Fashion Marketing- Chapter 1 (Developing and maintaining profitable customer relationships) and Lecture 1

Marketing

Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders” or “Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders”

The exchange activities in marketing are what provide value back to..

marketers

The value that marketers provide to customers is derived from

product they are offering

Exchange

any activity, such as buying and selling, in which one party receives something by voluntarily giving something in return

Fashion

any activity, such as buying and selling, in which one party receives something by voluntarily giving something in return. Includes apparel and accessories, home furnishing, toys, cars, consumer electronics, architecture, media, food, and vacation spots

Fashion Marketing

can be defined as the application of marketing processes and activities to currently popular designed products. Challenges and opportunities arise from changing nature of fashion

Fashion marketers, more than marketers of basic or commodity-type items, must work to address that consumer desire for

newness, stay ahead of fast-moving trends, and apply creative marketing to capture the attention and interest of often fickle but also savvy customers

Using market research a company determines

Number of potential customers, where and how they prefer to shop, what type of products soldy by other companies, details customer want, price they are willing to pay

Fashion Marketing process

1. Identify and analyze the potential target market

2. Conceive the product to meet customers needs/wants

3. Plan the product price and production

4. Place the product where customers can buy it

5. Inform the public of product benefits

6. Evaluate product sales over time

7. Gather customer feedback for potential product improvement

80/20 rule

A company obtains 80 percent of its business from 20 percent of its customers. Ultimate goal of fashion marketers is to gain and keep customers over time

Fashion marketers generally focus on…

needs more than wants

Market

the group of actual and potential customers who have both an interest in and the ability to buy the company's product

Market Segmentation

defining smaller, more homogeneous customer groups based on similar customer characteristics

Market Segment

a group of consumers displaying like needs, wants, values, and buying habits

Target market

the group of customers deemed most likely to purchase a given product and on whom the company's marketing efforts will be focused

Product

any offering that marketers create and present to target markets. Includes goods, services, or combination of both. Can also be ideas

Fashion Products are influenced by

marketers knowledge about consumers wants and needs

customer relationship management (CRM),

the overall process of building and maintaining profitable customer relationships through providing superior customer value and satisfaction

Perceived value

a customer's internal calculation as to whether or not a product is worth its cost

Value proposition

e sum of all benefits that marketers offer customers

Marketing point of views

-Production concept

-Product concept

-selling concept

-marketing concept

-societal marketing concept

Production concept

marketers operate under the principle that customers want products that are inexpensive and readily available. This orientation focuses less on the changing wants and needs of consumers and more on creating efficiencies in production and distribution in order to keep volume high and costs low

Product concept

based on the idea that customers want high-quality products that offer performance and innovative features. Under this orientation, a marketer's product development is based less on acting on its customers' desires than operating from its own design capabilities

Selling concept

goods will not be purchased widely enough unless they are aggressively sold and promoted. Most frequently used with products that consumers are not actively seeking, such as extended service plans

marketing concept

egins with the customer as the focus. Rather than simply trying to sell what the company has produced, companies operating by the marketing concept determine what customers want and then supply it

Societal marketing concept

the societal marketing concept goes beyond satisfying immediate consumer needs by questioning whether or not a product is good for the general welfare of all of society. Marketers who follow the societal marketing concept work to balance satisfying consumer wants and the company's need for profits with the long-term well-being of society as a whole.

Marketing mix

the combination of marketing tools that a firm uses to offer its customers value and to pursue its own sales and profitability goals. Product, price, place, and promotion.

Globalization

the demand for various fashion products spreads throughout the globe

Marketers need to focus on social media and other platforms where…

consumers are most likely to see

Ethics

a system of moral values, a set of principles that defines right and wrong

Stakeholders

people and organizations that have an investment or other interest in the business

Social responsibility

the principle that everyone is responsible for making the world a better place for all its inhabitants

Marketing mix and potential issues

The environment is one of the most prominnet issues of social responsibility facing…

fashion marketers

Fashion marketers try to be more conscious in the environment by

-adopting more ecologically sound practices

-reducing waste and carbon footprint

-practicing sustainability through recycling and use of renewable source

Green marketing

a business approach that protects the environment throughout the development and marketing of a company's products

Human rights

fair wages and working conditions lead to a healthy environment