Fashion marketing final pt 1

What is retailing

a set of business activities that add value to the products and services sold to consumers for their personal or family use

Why a retail store environment is so important

an important part of retailing strategy is to satisfy target consumers

• the in-store experience is critical, it affects customer shopping behavior

• build customer loyalty and a sustainable competitive advantage

• need to know what to observe and what to measure

3 sales metrics

Interception rate- % of shoppers that come into contact with an employee before making a purchase

Conversion rate- how many shoppers that enter a store that actually buy something

Wait time/frustration- reduce perceived wait time by interacting with customers, display impulsive items, show videos on monitors

Grid layout

rows of neatly spaced shelves

• parallel aisles with merchandise on shelves

• easy to locate products that consumers want

• can make purchases as quickly as possible

Ex) grocery stores

Racetrack layout

extra-wide major aisle that loops around the store, which allows shoppers’ quick access to different areas

• leads customers to see merchandise in multiple departments

• guides customer traffic

• common in large apparel and department stores

Ex) IKEA

Free-flow layout

no well-defined traffic pattern

• common in mall and street stores

• easy to browse, but inefficient use of space

• relies on personal selling

Cash wrap areas

point-of-purchase counters or checkout areas (Sephora)

• retailers use them to display impulse purchase items

• important to reduce the waiting time

Effects of different colors

Colors are seen as warm or cool mainly because of long-held (sometimes universal) associations

• Red has been shown to stimulate the senses and raise the blood pressure (generate vibrant, hot and active responses)

• Blue has opposite effect and calms the mind (similar effect: pink)

• Cultural (red, black, blue) & gender (female: attraction to bright colors)

Effects of lighting on consumers

Retailers use lighting to:

1. set the mood for customers

2. cooridinate with their store images

3. highlight their products

Different types of lighting in stores

• Bright lights- usually signify task-oriented and efficient shopping environment (Ex: convenient store, supermarkets, category specialists – Home Depot, BestBuy)

• Subtle lights: make customers slow down and stay awhile in a relaxed mood (Ex: luxury department store, department store, spas, restaurants)

Influence of sound, music tempo, and mood on shopper behavior

Music affects:

1. the pace of people walking through store- slow music leads to slow walking, spending more time at the store, thereby affecting sales (more sales)

2. creates an image

3. attracts/directs customer attention

Mood: Happy vs. Sad

• happy mood increases spontaneous purchases

• sad mood makes people process more carefully

Fluency effect

the easier it is pronounced, the more people like it

The impact of smell

Environmental fragrancing:

• triggers emotions, mood, and memories or relieve stress

• conveys store image and adds to positive feelings/pleasure about shopping the stores (can affect the amount of time spent in the store)

• can reduce wait time perceptions and time spent in store

Ex) bookstores have in-store coffee shop to give coffee ground smell

Colors of scents

• Citrus- rejuvenating and stimulating, best match for brands that want to deliver high-energy atmosphere

• Floral- often found in expensive fashion boutiques and fine jewelry stores, these scents range from innocent, sweet to sophisticated and exotic

• Fruity- bright, uplifting, youthful, and anxiety reducing, making a good fit for fashion specialty stores

• Gourmand- associated with food, such as scent of vanilla, chocolates, honey, or candy; creates a homey setting for specialty food store and kitchenware

What is a brand

a name, term, icon, symbol, design or combination that identifies the products of a firm while differentiating it from the competitors’

• brands = MEANING

Importance of brands to consumers

• identify products (reduces risk and search-cost)

• promise, bond with maker (guarantee, trust)

• symbolic device (represent self, culture, relationships)

Why is having a strong brand important?

• gives customers clear emotional and logical reasons to

  choose one brand over other competitors

• provides protection against price competition; bargaining

  power with retailers

• delivers on the brand promise with every customer interaction, including service, marketing, retail environment, product design, carrier bags, etc (coherence and consistency is important)

Trademarks and its benefits

Trademarks- brand logos, symbols, and slogans that can be registered and protected by copyright law (Burberry’s checkered pattern)

Benefits:

• offers exclusive rights over usage of the registered article, can be identified by the ®

• protects the brand from piracy or unauthorized use

Licensing

a business arrangement in which one company gives another company permission to manufacture its product for a specified payment (put the brand on their merchandise)

Licensor and Licensee

Licensor- brand owner

• has a well known designer name, celebrity name, brand name, characters

Licensee- third party permitted to use the brand without ownership

Private brands

created and owned by retailer and available only in their store

Ex) Macy’s INC, Stop & Shop brand, Costco’s Kirkland

Co-brand or partnership brand

two brands collaborate to develop a new product, brand, or services

Ex) Alexander Wang’s collab with H&M, NikeSKIMS, Hermes & Apple Watch

What is branding

a process of creating and managing a brand

• process of providing a meaning to a company’s products/services by creating values and meanings of a brand in consumers’ minds

Brand touchpoints

a point of interaction between a brand and consumers, employees, or stakeholders

• pre-purchase

• during purchase

• post-purchase

serves as the potential to make either a positive or a negative impression

Brand personality

the set of human characteristics associated with a brand

Universal brand personalities:

• sincerity

• competence

• excitement

• sophistication

Culturally unique personality:

• ruggedness

Brand personality: sincere

having good intentions towards consumers; related to relationship strength

• warm

• honest

• family-oriented

• friendly, trustworthy

Ex) Dove, TOMS

Brand personality: competent

About intelligence, performance, and efficacy

• hard-working

• corporate

• successful

• confident

Ex) Nike, North Face

Brand personality: exciting

• daring

• imaginative

• unique

• cool, young

Ex) Hollister, AXE

Brand personality: sophisticated

About class and charm; related to high status (luxury brands)

• upper class

• glamorous

• good looking

Ex) Chanel, Rolex

Brand personality: rugged

About masculinity and strength (culturally unique)

• outdoorsy

• tough

• western

Ex) Harley Davidson, Timberland, Levi’s

Perceptual map

graph that shows differences in consumers’ current perceptions of brands relative to other competitors’