The entire process of research, planning, promoting, and distributing the raw materials, apparel, and accessories
Marketing is the power behind the product development, production, distribution, retailing, and promotion of Fibers Fabrics Leathers Furs Trimmings Apparel and Accessories
Begins and ends with the customer
With increased income, consumers have better and cheaper products constant availability Convenience pleasant shopping experiences
Research what the customer wants to buy, then develop the product
Marketing firms analyze lifestyles and buying behaviors Consumer Demand is the effect the consumer has on
the market place Created by increased spending on advertising and other
marketing activities
Ultimate goal of marketing is to establish the identity of a brand or store so customers will seek it out (destination brand)
Also known as market segmentsAgeLifestyleLiving areaEducational backgroundEthnic background
Traditionally, society was divided by income classes
Demographics are statistical studies of population characteristics based onBirthrate, age distribution, and income
Pre 1945 Most neglected by designers, retailers and the
media Second-fastest growing segment Tend to feel younger than actual age Have money to spend and enjoy new products
Tend to dress up more often Prefers shopping for apparel and accessories
by catalog, Internet, or department stores By 2010, 1/3 of the population will be over age
50 Future marketers will need to cater to this segment.
1946-1964 Most influential group since WWII Largest segment and primary demographic
spending group The women spend more on clothing than any
other group Often ignored by the industry Advertisers have stereotypical ideas about the
style of those over 40 and are afraid to alienate the younger crowd with multigenerational ads
Wants same style as young people but with the appropriate length and fit
1965-1979 Also known as the Baby Busters Now career- and family-oriented Spending reflects orientation
Housing, home goods, transportation, and education
Post 1980 Also known as the Baby Boomlet
Children of baby boomers Racially diverse
Global, sports, computer, and entertainment orientation Ads, TV, movies, Internet, and magazines influence
buying decisions Fashion oriented, passion for clothes
Cannot afford to spend as much as the baby boomers Prefer specialty apparel chains and boutiques By 2010, the nation will be polarized
Postwar boomers over 50 and millennial generation under 30 Companies must respond with multigenerational ad campaigns
The Immigration and Naturalization Service projects that legal immigration exceeds 700,000 per yearBlack, Hispanic, Asian, and Native American
segments will grow much faster than the white majority
Look for different things in purchasesCultural perceptions regarding styling,
color, pattern, fabrics, fit, quality, and value
Psychographics is the use of psychological, sociological, and anthropological factors to construct market segments
Manufacturers and retailers turn to psychographics to further segment and analyze consumer groups and their fashion preferences
More than 75% of females age 20-60 work
22 million women live alone or are single head of households
Shop less often, favor convenient shopping
Use catalogs, electronic stores, and superstores
Majority of population is considered large size
68% of Americans are overweight This affects
Manufacturers Must change sizing and construction of garments
Retail stores Devote more square footage of the store to
large-size apparel
Community Connection to the community; cities are gaining
population Renewed interest in family life
More money spent on the home and family activities rather than fashion
Cocooning People stay in due to fear of terrorism, war, and
crime, shopping less or by catalog or Internet
Comfort Staying relaxed and casual dressing at home/work
or activewear Increase at-home use of computers
Online shopping
Working at home Expected to increase
Value of time Willing to trade money for free time leads to the appeal of
shopping at home/Internet
Stress Busy schedules = other ways to shop
Target Market is the group of consumers you want to reach
Market niche small population group of unserved or
underserved people who have a need for a product
Gathered to improve offerings Collect and analyze data
Unknowingly we give merchants data Shopping habits Size Color preferences Lifestyle Age Income And address
Other information is formed into categorized into databases (consumer profiles)
Merchants translate sales data and purchasing patterns into geographic maps Visual representation of their market
Helps management to understand traffic flow and sales potential
Consumer profiles are used to Learn about customers Find new customers Establish target markets Find/create new products New ways to advertise Keep focused on their customers
Personal income Gross amount of income from all sources, such
as wages and salaries, interest, and dividends
Disposable income Personal income – taxes. This amount
determines a person’s purchasing power
Discretionary income Income left over after food, lodging, and other
needs have been paid for Money available to spend or save at will
Purchasing power Is the amount of goods and services that
income can byRelated to the economic situation
IncludesCreditCorporate OwnershipLabor Costs InflationRecession International Currency
Credit Corporate Ownership
More retailers are offering their own credit cards for their databases
Too much easy credit available Increase in personal
bankruptcy Corporate debt has
lead to manufacturer and retailer bankruptcies
Most companies have grown into corporations or purchased by other corporations
Mergers and acquisitions result in giant “corporate groups”’ EX: Liz Claiborne
Corporations sell public stock to gain access to funding
Labor Costs Inflation
As people receive higher salaries and live better the cost of making products increases
Rising domestic labor costs, we now must search for cheaper sources of labor Asia, Mexico, the
Caribbean Basin, etc.
The US experienced inflation during the 1980s
People earn more money each year Higher prices Higher taxes
Result in little or no increase in purchasing power
Recession International Currency
2002-2003 A recession is a
cycle beginning with a decrease in spending
Forced to cut back production Results in
unemployment Drop in gross national
product (GNP) Furthers the cycle
Strong dollar Americans can afford
to purchase foreign-made merchandise cheaper
The Euro In 1999, the euro
became the official currency of 11 of the 15 members of the European Union (EU)
Balance of Trade Difference in value between a country’s exports
and imports Tariffs
Customs charges imposed on imports in an attempt to protect domestic industry
Quotas Means of regulating imports and exports
Imports Goods that are brought in from a foreign country
to sell here Exports NAFTA (North American Free Trade Agreement
In 1994, NAFTA created a free market (devoid of import duties) 560 million people in Canada, the US, and Mexico
Promotes economic growth through the expansion of trade and investment opportunities within the free trade area
Central American Free Trade Agreement (CAFTA) has been enacted
The US also has negotiated trade agreements with Australia, Chile, Israel, Jordan, Morocco, Singapore, and
Sub-Saharan Africa
Working on a Free Trade Agreement of the Americas (FTAA) Encompasses 34 Western Hemisphere nations as well as
several other countries
Business Communication Personal Communication
Business communication Computers Intranet: E-Mail on a
closed Intranet network system to share information internally among departments
Internet Video
(videoconferencing) Fax
Television Telephone Web sites E-Commerce Research
Developed based on a companies needs Product Development
Designers rely on consumer statistics and sales data to track trends
Product Data Management (PDA) and Product Lifecycle Management (PLM) coordinate each step of the design process
In production, goods are given Universal Product Codes (UPC) that identify style, color, size, price, and fabrication
In attempt to reduce waiting time in ordering and distribution, textile producers, and apparel manufacturers
Automatic ReplenishmentAllows manufacturers to automatically ship
goods to stores when inventory levels are low
Value Chain Initiative (VCI) International standards for sharing
information among retailers, manufacturers, and suppliers Covers all aspects of the supply chain
The flow of product from concept to consumer
Traditionally companies are separate and independent
TrendsTraditional Marketing ChainVertical integrationFull package manufacturingManufacturer-retailer appliances
Many companies are combining fabric production and apparel manufacturing Manufacturing and retailing
A vertical company produces fabrics, manufactures clothing, and sells the finished product
Cutting out distribution costs increases profits and keeps prices down to the consumer