Marketing

How Fashion Is Marketed?

Marketing is a series of Definition:

marketing the process
activities that fashion of developing,
businesses undertake so promoting, and
distributing products to
that customers will buy satisfy customers’ needs
products from them and wants.

instead of their
competitors.
 What is Marketing?
• Marketing is the process of communicating the value of a
product or service to customers, for the purpose of selling
that product or service.

• Marketing is the science/way of choosing target

markets through market analysis and market segmentation,
as well as understanding consumer behaviour and providing
superior customer value.

• The action or business of promoting and selling products or

services, including market research and advertising.
 Marketing definition
The management process through which goods
and services move from concept to the customer.
It includes the coordination of four elements called
4Ps of marketing:

(1) Product: identification, selection and development of a product,

(2) price: determination of its price,

(3) place: Selection of a distribution channel to reach the customer’s place,

and

(4) promotion: development and implementation of a promotional strategy.

 The Marketing Mix and Fashion
To successfully sell a fashion marketing mix four basic marketing
product to target customers, strategies, known as the four Ps of
Businesses must apply the marketing—product, place, price, and
marketing mix. promotion
Advertising
Product
Sales Promotion
Place
The Four Ps Publicity

Price Public Relations

Personal Selling
Promotion
 The Marketing Concept

To market effectively, fashion marketing concept the

marketers follow the principles of idea that businesses must
the marketing concept. satisfy customer needs and
wants in order to make a
profit
The Marketing Concept

Identify
customers

Determine what
Business customers want

Make the right products

Communicate to
available at the right time
customers
and at the right price

7
 The Marketing Concept
Retailers must consider the
• location
• atmosphere, and
• image of the store.

Products must match

• style,
• quality, and
• price to their customers.
 Functional areas in business
• In a large organization, it is usually easier to identify
separate functional areas because people work together in
departments.

• The main ones you are likely to meet in business are shown
below.
Functional areas in business
 The purposes of functional areas
This is essential if the business is to achieve its aims and objectives.
In addition, specific areas will be responsible for supporting specific
types of aims and objectives, for example:

• Sales and marketing will be involved in achieving targets linked

to developing new markets or increasing sales

• Human resources will be involved in arranging staff training

activities and supporting the continuous professional
development of all staff

• Finance will be expected to monitor and support aims and

objectives linked to keeping costs low to improve profitability
 The marketing function
• Carrying out market research to obtain feedback on potential and
existing products and/or services,

• Analyzing market research responses and advising senior managers

of the results and implications,

• Promoting products and services through a variety of advertising and

promotional methods, e.g. press, TV, online, direct mail, sponsorship
and trade shows or exhibitions,

• Obtaining and updating a profile of existing customers to target

advertising and promotions appropriately,

• Producing and distributing publicity materials, such as catalogues or

brochures,

• Designing, updating and promoting the company website.

 Core Marketing Responsibilities

1. Provide leadership on serving the client better/

customer support service;
2. Support sales team & distribution partners;
3. Manage advertising & promotions/ promotional
activities;
4. Manage client relationships.
 Provide leadership on serving the
client better

Activities under this area include:

– Developing pricing.
– Conducting customer satisfaction surveys.
– Contributing to product development.
– Monitoring competitors.
– Website usability testing.
 Support sales team & distribution
partners
Activities under this area include:
– Lead generation.
– Building brand recognition.
– Nurturing leads until they are sales-ready.
– Creating collateral that helps persuade prospects
such as websites, brochures, multimedia
presentations, product sheets, etc.
– Gathering customer testimonials and writing case
studies.
– Making it easy to differentiate from competitors.
 Manage advertising & promotions
Activities under this area include:
– Creative Development
– Testing
– Media Buying
 Manage client relationships
Activities under this area include:
– Conducting customer satisfaction surveys
– Events & sponsorships
– Setting up loyalty cards
– Loyalty building programs
– Monitoring competitors
– Implementing a referral program
– Re-marketing to customers.
– Ensuring each client-contact point builds a favorable
impression
 Objectives –Hierarchy
• It helps to set and shape the strategy of a
business.
 Objectives –Hierarchy : Example
Tharmex Group Ltd.

• Mission: To maximize synergistic benefits, and to become a market

leader.
• Vision: To continuously focus on customer's need to manufacture
quality products.
• Aims: To achieve the absolute customer satisfaction.
• Objectives: To achieve the absolute customer satisfaction by
ensuring the quality products like cotton yarn, melange yarn, woven
fabrics, knit fabrics & knit apparels of high standard. And to
establish as the leading provider of knit apparels serving
international market.
Setting marketing objectives-"SMART"
approach
SMART Approach: SMART means setting,

– S = Specific,
– M=Measurable,
– A=Achievable,
– R=Realistic and
– T=Time specific objectives
Setting marketing objectives-"SMART"
approach
The "SMART" approach is explained to illustrate how you
address each area;
• Specific - are your objectives stated in a way that is precise
about what you are hoping to achieve?

• Measurable - Can you quantify each objective, i.e. can you

use a unit of measure such as market share in percentage
or dollars or other to provide a way to check your level of
success?
Setting marketing objectives-"SMART"
approach
• Achievable - Are your objectives reasonable in terms of
what you can actually achieve or are you setting your sights
too high?

• Realistic - Do you have sufficient employees and resources

to achieve the objectives you have set, if you don't then
they are likely to be unrealistic?

• Time specific - When are you hoping to achieve these

objectives, you need to define a timing plan with target
timing for each specific objective?
 Marketing Objectives
1. Customer acquisition 10. Awareness
2. Customer retention 11. Lead
3. Cross-sell 12. Thought Leadership
4. Up-sell 13. Increase share of wallet
5. Loyalty generation/formulation
6. Churn reduction 14. Increase Customer LTV
7. Advocacy 15. Integration
8. Reputation Management 16.Internal communications
9. Branding 17.Stakeholder/shareholder
communications
 SHORT NOTES ON:

• Cross-sell: suggesting related products or services to a

customer who is considering buying something.
• Up-sell:suggesting higher priced products or services to a
customer who is considering a purchase.
• Churn: Churn is the loss of customers to some other
company.
• Lead: A lead is a potential sales contact -- an individual or
organization that expresses an interest in your goods or
services.
• LTV: Life Time Value is a prediction of the net profit attributed
to the entire future relationship with a customer.
 Marketing research
• Marketing research involves conducting research to
support marketing activities, and the statistical
interpretation of data into information.
• This information is then used by managers to
1. plan marketing activities,
2. gauge the nature of a firm's marketing environment and
3. attain information from suppliers.
Why Marketing Research???
 Distinction between market research
and marketing research
• Market research • Marketing research
pertains to research in a relates to all research
given market. conducted within
• As an example, a firm marketing.
may conduct research • Thus, market research is
in a target market, after a subset of marketing
selecting a suitable research.
market segment.
 Methods used by Marketing
researchers
• Marketing researchers use some statistical methods
as below to interpret their findings and convert data
into information.
i. Quantitative research,
ii. Qualitative research,
iii. Hypothesis tests,
iv. Chi-squared tests,
v. Linear regression,
vi. Correlations,
vii. Frequency distributions,
viii. Poisson distributions,
ix. Binomial distributions, etc.
 Limitation of Marketing Research:

✓Marketing research is a costly affair,

✓its also lengthy and time consuming,
✓it has a limited scope,
✓it has a limited practical value,
✓it may not predict consumer behavior,
✓it may not give 100% accurate results,
✓it provides suggestions and not solutions,
✓non-availability of qualified and experienced staff,
✓it can be misused,
✓non-availability of a reliable data ,
✓it is resistant to marketing managers.
 What is market?
• A regular gathering of people for the purchase and sale of
livestock, and other commodities.

• A medium that allows buyers and sellers of a specific goods

or service to interact in order to facilitate an exchange.

• Markets do not necessarily need to be a physical meeting

place. Internet-based stores and auction sites are all
markets in which transactions can take place entirely online
and where the two parties do not ever need to physically
meet.
So market is An actual or nominal place where forces of demand
and supply operate, and where buyers and sellers interact
(directly or through intermediaries) to trade goods, services,
or contracts or instruments, for money or barter.

Markets include mechanisms or means for:

(1) determining price of the traded item,
(2) communicating the price information,
(3) facilitating deals and transactions, and
(4) effecting distribution.

The market for a particular item is made up of existing and

potential customers who need it and have
the ability and willingness to pay for it.
 Conditions of market structures
If we extend this market concept a little more, there are
certain conditions which create the structure of a market.
Such conditions can be condensed in the following-

 Number of Buyers
 Number of sellers
 Buyer Entry Barriers
 Seller Entry Barriers
 Size of the firm
 Product Differentiation/ Homogeneous Product
 Market Share
 Competition
Types of Market
 Types of Market
• Perfect Competition:
➢ Examples of perfect competition: Financial markets – stock exchange,
currency markets, bond markets.

• Monopolistic Competition
➢ Examples – restaurants, professions – solicitors, etc., building firms –
plasterers, plumbers, etc.

• Oligopoly
➢ Examples of oligopolistic structures: Supermarkets, Banking industry,
Chemicals, Oil, Medicinal drugs, Broadcasting

• Monopoly
➢ Example: USTER machineries marketing.

• Duopoly
➢ Example: Pepsi and Coca-Cola (soft drinks market)
 Wholesale and Retail
• Wholesale: Wholesale is the sale of goods, usually in quantity, for
the purpose of resale to consumers. Wholesalers are either
manufacturers who market their own goods to retailers and
other distributors, or they are brokers who buy products in mass
quantities and sell them to retailers.

• Retail: The sale of goods or commodities in small quantities

directly to consumers. Retailing can be done in either fixed
locations like stores or markets, door-to-door or by delivery. In
the 2000s, an increasing amount of retailing is done using online
websites, electronic payment, and then delivered via a courier or
via other services.
 Global top five retailers
Retail Sales Rank Company Country of Origin

1 Wal-Mart US
2 Tesco UK
3 Costco US
4 Carrefour France
5 Kroger US
 Marketing Strategies

There are three strategies that fashion

marketers use to increase their business:
1. Increase the number of customers.
2. Increase the average transaction.
3. Increase the frequency of repurchase.
 Channels of Distribution
Before merchandise reaches the channel of distribution
consumer, it goes through the the path a product takes
channel of distribution. from the producer to the
consumer
For apparel and home furnishings, the movement through the channels
of distribution is called the soft-goods chain.

This chain includes three specific segments:

1. Textile segment – fiber, yarn, fabrics

2. Apparel segment – design, manufacture, wholesale
3. Retail segment- stores selling to consumers
 Merchandise distribution Process
Flow
• The following simplified figure shows a
typical merchandise distribution process
flow, in which the goods flow through a
warehouse.
 Typical Merchandise Distribution
Process Flow
• Planning
✓ SAP ERP plans the merchandise distribution.
✓ As soon as the inbound and outbound delivery documents
are available in EWM (Extended Warehouse
Management), EWM can perform the merchandise
distribution.
✓ The inbound and outbound delivery documents contain
information about whether EWM is to perform
merchandise distribution,
✓ And with which processing method?
Merchandise Distribution Process Flow
• Transfer
✓ SAP ERP distributes the inbound and outbound delivery
documents to EWM.
✓ This transfer also contains information about which
inbound deliveries and outbound delivery orders EWM is
to assign to one another.
Merchandise Distribution Process Flow
• Goods Receipt
✓ Goods receipt is posted in EWM,
✓ EWM determines the relationship between inbound
deliveries and outbound delivery orders ,
✓ If the quantities in goods receipt are different from the
expected quantities, we can perform a quantity adjustment
in the outbound deliver order using the adjustment report.
 Merchandise Distribution Process
Flow
• Warehouse-Internal Process
When the goods are delivered, they are distributed to the
recipients using different processing methods. EWM uses
one of the following processing, according to the decision
made in SAP ERP:
– Merchandise Distribution Cross-Docking
– Merchandise Distribution Using Flow-Through
EWM uses either (1) product-driven flow-through or
(2) recipient-driven flow-through
process.
 Merchandise Distribution Process
Flow
• Goods Issue
✓ Take the goods to goods issue.
✓ Post the goods issue.

• If required, you can select the inbound deliveries and

outbound delivery orders for the merchandise distribution
in the warehouse management monitor according to SAP-
ERP purchase order or merchandise distribution process,
and check the merchandise distribution.
Thanks for your patience