul><ul><li>Publicity </li></ul></ul><ul><ul><li>Sales promotions </li></ul></ul><ul><ul><li>Public relations </li></ul></ul>
Product/Service Management <ul><li>Designing, producing, maintaining, improving and/or acquiring products or services to meet customer needs. </li></ul>
Place (Distribution) <ul><li>… involves moving the product each step from the design idea to the consumer. </li></ul>
The Marketing Triangle <ul><li>Illustrates the relationships within marketing </li></ul>Customers Company Competitors
Marketing Dynamism <ul><li>Marketing Strategies cannot be static </li></ul><ul><li>They must respond to a changing environment </li></ul>
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