Marketing Intro’ Warm-up

Marketing

The activities of a company associated with buying and selling a product or service. It includes advertising, selling and delivering products to people. People who work in marketing departments of companies try to get the attention of target audiences by using slogans, packaging design, celebrity endorsements and general media exposure. The four 'Ps' of marketing are product, place, price and promotion.

Many people believe that marketing is just about advertising or sales. However, marketing is everything a company does to acquire customers and maintain a relationship with them. Even the small tasks like writing thank-you letters, playing golf with a prospective client, returning calls promptly and meeting with a past client for coffee can be thought of as marketing.

The ultimate goal of marketing is to match a company's products and services to the people who need and want them, thereby ensure profitability.

Read the 2 paragraphs below about “Marketing” and write a 4 sentences summary based on the underlined statement.Be prepared to read your summary as your name will be randomly picked for a participation grade.

Read the 2 paragraphs below about “Marketing” and write a 4 sentences summary based on the underlined statement.Be prepared to read your summary as your name will be randomly picked for a participation grade.

UNIT C

The Business of Fashion

Objective:3.01 Explain the concept of marketing in fashion.

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 segmentationDividing 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.

CAN YOU SEGMENT THESE MARKETS?

1. Teenager 6. Bride

2. Bank president 7. Repeat shopper

3. Surfer 8. Model

4. Senior citizen 9. School Cheerleader

5. Rich woman 10. Eskimo

Identify the type of market segmentation that corresponds to the consumer identified in the left column. Choices of market segmentation are: demographic, psychographic, geographic, and behavioral.

Demographic

Demographic

Demographic

Demographic

DemographicGeographic or Psychographic

Behavioral or Psychographic

Behavioral

Psychographic

Geographic

CAN YOU SEGMENT THESE MARKETS?

1. Teenager 6. Bride

2. Bank president 7. Repeat shopper

3. Surfer 8. Model

4. Senior citizen 9. School Cheerleader

5. Rich woman 10. Eskimo

Justify the segmentation with 1 word.Use words in the definition of the segmentations to determine

justification.

Age - DEMO

Occupation - DEMO

Age - DEMO

Income - DEMO

Occupation - DEMOLocation - GEOHobby - PSYCHO

Special Occasion - BEHAttitude - PSYCHO

Product Loyalty - BEH

Hobby - PSYCHO

Location - GEO

VOCATS REVIEW Warm-up

1-2-3 Ticket Out the Door

Write your “Ticket” to get out on the following:1.One thing you learned today2.One thing you didn’t quite understand3.On thing you liked most about today’s lesson.

4p’s of MarketingMarketing Mix

Create a Marketing Mix Flower

STARTEND

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

•Price

•Place

•Promotion

1. What is this product?2. How much does this product cost?3. Where can we get this product?4. How do we know about this product?

http://www.skittles.com/advertising/index.jsp

http://www.skittles.com/products/index.jsp

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.

What……?

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.

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.

Distribution channels

Direct distribution• producer sells goods or

services to the final user

Indirect distribution• goods or services are sold

indirectly to the consumer through an intermediary (middleman).

Vs.

Button manufacturer sells buttons to a garment manufacturer

Garment manufacturer puts the buttons on the coats.

Garment manufacturer sells the coats to the boutique

The boutique sells the coats to the customer.

Indirect distribution• goods or services are sold

indirectly to the consumer through an intermediary (middleman).

Garment manufacturer sells the coats to the boutique

The boutique sells the coats to the customer.

Which channel does fashion mostly take?

PromotionCommunication that reminds, informs

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

•Advertising

•Publicity

•Personal selling

•Public relations

R.I.P.

http://www.bet.com/specials/rtr08/rtr-designers/

MARKETING MIX TRIANGLE

PRODUCT

MARKETING MIX TRIANGLE

PLACE

MARKETING MIX TRIANGLE

PRICE

MARKETING MIX TRIANGLE

PROMOTION

PeopleMany 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.

SILENT PARTNERTHE “5TH P”SILENT PARTNERTHE “5TH P”

7 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.

Marketing functions

Financing

Obtaining the money needed to cover the costs of operating a business.

Marketing functions

Marketing-Information

Management

Obtaining information about what consumers want.

Example: Marketing research

Marketing functions

PricingDetermining 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.

Marketing functions

Product/Service Management

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

Marketing functions

Promotion

Communication used to REMIND, INFORM, and PERSUADE people about a business’s products.

What is the acronym?

RIP

Marketing functions

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.

CUSTOMERSALES ASSOCIATE

Marketing functions