Marketing Function

Marketing Function

1. 4 P's - Product & Price

   • A marketing plan incorporates the 4 P's - Product, Price, Place and Promotion
   • To be competitive - A product needs to be: well designed, reliable, high quality, fit for purpose, affordable.
     • What features does it have? What does it look like? How is it branded?

2. Price

   • What is the value of value of the product to the buyer?
     • How does the price compare with competitors?
       • Many consumers are not aware of every product and price on the market. The pulling power of brands means that many consumers are prepared to pay the price for what they perceive to be a 'must have'.
     • Does the price of the product reflect the lifespan, quality, fabrics and brand reputation of the product?
       • Is there an established price point?
       • Is the product Haute Couture, is it designer, high street, Budget?
         • When you conduct a marketing plan - you conduct research - your products need to be better than whats already available/ to competitors - to be competitive - to achieve high market share
           • May involve creating unique characteristics or using special high-tech materials to give the product a competitive edge or a different level of quality.
             • Different price level may then be set, which are often based on the value that consumers put on special features or qulaities.
     • Price affects the level of profit, the volume of manufacture, the market share and the image of the product.
       • There is a retail price and a manufacturers price - the difference being what is called 'mark up'. Whatever the mark up, everyone in the supply chain must make a profit. The attractiveness of the price to the consumer. There is a fine line between price - value & quality. How much a consumer is prepared to pay for a product depends on how much the product is valued.
         • A product may warrant a higher price if it - Has extra features, is perceived as quality product, has an increased re orputation through branding, advertising or promotion. Is possible to buy the product on credit. If there is guarantee of fast delivery through mail order online.

3. Place

   • Where do consumers look for the product?
     • Critically evaluate four of the following types of retail outlet in terms of the experience they provide for shoppers wanting to buy fashion products: - department stores, - factory stores, - internet sites, - market stalls, - chain sores, - boutiques. (20 marks)
       • Department stores: Pos - offers many different types of products, may have different concessions to extend range of goods on offer, have a range of additional facilities such as restaurants, may offer loyalty cards, credit cards, good visual presentation of products, knowledgeable staff in different departments, usually good/high quality products. Neg - May not offer much individuality, especially as ranges may be the same in other shops in a group, often dated or over formal atmosphere, shops may be busy, large or confusing, may be more expensive than other outlets.
       • Factory Outlets: Pos - Offers low cost fashionable products, often in a village environment with many different types of retailers and/or entertainment, will probably offer free parking. Neg - May not offer the full range of products, products may be seconds or discontinued lines, may need to drive some distance if outlet is not local.
       • Internet Sites: Pos - Offer many different types of products, may be sold at discount, goods are delivered, can shop at any time, special offers/discounts via email, shop from home - ease of home environment, search options make it easy to find product by colour/type , virtual changing roos. Negs - Cannot see or try on products before purchase, may need to wait in for delivery or collect form local depot, additional delivery costs, may be difficult to return unsuitable goods, need to have a credit card, may be subjected to internet fraud, can't try on clothing, returns - inconvenience, can't feel texture, or see clear pattern/colours.
       • Market Stalls: Pos- Goods sold at reduced prices, may be possible to buy vintage, specialist or locally made products, may be able to negotiate on price, often a pleasant atmosphere, can compare with other nearby stalls. Neg- May not be able to try clothes on before buying them, may be damaged or seconds, may not be easy to return/exchange unsuitable goods, materials may be counterfeit, goods may not be displayed well, may be unpleasant in wet or windy conditions.
       • Chain stores: Pos- Offer many different types of products, maybe cheaper than other outlets, some have additional facilities such as restaurants, may offer loyalty cards, credit cards, often exchange without asking questions, cater for a wide range of ages and sizes, usually good quality goods, many branches into different towns.
       • Boutiques: Pos - Offer high fashion and individual products, may specialise in certain products, offer personal service, maybe able to undertake alterations, often high quality/high prices. Negs - Will probably be more expensive than other outlets, may carry only limited size and style ranges, small runs of products may not be able to be re-ordered, will not have additional facilities, often a destination shop with no other nearby with which to make comparisons , may be pushy sales staff.

4. Market Segments / TGM

   • Need to know your Target Market!
     • Age - Gender - Disposable income - Lifestyle - Degree of fashion awareness
   • Division of markets into separate consumer groups - Market segments/Target market groups
     • Additional segments are - Menswear, womenswear, children's wear
     • Identifying Socio Economic groups, Demographic trends, Niche marketing - E.g Rapha = cycling company
     • Marketing approaches are now developed for specific segments where needs are not satisfied, e.g. shorts market now market sun bathing shorts, running, cycling etc.
       • Successful product development needs a clear target market group which is often decided by market segmentation. Ways of dividing up consumers: age groups, disposable income, gender, lifestyle, product end-use.
         • A marketing plan can involve advertising and promotion of products and brands through retailers, newspapers and magazines, TV, radio, film and the Internet. successful marketing plan often makes use of market research to accurately gauge - consumer needs and demands; the age, income, size and location of the target market group/segment; the product type that customers want and what they will pay; trends affecting the market, e.g rising mortgages rates may slow down sales of fashion or interior products; competitors' products and marketing style; the estimated time required developing and marketing the product.
           • The development of modern ideas about marketing has influenced companies to divide markets into separate consumer groups - called market segments.
           • Developing a marketing mix - the driving force behind market segmentation is the need to develop marketing approaches for specific segments of the market, where their needs are not full satisfied. The identification of market segments through market research has lead to the development of the concept of marketing mix. This includes marketing a range of products using advertising, promotion and specifically designed retail outlets. Many retail chains are designed to target segments that are differentiated by age, gender, buying behaviour, spending power and lifestyle.
       • Test Selling is to find out consumer and retailer reactions to the product - is the product selling to target market segment? What is their reaction to the product? Is the product selling successfully? Test selling enable forecasts to be made of future sales and profitability and enables production planning to take place.
         • Life style Marketing - Lifestyle is a well-established basis for targeting different market segments. It can be identified through investigating the geographic and demographic characteristics of the population. People with similar demographic characteristics often have similar lifestyles.. E.g. A recent lifestyle trend over the last generation - healthy lifestyle movement.
           • There are thought to be two main concepts relating to why and how products are developed: consumer demand (market pull) and technology push. Market pull refers to the requirements of the marketplace 'pulling' companies to produce what consumers want.

5. Promotion

   • Where and when can you get across your marketing messages to your target market? (TGM)
   • Will you reach your audience by advertising in the press, tv, radio, billboards. When is the best time to promote? How do competitors promote?
     • E-commerce - Virtual reality - Virtual prototyping - Product Simulation, 360 degrees rotation online, customising products, product simulation.
       • Exam Question: Many designers use catwalk shows to promote their new fashions. Evaluate the catwalk as a method of promoting fashion products. (6 marks)
         • Catwalk shows are associated with glamour and attract media attention which helps promote the designer’s work. The media report on the fashion shows which can generate further interest in the garments; the editors of prestigious publications, such as Vogue, can influence what consumers are likely to buy in the next season. Celebrities who attend the shows further enhance the success and desirability of the fashions. Fashion buyers from major retail outlets will also attend the shows so it is a good opportunity for designers to get their work recognised and in the shops. Extravagant shows can attain notoriety which may further enhance a designer’s standing, eg Alexander McQueen. Catwalk shows can also bring fame and recognition to models - a well- known model can further enhance a designer’s standing in the trade. They can help new designers be recognised, eg Graduate fashion week. Garments are seen on a real body not just on a stand or a photograph.
           • Catwalks can be shared through online videos to reach a wider audience. But catwalk shows are very expensive to put on and they take up a lot of energy and time. They do not allow the garments and styles to be examined in detail and it may be difficult to remember designs which are only seen for a few moments. If they do not strike the right note with the media, the designer’s work may be discredited. Once the fashion ideas have been made public they can be copied and cheaper versions quickly put into shops. Emaciated/skinny models can give a bad press to the designer.
             • Trickle down theory - catwalk fashions that have been simplified - go onto street.
             • Bubble up Theory - E.g. Punk - came form streets

6. Developing a Brand Name

   • Helps promote products and encourage loyalty of clients
     • Some consumers enjoy conspicuous consumption and buy brand names to impress others which adds to revenue for designer/company.
       • Notoriety in relation to marketing or other may further enhance the brand's standing with consumers.
         • There are many examples of designers and companies and their products.
           • A brand name or logo - a marketing identity - that sets a product apart from competitors products.
             • It protects and promotes the identity of the products. Branding is a key marketing tool because it promotes the concept of brand loyalty. Consumers buy the chosen brand, because it provides a perceived level of reliability, quality, special features or added value that makes it 'special' in the yes of consumers.
               • May add value to future designs and products. Brand may become a household name and recognised internationally, leading to products becoming a must- have and high volume sales around the word. Brand names are registered allowing exclusive use for the designer/company. Certain products may be associated with the brand. Often a range of products under the brand umbrella

7. Corporate Identification

   • Corporate identity is often seen as a collection of visual elements, which are used to promote the image of an organisation.
     • Visual identity and corporate strategy have become inextricably linked. Some marketing specialists regard corporate identity as the core of an organisation's existence, made up of its history, beliefs, philosophy, technology, people, its ethical and cultural values and strategies. Corporate identity also helps determine the positioning of an organisation in terms of its markets and competitors. most packaging is designed to reflect the bran'd message and identity.

8. Brand

   • A corporate identity is often used to promote fashion brands. Discuss the importance of a corporate identity. Give examples to illustrate your answer. (8 marks)
     • Helps promote products as consumers recognise the brand through logos, styles and colour schemes.
       • These will be used on packaging, marketing materials , shop and window displays, uniforms of workers.
         • The brand name can be registered which gives that company exclusive use of any logos and trademarks and these tend to give the products added value with consumers
           • Identifiable brands encourage the loyalty of clients. Some consumers buy brand names to impress others which adds to the perceived value of the product/company. The brand may become household name and recognised internationally, leading to products becoming must-have and high volume sales around the world.
             • May use celebrities in advertising so they become associated with the brand. Certain products may be associated with the brand. Often a range of products under the brand umbrella. Notoriety in relation to marketing or other may further enhance the brand's standing with consumers.
   • Discuss the benefits to the consumer of buying branded textiles for the home (6 marks)
     • Brand names are a way of marketing products to consumers. Buying a branded product offers some assurance of quality and value over non-branded products.
       • The branded product is also more likely to reflect the latest trends and have the support of a modern production and distribution system so it will be freely available in a number of retail outlets. It may be part of a range of co-ordinating products. Strong advertising and marketing ensure that the consumer is aware of the product in the market place.

9. New Media

   • How can consumers be influenced in favour of a particular product? Choice of media may depend of type of product.
   • TGI - Target Group Index,
     • To match products TMG with the media that they use the most, Press, tv, posters & billboards, radio, electronic media.

10. Lifestyle Marketing

    • Giving consumers products with a desirable image
      • For example, Louboutin create shoes with a red sole, these make the shoes immediately recognisable. Consumers feel good wearing shoes that are associated with quality, status, success.

11. Marketing of New Fibres

    • New fibre websites that contain - brand story, logo, powerful imagery and supporting slogans, appealing to emotional needs of the user - 'Those favourite jeans will follow every wonderful curve'.
      • Use of swing tags and fibre benefits at point of sale. Advertisements in magazines. Promotion at International trade Fairs -E.g. Premiere vision - Presentations to retailers and manufacturers.

12. Fibre Branding

    • Nike
      • Catchy Slogan: 'Just Do It'
      • Nike are a global brand recognised all over the world. Marketing is exceptional, website - email sign up - gift cards purchase - sports categories for products - continual innovations for improved quality and performance - customise options for unique customer design options - links to twitter and Facebook - high street stores - swing tags - product benefits - advertising campaigns - billboards
    • Invista
      • Company who manufacture high quality fabrics for appeal, swimwear, activewear and more.
    • Fibre branding is extremely important because it:
      • Speeds up market acceptance of fibre innovation all the way through the value chain.
      • Develops a reputation and image which increases its influence in the market.
      • Provides an easy way for retailers to communicate excitement about hi-tech fibres and modernity in clothes.
      • Is the focus for lots of information about product offerings and technical data.
      • Is highly visible through promotion and advertising, point of sale material and swing tickets, seen by trade and consumers.

13. Labelling & Packaging

    • Labelling is any written, electronic, or graphic communication on the package or on a separate but associated label. Packaging protects products for distribution, storage, sale and use. Packaging contains, protects, preserves, transports, informs , and sells.
      • Marketing - The packaging and labelling can be used by marketers to encourage buyers to purchase the product. Package graphic design and physical design have been important and constantly evolving phenomenon for several decades. Marketing communications and graphic design are applied to the surface of the package and (in many cases) the point of sale display.