Module IV

Amity School of Fashion Technology Notes

Module Overview

  • Course: Fashion Marketing and Merchandising- I (UG) FASH201

  • Instructor: Ahmed Ashraf Zaidi

Topic I: Definition and Importance of Marketing

What is Marketing?

  • Definition: A business philosophy focused on the customer perspective.

  • Importance:

    • Meeting customer needs is essential for business survival and growth.

    • Fashion firms rely on customer loyalty through repeat purchases.

    • Key attributes that attract loyalty include:

      • Style.

      • Durability.

      • Ease of care.

      • Comfort.

      • Perceived value for money.

  • Design Influence:

    • Understanding customer perspectives is crucial for fashion designers.

    • Designers must assess how well their mental image of customers aligns with actual profitable buyer groups.

Marketing Components

  • Techniques: Includes public awareness strategies, product development, branding, pricing, and sales promotions.

  • Management Process:

    • Anticipating, identifying, and satisfying customer needs aligns with organizational long-term goals.

    • Involves internal factors to achieve marketing objectives.

Topic II: Product and Price

Product Management

  • Role of Buyers:

    • Buyers manage merchandise portfolios, selecting items likely to appeal to customers.

    • Performance is assessed and adjusted through information systems.

  • Merchandise Categories:

    • Categories aid in planning and include systems for major vendors.

  • Performance Measures:

    • Key indicators: GMROI, sales-to-stock ratio, inventory turnover, and gross margin.

  • Merchandise Management Process: Includes

    1. Forecasting category sales.

    2. Developing assortment plans.

    3. Managing inventory levels.

    4. Allocating merchandise.

    5. Monitoring performance.

Pricing Strategies

  • Critical Decision: Pricing greatly influences perceived customer value.

  • Pricing Strategies:

    • Everyday Low Pricing (EDLP): Consistent low prices, reduced stockouts, less advertising costs.

    • High/Low Pricing: Allows for price discrimination and creates excitement.

  • Considerations in Pricing:

    • Customer price sensitivity.

    • Costs of merchandise.

    • Competition prices.

  • Optimization Approaches:

    • Pricing may be adjusted based on buyer insights and market observations.

    • Techniques employed include variable pricing, markdowns, and pricing structures to promote sales.

Topic III: Place and Promotion

Promotion Strategies

  • Objectives:

    • Build brand image.

    • Increase sales and traffic.

    • Provide clear information about offerings.

  • Communication Methods:

    • Utilizes online and offline platforms, including direct marketing approaches (telemarketing, email).

  • Implementation Steps:

    1. Establish objectives.

    2. Determine budget.

    3. Allocate funds.

    4. Implement and evaluate effectiveness.

Case Studies

  1. H&M vs. River Island Marketing Practices: Analyzed differences in target segments, pricing, distribution, and promotion.

  2. Choosing Store Locations: Discuss strategies in locating boutiques effectively.

References

  • Easey, M. (2009) Fashion Marketing.

  • Additional academic and practical references related to retail strategies, pricing, and merchandising.