Fashion Marketing & Merchandising Principles

MAKING THE CONNECTION

Objectives
Be able to define marketing and discuss its core concepts. Be able to define marketing management and compare the five marketing management orientations. Understand customer relationship management and strategies. Realize the major challenges facing marketers in the new connected millennium

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Objectives
Be able to describe the marketing process and the forces that influence it. Learn the marketing management functions, including the elements of the marketing plan.
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Objectives
Be able to identify the major forces shaping the new digital age. Understand how companies have responded to the Internet with e-business strategies. Be able to describe the four major e-commerce domains.
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Objectives
Be able to define the consumer market and construct a simple model of consumer buyer behavior.

Know the four major factors that influence consumer buyer behavior.

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Marketing: Managing Profitable Customer Relationships

Chapter 1

What is Marketing?
Marketing is managing profitable customer relationships
Attracting new customers Retaining and growing current customers

Marketing is NOT synonymous with sales or advertising

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What is Marketing?
Core Marketing Concepts
Needs, wants, and demands Marketing offers: including products, services and experiences Value and satisfaction

Exchange, transactions and relationships

Markets
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Marketing Management
Marketing management is the art and science of choosing target markets and building profitable relationships with them. Creating, delivering and communicating superior customer value is key.

Customer Management: Marketers select customers that can be served well and profitably.
Demand Management: Marketers must deal with different demand states ranging from no demand to too much demand.
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Marketing Management Marketing Management

Management Orientations
Production concept Selling concept

Marketing Product concept concept Societal marketing concept

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CRM
CRM Customer relationship management . . .
is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
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CRM
It costs 5 to 10 times MORE to attract a new customer than it does to keep a current customer satisfied.
Marketers must be concerned with the lifetime value of the customer.
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Marketing Challenges
Technological advances, rapid globalization, and continuing social and economic shifts are causing marketplace changes. Major marketing developments can be grouped under the theme of Connecting.
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Company and Marketing Strategy: Partnering to Build Customer Relationships

Chapter 2

Strategic Planning
Strategic planning is defined as:
The process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities.
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Strategic Planning
Mission statements should . . .
serve as a guide for what the organization wants to accomplish. be market-oriented rather than product-oriented. be neither too narrow, nor too broad. fit with the market environment. be motivating.
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Strategic Planning
Business portfolio: the collection of businesses and products that make up the company. Designing the business portfolio is a key element of the strategic planning process.
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Strategic Planning
BCG Growth-Share Matrix
High Market Growth

Stars

Question Marks
Dogs

Low Market Growth

Cash Cows
High Relative Market Share

Low Relative Market Share

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Strategic Planning
Product/Market Expansion Grid
Existing Products Existing Markets New Markets Market Penetration Market Development New Products Product Development Diversification

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Marketing in the Digital Age: Making New Customer Connections

Chapter 3

Major Forces Shaping the Digital Age

Digitalization and Connectivity
The flow of digital information requires connectivity

Intranets, Extranets, and the Internet

The Internet Explosion

Key driver of the new economy
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Major Forces Shaping the Digital Age

New Types of Intermediaries
Brick-and-mortar firms often face disintermediation from click-only competitors The click-and-mortar business model has been highly successful

Customization and Customerization

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Consumer Markets and Consumer Buyer Behavior

Chapter 6

Definitions
Consumer Buying Behavior
Buying behavior of individuals and households that buy products for personal consumption.

Consumer Market
All individuals/households who buy products for personal
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Model of Consumer Behavior

Stimulus Response Model
Marketing and other stimuli enter the buyers black box and produce certain choice/purchase responses. Marketers must figure out what is inside of the buyers black box and how stimuli are

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Characteristics Affecting Consumer Behavior

Key Factors
Cultural
Social Personal Psychological
Groups
Membership Reference

Aspirational groups Buzz marketing

Opinion leaders

Family
Children can influence

Roles and Status

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Characteristics Affecting Consumer Behavior

Brand Personality Dimensions
Sincerity Excitement

Ruggedness Competence Sophistication

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Types of BuyingDecision Behavior

Difference between brands Significant Differences Involvement Level High Low

Few Differences

Complex buying behavior Dissonancereducing buying behavior

Variety-seeking buying behavior Habitual buying behavior

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The Buyer Decision Process

Five Stages:
Need recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior
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Buyer Decision Process for New Products

Adopter Categories
Innovators Early Majority Early Adopters Late Majority Laggards
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