Bell Ringer

What is the total price of a $133.38 item if the sales

tax rate is 6%?

Bell Ringer Answer

$133.38 * 6% = $8.0028$133.38 + $8.00 = $141.38

Agenda

Bell Ringer – (5 minutes)Discuss Learning Objectives / Vocabulary – (5

minutes)Marketing Strategies Lecture – (40 minutes) Introduce activity for next week.

Learning Targets

Describe the 4 components of the marketing mix.

Identify the four types of promotion. Identify the seven functions of marketing.

What is Marketing?

Marketing is the creation and maintenance of satisfying exchange relationships. Creation suggests product development Maintenance indicates that marketing must continue

as long as a business operates Satisfaction implies meeting the needs of both

businesses and customers when exchanging products or services.

Exchange relationships occurs when the parties involved both give and receive something of value.

What is Marketing?

Customer needs should be the primary focus of marketing. To satisfy customers’ needs, you need to perform

3 activities. Identify your customer and the needs of that customer Develop products the customers consider better than

other choices Operate your business profitably

The Marketing Mix

To perform the tasks associated with marketing, marketers rely on a marketing mix.

The marketing mix describes how a business blends the six functions of marketing.

Functions of Marketing Distribution: Determining the best way to get a company’s products or services

to customers is part of the distribution function. Marketing-Information Management: Gathering and using information about

customers to improve business decision making involves marketing-information management.

Pricing: The process of establishing and communicating to customers the value or cost of goods and services.

Product/Service Management: Designing, developing, maintaining, improving, and acquiring products or services for the purpose of meeting customer needs and wants.

Promotion: Using advertising and other forms of communication to distribute information about products, services, images, and ideas to achieve a desired outcome.

Selling: Any direct and personal communication with customers to assess and satisfy their needs and want.

Distribution

Determining the best way to get a company’s products or services to customers is part of the distribution function. Example: Distribution of products may involve

transportation services, warehouse/distribution centers, and retailers.

Distribution technology allows businesses to track and monitor merchandise all the way from the manufacturer to the retail outlet to the customer.

Distribution

Getting the product to the consumer. Getting the raw material for fabric, manufacturing

textiles to making a garment available to a customer.

How and where a product will be distributed, where the customer will purchase the item, and when the product is distributed.

Distribution

The path a product takes from the producer to the consumer.

A product moves from the manufacturer, to the wholesaler, to the retailer, and then to the consumer.

Fashion and Distribution

Soft-Goods Chain1. Textile Segment -> includes fiber, yarn, and

fabric production2. Apparel Segment -> responsible for producing

the finished garments and accessories. The apparel is designed, produced by manufacturers, and sold to retailers.

3. Retail Segment -> includes stores or outlets that sell the products to customers.

Marketing – Information Management

Gathering and using information about customers to improve business decision making involves marketing-information management.

Pricing

The process of establishing and communicating to customers the value or cost of goods and services.

Pricing

Businesses must offer products and services are prices that consumers are willing to pay.

The price of a fashion product depends on the cost of producing the item, the markup, and customer demand.

Product / Service Management

Designing, developing, maintaining, improving, and acquiring products or services for the purpose of meeting customer needs and wants. Spandex is a current textile used in apparel

because it is lightweight, yet extremely strong, and a synthetic fiber.

Product

Product offerings must be constantly evaluated and updated, because what is popular this year may not be popular next year.

Marketers must consider how the product is perceived by consumers.

Involves producing, packaging, and naming a product.

Promotion

Using advertising and other forms of communication to distribute information about products, services, images, and ideas to achieve a desired outcome.

Promotion

Any form of communication that a business or organization uses to inform, persuade, or remind people to buy its product.

Four types of promotion: sales promotion, public relations and publicity, and advertising

Types of Promotion

Sales PromotionFashion retailers use special contests, displayed

merchandise in windows, or special coupons.The purpose is to increase customer traffic in a

store so people will buy products.

Types of Promotion

Public Relations and PublicityPublic Relations Activities that promote the

image and communications a company has with employees, customers, and the public.

Publicity Unpaid mention of a business, its employees, or its merchandise in the media.

Types of Promotion

AdvertisingA paid message that a business sends to the

public about the product.Appear in magazines, newspapers, brochures, television commercials, and outdoor signage.

Promotion Mix at the MallType of Promotion Example

Advertising Announcement signs that are placed at the entrances to the mall.

Sales Promotion The staff working on the fashion show wears t-shirts imprinted with the name of the performer and the new line of clothing.

Publicity The organizers of the event book the music star on a local television morning show.

Public Relations In the evening a prominent TV newscaster mentions the fashion show and comments on the performer’s involvement in charitable organizations.

Selling

Any direct and personal communication with customers to assess and satisfy their needs and want.

Marketing Strategies

Increase the number of customers Increase the average transaction Increase the frequency of repurchase

Financing

It is not one of the six core standards, but it is closely related.

Requires a company to budget for its own marketing activities and to provide customers with assistance in paying for the company’s products or services.

Quick Quiz (40 points)

1. Describe the 4 P’s of Marketing?2. What three marketing strategies are used to

increase retail businesses?3. Describe the 3 activities must a business

perform in order to satisfy customer’s needs?4. List the 4 types of promotion and give an

example of each.

Partner Role Play

Situation: You are to assume the role of assistant manager of a children’s clothing store. The store’s owner has decided to open a new store. The owner wants the new store to build on the success of the existing store but plans to carry a different merchandise line. The new store will carry clothing for young women. The store’s owner wants the new store to have its own identity.

Activity: The store’s owner has asked you to create a few marketing ideas for the new store. Your ideas should consider the four P’s of marketing.

Evaluation: You will be evaluated on how well you meet the following performance indicators:Develop a marketing plan (next page)

What to Include:I. EXECUTIVE SUMMARY

½ page description of the plan II. OBJECTIVES—What the promotional campaign is to accomplish III. SCHEDULE OF EVENTS—Promotional activity(ies) must include the

following: A. Special events (example: fashion shows, demonstrations) B. Advertising (example: paid/co-op advertisement in various types of media) C. Publicity (example: press releases sent to various types of media) D. Other in-store activity(ies) (example: involvement of sales employees, etc.)

IV. STATEMENT OF BENEFITS TO THE RETAIL ESTABLISHMENT V. BIBLIOGRAPHY

What to Include

½ description of your store and your promotion plan. Statement describing your promotional objectives.

(Think 3 things that all businesses must do to make a profit)

Description of your special event, advertising method, publicity event, and any other event you may use.

Statement of benefits. How will each promotion benefit your company.

Bibliography page Copy of your magazine advertisement.