4.01 Part 2 - More

Marketing

The process of
developing, promoting,
pricing, and distributing
products in order to
satisfy customers’ needs
and wants.

Marketing involves the total process of
finding or creating a profitable market

for specific goods or services.

Fashion merchandising

Specific marketing

activities designed
to have
fashion-oriented
merchandise at
the right time,
place, quantity,
and price to meet
customer demand.

Marketing concept

A business

approach that
directs all
marketing efforts
towards customer
wants and needs.

Customer needs must be
determined before goods

can be produced.

Market

The group of all

potential
customers.

•Similar needs and
wants

•Willingness and
means to satisfy
those wants

Businesses must

understand who their

potential customers are

in order to efficiently
meet their needs and

wants.

Target market

The specific segment of a total market

that a company desires to have as
customers and toward whom it
directs its marketing efforts.

It is important that each fashion company
carefully define its target market in order to
make or carry products directed toward that

market.

Market segmentation

Dividing the entire market into smaller

groups having similar
characteristics.

•Demographic
segmentation

•Psychographic
segmentation

•Geographic
segmentation

•Behavioral
segmentation

•Every business must
decide which customers
it can serve in order to
be successful.

•Businesses must
identify those
customers to whom
they can sell the most
and maximize profits.

Demographic segmentation

A way to segment markets based on

vital statistics of the population.

•Age

•Race

•Gender

•Education level

•Income level

•Occupation

Psychographic segmentation

A way of segmenting a market based

on a consumers’ lifestyles, values,
attitudes, and self-concepts.

•Tries to explain consumer behavior
and determine what the consumer is
thinking and feeling

•Behavior may be influenced by
cultural background or social group

Geographic segmentation

Segmenting a market based on where

a person lives.

Behavioral segmentation

Dividing consumers into groups

according to their response to a
product.

•Groups consumers into categories based on
what they are looking for in a product and why
they buy the product

•The marketer might consider what benefits the
consumer wants, the consumer’s rate of use of
the product, loyalty to a particular product or
brand, and response related to a special
occasion.

Marketing mix

A combination of decisions a business must

make in order to best reach its target
market; known as “the four Ps” of
marketing.

•Product

•Place

•Price

•Promotion

Product considerations

• Choice of products
• Brand name
• Level of quality
• Packaging
• Warranties

Marketers must decide what goods or
services are in demand and bring those
products to the consumer.

Place considerations

•How and where will products
be offered to customers?

•What method will be used to
get products from producer
to consumer?

•What is the most efficient
method of transportation?

Marketers must make products
available at the right time and location.

Distribution channels

• Direct distribution:A distribution channel in

which the producer sells goods or services
to the final user.
– Example: A button manufacturer sells directly to

garment manufacturers.

• Indirect distribution:A distribution channel

in which goods or services are sold
indirectly to the consumer through one or
more intermediaries.
– Manufacturer/producer to retailer to consumer

(path that most fashion apparel takes.)

– Example: Levi Strauss sells jeans to Belk who,

in turn, sells to the consumer.

Price
considerations

• Affected by supply and demand
• Cost of producing the item
• Markup
• Terms of sale such as credit and/or

discounts

Marketers must decide on an
amount to charge customers for
their products.

Promotion

Communication that informs, reminds,

and persuades customers of the
goods and services available to
them.

•Advertising

•Publicity

•Personal selling

•Public relations

People

Many businesses also consider “people”
(employees) to be an important element in
the marketing mix since they can make
the difference between success and
failure by the way they carry out the other
elements of the marketing mix.

What is it?

​

How much and How to get an invite?

Marketing functions

• Distribution
• Financing
• Marketing-Information Management
• Pricing
• Product/Service management
• Promotion
• Selling

Distribution

The transporting, storing, and handling

of goods on their way from the
manufacturer to the consumer.

*Referred to as PLACE in the marketing mix.

Financing

Obtaining the money

needed to cover the
costs of operating a
business.

Marketing-Information

Management

Obtaining information

about what
consumers want.

Example: Marketing research

Pricing

Determining a value to

charge for goods and
services.

Price must cover

•Costs of conducting marketing research.
•Costs of financing the business.
•Costs of producing the product.
•Costs of promoting the product.
•Costs involved in distributing the product.
•Costs of selling the product to the final consumer.
•Profit for all people involved in the marketing process.

Product/Service Management

Concepts and

procedures necessary
in designing,
producing,
maintaining,
improving, and
obtaining products or
services to meet
customer needs.

Promotion

Communication used to inform,

persuade, or remind people about a
business’s products.

Selling

Determining customer needs and wants

and responding to those needs and
wants through planned, personalized
communication intended to influence
purchase decisions and ensure
satisfaction.