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
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Fibers
Fabrics
Leathers
Furs
Trimmings
Apparel and Accessories
Begins and ends with the customer
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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
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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 segments
 Age
 Lifestyle
 Living area
 Educational background
 Ethnic background
 Traditionally, society was divided by income
classes
 Demographics are statistical studies of
population characteristics based on
 Birthrate, age distribution, and income
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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
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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
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 1965-1979
 Also
known as the Baby Busters
 Now career- and family-oriented
 Spending reflects orientation
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Housing, home goods, transportation, and
education
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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
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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 year
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Black, Hispanic, Asian, and Native American
segments will grow much faster than the white
majority
 Look
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for different things in purchases
Cultural 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
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Manufacturers
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Must change sizing and construction of garments
Retail stores
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Devote more square footage of the store to large-size
apparel
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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
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Comfort
 Staying relaxed and casual dressing at home/work or
activewear
Increase at-home use of computers
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Working at home
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Expected to increase
Value of time
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Online shopping
Willing to trade money for free time leads to the appeal of shopping at
home/Internet
Stress
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Busy schedules = other ways to shop
 Target
Market is the group of consumers you
want to reach
 Market niche
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small population group of unserved or
underserved people who have a need for a
product
 Gathered
to improve offerings
 Collect and analyze data
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Unknowingly we give merchants data
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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
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Visual representation of their market
 Helps
management to understand traffic flow
and sales potential
 Consumer profiles are used to
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Learn about customers
Find new customers
Establish target markets
Find/create new products
New ways to advertise
Keep focused on their customers
 Personal
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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
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income
Income left over after food, lodging, and other
needs have been paid for
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Money available to spend or save at will
 Purchasing
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power
Is the amount of goods and services that income
can by
Related to the economic situation
 Includes
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Credit
Corporate Ownership
Labor Costs
Inflation
Recession
International Currency
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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
Credit
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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
Corporate Ownership
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
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Asia, Mexico, the
Caribbean Basin, etc.
Labor Costs
The US experienced
inflation during the
1980s
 People earn more
money each year
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Higher prices
Higher taxes
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Result in little or no
increase in purchasing
power
Inflation
2002-2003
 A recession is a cycle
beginning with a
decrease in spending
 Forced to cut back
production
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Results in
unemployment
Drop in gross national
product (GNP)
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Strong dollar
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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)
Furthers the cycle
Recession
International Currency
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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
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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
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Australia, Chile, Israel, Jordan, Morocco, Singapore, and SubSaharan Africa
Working on a Free Trade Agreement of the Americas (FTAA)
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Encompasses 34 Western Hemisphere nations as well as several
other countries
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Business
communication
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Computers
Intranet: E-Mail on a
closed Intranet network
system to share
information internally
among departments
Internet
Video
(videoconferencing)
Fax
Business Communication
Television
 Telephone
 Web sites
 E-Commerce
 Research
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Personal Communication
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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 Replenishment
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Allows manufacturers to automatically ship goods
to stores when inventory levels are low
 Value
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Chain Initiative (VCI)
International standards for sharing information
among retailers, manufacturers, and suppliers
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Covers all aspects of the supply chain
 The
flow of product from concept to
consumer
 Traditionally companies are separate and
independent
 Trends
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Traditional Marketing Chain
Vertical integration
Full package manufacturing
Manufacturer-retailer appliances
Fibers
•Product Development> Production> Sales & Distribution
Yarns
•Product Development> Production> Sales & Distribution
Fabrics
•Product Development>Weaving & Knitting>Sales & Distribution
Apparel & Accessories
•Product Development>Production> Sales & Distribution
Retailers
•Merchandising and Sales
Consumers
 Many
companies are combining fabric
production and apparel manufacturing
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Manufacturing and retailing
vertical company produces fabrics,
manufactures clothing, and sells the finished
product
 Cutting out distribution costs increases
profits and keeps prices down to the
consumer
 Full
Package Manufacturing
 Manufacturer-Retailer Alliances
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Forming informal partnerships to integrate the
marketing chain
Work on every step of the process together
Must have complete trust in each other