Fashion marketing and management involve the core functions of selling products and managing supply. Those on the marketing and management end of the fashion industry are tasked with the unique challenge of merging their creative aptitude and business acumen in order to generate brand awareness, which in turn generates sales. Both fashion marketers and managers create and execute well-planned marketing strategies aimed at keeping their retailers relevant by positioning them as stylish and better than their competitors.
3. Marketing
“Marketing is a social and managerial process by which individuals and
groups (Organizations) obtain what they need and want through
creating and exchanging value with others”- Philip Kotler.
The definition when analyzed, defines marketing both social (where no
set of rules of marketing is applied) and managerial (where modern
way of dealing through organizational structure and methods takes
place).
4. Key terms in marketing
• Market: The traditional definition says that it is a place where buyers
and sellers meet. In today’s context it can be virtual.
• Need: States of felt deprivation
• Want: The form of human needs takes as shaped by culture and
individual.
• Demand: Human wants that are backed by buying purchasing power.
• Customer Perceived Value: The customer’s evaluation of the
difference between all the cost of a marketing offering relative to
those of competing offers.
5. Key terms in marketing
• Customer Satisfaction: The extent to which a product’s perceived
performance matches a buyer’s expectation.
• Customer and Consumers: All Consumers are customers but all
customers are not consumers.
6. Philosophies of Marketing
• There are 4 philosophies or concepts of marketing. They are also
known as evolution of marketing.
1. Production Concept: Consumers will favor products that are
available and highly affordable and that the organization should
therefore focus on improving production and distribution efficiency.
2. Product Concept: Consumers will favor products that offer the most
quality and performance and features and that the organization
should therefore devotes its energy in making continuous product
improvements.
7. • Selling Concepts: Consumers will not buy enough of the form’s
products unless it undertakes a large scale selling and promotional
effort.
• Marketing Concept: The marketing management philosophy is that
achieving organizational goals depends on knowing the needs and
wants of target market and delivering the desired satisfactions better
than competitors.
8. A Company should consider
• Consumer’s want
• Consumer's requirement
• Consumer’s long run interests
• Society’s long run interests
Society (Human Welfare)
Consumer (Consumer Satisfaction)
Company (Profit)
11. Marketing Mix
The major tools or components of marketing are Four P’s also known as
marketing mix.
This model is developed by Philip Kotler and are important for the
success of Marketing.
Marketing Mix is “the set of controllable tactical marketing tools-
Product, Price, Place, Promotion- that the firm blends to produce the
response of wants in the target market”- Philip Kotler
12. • Product: Goods and services or combinations that marketers offers to the
market.
• Price: Price is the amount of money that a customer pay in order to obtain the
product. It also includes Credit terms, Discount Allowance, Payment periods etc.
• Place: through distribution the products are available to the customers. So we
can say where the activities of distribution takes place is called place. Activities
of distribution includes-
1. Channels of distribution
2. Location
3. Coverage
4. Inventory
5. Assortments
6. Transportation
7. Logistics
13. • Promotion: Promotion is the activities that communicate the merits
the product or services to the perceived customers to buy it. It
includes-
- Advertising
- Personal Selling
- Sales Promotion
- Publicity
14. Segmentation
• Market Segmentation: The process of dividing the market into sub-groups
of similar customers. Sub- groups of people that share similarities which
can be used for more efficient seller/buyer relationship.
Segmentation types:
1. Geographical: Country, Region, City size, Density.
2. Demographic: Age, Gender, Family size, Life-cycle, Income, Education,
Religion, Nationality.
3. Psychographic: Social Class, Life-style, Personality.
4. Behavioral: Occasions, Benefits, User Status, Loyalty, Attitude, User rate.
15. Importance of Segmentation
• Increases understanding of customer’s wants and needs.
• Different product for different groups.
• Better match between customer’s wants and product benefits.
• Maximize the use of available resources.
• Focused market expenditure.
• Competitive advantage.
16. Criteria of Selecting a segment
• Available company resources.
• Segment growth potential.
• Segment profitability.
• Competitive environment
• Company Long term objectives.
17. Market Positioning
Having chosen which segment to target- business needs to decide how
to compete in those segment which is known as the value proposition
(an innovation, service, or feature intended to make a company or
product attractive to customers.)
Market positioning is where customer decides how they have
perceived the products or services.
Market position is defines by customers- the place a product occupies
in customer minds relative to competing products.
18. A market (or positioning) map illustrations the range of “positions” that
a product can take in a market based on the two dimensions that are
important to customer.
High Quality
Low Price High Price
Low Quality
19. Possible positioning strategies
• Offer more for less i.e. good quality at low prices.
• Offer more for more i.e. High priced luxury products with prestige
value.
• Offer more for the same i.e. introduce new features and better
performance for the same price.
• Offer less for much less.
21. Basic understanding of fashion
• Fashion is a popular style especially in clothing, footwear, lifestyle
products such as accessories, make up, hairstyle or furniture's which
lasts for a particular period of time throughout the mass number of
people.
Fashion types:
The Fashion is divided into three types:
1. Haute Couture
2. Ready to Wear
3. Mass Market
22. • Haute Couture: when each garments are being created for a specific
client. Each garments are usually made from high quality, expensive
fabrics and sewn with extreme attention to details and care.
• Ready to Wear: Clothes that are cross between haute couture and
mass market. They are not made for a specific people but a specific
class of the people where a great care is taken in the choice of the
fabrics and developments.
• Mass Market: Garments that are created to fulfill the demand of the
mass market and everyday lifestyle. The garments are highly
affordable for the mass people and is taken up most of the fashion
industry.
23. • Fashion Season:
Fashion is split into four seasons:
1. Spring/Summer – January to June.
2. Fall/Winter- July to December
3. Resort- October to December
4. Pre- Fall- April to June
Fashion Capitals:
1. Paris
2. Milan
3. New York
4. London
24.
25. Retail VS Wholesale
• Retail is the sale of the merchandises from a specific point (such as
mall, markets and department stores) in a small quantities directly to
the customer.
• Wholesale is the sale of the goods in bulk at a discount to merchants
for resale to retailers such as industrial, commercial, institutional or
professional users.
26. Wholesale Retail
They are connecting links between the manufactures
and retailers
They are connecting links between the wholesalers
and customers.
They purchase goods in large quantities from the
manufactures
They purchase goods in small quantities from the
wholesalers
They deal in limited number of products. They deal with variety of products for meeting the
needs of consumers.
They need large amount of capital to start their
business.
They can start their business with limited capital.
They display of goods and decoration of premises is
not necessary for them.
They lay more emphasis on window display and
proper decoration of business premises
Their business operations extend to different cities
and places.
They usually localize at a particular place, area or city
They do not directly deal with the customers. They have a direct link with the customers
They provide more credit facilities to retailers They provide lesser credit facilities to the customers
They enjoy economies of the bulk buying, freight and
price etc.
They do not avail in bulk buying economies
Their services can be dispensed with or can be
eliminated from the chain of distribution.
They are integral components of the distribution chain
and cannot be eliminated.
