BANGLADESH UNIVERSITY

OF TEXTILES

M.Sc in Textile Engineering Management

Course Name: Marketing & Merchandising of Textile & Apparel

Course Teacher
Md.Ahsan Habib
Assistant Prof. & Head,
Dept. of Textile Engineering Management
Bangladesh University of Textiles.
Md.Ahsan Habib, Lecturer-BUTex
 Chapter-01
Understanding Textile & Apparel Marketing:
Definition of Marketing:
• According to Philip Kotler, "Marketing Management is the
analysis, planning, implementation and control of
programmes designed to bring about desired exchanges with
target audiences for the purpose of personal and of mutual
gain. It relies heavily on the adoption and coordination of
product, price, promotion and place for achieving responses.“
• According to American Marketing Association
(2004) - "Marketing is an organisational function and set of
processes for creating, communicating and delivering value to
customers and for managing relationships in a way that
benefits both the organisation and the stakeholder.“
• According to Eldridge (1970) - "Marketing is the combination
of activities designed to produce profit through ascertaining,
creating, stimulating, and satisfying the needs and/or wants
of a selected segment of the market."
Md.Ahsan Habib, Lecture, Dept. of TM,
BUTex
 Exchange as the focus
The following conditions must exist for a
marketing exchange to take place:
Two or more people or organizations must be
involved, and each must have needs or wants
to be satisfied. If you are totally self-sufficient,
there is no need for an exchange.
The parties to the exchange must be involved
voluntarily.

Md.Ahsan Habib, Lecture, Dept. of TM,

BUTex
Each party must have something of value to
contribute in the exchange, and each must be
believe that it will benefit from the exchange.

The party must communicate with each other.

The communication can take many forms and
may even be through a third party, but
without awareness and information there can
be no exchange.

Md.Ahsan Habib, Lecture, Dept. of TM,

BUTex
 What is Fashion Marketing?
“Fashion marketing is the application of a range
of techniques and a business philosophy that
centres upon the customer and potential
customer clothing and clothing-related products
and services in order to meet the long-term
goals of the organisation”
Mike Easey
Related Fashion Services
FASHION PRODUCTS
Advice on garment coordination
Cosmetic surgery
Tattoos
AND SERVICES
Hairdressing
Garment alteration, cleaning,
repairs
Sun tanning

CLOTHING USAGE SITUATIONS

Underwear...Outerwear
Formal……..Informal Work/School
Bespoke… ..Ready-made Leisure
Natural……..Man-made Domestic

Fashion-related products
Shoes Hats Hosiery
Jewellery Belts Bags
Scarves Cosmetics
Fragrances wig
 Two Views of Fashion Marketing
Design Centred Marketing Centred

Sample Fashion Design should be based

statements marketing is the solely on marketing
same as research
promotion
Assumption Sell what we can Make what we can sell
make

Orientation Marketing centred

Design centred

Bland designs
Alleged High failure rates
Stifles creativity
drawbacks
Relies on intuition
Design Centered: fashion marketing as promotion

Adherents of the view state that designers are the

real force, and marketers should merely help to
sell ideas to the public. Translated into practice
this view tends to have all marketing activity
carried out by either public relations or
advertising departments or agencies. Customers
and potential customers are seen as people to be
led or inspired by creative styling that is favorably
promoted.

Md.Ahsan Habib, Lecturer-BUTex

Marketing centred: design as a
research prescription
Here marketing is dominant and it regards the
designer as someone who must respond to
the specifications of customer requirements
as established by marketing research. Detailed
cost constraints may be imposed and sample
garments pretested by, for example, retail
selectors who may subsequently demand
changes to meet their precise needs.
Basic Functions of Marketing

Marketing
management
Environmental Price
analysis planning

Total
Broadening the Marketing Promotion
scope of Effort planning
marketing

Consumer Product Distribution

analysis planning planning
 Marketing Functions
Environmental analysis and marketing research:
Monitoring and adapting to external factors that affect success
or failure, such as the economy and competition; and
collecting data to resolve specific marketing issues.
Broadening the Scope of Marketing:
Deciding on the emphasis to place, as well as the approach to
take, on societal issues, global marketing, and the Web.
Consumer analysis:
Examining and evaluating consumer characteristics, needs
and purchase processes; and selecting the group(s) of
consumers at which to aim marketing efforts.
 Marketing Functions
Product planning (including goods, services, organizations, people,
places, ideas):
Developing and maintaining products, product assortments, product
images, brands, packaging, and optional features, and deleting faltering
products.
Distribution planning:
Forming logistical relationships with intermediaries, physical
distribution, inventory management, warehousing, transportation,
allocating goods and services, wholesaling, and retailing.
Promotion planning:
Communicating with customers, the general public, and others through
some type of advertising, public relations, personal selling, and/or sales
promotion.
 Marketing Functions

Price planning:
Determining price levels and ranges, pricing techniques,
terms of purchase, price adjustments, and the use of price
as an active or passive factor.
Marketing management:
Planning, implementing, and controlling the marketing
program (strategy) and individual marketing functions;
appraising the risks and benefits in decision making; and
focusing on total quality.
 The Marketing Process
Create value for customers and
build customer relationships
Capture value from
customers in return

Understand the Design a Construct an Build profitable Capture value

marketplace and customer-driven integrated from customers to
relationships and
marketing program
customer needs marketing create customer create profits and
that delivers
and wants strategy superior value delight customer equity

This Figure presents a simple, five-step model of the marketing

process. In the first four steps, companies work to understand
consumers, create customer value, and build strong customer
relationships. In the final step, companies reap the rewards of
creating superior customer value. By creating value for
consumers, they in turn capture value from consumers in the
form of sales, profits, and long-term customer equity.
Md.Ahsan Habib, Lecture, Dept. of TM,
BUTex
Understanding the Marketplace and Customer Needs
Core Marketing Concepts

Products
Needs, wants, and
and demands Services

Core
Core
Marketing
Marketing
Concepts
Concepts
Markets
Value, satisfaction,
and quality

Exchange, transactions,
and relationships
 What Motivates a Consumer
to Take Action?
• Needs - state of felt deprivation for basic items
such as food and clothing and complex needs such
as for belonging. i.e. I am thirsty

• Wants - form that a human need takes as shaped by

culture and individual personality. i.e. I want a
Coca-Cola.

• Demands - human wants backed by buying power.

i.e. I have money to buy a Coca-Cola.
 What Will Satisfy Consumer’s
Needs and Wants?

• Products - anything • Services - activities

that can be offered or benefits offered
to a market for for sale that are
attention, essentially intangible
acquisition, use or and don’t result in
consumption and the ownership of
that might satisfy a anything.
need or want. • Examples: banking,
• Examples: Clothing, airlines, haircuts,
Food product, and hotels.
consumer product
How Do Consumers Choose Among
Products and Services?

• Customer Value - benefit that the customer

gains from owning and using a product
compared to the cost of obtaining the
product.

• Customer Satisfaction - depends on the

product’s perceived performance in
delivering value relative to a buyer’s
expectations.
 How do Consumers Obtain
Products and Services?

• Exchanges - act of obtaining a desired object from

someone by offering something in return.

• Transactions - trade of values between parties.

Usually involves money and a response.

• Relationships - building long-term relationships with

consumers, distributors, dealers, and suppliers.
Who Purchases Products
and Services?

Actual
Actual
Market
Market--buyers
buyers Buyers
Buyers
who
whoshare
shareaa
particular
particularneed
need
or
orwant
wantthat
thatcan
can
be
besatisfied
satisfiedby
byaa
company’s
company’sproducts
products Potential
Potential
or
orservices.
services. Buyers
Buyers
 Strategic Planning Process
• Strategic Planning involves developing an overall
company strategy for long-run survival and growth.

• This process involves:

– Defining a Mission: Statement of an organization’s purpose;
should be market oriented.
– Setting Company Objectives: Supporting goals and objectives to
guide the entire company.
– Designing a Business Portfolio: Collection of businesses and
products that make up the company.
– Planning Functional Strategies: Detailed planning for each
department designed to accomplish strategic objectives.
 Developing growth strategy

Product/ Market Expansion Grid

Existing New
Products Products
Penetration Development
Existing
Markets
1. Market 3. Product

Development
New 2. Market
4. Diversification
Markets
 Product/ Market Expansion Grid
• Market Penetration: increase sales to present
customers with current products. How? Cut prices,
increase advertising, get products into more stores.
• Market Development: develop new markets with
current products. How? Identify new demographic or
geographic markets.
• Product Development: offering modified or new
products to current customers. How? New styles,
flavors, colors, or modified products.
• Diversification: new products for new markets. How?
Start up or buy new businesses.
 Marketing’s Role in Strategic Planning

• Process of Selecting Target Consumers

– Market Segmentation: determining distinct
groups of buyers (segments) with different
needs.
– Market Targeting: evaluating and selecting
which target segments to enter.
– Market Positioning: products distinctive and
desirable place in the minds of target segments
compared to competing products.
 The Marketing Process

Demographic- Technological-
Economic Marketing Natural
Environment Intermediaries Environment

Product

Target
Suppliers Place Price Publics
Consumers

Promotion

Political- Social-
Legal Competitors Cultural
Environment Environment
 Marketing Mix- The Four P’s
Price
Product
“Goods-and-service” Amount of money
combination that a that consumers
company offers a have to pay to obtain
target market the product

Target
Customers

Intended
Positioning

Activities that Company activities

persuade target that make the
customers to buy product available
the product
Promotion Place