fashion marketing final test revision

1. The 4 Ps of marketing are: Product: what you are selling Price: how much you’re selling it for Place: how your product is distributed Promotion: how you promote your product The 4Ps need to be considered in conjunction and are not mutually exclusive.

2. Marketing Planning involves: Defining your target market Situational Analysis – SWOT Competitor Analysis – direct & indirect Environmental Analysis – political, legal, social, economic Setting objectives, strategies, budgets & measures for the 4 Ps

4. Fashion customers can be grouped into four main categories McFashion: cheap, chic clothing available all over the globe. Enables safe buy in into latest trends, International Superbrands: led by the notion of couture. International superbrands are the drivers behind the aspirational elements of fashion London Style: The London fashion scene is recognised internationally for its creativity and flourishing market. Prides itself on designers that took over Paris fashion houses. Micro markets: most directional in regards to the future of clothing and fashion. Related to consumer moods – customised clothing online

5. Introduction of a new product Product improvement or modification: Used when a product has reached a stage where something has to be done to keep it viable. Product imitation: Wait for another to take the lead in a market, then release an imitation product Product innovation: introduce a new product to replace an existing product and satisfy the need in a new way Product diversification: Introduces new products or markets into marketing strategies in pursuit of growth

6. Diversification can be: Concentric : close synergy with existing products (ie dresses and shoes) Horizontal : technologically unrelated, but sold to The same customers (ie dresses and perfumes) Conglomerate: no relationship to current Product (ie dresses and bread)

7. Product Life Cycle stages Introduction: acceptance of the product is in doubt. Usually involves high marketing expenses and little profit Growth: Period of substantial profit improvement Maturity: intense rivalry. Companies battle for market share through advertising, new distribution channels, price concessions Decline: not necessarily a bad thing. Competitors can leave, resulting in reduced costs

8. Apparel and other consumer products can be classified by the length of their life cycles. The life cycle curves of basic, fashion, and fad products are pictured below.

9. Five types of consumers emerge at each of the life cycle stages. Different marketing strategies should be used to reach each of these consumer types.

10. Branding A brand is a name, term, sign, symbol or a combination of these that identifies a product or service and what the product stands for. While a brand can be product specific, corporate identity is how a whole company presents itself. Fashion companies are often similar. To differentiate themselves, companies must focus on the customer experience. This is communicated through corporate identity and brand.

11. A brand is a seller’s promise. The best brands convey a guarantee of quality. Some brands gain so much loyalty that shoppers refuse substitutes. This is called high brand equity.

12. Brands can offer four levels of meaning: Brand attributes Brand benefits Brand values Brand personality Some companies opt for emotional positioning of their brand over product characteristics

13. A logo is a visual representation of a brand. So is the labelling and the packaging. But your brand is the message that lies behind the logo.

14. Your brand will affect the way you package your product, and the way you package your product will reflect your brand. Packaging is the “silent salesman”. How you label your product also contributes to how well it will sell. Made in Australia? Made in Paris? Real fur? Your brand!

15. How are goods & services different? Most services contain some element of goods. Goods are the object, a service is the effort, performance or deed A product can be either a good or a service

16. Purchasing a service is often more personal than purchasing A product. Bad service sticks in people’s minds! All retailers are classified as being in the services sector. Service retailers in Australia are growing faster than product retailers

17. Services have four unique characteristics: Intangibility Inseparability Heterogeneity Perishability

18. The People Problem People are inseparable from the product in every service firm This involves customers as co-producers Both can cause problems.

19. Although a service is intangible, the P of ‘place’ still plays a major tole in marketing. Where should the service be in order to effectively reach the target market? And to strengthen the brand?

20. Guidelines for advertising services Develop a word of mouth network Promise what is possible Tangibilise the intangible Feature the relationship Reduce fears about inconsistency

21. Megan Salmon advised: When starting out, you need to build goodwill through word of mouth. Sell yourself. Your biggest marketing opportunity is yourself Take yourself seriously enough to get out there Always have soundbites ready Have minimum 20-60 pieces in a range Don’t make photos editorial style

22. Integrated Marketing Communications means integrating and coordinating all communications to deliver a clear, consistent message about a company and its products An IMC programme should effectively achieve major objectives such as: Inform consumers Persuade consumers Remind consumers Reinforce consumer attitudes & perceptions

23. IMC means using all the elements of the promotional mix to maximise communication opportunities. Advertising Sales promotion Public relations Direct marketing Online marketing Personal selling

24. Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. PR gets to the buyer as ‘news’ rather than as a sales-directed communication.

25. Direct marketing is an interactive system of marketing. Usually DM refers to activities that use targeted media to facilitate interaction. The key point is that there is continuous interaction, and not just one way communication. Direct marketing can still use mass media Online marketing is closely aligned to direct marketing as it entails interaction with customers on a one to one basis, often in real time

26. Sales promotions attract consumer attention and offer strong incentives to create a stronger, quicker response. “Buy NOW” Often short lived and usually not effective in building long run brand preferences Personal selling is a face to face interaction with a prospective customer for the purpose of making sales. For certain products this can be the most effective form marketing tool