Fashion Marketing Final

Chapter 6: Ethical Practices and Social Responsibility by Retailers

Review Questions

1. What does “business ethics” refer to?

   1. Learning what is right and wrong in the workplace, however there is no universal definition

2. Which areas of ethical concern for businesses could there be?

   1. Buyer conflicts of interest

      1. gifts, services, payments

   2. Vendor standards

      1. Make certain that overseas producers follow minimum requirements as well as company standards

      2. Companies run the risk of having their images harmed when substandard working conditions are made public

   3. Questionable pricing strategies

      1. Misleading “regular” prices

      2. Potential distrust among potential shoppers and legal penalty

   4. Advertising misrepresentation

      1. Bait and switch (out of stock), not only unethical but can also be illegal

      2. Fine print, could compromise company ethics

   5. Recruitment and advancement irregularity

      1. Charges of discrimination 

      2. Minority groups

      3. Boycotts of companies that practice discrimination

      4. Retailers should hire the best qualified candidates for positions and offer promotions to those who qualify

   6. Ethical dilemmas

      1. Exaggerating credentials on resumes

      2. Using the internet or social networks during working hours

      3. Feigning illness to take a day off

3. What has been the approach of Patagonia since long?

   1. Eco-friendly and sustainable fashion

Chapter 10: The Human Resources Division

Review Questions

1. Which are the different steps in the hiring process?

   1. Resume, application form, preliminary interview, reference checks, testing, final interviews

2. Which are the different recruitment sources?

   1. Internal

      1. Promotion from within

   2. External

      1. Trade periodicals

      2. Employment agencies

      3. Internet

      4. Schools, college

      5. Walk-ins (self motivation)

      6. Industry networking

      7. Windows to advertise

3. Which methods of compensation are there?

   1. Straight salary

   2. Salary plus commission

   3. Straight commission

   4. Quota bonus

   5. Salary plus bonus to managers on overall sale

   6. Profit sharing

   7. Stock options

   8. Prize money on slow moving items

4. What is the problem of having a high turnover of staff?

   1. Expensive to hire and train people, not good for morale, shows an internal problem within the company

5. Why do walk-ins become the most productive employees?

   1. Have the motivation to be self starters and take matters into their own hands

Chapter 11: Merchandise Distribution and Loss Prevention

Review Questions

1. Which alternatives exist for merchandise distribution?

   1. In house receiving: each store manages its own shipments

   2. Centralized receiving: one centralized location

   3. Regional receiving: multiple locations

   4. Individual receiving: small stores and boutiques

   5. Merchandise distribution technology

      1. Quick response inventory systems (QR)

   6. Receiving equipment 

      1. Packaged merchandise transporters

      2. Conveyor systems

2. Which merchandise checking procedures are there?

   1. Quantity

      1. Direct checks: looking at the packaging slips of each box

      2. Blind checks: receiver writes a list of what they receive on a dummy invoice, compared to actual invoice

      3. Semi blind checks: checker given a list and description of items, don’t know the quantity of each

   2. Quality

      1. Substitution shipping

   3. Marking (pricing)

      1. Marking procedures

      2. Remarking merchandise

3. Is theft a minor issue in the retail and fashion industry?

   1. Theft is a major issue

4. To avoid theft in retailing, what should you focus on?

   1. Loss prevention

      1. Electronic article surveillance systems (EAS)

      2. Electromagnetic (EM) Systems

      3. Video Surveillance Systems

      4. Merchandise anchoring (cable or wire)

      5. Magnifying mirrors

      6. Try on room control

      7. Employee screening programs

         1. Internal theft deterrent and controls

            1. Screening of applicants, checking references, testing for drugs, psychological testing, merchandise control (handbags in lockers), mystery shoppers, recognition programs for internal theft, offender prosecution

   2. Other types of shoplifting

      1. Internet theft

         1. Fraud

      2. Vendor theft

      3. In-transit theft

Chapter 12: Planning and executing the purchase

Review Questions

1. Which steps does the fashion supply chain contain?

   1. Everything from designing to locating resources to production to distribution

2. Which are the typical duties for the fashion merchandise purchase?

   1. Purchasing, pricing, in-store visual presentation, selecting merchandise for advertising and promotion, managing a department, interacting with other middle management personnel

3. Planning the purchase, which are the internal preparations and external assistance needed?

   1. Internal

      1. Investigating past sales records

      2. Survey methods

      3. Employee input

   2. External

      1. Resident buying offices = market specialist

         1. Locating new resources

         2. Previewing collections

         3. Following up orders

         4. Communicating with retail buyers

         5. Purchasing

         6. Market week preparation

         7. Arranging adjustments

         8. Analysis of market conditions

         9. Promotional planning

         10. Pooling orders

         11. Inventory management

         12. Fashion forecasters

         13. Reporting services (market sales data)

         14. Trade publications

         15. Trade associations

         16. Consumer periodicals

4. Reasons why it is more difficult to purchase fashion merchandise than staple merchandise?

   1. Clothing trends are always changing, involves purchasing multiple products, longer lead time

5. Why is it necessary for retail buyers to interact with other divisions?

   1. To ensure the retail operation is profitable

6. What is generally the first step that buyers take in the planning of future purchases?

   1. Looking at last year's sales records

7. Why do some merchants need to pool their orders?

   1. Small merchants unable to meet minimum volume requirements will pool with other small merchants

Chapter 13: Purchasing in the Global Marketplace 

Review Questions

1. Which are the advantages of offshore production?

   1. Upscale fashion forward design, prestige, value, exclusivity, product quality

2. Which are the pros and cons of early decision making in the purchasing process?

   1. Pros

      1. Seeing the line in its entirety

      2. Guarantee of early delivery

      3. Exclusivity agreements

      4. Seasonal discounts

   2. Cons

      1. Purchasing items that are not completely finished yet, in the “edited” state

      2. Cannot tell which will be the best sellers or “winners” yet

3. Where and how does purchasing take place?

   1. Resident buying (market specialist) office visits

   2. Showroom visits

   3. Trade shows

   4. Alternative visits

      1. Fashion representative

      2. Business to business websites

4. Which important things should you negotiate before writing the purchase order?

   1. Volume, discount, shipping terms, chargebacks, advertising allowances

Chapter 15: Inventory Pricing

1. Which pricing considerations are there?

   1. Competition

      1. Online competition

      2. Outlet malls

      3. Conventional stores

   2. Merchandise characteristics

      1. Seasonal changes

      2. Delicate or fragile items

      3. Conventional stores

      4. Items like jewelry must be stored in cases

   3. Company image

      1. Can enable a premium changes

   4. Promotional endeavors

      1. Affects overhead expenses

      2. Necessitate higher prices

   5. Services 

      1. Personalized shopping

   6. Vulnerability to shrinkage

      1. The cost of theft must be considered

   7. Customer profile

      1. Consider before pricing

   8. Stock turnover 

      1. Lower turnover demands higher markups

      2. Menswear vs womens wear

   9. Buyer knowledge 

      1. Same markup in general but not always

      2. It is imperative for the buyer make certain that the retail price is successful

   10. Exclusive merchandise resources

       1. Exclusive rights of some items or brands

       2. Large quantities limiting the supply in a certain area

2. What is meant by the markup?

   1. The upcharge a company sells a product for in order to make a profit

3. How do you calculate it?

   1. Retail – cost = markup

4. What is meant by the markup percent?

   1. How much more the item sells for versus the original cost

5. How do you calculate it?

   1. Markup / retail = markup percent

6. Reasons for markdowns?

   1. Buying errors

      1. Misjudge to popularity

      2. Chose the wrong color

      3. Wrong proportion of private label to designer brands

      4. Inaccurately time the arrival of the merchandise

   2. Management errors

   3. Inadequate sales staff

   4. High initial prices

   5. External factors

      1. Weather

      2. Declining economy

7. How do you decide the amount of the markdown?

   1. Depends on the season

   2. Must be at least 20%

Chapter 16: The Importance of Advertising and Promotion

1. External advertising resources?

   1. Advertising agencies

   2. Freelance agencies

   3. Merchandise resources

      1. Flyers, complete ads

   4. Media services

      1. Ad preparation: copy, layout, demographics, ad placements

   5. Market consulting firms

2. Which different classifications of fashion advertisements are there?

   1. Promotional or product advertising (sell)

   2. Institutional advertising (image)

   3. Combination

   4. Cooperative advertising (retailer + merchant/brand)

3. Mention some printed media advertisements in the fashion industry?

   1. Magazines

   2. Newspapers

   3. Direct mail

   4. Outdoor media

      1. Billboard

      2. Backlit transparencies (illuminated signs, bus stops)

      3. Posters (smaller versions os billboards, outside of busses)

4. Which methods are there for deciding how much to spend on advertising?

   1. Percentage of sales method

   2. Objective and task method

   3. Unit of sales method

5. How can you follow up what impact the advertisement had?

   1. Small fashion retailers can ask their customer how they heard about the business

   2. Larger retailers can use in-house research departments to evaluate sales before and after the ad

6. Mention some promotional programs the fashion industry uses

   1. Fashion shows

   2. Special campaigns and celebrations

   3. Institutional events

   4. Designer and celebrity appearances

   5. Holiday parades

Chapter 17: Communicating to Customers Through Electronic Media

1. What is meant by omni-channel strategy?

   1. Seamless approach to the consumer experience through all available channels shopping channels

   2. Mobile devices, computers, television, direct marketing, catalogs, stores, etc

2. What is meant by SEO marketing?

   1. Search engine optimization

   2. Designing your website to attract the most traffic and clicks

   3. Doesn't cost anything because the company organically imbeds information into their website so the customers can find it with the search engines

   4. keywords and phrases, algorithm is a secret, be relevant

3. What is normally meant by paid search ads online?

   1. Company purchasing an advertisement for their content to be seen

Brand Identity

1. Communication identity

   1. The message always reminds us of the world of the happy few

      1. However communication at the same time also has the aim of making this dream accessible to everyone (inclusivity paradox)

   2. Communication must balance

      1. Exclusivity of the message

      2. With the accessibility of the medium

      3. It should feel achievable, yet just for the few

   3. How to build a strong communication identity?

      1. Build a lifestyle

2. Aligned vision

   1. If all the messages coming out and going in the companies are consistent, this will help to reinforce the direction

   2. On the contrary, if the messages are not aligned, one can take away from the others

   3. It is fundamental that everyone within the communication department, but also specialists working outside the company are aligned to the same vision, the one of the company itself

3. Key elements

   1. Concept

      1. Most important thing

   2. Keywords to associate the brands personality

      1. Top three objectives that a brand is known for that communicates its message

4. Communication identity in successful brands

   1. Image identity is not only based on what we say, but it is important how we say things, how the brand speaks to the audience

   2. This is called tunnel voice

      1. As a brand, we may decide to be a little more informative and rational in the way we present ourselves. We may have a more chatty, leisure, ironic tone of voice

This choice of tone can significantly influence customer perception and engagement, ultimately shaping the overall brand experience.