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