Marketing

Marketing Definition

• Process by which companies create value for customers and build strong customer relationship in order to capture value from customers in return.
• Purpose: To create and mantain a strong feeling with customers so they are mentally predisposed to continually chose YOU.
• Fashion Marketing: The application of marketing processes and activities to currently popular designed products.
• Presentation
• Promotion
• Desire for newness
• Capture attention and interest of the customer

To be effective it needs to be...

• Planned Consciously
• Managed strategically
• Researched Continuosly
• Reviewed consistently
• Long term goal = CUSTOMER LOYALTY

Types of Market

• -
• Consumer Market (made up of ultimate consumers)
• -
• Industrial Market (made up of producer firms)
• -
• Intermediate Market (wholesalers and retailers)
• -
• Government Market (federal, state, county, or local agencies)
• -
• Institutional Market (non-profit organizations).

Marketing Research

• Is a process by which business collect and analyse information specifically related to a marketing question, problem or opportunity.
• Relates to a much wider set of concerns which include: business, politics, economics, cultural and social trends, developing technologies, logistics, promotions and product research.

Market Research (Internal)

• Is a process used to define the size, location and makeup of the market for a product or service.
• Investigation of the market itself, comprising the marketplace, competitors and consumers.
• Ex: A company wants to launch a new range of new products, enter a new region...

7 P's Marketing Mix

• Product
• Price
• Place
• Promotion
• People
• Process
• Physycal evidence

Microenvironment

• Set of forces close to an organisation that have direct impact on its ability to serve customers.
• Company itself
• Suppliers and supply chain logistics
• Customers
• Competitors
• Public

Porter's 5 Forces

• Bargaining power of suppliers
• Bargaining power of buyers
• Rivalry between competitors
• Threat of substitute products
• Thread of new entrants

Macroenvironment

• Collection of uncontrollable forces and conditions that face a company.
• Political and Legal
• Economical
• Social and cultural
• Technological
• Natural Forces

Market

• An aggregate of people who, as individuals or as organizations, have
• needs for products in a product class and who have the ability, willingness,
• and authority to purchase such products.
• Characteristics of a market:
• -
• People
• with needs,
• -
• who have
• money (or something of value), and
• -
• a
• willingness to trade that value to satisfy those needs

Needs

• Something that is lacking that is necessary for
• physical, psychological or social well-being. Exemples of Needs : Food,
• Clothing, Shelter, Warmth, Safety, Belonging Knowledge.
• Apparat formal dressing + exclusive products make
• you feel unique.

Wants

• Something that is lacking that is desirable or
• useful. Exemples of Wants : Food-Lobster;
• Clothing-Tommy Hilgier, Madeleine Vionnet; Shelter-Condo. in St. Barts; Warmth-Hot
• tub; Safety-.357 Magnum; Belonging-Rotary-Lion’s Club; Knoweledge: Esmod-Isem
• programs.
• Sense of belonging to elite, prestige

Features

• Means off providing benefits to customers. A feature is a distinctive
• characteristics of a good or service that sets it apart from similar items.
• Customers, however, want a benefit and do not care much about the features
• which are emphasize by every supplier as unique and superior.

Advantages

• Desirable attribute of a good or service, which a customer perceives he
• or she will get from purchasing. Whereas vendors sell features, buyers seek the
• benefit

Benefits

• Any trait, feature or aspect that gives an individual entity or any
• other thing a more favorable opportunity for success.

Market Segmentation

• A marketing strategy in which a large, heterogeneous market is broken
• down into small, more homogeneous segments, and a separate marketing program is
• developed for each segment.
• Market segmentation advantages:
• - Better match between markets wants and product
• benefits.
• Market segmentation disadvantages:
• - Higher Marketing Costs and Higher Production
• Costs.

Reminders

• Reminder: the
• term Segment refers to a group of individuals, groups, or organization that
• share one or more characteristics which make them have relatively similar
• products.
• Reminder: as
• opposed to Market Segmentation we find Market Aggregation. Advantages : a.k.a
• mass marketing or undifferentiated marketing wich is marketing a product to the
• largest audience possible. This leads ti heavy exposure of the brand and
• product. Usually undifferentiated marketed products are simple and seen as
• necessities or basic products. Advantages: Lower Production and Marketing Costs.
• Disadvantages : Vulnerability to segmented products.
• Reminder: the
• term Segment refers to a group of individuals, groups, or organization that
• share one or more characteristics which make them have relatively similar
• products.
• Reminder: the
• term Cannibalism refers to a situation where the sales of a new (introduced as
• an extension of an established brand) or differently branded product eat into
• the sales of other products within the same line extension is justifiable.
• However the danger of weakening the main brand remains.

Fundamentals of Fashion

• Fashion:
• -The currently accepted prevailing style
• Fad:
• -A fashion with a sudden burst of popularity
• Style:
• -A characteristic or distinctive forms of dress that exists independent of fashion. Each person develops their own over time.
• Classic:
• -A fashion that retains general acceptance over a very extended period of time
• Trend:
• - The movement of a fashion into and through the marketplace/How long a fashion remains popular

Fashion Cycle

• 
• Introduction: beginning of a new style/trend
• Rise: gain in popularity and familiarity
• Culmination: the highest point/peak of the trend
• Decline: the end of a style or trend

Multichannel

• Traditional wholesale businesses are developing
• their own retail channel, brick-and-mortar retailers
• expand their online business, and vice versa.
• Result = up to 100% sales increase
• compared to single channel retailers
• Requires appropriate structures to enable
• an integration of merchandise and assortment
• planning processes, pricing op)misa)on
• across channels

Geographical Differentiation and Localisation

• Brands and retailers are targeting emerging markets
• which are growing fast
• Consumers in emerging markets
• show region-specific preferences and
• requirements that need to be addressed
• Successfully entering and penetrating
• the new markets requires understanding the
• specific culture and local consumer behaviour
• Standard processes and structures must be
• appropriate to operate in both saturated as
• well as fast growing markets

Positioning

• Process in which a marketer communicates
• with consumers to establish a distinct place
• for its product or brand in their minds.
• Position ins about beliefs!
•