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 Fibers Fabrics Leathers Furs Trimmings Apparel and Accessories

Begins and ends with the customer

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 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 segmentsAgeLifestyleLiving areaEducational backgroundEthnic background

Traditionally, society was divided by income classes

Demographics are statistical studies of population characteristics based onBirthrate, age distribution, and income

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 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

1965-1979 Also known as the Baby Busters Now career- and family-oriented Spending reflects orientation

Housing, home goods, transportation, and education

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

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 yearBlack, Hispanic, Asian, and Native American

segments will grow much faster than the white majority

Look for different things in purchasesCultural 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

Manufacturers Must change sizing and construction of garments

Retail stores Devote more square footage of the store to

large-size apparel

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

Comfort Staying relaxed and casual dressing at home/work

or activewear Increase at-home use of computers

Online shopping

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

Stress Busy schedules = other ways to shop

Target Market is the group of consumers you want to reach

Market niche small population group of unserved or

underserved people who have a need for a product

Gathered to improve offerings Collect and analyze data

Unknowingly we give merchants data 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 Visual representation of their market

Helps management to understand traffic flow and sales potential

Consumer profiles are used to Learn about customers Find new customers Establish target markets Find/create new products New ways to advertise Keep focused on their customers

Personal 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 income Income left over after food, lodging, and other

needs have been paid for Money available to spend or save at will

Purchasing power Is the amount of goods and services that

income can byRelated to the economic situation

IncludesCreditCorporate OwnershipLabor Costs InflationRecession International Currency

Credit Corporate Ownership

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

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

Labor Costs Inflation

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 Asia, Mexico, the

Caribbean Basin, etc.

The US experienced inflation during the 1980s

People earn more money each year Higher prices Higher taxes

Result in little or no increase in purchasing power

Recession International Currency

2002-2003 A recession is a

cycle beginning with a decrease in spending

Forced to cut back production Results in

unemployment Drop in gross national

product (GNP) Furthers the cycle

Strong dollar 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)

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

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 Australia, Chile, Israel, Jordan, Morocco, Singapore, and

Sub-Saharan Africa

Working on a Free Trade Agreement of the Americas (FTAA) Encompasses 34 Western Hemisphere nations as well as

several other countries

Business Communication Personal Communication

Business communication Computers Intranet: E-Mail on a

closed Intranet network system to share information internally among departments

Internet Video

(videoconferencing) Fax

Television Telephone Web sites E-Commerce Research

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 ReplenishmentAllows manufacturers to automatically ship

goods to stores when inventory levels are low

Value Chain Initiative (VCI) International standards for sharing

information among retailers, manufacturers, and suppliers Covers all aspects of the supply chain

The flow of product from concept to consumer

Traditionally companies are separate and independent

TrendsTraditional Marketing ChainVertical integrationFull package manufacturingManufacturer-retailer appliances

Many companies are combining fabric production and apparel manufacturing Manufacturing and retailing

A 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

Forming informal partnerships to integrate the marketing chain

Work on every step of the process togetherMust have complete trust in each other