Segmentation strategies
Segmentation strategies can range from the choice of one target market or segment within the market to the selection of several segments in the market, each with a different marketing mix. The selection of only one segment is known as concentration strategy and the selection of two or more segments is called a multi-segment strategy. The determinants of a segmentation strategy are the company resources, the nature of the competition and the nature of demand in the particular fashion market, for...
The fashion product life cycle
The concept of the product life cycle is based on the proposal that all products have a finite 'life cycle' that can be plotted over a given period using the biological analogy of growth, development and decline. It proposes that all products will go through four major stages, namely introduction into the marketplace, growth, maturity and decline. However, it has already been pointed out that the nature of products in the fashion industry varies according to the rate, extent and timescale of...
The planning cycle
The frequency of the planning cycle is probably greater in the fashion industry than any other because of its seasonal nature. Changing customer preferences ensures a perpetual drive for change. Volatility in terms of the seasonal variety of products offered and the speeds of change in fashions require skill, creativity, a propensity for risk taking and in-depth knowledge of end-user requirements in order for companies to plan effectively, and implement and control what is being offered in any...
The product mix and range planning 661 The nature of the product mix
The product mix or product range is the assortment of goods a company offers for sale at any time. Before each season the organization must not only consider how it might alter or modify its classic i.e. more basic lines, which are less liable to radical change, it also must undertake careful planning of its fashion ranges in terms of width, depth and fashion content and simultaneously anticipate and plan for the risk involved . Decisions concerning the mix of products also will relate to...
Observation
There are occasions when it is more useful to observe behaviour than to interview the respondent about it. Observation is usually used to complement other research methods in marketing research, rather than being used alone, as this method can identify patterns of behaviour, but cannot provide information on the reasons behind that behaviour. There are a number of methods available for the observation of behaviour, as follows. The researcher observes behaviour and records it as it occurs. The...
Creation of a customer profile
By identifying potential target markets for the proposed product, it is possible to prepare a customer profile for each one. Profiling characteristics such as age, gender, occupation and geographical location are considered, together with lifestyle characteristics as used in market segmentation. Once these target markets have been identified, the attitudes and perceptions of potential consumers may be researched. Different groups of consumers have different needs, and by addressing the...
Consumer involvement
Another way to look at consumer decisions is the level of involvement the consumer has in the decision. Consumers differ considerably in terms of their interest in fashion. Even those people who are very interested in fashion may be more interested in some types of garment than in others. A common way consumer theorists have classified consumer decisions is into high- and low-involvement purchases. This classification, in part, reflects different theoretical paradigms, although some significant...
Summary
This chapter has introduced and defined fashion and marketing, and how fashion marketing emphasizes the importance of design aims to meet customers' needs helps to achieve corporate goals. There followed an examination of the practical side of fashion marketing how fashion marketers work examining the business environment, and the place of fashion o marketing within it u introducing the ideas of marketing research and consumer ti behaviour n t outlining the concepts of target marketing and the...
Segmentation based on descriptors
One approach to segmenting markets is to describe the characteristics of potential customers. Such descriptions tend to look at demographic, geographical or personality characteristics of the buyer or a combination of the three measures. This approach is termed the descriptor perspective and has the merit that it is easily understandable and less costly owing to the availability of secondary data. An example would be to classify a market by age and income, thus for menswear we could show the...
How fashion marketing can help the fashion industry
The vast output and profits from the fashion industry come not from the designer collections seen on the catwalk but from items sold in high street stores. To put the impact of designers in perspective, one only has to note that the British Fashion Awards' Designer of the Year will often have annual earnings that amount to less than a day's sales for one large retailer in the Arcadia group. Even so, the designer collections are given extensive coverage in the fashion press where each season...
The merchandise plan
This stage involves product testing, i.e. exposing prototypes of the product to fashion buyers. Any further developments suggested by these 'experts' will be considered, and the prototypes modified, as is the usual practice with product testing. These are the main steps in developing and evaluating a new fashion product. The steps are slightly different from those involved in the development of more conventional consumer products, but the information necessary for a successful launch such as an...
The sequence of events
There are four major stages of influence in the new product development and fashion diffusion and adoption process. These are, chronologically 'The Colour Meeting' in Paris known as the Concertation where approximately 40 leading fashion industrialists representing major yarn, textile and garment manufacturers, top designers, stylists, colour consultants and fashion forecasters gather. Together they will establish the major colour trends based on around 30 colours that will dominate the fashion...
The economic importance of fashion
In 2006 the UK clothing market was valued at 13.9 billion at manufacturers selling prices and had been growing steadily for the previous few years. However, also in 2006, the number of UK clothing manufacturers reached an all-time low with large job losses to overseas suppliers of underwear and lower-priced garments. Many UK designers and fashion companies have been successfully exporting their ranges for many years indeed the ratio of exports to imports has been rising steadily in value terms...
Product definition and classifications
Quite literally a product can be defined as anything that might satisfy a need that can be offered in the marketplace. Classifying products in terms of their characteristics and how consumers purchase them assists marketers in determining the appropriate blend of other marketing variables, i.e. promotion, pricing and distribution for the product in question. Traditionally three categories have been used to define tangible product offerings, namely convenience, shopping and specialty, as shown...
Classifying products with a fashion element
Although the categories above do apply to certain items of clothing in the fashion industry, they are slightly limited in use when one is trying to analyse buying motives and methods. It is probably more accurate therefore to classify tangible fashion products slightly differently, categorizing them as classics, fashions or fads. It is possible to use the term classic in several contexts. In terms of 'bundles of utilities', classics can usually be seen as the midpoint compromise of any style,...
The social role of fashion
It has often been suggested that fashion plays an important societal role in terms of individual wellbeing. This, it is maintained, comes through enhanced self-esteem and acceptance by peers and various other social groups through the 'correct' choice of clothing and use of other image-developing accessories. Therefore it could be argued that the primary objective in gaining greater understanding of the nature of fashion products and the process of new product development is to become more...
An overview of the fashion marketing process
Fashion marketing can be viewed as a process and Figure 1.4 illustrates that process. It also gives an indication of the structure of this book and how various parts link together. All firms operate within a wider commercial environment that influences their activities. Changes in value added tax may inhibit demand for certain garments whereas a fall in unemployment may stimulate demand for workwear. These two simple examples illustrate how changes in the marketing environment can have...
Size of the fashion market
All three levels of the market have shown some growth in domestic clothing demand in recent years. Growth of the total UK market for clothing has grown by over 16 from 1994 to 2004 and retail sales for 2006 are predicted to be nearly 50 billion Table 2.2 . UK imports now greatly exceed exports, having increased from 9.1 billion to 11.5 billion from 2001 to 2005 with the main traders being Hong Kong, China and Turkey see Table 2.1 . UK exports have remained steady at about 2.5 billion per annum...
Positioning and perceptual mapping
Positioning is to do with the perception of the firm and its marketing mix by the target market. Positioning is how customers see the market, although that perception may have been influenced by marketing action. The customers' perceptions include the role of the competition and may embrace some notion of an ideal offering. The main method of determining a market position is the use of marketing research to construct a perceptual map of the market. A perceptual map is the consumers' view of the...
Recent developments in the fashion market
Consumer demand for clothing is now more fragmented and discerning. Retailers are wary of carrying high levels of stock, major demographic changes are occurring, and many different styles and fabrics are available. These have all resulted in the mass market for clothing being fragmented and are eroding the advantages of long-run manufacture. Previously the UK textile industry had a reputation for being dictatorial and short on choice. This was blamed on the nature of the relationship between...
Cultural influences
Researchers must also understand the culture in which the research will be conducted. Some subjects will be easier to study in some cultures but not in others, depending upon the research population selected. It should not be assumed that a 'one size fits all' approach will be successful. Research design may have to be modified between countries and cultures to ensure comparability of data. For example, in Arabic countries it is generally harder to obtain samples of women respondents. Issues...
Focus groups
The focus group also known as the group discussion is a form of qualitative research. The group usually consists of between 6 and 12 respondents who discuss products, services, attitudes or other aspects of the marketing process. The discussion is led by a skilled researcher called a group moderator, who guides the discussion, following a checklist of topics. The group usually meets in an informal setting, often someone's home, and the group members are paid a small sum for attending. These...
Contents
Part A Understanding Fashion Marketing 1 1 An Introduction to Fashion Marketing 3 1.3 What is fashion marketing 7 1.4 Fashion marketing in practice 7 1.5 How fashion marketing can help the 1.6 What fashion marketers do five examples 12 1.7 Ethical issues in fashion marketing 13 1.8 An overview of the fashion marketing process 15 1.9 Summary 16 Further reading 17 2 The Fashion Market and the Marketing Environment 18 2.2 The development of the fashion market 18 2.3 The fashion market size and...
The fashion market size and structure 231 Structure of the fashion market
Apart from technology, another reason why fashion is now available to the masses is that there are several levels at which fashion clothing functions, as shown in Figure 2.1 Haute couture houses are the major fashion houses of the world, run by recognized, internationally famous designers. They show their collections at least twice a year and sell individual garments for thousands of pounds. For many designers the catwalk shows are essentially a publicity exercise for the many goods that are...
Primary data collection methods
The researcher should not rely on the use of secondary data alone to answer the research problems. Not all secondary data are available to the researcher as some may be unavailable, for example in confidential reports, and other data may simply be too costly to acquire. The information that is available may be out-of-date or not sufficiently Figure 4.4 Approaches to primary data collection. Figure 4.4 Approaches to primary data collection. detailed to solve the research problem. Usually,...
List of Contributors
Sheila Atkinson, MSc, MBA, PGCEd, AMCIM. Her working experience includes buying and merchandising for the Burton Group pic and management of design education in further education. Sheila has extensive teaching experience in UK and Chinese Universities and has training and consultancy experience in fashion marketing. Sheila Atkinson produced Chapter Six with Mike Easey, on the design and marketing of fashion products. Mike Easey, BA Hons , DipM, MCIM, CertEd, is Director of Collaborative...
Problem definition and setting research objectives
Defining the research problem is the most critical step in the research process. Unless the problem is accurately defined, the information collected will be of limited or no use. Careful thought and discussion about the problem, the information needed to address the problem and the relative value of the information collected should take place before anything else. A structured, systematic approach to decision-making will also enable management or the commissioner of the research to set the...
Stages in the research process
Research procedures will vary depending on the nature of the research problem, but in general, the process of marketing research can be seen to be made up of a number of stages. They are 1. Define the research problem and set the research objectives. 2. Design the research. This includes b select the sampling method c select the data collection method d design the data collection form questionnaire . 3. Test the research design pilot . 5. Analyse the data and interpret the results.
Choice of a sampling method
The two main types of sampling method - probability methods and non-probability methods - are shown in Figure 4.3. Figure 4.3 Types of sampling method. Figure 4.3 Types of sampling method. Statistically speaking, these are the best types of sampling method as each respondent has a known chance of being selected, so bias is minimized. They also allow the accuracy of the results to be estimated statistically. Sometimes probability sampling methods are referred to generically as 'random sampling'...
Primary sources
Most marketing research projects will involve the collection of more up-to-date information than is available from secondary sources. Primary sources of information may include consumers, designers, buyers, manufacturers, retailers, and so on, depending upon the research problem. 4.7 Practical sampling methods S In designing research a major decision that the researcher must make M concerns the selection of a sampling method. Sampling is a very r gt important tool in marketing research. It...
Questionnaire design
Questionnaire design is an aspect of research in which many people automatically assume expertise, even those without prior research experience. The questionnaire is a vital part of most surveys and great care must be taken with its design. To the novice, the problems inherent in designing a questionnaire tend not to become apparent until the pilot stage of the survey. Many factors will affect the design of the questionnaire, such as the nature of the data required qualitative or quantitative...
Geodemographics
Related to social class is a newer system of classifying consumers based upon where they live. A small number of proprietary systems exist based upon the census and categories of neighbourhoods. One such system is ACORN, which stands for A Classification Of h Residential Neighbourhoods and is owned by CACI Pinpoint is F another. These systems are derived from statistical analysis of census h variables to discover residential areas, usually census enumeration n districts comprising about 150...
Ethical issues in fashion marketing
The practice of fashion marketing is often criticized. These criticisms can be classified into two types, the micro-issues and the macro-issues. Micro-issues concern particular products and services where consumers may feel that they have not been fairly treated or that they have been misled. Most customers have bought clothing that has fallen below expectations by, for example, coming apart at the seams or shrinking in the wash. These problems may occur due to poor quality control or at worst...
Fashion predictors
For the consumer it must be quite baffling to understand how each e year designers, manufacturers and retailers all seem to know what styles and colours will be in fashion. The reality is that since the 1970s there have been companies who specialize in fashion prediction and act as consultants to interested parties in the fashion world. Companies such as the Paris-based organizations Peclers and Promostyl, France, and London-based Worth Global Style Network WGSN sell their predictions on...
Types of research
Although marketing research techniques can be applied to all areas of marketing, not all techniques are appropriate to every situation. Broadly speaking, there are two types of research qualitative and quantitative. Qualitative research uses techniques such as group discussions, individual depth interviews, projective techniques and observation. The information obtained attempts to find out the 'how' and 'why' of a situation, rather than 'how many'. Analysis may be difficult owing to the depth...
Macromarketing environment
Factors considered within the macro-environment affect not only the company, but all the other members of its micro-environment, namely its suppliers, consumers, etc. These generally have a much wider influence and their effects become apparent more slowly than factors within the company. Factors within the macro-environment are cultural and social, political and legal, demographic, technological and environmental Figure 2.5 . The inter-relationship of macro-environmental factors is most easily...
Secondary sources
These provide the researcher with a starting point for data collection. It may be possible to solve the research problem either wholly or in part by using secondary data. This reduces the cost of a research project as secondary data are cheaper than collecting primary data. Secondary sources of information, are in the main, fairly accessible, although some sources may remain confidential and others may be too expensive to acquire. Secondary sources can be separated into the two types as shown...
Publics
There are many groups of publics that can affect a company's success, notably the financial institutions, unions and pressure groups to name but a few. The concept of fashion marketing publics is developed further in Chapter Eight within the context of fashion promotion. Perhaps one of the most powerful groups to affect the fashion market is the media. A report in the fashion press after a designer shows a collection can have disastrous results. It is for this reason that some fashion editors...
Direct and indirect competition for fashion products
Marketers have to realize that with increased choice consumers have many different ways to spend their money. In the western world people rarely need to buy clothes out of pure necessity. A woman does not merely choose between one dress and another she also may choose between a new dress or hiring one, or making one or even to spend her money on something completely different like a handbag a or entertainment. A man may choose between one jacket and another, i or he may choose between a jacket...
Micromarketing environment
Factors which ideally are within companies' control are to a greater or lesser extent their suppliers, marketing intermediaries which help to get the goods from the factory to the consumer and the consumers themselves. For customers the providers of fashion may seem to have a variety of sources, for instance the designer who has the idea for Macro-environment Technology Political Suppliers Manufacturers -Intermediaries - Consumers Adapted from Kotler, P. 1994 , Marketing Management, 8th edn.,...
The fashion marketing concept
There is another way to view the relationship between marketing and design, and this is termed the fashion marketing concept. That good fashion design only requires sufficient promotion to succeed is a view Figure 1.3 The fashion marketing concept. applicable to a very limited number of businesses - usually those producing expensive garments for an elite market. The alternative view of fashion design as a function of marketing research fails to recognize either that many people do not know what...
Consumer motivation
Motivation is the inner force that drives and energizes consumers towards goals. Motivation incorporates need arousal, causing the drive that leads instrumental behaviour to reduce the drive. Consumer motivation is a complex matter to understand for many reasons. First, motives are inferred, a consumer motive cannot be seen or observed what is noted is behaviour and then an assumption about the underlying behaviour is made. An important distinction should be made between merely describing...