SEGMENTATION AND THE MARKETING MIX

Many

conditions need to be met to constitute a market: 1) There should be a genuine need. 2) Customers should be willing and able to buy the product 3) The total or the aggregate demand should be sufficient to enable a supplier to operate profitably

MASS MARKETING
Assumes that all customers in the market are the same, customer needs do not vary, and the company can offer a standardized marketing mix that meets the needs of everyone. The standard marketing mix means the same product, method of distribution, prices, and promotional effort aimed at everyone in the market (basically middle class, lower middle class and segments below them).

The

reality is that fashion products cannot be mass marketed because consumers desire individuality and expression of the self. are therefore

Markets

segmented.

MARKET SEGMENTATION

The marketing research necessary to describe and segment a market leads to a deeper understanding of the consumer that enables the most effective design of a marketing mix, and the ability to respond to changes in the market.

It enhances marketing planning and in return forces management to consider the relative costs, efficiency and effectiveness of the alternatives.

 It

forces fashion marketers to consider competitors strengths and weaknesses. SEGMENTATION BASES Segments are groups of customers with similar characteristics. It can be based on many variables. 1) GENDER 2) AGE 3) MARITAL STATUS

4) OCCUPATION 5) INCOME 6) EDUCATION 7) CUSTOMER SIZE 8) RELIGION 9) FAMILY LIFECYCLE 10) TYPE OF NEIGHBOURHOOD 11) REGION/COUNTRY 12) CLIMATE 13) LIFESTYLE Groupings based on common activities, interests and opinions of consumers (AIO).

SEGMENTATION BASED ON BENEFITS AND CUSTOMER BEHAVIOR 1) Customers may be heavy spenders, moderate spenders or low spenders 2) There are varying degrees of brand loyalty 3) There are different purchasing modes, from comparison shopping to buying at convenience outlets.

4) Usage rates define heavy, medium, light, occasional users and non users. 5) Usage situation defines if it is used at work, for leisure, evening, formal, weddings, etc. 6) Price sensitivity ranges from very price aware to least price sensitive. 7) Benefits to consumers range from easy care to environmental friendliness to durability, etc.

CRITERIA FOR SELECTING SEGMENTS

There are four main criteria for selecting segments: 1) The segment should be measurable and easily identifiable. 2) The segment should be relatively stable. Though styles evolve over successive seasons, and change is inevitable, the segment should remain relatively loyal to the fashion marketer who leads and reflects their fashion tastes.

 3)

The segment should be accessible. This relates to distribution as well as promotional efforts. 4) The segment should be large enough to be profitable for the scale of operations of the fashion marketer.

SEGMENTATION STRATEGIES
The

segmentation strategy is determined by: 1) COMPANY RESOURCES 2) NATURE OF THE COMPETITION 3) NATURE OF THE DEMAND IN THE PARTICULAR FASHION MARKET STABLE OR VOLATILE

Segmentation strategies may be concentration strategy, or multi segment strategy. Selection of only one segment is known as concentration strategy. It enables the company to become expert in satisfying one segment of customers, and to acquire prestige and loyalty among that group of customers. The risk in the concentration strategy is that a downturn in one market can expose the company to considerable financial risk.

 Selection

of two or more segments is called multisegment strategy. Such a strategy provides a measure of stability in times of rapid market change by spreading risk across several segments. The firm may enjoy economies of scale.

POSITIONING AND PERCEPTUAL MAPPING

It has to do with the perception of the firm and its marketing mix by the target market. The main method of market position is the use of marketing research to conduct a perceptual map of the market. A perceptual map is the consumers view of the market. It is hypothetical and has little to do with realities of style and pricing.

FASHION MARKETING MIX

Marketing Mix is the range of variables that can be controlled by the fashion marketer to meet the needs of the buyers profitably. It is getting the right product to the chosen market segment at the correct time in the right place and for the right price. The positioning statement is a strategic decision taken by a company and the marketing mix is concerned with turning that decision into reality via specific activities.

SEGMENTATION MAKES THE DECISION MAKING PROCESS AND POSITIONING VERY ORGANISED IN THE COMPANIES..