CHAPTER 2 - Consumer Demand and Fashion Marketing
Fashion Marketing
 The entire process of ____________________________________, planning,
____________________________________, and distributing the raw materials, apparel, and accessories
 Marketing is the power behind the product development, production, distribution, retailing, and
promotion of
 Fibers
 ____________________________________
 Leathers
 Furs
 ____________________________________
 Apparel and Accessories
Begins and ends with the ____________________________________
Consumer Demand
 With increased ____________________________________, consumers have
 better and cheaper products
 constant ____________________________________
 ____________________________________
 pleasant shopping experiences
 Research what the customer wants to buy, then ____________________________________the product
 ____________________________________analyze lifestyles and buying behaviors
 ____________________________________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
Consumer Groups
 Also known as market segments
Living area
Educational background
Traditionally, society was divided by ____________________________________classes
Demographics are statistical studies of population characteristics based on
____________________________________, age distribution, and income
Grey market
 Pre ____________________________________
 Most neglected by designers, retailers and the media
 ____________________________________-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, ____________________________________, or
department stores
By 2010, 1/3 of the population will be over age ______
 Future marketers will need to cater to this segment.
Baby Boomers
 ____________________________________
 Most influential group since _______________
 Largest segment and primary demographic spending group
 The women spend more on clothing than any other group
 Often ignored by the industry
 ____________________________________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
Generation X
 ____________________________________
 Also known as the Baby Busters
 Now career- and ____________________________________________________________
 Spending reflects orientation
 ____________________________________, home goods, transportation, and education
Generation Y
 Post ______________________
 Also known as the Baby Boomlet
 Children of baby boomers
 ______________________________________________________
 Global, sports, computer, and entertainment orientation
 Ads, TV, _____________________________________, Internet, and magazines influence buying decisions
 __________________________________ 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
Ethnic Diversity
 The Immigration and Naturalization Service projects that legal immigration exceeds
____________________________________per year
Black, Hispanic, Asian, and Native American segments will grow much faster than the white majority
 Look for different things in purchases
 Cultural perceptions regarding ________________________________, color, pattern, fabrics, fit,
quality, and ____________________________________
Psychographic or Lifestyle Trends
 ____________________________________is the use of psychological,
____________________________________, and anthropological factors to construct market segments
 Manufacturers and retailers turn to psychographics to further segment and analyze consumer groups and
their fashion preferences
Independent Women
 More than _________% of females age 20-60 work
 _________ million women live alone or are single head of households
 Shop less often, favor convenient shopping
 Use catalogs, ____________________________________, and superstores
Larger sizes
 Majority of population is considered large size
 ______% of Americans are overweight
 This affects
 _____________________________________________________
 Must change sizing and construction of garments
Retail stores
 Devote more square footage of the store to large-size apparel
Other Psychographic Trends
 _______________________________________________
 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
 _____________________________________________________
People stay in due to fear of terrorism, war, and crime, shopping less or by catalog or Internet
 Staying relaxed and casual dressing at home/work or activewear
Increase at-home use of computers
 _______________________________________________________
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
 Busy schedules = other ways to shop
Target Marketing
 ____________________________________is the group of consumers you want to reach
 ___________________________________________________
 small population group of unserved or underserved people who have a need for a product
Database Marketing
 Gathered to improve ____________________________________
 Collect and analyze data
 Unknowingly we give merchants data
Shopping habits
Color preferences
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 ____________________________________and sales potential
 Consumer profiles are used to
 ____________________________________
 Find new customers
 Establish target markets
Find/create new products
Keep focused on their customers
Consumer Income
 _______________________________________ income
 Gross amount of income from all sources, such as wages and salaries, interest, and dividends
 _______________________________________ income
 Personal income – taxes. This amount determines a person’s purchasing power
 _______________________________________ income
 Income left over after food, lodging, and other needs have been paid for
 Money available to spend or save at will
Economic measurements
 Purchasing power
 Is the amount of goods and services that income can by
 Related to the economic situation
 Includes
 ____________________________________
 Corporate Ownership
 ____________________________________
 Inflation
 ____________________________________
 International Currency
Economic Measurements
 More retailers are offering their own credit cards for their databases
 ____________________________________easy credit available
 Increase in ____________________________________
 ____________________________________has lead to manufacturer and retailer bankruptcies
Corporate Ownership
 Most companies have grown into corporations or purchased by other corporations
 ____________________________________and acquisitions result in giant “corporate groups”’
 EX: Liz Claiborne
 Corporations sell ____________________________________to gain access to funding
Labor Costs
 As people receive higher ____________________________________and live better the cost of making
products increases
 Rising ____________________________________, we now must search for cheaper sources of labor
 Asia, Mexico, the Caribbean Basin, etc.
 The US experienced inflation during the __________
 People earn more money each year
 Higher ____________________________________
 Higher ____________________________________
 Result in little or no increase in purchasing power
 ____________________________________
 A recession is a cycle beginning with a decrease in spending
 Forced to cut back production
 Results in ____________________________________
 Drop in ____________________________________________________________(GNP)
 Furthers the cycle
International Currency
 _____________________________________________________
 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
Global Trade Influences on Marketing
 ___________________________________________
 Difference in value between a country’s exports and imports
 Tariffs
 Customs charges imposed on imports in an attempt to protect domestic industry
 _____________________________
 Means of regulating imports and exports
 Imports
 Goods that are brought in from a foreign country to sell here
 _________________________
 NAFTA (North American Free Trade Agreement)
 In _____________________, NAFTA created a free market (devoid of import duties)
 560 million people in ______________________, the US, and Mexico
 Promotes economic growth through the expansion of trade and investment opportunities within the free
trade area
 _______________________________ American Free Trade Agreement (CAFTA) has been enacted
 The US also has negotiated trade agreements with
 Australia, Chile, __________________________________, Jordan, Morocco, Singapore, and SubSaharan ___________________________
 Working on a Free Trade Agreement of the Americas (FTAA)
 Encompasses ________ Western Hemisphere nations as well as several other countries
Impact of Technology
Business Communication
 Business communication
 ____________________________________
 Intranet: E-Mail on a closed Intranet network system to share information internally among
 ____________________________________
 Video (videoconferencing)
 Fax
Personal Communication
 Television
 ____________________________________
 Web sites
 ____________________________________
 Research
Information Systems
 Developed based on a companies needs
 Product Development
 Designers rely on ____________________________________and sales data to track trends
 Product Data Management (PDA) and Product
____________________________________Management (PLM) coordinate each step of the design
 In production, goods are given ___________________________________________________(UPC)
that identify style, color, size, price, and fabrication
Electronic Data Interchange
 In attempt to reduce waiting time in ordering and distribution, textile producers, and apparel
 Automatic ____________________________________
 Allows manufacturers to automatically ship goods to stores when inventory levels are low
 _____________________________________________________ (VCI)
 International standards for sharing information among retailers, manufacturers, and suppliers
 Covers all aspects of the supply chain
The Marketing Chain
 The flow of product from ____________________________________to consumer
 Traditionally companies are separate and independent
 ____________________________
 Traditional Marketing Chain
 ____________________________________
 Full package manufacturing
 __________________________________________________________ Alliances
Vertical Integration
 Many companies are combining fabric production and apparel manufacturing
 Manufacturing and retailing
 A vertical company produces fabrics, __________________________________________________, and
sells the finished product
 Cutting out distribution costs increases profits and keeps prices down to the consumer
The Marketing Chain
 ________________________________________________ Manufacturing
 Manufacturer-Retailer Alliances
 Forming informal partnerships to integrate the marketing chain
 Work on every step of the process together
 Must have complete trust in each other