APPAREL AND FASHION

MARKERTING

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UNIT IV FASHION MARKETING MIX AND PROMOTIONS

Fashion Marketing mix, Market Segmentation, Targeting and

Positioning.
Product- hierarchy, line and branding decisions
Price - Pricing objectives, Pricing decisions and procedures,
promotion
Advertising: media selection, measuring effectiveness, sales
promotion and distribution
Marketing channel, functions, various marketing systems, Online
Marketing Trends, Multi brands.
CASE STUDY: Analysis on online buying tendency-difference
between online market places like myntra, ajio etc., and brands
having their own online sites and selling through them.
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Marketing Mix
Marketing mix is a pack of four sets of variables namely Product,
Price, Promotion and Place.
The marketing mix refers to the set of actions or tactics, that a
company uses to promote its brand or product in the market. The 4
Ps are –
Product – Prime element
Price – Key element
Promotion - Relational element
Place – Destination element

Marketing Mix is a set of marketing tool, used to promote a product

or services in the market and sell it. It is about positioning a
product to sell in the right place, at the right price and right time.

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Product:
Product is the main element in marketing mix, it refers to the goods,
services produced to serve the consumers of a company. A
product can be tangible in the form of any finished good or
intangible in the form of any service. Without product – other 3
elements in the marketing mix will not be useful.

Product: to satisfy the needs of the customer.

Factors :Quality, Design, Model, Packaging, Size, Service offered,
Innovation etc,.
“The first step in marketing is the manufacturing of a product”.
Every product goes through a certain lifecycle that has three
stages: the growth phase, the maturity phase, and the sales
decline phase.
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 Marketers have to take good care of the fact that a
product should not enter the last phase too quickly and even
if it does, immediate action is sought to reinvent the product and
stimulate more demand.

When a product reaches the sales decline phase, it is

needed to be reinvented. The R&D department of an organization
goes among the customers to discover the reason behind the
decline in demand for a product.

The product must deliver a maximum level of

performance; otherwise even the best work on the other
elements of the marketing mix won't do good.
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 "Without a good product, you have nothing." Product is

directly related to satisfying the customer needs and wants in the

target market.

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Price:

Price is the amount of money charged for a product or

service (or) Price in marketing mix refers to the value we pay in
exchange for the product and services offered by a company.
Price is considered a vital element of the marketing mix and
it plays an important role in determining the success of a company.

Pricing of a product. Several factors like list price,

competitor’s price, discount, terms of sales, etc., are taken into
consideration before deciding on the price of a good or
service.
Even a little fluctuation in the price of a product can heavily
impact its demand in the market.

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 Price can be kept as high or low, or at any level in
between these two extremes. Too high would be the point at
which any meaningful sales are not possible because the target
customers won't accept the product, and too low would be the
point at which company would incur losses instead of profits.

Price is said to be an important competitive tool. In case

of certain products, price becomes the indicator of product quality
and helps impart an image to the product.

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FACTORS AFFECTING PRICE
INTERNAL FACTORS
Marketing objectives (Earn market / customer)
Marketing mix (4 Ps)
Organizational objectives (Short term more profit)
Cost of the product
EXTERNAL FACTORS
Market and Demand
Competition
Customers (Middle / upper class)
Suppliers (Raw material cost)
Legal factors (Govt policies)
Regulatory factors (Price regulated by govt –
medicine)
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Promotion:
Promotion in the marketing mix refers to
the communication that aims at promoting a product, activity, or
a brand among the target customers.

Promotion is an essential component of the marketing mix

because without communicating about a product, a company can
not attract customers. It is also used to influence customers to buy
a product or choose a particular brand.

Promotional activities can involve spreading awareness

about a product or the brand or also an activity. There are different
tools that are leveraged for the purpose of promotion.

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It refers all the activities undertaken to make the product or service
should be known to the user and trade. The major elements of
promotion mix include advertising, personal selling, sales
promotion, direct marketing (non rertail), and publicity. A
company's promotion efforts to create awareness among publics
about the products and services it offers and their features.

Communication process that helps the company to

publicize the product and its features to the public. It is the most
expensive and essential components of the marketing mix, that
helps to grab the attention of the customers and influence
them to buy the product. Most of the marketers use promotion
tactics to promote their product and reach out to the public or the
target audience.
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Place:

Place in marketing mix refers to the geographical location in

which the company sells its products and provides its services.

Placement or distribution is a very important part of the marketing

mix strategy. We should distribute our product in a place that is
easily accessible to potential buyers/customers. There is no
sense in selling products to people who are not interested in
your product or service.

So, a firm should position and distribute its product in a place that
is easily accessible to its potential buyers/customers.

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The distribution channel focus on making the product available
in adequate quantities at right place.

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Product:
 Product planning and policy
 Product Mix (Breath, Depth and consistency)
 Diversification, Modification
 New product development
 Product life cycle
 Packaging and labeling
Price:
 Pricing policies (Cost based, Demand based,
Competition based)
 Allowances and discounts
 Break even point

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Promotion:
 Sales promotion
 Advertising
 Personal selling
 Publicity
 AIDA (Attention, Interest, Desire, Action)
Place:
 Physical distribution (Transportation / storage )
 Channel distribution (middle man / direct)

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 MARKET SEGMENTATION – TARGETING -
POSITIONING
Market segmentation is the process of dividing the total market into
relatively distinct homogeneous sub-groups of consumers with
similar needs or characteristics that lead them to respond in similar
ways to a particular marketing programme. A market segment is a
portion of a larger market in which the individuals, groups, or
organisations share one or more characteristics that cause them to
have relatively similar product needs.
Two broad groups of variables to segment consumer markets.
1. descriptive characteristics—geographic, demographic, and
psychographic
2. behavioral segmentations

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Five conditions must exist for segmentation to be meaningful:

1. A marketer must determine whether the market is heterogeneous.

If the consumers’ product needs are homogeneous, then it is
senseless to segment the market.

2. There must be some logical basis to identify and divide the

population in relatively distinct homogeneous groups, having
common needs or characteristics.

3. The total market should be divided in such a manner that,

estimated sales potential, costs and profits of each segment
can be estimated.

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4. One or more segments must have enough profit potential that
would justify developing and maintaining a marketing
programme.

5. It must be possible to reach the target segment effectively. For

instance, in some rural areas in India, there are no media that
can be used to reach the targeted groups.

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1. Geographic Segmentation

Geographic segmentation is a marketing strategy used to

target products or services at people who live in a particular
location. It works on the principle that people in that location have
similar needs, wants, and cultural considerations.

Geographic segmentation divides the market into

geographical areas nations, states, regions, areas of certain
climatic conditions, urban and rural. The assumption is that
consumers in a particular geographic area have identical
preferences and consumption behaviour.
Exporters often segment the market as Western countries,
African countries..

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2. Demographic Segmentation
` Demographic characteristics are commonly used to
segment the market. Factors such as age, sex, education, income,
marital status, family size and social class etc. are used singly, or in
a combination, to segment a market.
Shaving products for women are based on the demographic
variable of gender.
Toy manufacturers segment the market on the basis of age
of children.
Auto manufacturers segment the market by considering
income as an important variable.
Producers of refrigerators, washing machines, microwave
ovens etc. take income and family size as important variables in
segmenting the market.
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Ready-to-wear garment producers often segment the market on the
basis of social class

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3. Psychographic Segmentation

In psycho- graphic segmentation, buyers are divided into groups

on the basis of psychological/personality traits, lifestyle, or values.
People within the same demographic group can exhibit very
different psychographic profiles

Consumers have a certain self-image and this describes

their personality. There are people who are ambitious, confident,
aggressive, impulsive, modern, traditional, expressive, loners or
introvert etc.
Lifestyle is an indicator of how people live and spend their
time and money. For example, Indian women are more home-
focused, less likely to visit restaurants, more price sensitive,
spend time preparing meals at home.
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 Lifestyle segmentation is particularly useful in case of
product categories where the users’ self-image is considered as
an important factor, such as perfumes, beer, jewelry and other
ego-intensive products.
 Personality Behaviour
 Life style Social class

Stanford Research Institute (SRI) developed a popular

approach to psychographics segmentation called VALS (Values
and Lifestyles). This approach segmented consumers according
to their values and lifestyles in USA.

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VALS has two dimensions.

The first dimension, primary motivations, determines

the type of goals that individuals will pursue and refers to pattern
of attitudes and activities that help individuals reinforce, sustain or
modify their social self-image.

The second dimension, resources, reflects the ability of

individuals to pursue their dominant motivations that includes the
full range of physical, psychological, demographic and material
means such as self-confidence, interpersonal skills, inventiveness,
intelligence, eagerness to buy, money, position and education etc.

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Stanford Research Institute (SRI) has identified three basic
motivations:
1. Ideals (principle): Individuals are guided in their choices by
their beliefs and principles and not by feelings, desires and
events.
2. Achievement: Individuals are heavily influenced by actions,
approval and opinions of others.
3. Self-expression (action): Individuals desire physical and social
activity and risk taking.

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4. BehavIoral Segmentation

In behavioral segmentation, marketers divide buyers into

groups on the basis of their knowledge of, attitude toward, use of,
or response to a product.

Dividing the market on the basis of such variables as use

occasion, benefits sought, user status, usage rate, loyalty status,
buyer readiness stage and attitude is termed as behaviouristic
segmentation. Buyers can be identified according to the use when
they develop a need and purchase or use a product.

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Example:
Markets can also be segmented into light, medium or
heavy users of a product.

Brand loyalty of varying degrees can be present among

different groups of consumers and may become the basis to
segment the market. There are consumers who are very loyal to
cigarette brands, beer and even toothpaste.

Markets may also be divided by considering level of

product awareness.

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Requirement for market segments:

 Identifiable
 Accessible
 Substantial
 Unique needs
 Gross profit potential
 Durable

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 TARGETING

The selection of potential customers to whom a

business wishes to sell products or services. The targeting
strategy involves segmenting the market, choosing which segments
of the market are appropriate, and determining the products that
will be offered in each segment. (Group of Individuals are
separated by distinguishable and noticeable market segmentation)

The following sequential steps present a useful framework:

 Establish criteria to measure market attractiveness and
business strength position.
 Evaluate market attractiveness and business strength factors
to ascertain their relative importance.
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  Assess the current position of each potential segment on
each factor.
 Project the future position of each market segment based on
expected environmental, customer, and competitive trends.
 Evaluate Segment Profitability.

Before making the final decision of choosing the market

segment, it is necessary to examine that the segment is at least
strongly positive on one of the two dimensions of market
attractiveness and business strength.

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Factors for evaluating attractiveness of a market segment:

 Size of the segment

 Growth rate of segment
 Competition in the segment
 Brand loyalty of customers
 Sales potential
 Expected profits
 Cost of reaching the segment

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PRODUCT HIERARCHY

A product hierarchy is a modeling of the hierarchical

relationships between products in a tree structure.
(or)
The product hierarchy stretches from basic needs to
particular items that satisfy those needs.

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Product need:
It is the core need that defines the existence of the
product.
Ex: Kitchen appliance Need to travel

Product family:
A product family consists of all classes of products that
satisfy the core need with proper functionality / reasonable
effectiveness.
Ex: Cooking utensils
Roadways / Railways / Waterways / Airways.

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Product class:
A Product class within the family can be observed as a
set of products that have same functional consistency. It can
also be termed as product category.
Ex: Boiling utensil, Car / Bike / Bicycle/ Bus

Product line :
It consists of a group of products within a product class
have similarities in terms of functions, target audience, price
range and channel of distribution.

Ex: Cooker SUV car

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Product type:
A group of items within a product line that share one of
several possible forms of the product line.
(or)
This refers to the various products within a product line.
Ex: Non stick cooker Mid-size SUV / Luxury SUV

Product Item:
This is the last level of the hierarchy. A specific unit or
variant of the product.
Ex: Butterfly nonstick cooker
Toyota fortuner-SUV

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PRODUCT LINE DECISIONS
Product Line Decisions means a company offers similar
products to solve a whole range of similar problems that target
customers have.
According to Philip Kotler, a product line can be defined as
“a group of products that are closely related because they function
in a similar manner, and sold to the same customer groups, are
marketed through these same types of outlets, fall within given
price range.

For example: Pepsi has a Beverages product category which

includes Pepsi, Mirinda, Mountain Dew, 7UP, Uncle
Chipps, Quaker and Tropicana, to India's favourite crisp, Lays and
Kurkure, and many more.
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 Product line decisions are related to the product line
strategy that are planned activities of adding and deleting a
particular product from the line.

Product-Line Length

It refers – How many product varieties should the firm offer.

Generally firms look to increase the product line length. (Number of
similar products offered)

It is one of the most important responsibilities of the product-line

manager to decide on the optimal length of the line of his product.

So that he can add items in the line if it is short and can

drop items from the line if it is long to increase profitability.
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Line Stretching Decision: Product line stretching means to
lengthen the current product line. It has three dimensions..
 Down market stretch
 Up market stretch
 Both ways stretch
 Downward Stretching means adding a new product to the
current line, but at a lesser price. For example, Mercedes in a
joint venture with Swatch, introduced a $10,000 Smart Micro
Compact Car.
 Upward Stretching means adding new products but at higher
prices. Companies stretch upward because they want prestige,
growth rate, or high-profit margins. For instance, General
Electric company successfully added its current Monogram
kitchen appliance to target the higher-end consumer.
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  Two-way Stretching means adding new products in both
directions. Marriot did this significantly and started the
Renaissance Hotel target high-end consumer and Town suites
to cater to the needs of lower-end consumers.

Line Filling Decision: It means adding new products to the same

product range to use excess capacity, increase customer base,
extra profit, and keep competitors away.
Example: Sony added waterproof and solar-powered Walkman to
its current Walkman line.

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Line Pruning Decision means to reduce the depth of a product
line by removing unprofitable products from the existing lines.
For Example: Crystal Pepsi launched in the market and
discontinued after some time.

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The product line decisions are
(1) product line expansion,
(2) product line reposition and (3) product line contraction
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1. Product Line Expansion

Once a product has achieved market success, adding related

products to the line to increase the target market.

A product line can be expanded by adding more items

within its present range. Reasons for adding;
 Earning an extra profit,
 Satisfying intermediaries,
 Utilizing excess capacity,
 Capturing parts of the market that would otherwise be lost to
the competitors.

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Expansion Methods
The expansion of the product is typically implemented by
adding greater width or depth to the line.
Adding width: add more related products to the original
product. (Mattress – Cover), (Shoe – socks)
Increasing the depth: add more variations to the original
product – different sizes, colors, styles, qualities, etc.

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2. Product Line Reposition
Product repositioning is a strategy that changes the target
market for a given product. The critical difference between product
extension and repositioning is that with repositioning, no new
products are necessarily added to the line.
Here the marketing executive places the product into
another market segment.
First, If the product was incorrectly positioned initially, the
marketing executive could modify the product to fit the existing
market or find a new market.
Second, the original market segment may not show much
future growth potential or be as viable as initially expected.

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To reposition a product: Product Modification

 Product Modification: Modernization of Product

 Product Line Modification with “Quality”
 Product Line Modification with “Style“

3. Product Line Contraction

The product line contraction strategy is followed to reduce the
number of items the company offers for sale.

a. Analyzing Products for Elimination

Someday or other, every product will have to be removed from
the marketplace. It is just a matter of time until consumer
needs or preferences will change, or other products will
render.
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b. Removing the Product From the Mix

After a weak product has been identified, and a decision is

made to eliminate it, plans must be developed for contracting the
line.
During this phase down process, the marketing executive
reduce all marketing expenses and reap as much profit as
possible.

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