FM 205 Midterm Study Materials - Key Concepts and Definitions

marketing concept

objective is to sell the inventory you have, industry has issue with excess inventory

the product concept

improve the band as per the consumer perceives the brand through detail changes (fabric, color, button, necklines)

positioning

developing a specific image of a product in the mind of the consumer

quantitative research

research that collects and reports data primarily in numerical form

qualitative research

research that relies on what is seen in field or naturalistic settings more than on statistical data

primary research

original research conducted for a specific marketing situation

secondary research

past research which has already been performed and often already published

positivism

the belief that knowledge should be derived from scientific observation

interprativism

he assumption that reality is subjective, multiple and socially constructed.

undifferentiated targeting concept

Consider target market like vanilla, don't worry about segmenting that market

Not going to tailor marketing strategy to consumer, assumed that everyone is our consumer

This is difficult for fashion industry

concentrated targeting concept

Saks is one division owned by a real estate company People do not make money off of saks

Saks off fifth is another division, an off price company A lot of same brands as saks, but are older Makes a lot of money Has a better future

Saks has more prestige, but saks off fifth makes more because more people can afford off price

Marketing company would concentrate their marketing on saks Would bring in aspirational customers that want to shop at saks, and hopefully customers will spill over into saks( would then purchase at saks off fifth because they want to buy a good brand ) Off price customers aspire to be luxury customers

differentiated targeting concept

Ralph lauren has about 40 different divisions/sub brands

Each sub brand has an exclusive target market (there is an overlap)

Each can be positioned on their own, diversification

Each sub brand can be targeted on their own

attitudes

Attitude is long term

An attitude towards something

You like the product but you don't like the website, for example

psychological

Motivation, perception, learning, beliefs, attitude, dealing with consumer's emotions

polycentric

Country/culture specific

Going to export our culture in many different ways to many different regions

License out the brand name and a third party develops the product

regiocentric

Relate to regions within a country/culture

East vs west coast, northern vs southern

geocentric

total standard by all countries

If everything could be a standard product all around the world

stars

Products with high market growth and a high market share.

cash cows

Products with low market growth but a high market share.

question marks

Products with high market growth but a low market share.

dogs

Products with low market growth and a low market share.

market development

new markets, existing products

Going into a different demographic

E-commerce opening physical stores or the opposite (location expansion)

market penetration

a marketing strategy that tries to increase market share among existing customers

SWOT analysis

strengths, weaknesses, opportunities, threats

supply chain

the connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function

value delivery network

a network composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value

hybrid systems

A combination of different system structures, as a result it the system now address performance, security, and usability issues.

steps in product development

Changing/modifying our existing product

Cheaper, easier, less risky than making an entirely new product

product lifecycle steps

introduction, growth, maturity, decline

steps in adoption process

Awareness

Interest

Evaluation - comparable to another brand or store

Trial

Adoption

social responsibility

the obligation of a business to contribute to society

counterfeiting and democritization of fashion

Without knockoffs or copies, marketplace is just a select few with means of being the most expensive

No matter what socioeconomic group you come from, you can buy the clothes you want