TAM 4046 EXAM I

defining research issues and problems

size of market, competitive structure of new market, attitudes of consumers, levels of brand awareness of new company, product range, price/margin levels, optimum channel strategy

push factors

smartphone, tablets

symbolic value

stores imbue the product with values and identifies

reputation value

stores imply perceived quality of product features

relationship value

stores imply that a firm is a long-term partner that will attend to customer interest

experiential value

stories shape experience of the product

levels of a marketing plan

strategic and tactical

top down

strategic to tactical - used for long-term considerations

hedonic needs

subjective and experimental, look for product to meet need for excitement, self-confidence, or fantasy- even escape the mundane or routine aspects of life

bottom up

tactical to strategic - used short term to make decisions

Marketing

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offers that have value for customers, clients, partners, and society at large

fashion marketing

the application of marketing processes and activities to currently popular designed products - identifying, creating, delivering, and communicating value (beyond functional value, more on experimental, social, and symbolic value)

the self-concept

the beliefs a person holds about his or her own attributes an dhow he or she evaluates the self on these qualities (self image, self esteem, real/ideal self, multiple selves) extended self- possessions

perosonality

refers to a person's unique psychological makeup and how it consistent influences the way a person responds to his or her environment

behavior loyalty

repeat purchases and the amount or share of category volume attributed to the brand - share of category requirements

brand value

reputation relationship experiential symbolic value

attitudinal attachment

resonance requires a strong personal attachment - going beyond a positive attitude - viewing the brand as something special

80/20 rule

return customers generate more profits 80% profits from 20% of clients

marketing metrics

set of measures that helps marketers quantify, compare, and interpret marketing performance

culture

shared patterns of behavior and values by which one group or soviet identifies itself and delineates itself from another

brand culture

shared, taken-for granted brand stores, images and associations influenced by popular culture, the firm, influencers, and customers

key factors in digital consumer decision making

shipping cost discounts/offers speed price

tactical

short term plan

five dimensions of brand personality

sincerity excitement competence sophistication ruggedness

what influences consumer behavior?

personal factors social factors cultural factors

cluster sample

population is divided into subgroups (clusters) and a sample of clusters are collected

measuring market demand

potential market, available market, target market, penetrated market

Customer Relationship Management (CRM)

process of building and maintaining profitable customer relationships by providing superior value and satisfaction

secondary research

process of exploring existing sources of data

perception

products and commercial messages often appeal to our senses, but because of the profusion of these messages we don't notice most of them

stars

products in HIGH growth with HIGH market share (generate more ROI than other product categories) - high participation on a market, high market growth gate (garments that bring profit but needs a large investment in textile material as well as technological process of development)

question marks

products in HIGH growth with LOW market share - problem children - high growth rate and small market participation -- (garments that bring small profit but are promising and cannot be neglected)

licensing

"renting" the brand and IP assets up: faster market penetration, less investment down: exposes the brand to value issues

fashion marketing process

(1) identify and analyze (2) conceive (3) plan (4) place (5) inform (6) evaluate (7) gather

strategic

- analysis of marketing opportunities - target marking decisions - value proposition

distribution management (country of origin)

- becomes part of brand narrative - associated with authenticity, credibility - strong connection with consumers, especially luxury - halo effect - outsourcing - brand managers market connection to country

branding decisions

- choosing brand elements (name, logo, mantra, package) - brand positioning - integrating the brand into marketing supporting marketing program - leveraging secondary associations

fashion marketing challenges

- continually changing nature of fashion - work to address that consumer desire for newness - stay ahead of fast-moving trends - apply creative marketing to capture the attention and interest of often fickle but also savvy customers

user-generated content

- created, posted, and shared onto online plateforms - ensures authenticity -community based, crowd-sourced websites -new way to search for trends/inspiration

brand resonance model

- customers own brand - don't take shortcuts with brands - brands should have a duality - should have richness - provide important focus - customer networks strengthen brand resonance

managing new consumer expectations

- enhanced online customer service - provide digital outlets that are easy to use, creating a strong user experience - maintain transparency with customers - new ways to enable customers to feel valued, get rewarded and given creative input

mass market/fast fashion brands

- focus on following trends/ speed-to-market - bypass past / future; focus on present -fast fashion turn inventory every 2 / 3 weeks

porter's five forces model

- identifies five major forces that continuously impact the fashion industry

successful brands are

- innovative - consistent - competitively postitioned - holds matching positive image in the consumer s mind

American luxury

- lacks history or heritage - uses marketing compensate for the lack - lifestyle brands timing

PEST analysis

- looks at 'big picture' factors that might influence a decision , a market, or a potential new business

brand performance: attributes and benefits:

- primary ingredients and supplementary features - product liability, durability, and serviceability - service effectiveness, efficiency, and empathy - style and design - price

tactical

- product features - promotion - merchandising - pricing - sales channels - service

the luxury brand consumer

- seek creativity and innovation - mix styles and appreciate a variety of brands - self-conscious, individualistic achievers, modern, trendsetters -care about feeling good as well as looking good

brand's role for consumers

- set and fulfil expectations - reduce risk - simplify decision making - take on personal meaning - become part of identity

brand's role for firms

- simplify product handling - organize inventory and accounting - offer legal protection - create brand loyalty - secure competitive advantage

branding

- strategic point of view - central to creating customer value - key tool for creating and maintaining competitive advantage - cultures

the craftsman archetype

- timeless - generation to generation -romantic, soulful - seeks immortality - luxury product should have some handmade part

brand performance: how well the product/service:

-meets customers' more functional needs - rate on objective assessments of quality - satisfies utilitarian, aesthetic and economic customer needs and wants

stages in marketing research (fashion)

1. identify the research issues/problems and define research aims and objectives 2. design the research process to meet objectives 3. locate, analyze and evaluate secondary sources of data 3. refine research objectives and plan primary research 4. collect primary data 5. process qualitative/ quantitate primary data 6. analyse findings 7. draw conclusions and make recommendations (if asked)

four contributors to the "new factor"

1. information era 2. accessibility of the mobile phone 3. influence of others 4. on demand

core marketing concepts

1. needs, wants, demands 2. offerings and brands 3. target markets, positioning, segmentation 4. value and satisfaction 5. marketing channels 6. marketing environment 7. supply chain 8. competition

the decision-making process

1. recognizing the problem 2. seeking info 3. weighing alternatives 4. making a decision / transaction 5. evaluating a decision / post-purchase evaluation

.the buying situation

5 categories 1. the purchase task - extensive, limited, routine/habitual 2. social surroundings- cultural 3. physical surroundings 4. time constraints 5. antecedent states

AIDA

Attention, Interest, Desire, and Action

cash cows

products in LOW growth markets with HIGH market share often mature, well established products - garments that are main sources of profit

Dr. Larry Rosen's 5 C's of Communication

Connect, Content, Context, Congruency, Completion

social factors

reference groups, family, social roles, statuses

luxury segment closely driven by

Heritage Quality Craftsmanship

luxury brand

a brand that consistently delivers a unique emotional value and possesses the capacity of creating a lifestyle experience through - a strong identity - a high level of creativity - closed controlled quality, quantity, and distribution - justified premium price

lifestyle brand

a brand that successfully identifies itself with - a lifestyle - a marketing segment - to the point that its name or image is mentally triggered when the segment is mentioned

market

a group of actual / potential customers with both interest in, ability to buy company's product

consumer

a person who identifies a need or desire, makes a purchase, or disposes of the product

simple random sample

a sample which is drawn from a population where all members are listed, and each has an equal chance of being selected

ethics

a system of moral values, a set of principles that defines right and wrong

demographic

age, gender, family status, occupation, education, and income

the environment

among the most prominent issues of social responsibility facing fashion marketers

reference groups

an actual or imaginary individual or group that significantly influences an individual's evaluations, aspirations, and behavior

fashion

any designed product that is currently popular, that is of the moment and subject to change and that people consider desirable and appropriate at a given time

product

any offering marketers create and present to target markets - tangible = good - service

exclusivity

artisans limited by time or commissioned, create single pieces - makes owner feel special

purchase and usage imagery

associations that tells consumers under what conditions or situations they can or should buy and use a brand

brand resonance (4 categories)

behavioral loyalty, attitudinal attachment, sense of community, active engagement

internal influences (motivation)

bottom up 1. physiological needs (food/water/shelter) 2. safety needs (security, protection) 3. social needs (sense of belonging, love) 4. esteems needs (self-esteem, recognition, status) 5. self-actualization needs (self-development and realization)

sense of community

brand may take on a broader meaning by conveying a sense of community - social phenomenon in which customers feel a kinship or affiliation with others associated with the brand

building a strong brand includes

brand salience, brand performance, brand imagery, brand judgements, brand feelings, brand resonance, brand-building implications

brand history, heritage, and experiences

brands may take on associations to their past - certain noteworthy events in the brand's history

green marketing

business approach that protects the environment throughout the development and marketing of company's products

active engagement

perhaps the strongest affirmation of brand loyalty - willing to invest time, energy, money, other other resources beyond those expended during purchase or consumption

marketing mix

combination of marketing tools that a firm uses to offer customers value and pursue its sales and profitable goals

primary research

conducted directly by marketers - the results - when secondary data is not available to answer a specific research question, a company uses market research to gather data

marketing information system

consist of people, equipment, and procedures to gather, sort, analyze, evaluate and distribute needed, timely, and accurate information to marketing decision makers

Porter's Generic Strategies

cost leadership, differentiation, cost focus, differentiation focus

luxury brands are:

cultural legitimacy, hand-crafted, meaning-based, pleasurable and hedonistic, timeless and modern, non-disposable, core-focused, social signification, not being fashionable, ubiquity is dangerous

fashion marketing's long-term goal

customer loyalty

Perceived value

customer's internal calculation as to whether or not a product is worth its cost, both in money and Ian effort to obtain it - for luxury goods: perceived value> cost

acquisitive

customers make their decision bc they are concerned with bragging rights

inquisitive

customers make their decision because luxury goods are valuable, but they look to authors (fashion magazines) to educate themselves

meditative

customers make their decision because: luxury experiences hav been integrated into their lives and inner beings, which leads to a sense of fulfillment

authoritative

customers make their decisions because of the exclusivity experience and a sense of brand community

brand judgements

customers' personal opinions about and evaluations of a brand

brand quality

defined by specific attributes and benefits of a brand

major forces in the environment

demographic, political-legal, technological, economic, socio-cultural, natural

utilitarian need

emphasize the objective, tangible attributes of products

in order to stay relevant, brands must configure the following into their runway shows

entertainment value runway consumer convenience social media worthy info

brand feelings

experiential and immediate, increasing in level of intensity, private and enduring, increasing in level of gravity

SWOT analysis

explores these factors at a business, product line or product level

human rights

fair wages, and working conditions lead to a healthy environment

key customer markets

global, consumer, business, government

target market

group most likely to purchase product, on whom marketing efforts to be focused

market segment

group of consumers displaying like needs, wants, values, and buying habits

market segmentation

identification of smaller, homogenous groups

profiling fashion consumers

innovator, early adopter, early majority, late majority, laggards

brand credibility

judgements about the company or organization behind the brand defined by: perceived expertise, trustworthiness, likability

LOHAS

lifestyle of health and sustainability

availability

limitation of access to a select few - strategy of maintaining brand value

Three tactics for growth strategies

line extensions, limited editions, and sub-brands

strategy

long term plan - varying competition levels - market position - geographical location - different product / fashion cycles - differing stages of business development

the (art & science) - magic and math- of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value

marketing

perceived quality

measures are inherent in many approaches to brand equity

brand salience

measures various aspects of the awareness of the brand, how easily/often the brand is evoked under various situations or circumstances

ansoff's matrix

model to help fashion managers analyst how to grow sales and the options available

unique problems of fashion marking research

most consumers are fashion followers, sudden appearance and disappearance of trends, seasonal cycles of trade fairs and fashion shows, the press fashion calendar

non-probability sampling

not based on random chance - more cost effective

user imagery

one set of brand imagery is about the type of person or organization that uses the brand. demographics include: gender, age, race, income

stakeholders

people and organizations that have investment or other interest in the business

personal factors

perception learning and memory motivation the self personality

globalization

the demand for various fashion products spreads throughout the globe

culture

the fundamental determination of a person's wants and behaviors acquired through socialization processes with family and other key institutions

brand equity

the monetary value of a brand

Social Responsibility

the principle that everyone is responsible for making the world a better place for all its inhabitants

branding

the process of endowing product services with the power of a brand

quota sample

the require # of sample units with particular characteristics are specified - replicates known demographic characteristics

judgment sample

the selection of units is based on the judgement of the researcher using appropriate criteria, aims and objectives

brand personality

the set of traits people attribute to a product if it was a person

income influences consumer confidence

the state of mind consumers have about their own personal situation, as well as their feelings about their overall economic prospects- helps to determine whether they will purchase goods and services, take on debt, or save the money

consumer behavior

the study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires

marketing research

the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company

stratified random sample

the units in a population are divided into mutually exclusive and collectively exhaustive strata and a random sample is drawn from each stratum

dogs

theses are products with LOW growth or market-share aim to remove any dogs from your product portfolio as they are a drain on resources - garments with low participation on a market that stagnates - stop producing them)

luxury

think in seasons - set trends -signature pieces -element of cultural values

brand personality and values

through consumer experience or marketing activities, brands may take on personality traits or human values - a person - appear to be modern or old-fashioned

convenience sample

units are selected because they are accessible to the researcher

social classes

upper uppers, lower uppers, upper middles, middle, working, upper lowers, lowers

brand imagery

user profiles, purchase and usage situations, personality and values, history, heritage, and user experiences

six important types of brand building feelings

warmth fun excitement security social approval self-respect