Marketing Fashion A Global Perspective

Marketing Fashion:
A Global Perspective
00_INT_Rath_FM_FNL.indd 1 4/16/12 6:54 PM

Marketing Fashion:
A Global Perspective
Patricia Mink Rath

Marketing Education Consultant
Richard Petrizzi
Illinois Institute of Art
Penny Gill
PWG Communications Inc.
Fairc hil d Bo o ks
N e w Yo r k

Executive Director & General Manager: Michael Schluter Copyright Bloomsbury Publishing Inc. 2012
Executive Editor: Olga T. Kontzias
Assistant Acquisitions Editor: Amanda Breccia All rights reserved. No part of this book covered by the copyright
Development Editor: Rob Phelps hereon may be reproduced or used in any form or by any means
Assistant Art Director: Sarah Silberg graphic, electronic, or mechanical, including photocopying,
Production Director: Ginger Hillman recording, taping, or information storage and retrieval systems
Associate Production Editor: Jessica Katz without written permission of the publisher.
Ancillaries Editor: Amy Butler
Associate Director of Sales: Melanie Sankel Library of Congress Catalog Card Number: 2011940997
Copyeditor: Joanne Slike
Cover Design: Erin Fitzsimmons 978-1-60901-078-2
Text Design: Alicia Freile, Tango Media GST R 133004424
Page Layout: Alicia Freile, Tango Media Printed in The United States of America

Dedication
For Phil, Eric, Kiyomi, Dana, Stefani, and Justin

Contents
Preface and Acknowledgments xvii
Part I: Defining Fashion Marketing and How It Works xxii

Chapter 1: Developing and Maintaining Profitable Customer Relationships 1
Chapter 2: Participating in the Global Fashion Marketplace 33
Chapter 3: Understanding Fashion Consumer and Business Buyer Behavior 65
Part II: Building a Fashion Marketing Strategy 97

Chapter 4: Creating a Company Marketing Strategy 101
Chapter 5: Obtaining and Using Fashion Marketing Information 131
Chapter 6: Creating the Right Relationships with Fashion Customers 163
Part III: Focusing Marketing Mix Elements on the Fashion Consumer 195
Chapter 7: Branding Strategies for Fashion Goods and Services 197
Chapter 8: Developing New Fashion Products and Monitoring Their Life Cycles 233
Chapter 9: Pricing: Identifying and Promoting Customer Value 263
Chapter 10: Fashion Marketing Channels and Supply Chain Management 303
Chapter 11: Fashion Wholesaling and Retailing 341
Part IV: Communicating Fashions Value through Promotion 372

Chapter 12: Promoting Fashion Goods and Services 375
Chapter 13: Promoting Fashion through Personal Selling and Direct Marketing 399
Chapter 14: Fashion Advertising, Sales Promotion, and Public Relations 427
Appendix A: Sample Marketing Plan 459

Glossary 462
Bibliography 480
Index 482
vii

Extended Contents
Part I: Social Media and Mobile

Defining Fashion Marketing Communications 21
and How It Works xxii Marketers Insight: Turning Social
Networking into Customer Loyalty 23
Chapter 1: Developing and Maintaining Ethics and Social Responsibility 24
Profitable Customer Relationships 1 Summary 27
What Do I Need to Know about Case Study 1.1: Macys New Marketing
Developing and Maintaining Strategy Makes Customers the Focus 28
Profitable Customer Relationships? 1 Key Terms 29
Fashion Marketing in Focus: Review Questions 29
A World of Fashion and Marketing 2 Discussion Activities and Projects 29
What Are Marketing and Your Marketing Plan 30
Fashion Marketing? 3 References 31
Marketing Defined 3
Fashion Marketing Defined 5 Chapter 2: Participating in
Fashion Marketers Long-term Goal: the Global Fashion Marketplace 33
Customer Loyalty 7 What Do I Need to Know about
Identifying Customers 8 the Global Fashion Marketplace? 33
Marketers Insight: Marketing Fashion Marketing in Focus: The Global
Beauty Products to Chinese Women 9 Nature of Todays Marketplace 34
Creating Fashion Products 10 The Fashion Marketing Environment 36
Building Customer Relationships 12 The Microenvironment 37
Marketers Insight: Zappos The Company 37
Makes Customer Service an Obsession 14 Suppliers and Intermediaries 38
Developing a Fashion Marketing Strategy 15 Customers 39
Choosing a Marketing Point of View 16 Competitors 40
Creating a Marketing Mix 18 Marketers Insight:
Fashion Marketing in the Max AzriaGlobal Fashion Marketer 41
Twenty-First Century 21 Publics 42
Globalization 21 The Macroenviroment 43
viii

Social Forces 43 Focusing the Marketing Mix on
Marketers Insight: the Customer 68
LOral Speaks to Hispanics 47 How Much Does the Customer Care?
Technological Forces 49 The Buyers Level of Involvement 72
Marketers Insight: Adidas Connects Implications for Fashion Marketers 74
with World of Consumers 51 The Buyers Decision-Making Process 75
Economic Forces 52 Marketers Insight: What Do Purchases
Political and Legal Forces 53 Say about Usand Who Cares? 77
Natural Forces 56 The Buying Situation 78
Ethics and Social Responsibility 56 Cultural Influences 78
Global Fashion Marketing 58 Subcultures 79
Marketers Insight: Steps in Social Class 81
Deciding to Market Globally 59 Social Influences 83
Summary 61 Family 83
Case Study 2.1: Nike Shifts Friends and Reference Groups 84
with Its Environment 62 Personal Influences 85
Key Terms 62 Perception 85
Review Questions 62 Learning 85
Discussion Activities and Projects 62 Motivation 86
Developing Your Marketing Plan 63 Attitude 86
References 63 Personality and Self-Concept 87
Business Fashion Buyer Behavior 88
Chapter 3: Understanding Fashion Kinds of Business Markets 88
Consumer and Business Buyer Behavior 65 Marketers Insight: What Do Foreign
What Do I Need to Know about Fashion Consumers Like to Buy
Consumer and Business Buyer Behavior? 65 When Visiting the United States? 89
Fashion Marketing in Focus: The Nature of Business Buying 90
Why Customers Buy 66 Buying Methods 91
What Is Consumer Behavior and Types of Buying 91
What Do Marketers Do about It? 67 Ethics and Social Responsibility 92
Extended Contents ix

Summary 93 Marketers Insight:
Case Study 3.1: Zeroing in on LOral Plans Big Growth Strategy 118
Consumer Needs at IKEA 94 Creating Value-Added Solutions 119
Key Terms 95 Identifying SMART Objectives 120
Review Questions 95 Positioning the Product 121
Discussion Activities and Projects 95 Capturing and Measuring Results 124
Developing Your Marketing Plan 96 Summary 126
References 00 Case Study 4.1: World Imports 127
Key Terms 128
Part II: Review Questions 128
Building a Fashion Discussion Activities and Projects 128
Marketing Strategy 97 Developing Your Marketing Plan 129
References 129
Chapter 4: Creating a Company
Marketing Strategy 101 Chapter 5: Obtaining and Using
What Do I Need to Know about Creating Fashion Marketing Information 131
a Company Marketing Strategy? 101 What Do I Need to Know about
Fashion Marketing in Focus: Fashion Marketing Information? 131
Knowing Your Customer 102 Fashion Marketing in Focus:
Planning for Success 102 Where Does Fashion Come From? 132
Types of Marketing Plans 104 Fashion Marketers Need for Information 132
The Planning Process 104 Where Marketers Obtain Information 134
Specifying the Companys Mission 105 Marketers Insight: Web Coupons:
Marketers Insight: LG Markets We Know Who You Are 136
with Lifestyle Approach 106 Marketers Insight: Trend Forecasting
Marketing Analyses 107 at Your Fingertips 139
Types of Analysis 107 How Marketers Manage Information 140
Developing a Marketing Strategy 110 The Marketing Research Process 140
Marketers Insight: Defining Research Objectives 142
Technology Takes Analysis to Creating a Research Plan 144
Whole New Levels 111 Choosing the Research Approach 149
What a Marketing Strategy Marketers Insight: The Limited Gains
Accomplishes 112 Insight from Traffic-Counting System 154
Types of Strategies 113 Applying Research Results to
Strategy for Growth 117 the Marketing Plan 154
Segmenting and Targeting Markets 117 Analyzing Research Data 154
x Extended Contents

Applying the Results 156 Completing the Positioning Process 177
Summary 157 Marketers Insight: How to Create
Case Study 5.1: Web-Tracking a Perceptual Map 178
Research Lets Marketers Listen Managing Relationships 180
to Consumers 158 Marketers Insight: Martha Stewart
Key Terms 159 Repositions Her Brand 181
Review Questions 159 Customer Relationship Management
Discussion Activities and Projects 159 (CRM) 181
Developing Your Marketing Plan 160 Customer Experience Management
References 160 (CEM) 183
Marketers Insight: Never Underestimate
Chapter 6: Creating the Right the Value of a Good CRM System 184
Relationships with Fashion Customers 163 Measurement Tools 185
What Do I Need to Know about Partner Relationship Management 187
Creating the Right Relationships Ethics and Globalization in Customer
with Fashion Customers? 163 Relationships 188
Fashion Marketing in Focus: Social Responsibility 189
Selecting the Right Customers 164 Globalizing Ideas 190
Why Selecting Customers Is Vital 164 Summary 191
What Is Market Segmentation? 166 Case Study 6.1: Stefani B 192
Creating Market Segmentation Key Terms 193
Categories 166 Review Questions 193
Marketers Insight: Customer Diversity 166 Discussion Activities and Projects 193
Consumer Markets 167 Developing Your Marketing Plan 194
Business Markets 168 References 194
Global Markets 169
Targeting Market Segments 171 Part III:
Essential Segmentation Factors 171 Focusing Marketing Mix
Segmentation Profile 171 Elements on the Fashion
Identifying a Targeting Strategy 173 Consumer 195
Concentrated 173
Customized 173 Chapter 7: Branding Strategies
Differentiated 173 for Fashion Goods and Services 199
Undifferentiated 174 What Do I Need to Know about Branding
Positioning the Product 175 for Fashion Goods and Services? 199
Arranging Information 176 Fashion Marketing in Focus:
Extended Contents xi

Speaking of Brands 200 Key Terms 230
Why Marketers Brand Products 200 Review Questions 230
What Makes Up a Product? 202 Discussion Activities and Projects 230
Types of Consumer Products 203 Developing Your Marketing Plan 231
Product Decisions 206 References 231
Decisions about Individual Products 206
Decisions Concerning Product Lines 207 Chapter 8: Developing New Fashion Products
Decisions Concerning Product Mix 207 and Monitoring Their Life Cycles 233
The Importance and Value of Branding 208 What Do I Need to Know about
What Is a Brand? 208 Developing New Fashion Products
Fashion Brands and the Marketing Mix 208 and Monitoring Their Life Cycles? 233
Marketers Insight: Brand Fashion Marketing in Focus:
Personalities: Lancme and Julia Fashion Products 234
RobertsTwo Stars Shine More Light 210 What the Customer Gets 236
The Advantages of Branding for Marketers Insight: Product Essence
the Consumer and Marketer 212 and an Engagement Ring 236
Creating Strong Brands 213 Product Essence 236
Brand Positioning 213 Real Product 237
Marketers Insight The Rise Expanded Benefits 238
and Rebirth of Liz Claiborne, Inc. 214 Product Fundamentals 239
Selecting a Brand Name 215 Types of Products 239
Types of Brand Choices 216 Usage Time 240
Global Fashion Brands 219 Marketers Insight: Personal vs.
Marketers Insight: Licensing Takes Business Pricing 240
Lacroix Brand Global 220 Product Categories 241
Packaging and Labeling 221 New Product Ideas 242
Brand Packaging 221 New Product Variations 242
The Meaning of Labels 222 Marketers Insight: New Products
Fashion Services 223 Aim for Market Appeal 243
Characteristics of Services 224 Segmenting Fashion Products 244
Strategies for Marketing Services 225 Influences 244
Fashion Brands, Ethics, and Social New Product Development 245
Responsibility 226 Marketers Insight: Couture Frenzy 246
Summary 228 Major Stages of Product Development 248
Case Study 7.1: Football Players Build Product Life Cycle 251
Their Personal Brand 229 Rate of Adoption 253
xii Extended Contents

Ethics and Social Responsibility 254 Cost-Plus Pricing 279
Globalizing Ideas 256 Markup Pricing 279
Summary 258 Competition-Based Pricing 280
Case Study 8.1: New Products Other Factors Determining Price 280
for a New Business 259 Effect of the Marketing Mix on Pricing 281
Key Terms 260 Effect of External Factors on Pricing 286
Review Questions 260 Marketers Insight: Price Views of
Discussion Activities and Projects 260 the Millennial Generation Z 289
Developing Your Marketing Plan 261 Pricing Decisions 290
References 261 Demand-Based Pricing Decisions 290
Marketers Insight: Price at the High
Chapter 9: Pricing: Identifying Fashion Level 293
and Promoting Customer Value 263 Cost-Based Pricing Decisions 295
What Do I Need to Know about Marketers Insight: Steps in the
Pricing to Identify and Pricing Process 296
Promote Customer Value? 263 Steps in Setting Prices 296
Fashion Marketing in Focus: Law, Ethics, and Social Responsibility
Getting What You Pay For 264 in Pricing 297
What Is Price and Why Is It Important Global Pricing 298
to Fashion? 265 Summary 299
What Is Price? 266 Case Study 9.1:
Why Price Is Important to Forever 21Really Fast Fashion 300
Fashion Markets 267 Key Terms 301
Marketers Insight: Comparison of Price Review Questions 301
Levels for Womens Apparel 268 Discussion Activities and Projects 301
Compete on Price or Some Other Way? 269 Developing Your Marketing Plan 302
Pricing Objectives 271 References 302
Profit-Oriented Pricing Objectives 271
Sales-Oriented Pricing Objectives 272 Chapter 10: Fashion Marketing Channels
Status Quo Pricing 273 and Supply Chain Management 303
How Demand and Supply Determine Price 273 What Do I Need to Know about
What Is Demand? 273 Fashion Marketing Channels and
Supply and Its Effect on Supply Chain Management? 303
Fashion Pricing 275 Fashion Marketing in Focus:
Cost-Based Pricing 276 Sean John Rethinks Its
Break-Even Pricing 276 Marketing Channels 304
Extended Contents xiii

What Are Marketing Channels and Ethics and Law in
What Do They Do? 305 Channel Management 332
The Purpose of Marketing Channels 306 Marketers Insight: Where Are the
Marketing Channels Influence Customers for Unsold Goods? 333
the Marketing Mix 306 Social Responsibility 334
How Channels Serve the Market 308 Summary 335
Types of Marketing Channels 308 Case Study 10.1: Coach Expands Its
How Marketing Channels Are Organized 311 Marketing Channels 336
Marketing Consumer Goods 311 Key Terms 337
Marketing Channels for Business Review Questions 337
Goods and Services 314 Discussion Activities and Projects 337
Conventional Marketing Channels 314 Developing Your Marketing Plan 338
Vertical Marketing Channel Systems 315 References 338
Multi-Channel Marketing 317
Channel Decisions 319 Chapter 11: Fashion Wholesaling and
Analyzing Customer Demand 319 Retailing (from a Marketing Viewpoint) 341
Establishing Channel Goals 320 What Do I Need to Know about Fashion
Determining Distribution Intensity 321 Wholesaling and Retailing? 341
Dealing with Competition 322 Fashion Marketing in Focus: Getting
Channel Management 323 Fashion to Fashion Consumers 342
Selecting Channel Members 323 What Is Wholesaling? 343
Motivating Channel Members 323 Wholesalers Role in
Evaluating Channel Members 323 Fashion Marketing 344
Marketing Logistics and Types of Wholesalers 346
Supply Chain Management 324 Markets 349
The Role of Marketing Logistics Marketers Insight:
in the Supply Chain 325 Doba Clicks with Online
Marketing Logistics Activities 326 Wholesaling Business 350
Marketers Insight: Transportation: Market Weeks and Trade Shows 351
Defeating the Deadhead Downer 327 Fashion Retailing Today 351
Global Marketing Channels 330 Classifying Retail Stores 352
Some Examples of Global Channels 330 Marketers Insight:
How Global Fashion Channels Mandee Stores Get Bold Makeover 353
and Supply Chains Serve Consumers 331 Multi-Channel Retailing 359
Ethics, Law, and Social Responsibility Marketers Insight: Nordstrom
in Marketing Channels 332 Links Real and Virtual Stores 360
xiv Extended Contents

Marketers Insight: Some Ways for Elements of the Promotional Mix 382
Retailers to Optimize Marketing Advertising 383
through Digital Channels 365 Public Relations 383
Global Fashion Retailing 365 Sales Promotion 384
Marketers Insight: Some Ways Personal Selling 384
for Retailers to Optimise Marketing Direct Marketing 384
through Digital Channels 365 Creating a Promotion Mix 385
Social Responsibility in Factors That Affect the
Fashion Retailing 366 Promotion Mix 385
Summary 367 Marketers Insight: Jimmy Choo
Case Study 11.1: Retailers Reap Urges Fans to ChatchaChoo 389
Rewards with Exclusive Lines 368 Integrated Marketing Communications 390
Key Terms 369 Ethical Issues in Fashion Promotion 391
Review Questions 369 Promoting Fashion on a Global Scale 392
Discussion Activities and Projects 369 Summary 394
Developing Your Marketing Plan 370 Case Study 12.1: Fango Pushes the
References 370 Envelope in Promotional Campaign 395
Key Terms 396
Part IV: Review Questions 396
Communicating Fashions Discussion Activities and Projects 396
Value through Promotion 372 Developing Your Marketing Plan 397
References 397
Chapter 12: Promoting Fashion Goods
and Services 375 Chapter 13: Promoting Fashion through
What Do I Need to Know about Promoting Personal Selling and Direct Marketing 399
Fashion Goods and Services? 375 What Do I Need to Know about Personal
Fashion Marketing in Focus: Selling and Direct Marketing? 399
Promotion Is Everywhere 376 Fashion Marketing in Focus:
The Role of Promotion 377 Personalizing the Sale 400
Goals of Promotion 379 The Personal Selling Process 401
Marketers Insight: The Nature of Selling 403
Key Uses of Promotion 380 Types of Selling 403
Uses of Promotion 381 The Role of Personal Selling 404
Marketers Insight: Key Steps in the Selling Process 405
Prom Reps Program Promotes Marketers Insight: Personal Selling
Mens Wearhouse 382 in the Age of E-Tailing 410
Extended Contents xv

Reading Customer Signals 411 Marketers Insight: Edun Focuses
Direct Marketing 411 Ad Message on Men 435
Benefits to Fashion Consumers Determining the Advertising Budget 435
and Marketers 413 Planning the Campaign Strategy 437
Marketers Insight: Targeting Catalog Marketers Insight: Celebrity Power:
Customers by Zip Code 414 Not What It Used To Be 438
Types of Direct Marketing 415 Implementing the Advertising
Direct Marketing to Global Campaign 442
Fashion Consumers 418 Evaluating the Campaigns
Marketers Insight: Direct Marketing Effectiveness 443
Takes Future Twist 419 Sales Promotion 444
Ethical Issues in Personal Selling Public Relations 445
and Direct Marketing 420 Media Contact 446
Summary 422 Marketers Insight: Uniqlos Tweet
Case Study 13.1: Bon-Ton Finds Sales Promotion 447
Key to Selling Beauty 423 Annual Reports 448
Key Terms 424 Events and Product Placement 448
Review Questions 424 Blurring the Lines between
Discussion Activities and Projects 424 Promotional Mix Elements 450
Developing Your Marketing Plan 425 Ethical Issues in Fashion Advertising,
References 425 Sales Promotion, and Public Relations 450
Marketers Insight: Social Media Sparks
Chapter 14: Fashion Advertising, a Growing Role for Public Relations 451
Sales Promotion, and Summary 453
Public Relations 427 Case Study 14.1: Old Spice Campaign
What Do I Need to Know about Fashion Makes a Viral Splash 454
Advertising, Sales Promotion, Key Terms 455
and Public Relations? 427 Review Questions 455
Fashion Marketing in Focus: Discussion Activities and Projects 455
Fashion and Marketing in the World 428 Developing Your Marketing Plan 456
The Nature of Advertising 431 References 456
Advertising Objectives 431
Types of Advertising 432 Appendix A: Sample Marketing Plan 459
Creating an Advertising Campaign 434 Glossary 462
Identifying the Target Market 434 Bibliography 480
Defining Campaign Objectives 434 Index 482
xvi Extended Contents

Preface
T
he vibrant field of fashion marketing contrib- find their customers and determine their fashion
utes frequently and heavily to societys swiftly needs, and how they then center their strategies on
changing moods. Marketers of fashion navi- reaching their twin goals of maintaining consumer
gate customer whims and continually develop satisfaction and corporate profitability. The over-
new offerings as they strive to persuade cus- arching themes of globalization and ethics as they
tomers to take part in their latest innovations. In apply to all aspects of fashion marketing are dis-
accomplishing its objective, fashion marketing pro- cussed in every chapter.
vides a range of opportunities and challenges for Marketing Fashion: A Global Perspective is orga-
dedicated students. Careers in product design and nized in four parts to guide the reader in a logical way
development, research and trend forecasting, retail through the processes and practices of marketing.
buying and merchandising, sales, advertising, and
promotion, among other areas of expertise, all make Part I: Defining Fashion
up the field of fashion marketinga field replete Marketing and How It Works
with many creative and rewarding occupations. The first chapter opens with an overview of mar-
The fashion marketing process, while following keting and fashion marketing, explains the
traditional marketing in theory, has many unique marketers long-term goals and the basic elements
applications. Up until now, no textbook firmly of the marketing process, and outlines the direction
anchored in marketing theory and practice has fashion marketing is moving in the global economy.
existed to specifically cover the fashion universe. Chapter 2 examines the various internal and
Marketing Fashion: A Global Perspective accurately external elements that impact fashion marketers
and engagingly presents theories and best prac- today, and describes how those entities and forces
tices current among fashion marketing businesses influence the way fashion businesses operate in the
today. global marketplace. The third chapter explores the
topic of consumer behavior from the fashion mar-
Organization of the Text keters point of view. It explains how a customers
The premise of this book is based on a definition of level of involvement with a product or buying situ-
fashion goods that includes all currently popular ation influences the purchase process, and looks
designed products from apparel to automobiles and at the internal and external influences that have
from cosmetics to kitchen equipment. Further uni- an effect on both consumer and business buyer
fying elements include a focus on how marketers behavior.
xvii

Part II: Building a Fashion goods. Channel organization, distribution inten-
Marketing Strategy sity, and international marketing strategies are all
The fourth chapter describes the purpose of the mar- explored. Fashion wholesaling and retailing are the
keting planning process and the mission statement. topics of Chapter 11. Included is description of the
It then explains how to formulate a competitive anal- marketing practices of fashion wholesalers, organi-
ysis, develop a marketing strategy and a marketing zational characteristics of global fashion retailers,
mix, and measure the results. Chapter 5 explores and activities of Internet fashion businesses.
fashion organizations need for marketing informa-
tion in order to create their strategies. This chapter Part IV: Communicating
details the available research sources, the marketing Fashions Value
research process, and the uses of research findings. through Promotion
Creating the right relationship with fashion cus- Fashion promotion objectives, making customers
tomers is the topic of Chapter 6, which describes aware and persuading them to buy, are the topics
market segmentation, targeting, and positioning, of Part IV. The promotion mix is defined in Chapter
and the resulting application of the marketing mix. 12, with an overview of how the five major promo-
tional elements work separately and together in an
Part III: Focusing Marketing integrated marketing communications strategy to
Mix Elements on convey a marketing message to target customers.
the Fashion Consumer Chapter 13 delves more deeply into the promotional
Chapter 7 describes the importance of branding elements of direct marketing and personal selling,
and building brand loyalty with consumers. It describing their use and effectiveness in marketing
differentiates among various types of brands fashion products. How fashion marketers create
including designer, private label, and generic, awareness and stimulate customer demand through
and discusses how fashion marketers make deci- advertising, sales promotion, and public relations
sions about product lines and mixes and branding is the subject of the final chapter, which details the
strategies. Fashion marketers continually need to goals and activities involved in developing adver-
develop new goods and services, and the product tising campaigns, sales promotions, and public
development process is the topic of Chapter 8. The relations plans.
many factors that fashion marketers must consider
in establishing prices for their products is the sub- Keeping an Eye on
ject of Chapter 9. This chapter looks at aspects of Globalization and Ethics
pricing including the customers estimate of the Increasingly today, consumers demand fashions
products value, production and marketing costs, from throughout the world, while fashion busi-
and various pricing strategy options. Chapter 10 nesses seek out products and expanded customer
covers marketing channel activities and supply markets across the globe. The importance and
chain management practices in marketing fashion application of global marketing, therefore, is woven
xviii Preface

into each chapter throughout the text. In addition, ffMarketers Insight. Boxed sidebar features in each
because consumers prefer to patronize businesses chapter bring the chapters content to life and
they recognize as ethical and socially responsible, offer further enrichment, often through real-
examples of the way fashion marketers demonstrate world examples that help illustrate key concepts.
social responsibility and ethical business practices Some may be a basis for additional research and
are also an integral part of every chapter. individual and group reports to the class.
ffWhats Your Point of View? Select boxed features
Learning Resources include questions that ask readers to consider
and Activities the sidebar content as it applies to their own
Marketing Fashion: A Global Perspective contains a experience.
wealth of color illustrations, case studies, and other ffWhat Do You Think? Questions for classroom dis-
current examples of fashion marketing practices cussion or individual consideration are scattered
that create for students a vivid portrayal of fashion throughout each chapter to offer readers the
marketing theories, concepts, and real-life applica- opportunity to pause and reflect on key concepts
tions. The text contains a number of engaging special fresh in their minds.
features designed to actively involve students in the ffSummary and Review. Each chapter contains a
learning process. Many of these features may be brief summary of the chapter contents, giving
used for class discussion, research, and individual students an opportunity to synthesize and inter-
and group projects. They include: nalize what they have studied and reflect back on
ffOpening Statement. Each chapter begins with a the questions posed at the chapters introduc-
brief statement regarding its contents. It is suit- tion. A list of the chapters Key Terms provides
able for quick reading as an overview and also as a an opportunity for increasing fashion marketing
class topic for preliminary discussion. vocabulary. Review Questions reflect the chapter
ffWhat Do I Need to Know about ? A list at the objectives, while Discussion Activities and
start of each chapter presents the major concepts Projects encourage students to explore the chap-
that students will find covered therein, laying a ters topics more broadly, offering opportunity for
roadmap for their study and an easy reference to hands-on projects or further research related to
ensure they have met the objectives upon com- what they have just learned.
pleting the chapter. ffFashion Marketing Case Study. Each chapter con-
ffFashion Marketing in Focus. Each chapter begins tains a fashion marketing case study related
with a fashion marketing observation or scenario to the content of the chapter. Students may
that pertains to the chapters content and leads respond to the questions posed about the case
into its introductory topics. As a basis for opening and do further research as the instructor deems
class discussion, students may be asked to intro- suitable.
duce similar examples theyve encountered from ffReferences. The references cited apply directly
their own experiences. to the chapter content and may serve as sources
Preface xix

for additional student research on particular Instructors Guide
related topics. and PowerPoint
The instructors manual contains an assortment
Developing Your of useful resources. These include general teaching
Marketing Plan suggestions as well as suggestions specific to each
Each chapter contains instructions for a course- chapter. Outlines for each of the chapters are pro-
long project in which students develop their own vided, as are answers to the Review Questions,
marketing plan for a business they have selected, Discussion Activities and Projects, and tips on how
using what they have learned in the chapter to to help students develop their Marketing Plans. A
build each segment of their overall plan. Included test bank and answers are also provided, along with
as an appendix is an example of a marketing plan, additional activities and resources. In addition,
which the students will be encouraged to use as a PowerPoint lectures have been developed for each
reference but not as a model, since it is emphasized chapter.
throughout the book that every marketing plan
must be created to target its own set of goals.
xx Preface

Acknowledgments
T
he authors wish to express deep apprecia- some of the subtleties of marketing with patience
tion to our many colleagues in academia and and enthusiasm. His focus and attention to detail
business whose interest and enthusiasm significantly enrich the outcome. We also express
helped move this text toward its goal. In par- appreciation to Fairchilds peer reviewers: Emily
ticular, we thank Fairchilds Executive Editor, Davis, Woodbury University; Beth Hinckley, FIDM;
Olga Kontzias, who imagined this text and pro- and Kate Schaefer, Columbia College Chicago.
pelled it along to production, plus the entire group Among the business and academic commu-
who helped convert our manuscript to final text, nities, we are grateful to Wilma Kozar for her
including Executive Director and General Manager original suggestion for the text, and to Sandra
Michael Schluter, Development Editor Rob Phelps, Henderson-Williams for her contributions to the
Production Director Ginger Hillman, Production development of its early outline and chapters.
Editor Jessica Katz, Assistant Art Director Sarah We also appreciate the interest and contributions
Silberg, Graphic Designer Vanessa Han, and of the following: Dr. Alexxis Avalon, Dr. Karen
Ancillaries Editor Amy Butler. Janko, Judy Aronson, Lee Collingwood, Philip
Our special appreciation goes to Dr. Stewart R. Nielsen, Margot A. Wallace, Inese Apale, and
Husted, who, as expert reviewer, guided us through Nicholas Braggo.
xxi

Part I
Defining Fashion Marketing
and How It Works
01_INT_Rath_P1_FNL.indd 22 4/16/12 6:54 PM

Before you can understand the process and practices of
marketing fashion, you need to understand the fashion marketers
long-term goals, the basic elements of the fashion marketing
process, and the direction fashion marketing is moving in the global
economy. This includes the various internal and external elements
that impact fashion marketers today, and involves how those
entities and forces influence the way fashion businesses operate
in the global marketplace. Fashion marketers must be alert to the
many ways potential customers may behave in the marketplace.
They must also develop a keen sense of the level of involvement
the customer has with a product or buying situation that influences
the purchase process; then they can begin to explore the internal
and external influences that have an effect on both consumer and
business buyer behavior.
01_INT_Rath_P1_FNL.indd 23 4/16/12 6:54 PM

Chapter 1
Developing and Maintaining
Profitable Customer
Relationships
This chapter offers an overview of marketing and fashion
marketing, explains marketers long-term goals and the basic
elements of the marketing process, and outlines the directions
fashion marketing is moving in our global economy.
What Do I Need to Know about Developing and

Maintaining Profitable Customer Relationships?
How to define marketing and fashion marketing
What the long-term goal of marketing is, and some of the ways fashion marketers
build customer loyalty
What the basic fashion marketing process encompasses
The components of the marketing mix and their function
Major trends that impact fashion marketing in the twenty-first century
The importance of ethics and social responsibility in fashion marketing
02_INT_Rath_CH_01_FNL.indd 1 4/16/12 6:55 PM

Fashion Marketing in Focus:
A World of Fashion and Marketing
Whoever you are and wherever you live, if you are like the vast majority of people inhabiting
our planet, there are two things that have an influence on you virtually every single day
fashion and marketing.
Fashion surrounds you constantly in the things you see, use, wear, watch, and do.
There is fashion not only in the clothes you put on this morning, but in everything from
the sheets on your bed, to the iPhone you may be carrying, to the new film all your friends
are buzzing about or the trendy caf where you like to meet after class to relax over the
latest flavor of cappuccino.
Marketing is equally pervasive. Its what catches your eye as you walk past a department
store window. It pops up on the screen when you surf to a favorite Web site. Its an integral
part of why your best friend just bought those stylish boots and how your parents decided
on the particular flat-panel TV they mounted on the family room wall. Its what persuades
you to go shopping when you receive a 15 percent discount offer in the mail or by e-mail,
and what gets you to purchase the same well-fitting brand of jeans over and over again
or maybe tempts you to try on a new brand that promises to fit even better and whose
maker donates a portion of profits to fight world hunger.
T
here is no question that both fashion and conceived and designed, how they are presented
marketing influence many facets of our daily and sold to us, and at what point they make way
life, even when were not directly aware of for even newer versions.
that influence. Fashion adds newness and Put the concepts of fashion and marketing
freshness to the clothes we wear, the prod- together, and youve got one of the most dynamic,
ucts we use, the cars we drive, and the activities exciting segments of businessand the subject we
we enjoy. Marketing not only informs us about will explore in depth in this text. Lets begin with
the existence of those fresh new offerings, but it is some definitions.
also a driving force behind how new products are
2 Part I: Defining Fashion Marketing and How It Works

Figure 1.1 Fashion and marketing surround and influence us virtually every day and everywhere.
What Are Marketing and to the marketer. Like fashion, marketing is con-
and Fashion Marketing? stantly evolving as customers change their minds

about what they want, as technology advances, as
The term marketing brings to mind different global markets emerge, and as concepts of ethics
things to different people. Some may think of and social responsibility mature. Each of these con-
marketing as a dirty word: businesses foisting ditions contributes challenges and compensations
things off on people who dont really want or need to the vibrant field of fashion marketing today.
them. Others think of marketing as simply televi-
sion commercials and ads in magazines or on Web
Marketing Defined
siteswhich is indeed an aspect of marketing, but
hardly the whole picture. According to the American Marketing Association
In reality, marketing is a complex system that, (AMA), an international association of professionals
when well planned and effectively executed, makes and organizations involved in the practice, teaching,
customers the central focus and builds long-term and development of marketing, Marketing is an
relationships that are rewarding both to customers organizational function and a set of processes for

creating, communicating, and delivering value to that the product has value for customers. Once a
customers and for managing customer relation- product is developed, it requires a coordinated plan
ships in ways that benefit the organization and its of advertising and other forms of marketing com-
stakeholders. Another way of stating it is that
1
munication to get the word out to customers about
marketing is the process by which companies its features and benefits so they will understand its
create value for customers and build strong cus- value. Determining the best retail stores or other
tomer relationships in order to capture value from channels for delivering the product into customers
customers in return. 2
hands is also an important function of marketing
Lets look more closely at elements within those because it helps to reinforce the marketers value
definitions. Both mention value. The value that message.
marketers provide to customers is derived from the The other key concept in both definitions cited
product they are offering, whether its something above is that of building and managing customer
to fill a need (like food or shelter) or something to relationships so that both customer and mar-
satisfy a want (like a videogame or a motorcycle). keter benefit. This final component involves an
In the AMAs definition, there are three specific exchangeor in marketing terms, any activity,
components relating to that value: creating, com- such as buying and selling, in which one party
municating, and delivering. Creating a product receives something by voluntarily giving something
involves inventiveness and design skills, but mar- in return. The exchange activities in marketing are
keting is what directs the creative process to ensure what provide value back to the marketer, allowing
the company to earn profits, and sometimes foster
goodwill, as well.
To illustrate how those aspects might manifest
themselves within a total marketing plan, consider
the Tommy Hilfiger brand.
ffCreating. For nearly three decades, Tommy Hilfiger
has designed high-quality fashions that have been
proven to appeal to customers the designer wants
to reach.
ffDelivering. In 2008, the Hilfiger company made a
strategic decision to partner with Macys as the
exclusive U.S. department store to sell its mens
and womens sportswear lines.
ffCommunicating. The retailer and designer began
Figure 1.2 In marketing, exchange activities are what working together to promote the availability of
provide value to consumers as well as returning value to the sportswear at Macys to consumers, not only
the marketer.
through advertising and other communications

but also via special events, such as an appear-
Fashion Marketing Defined
ance by Hilfiger himself at Macys Union Square
store in San Francisco to celebrate his companys Adding a focus on fashion does not change the basic
twenty-fifth year in business. marketing concept, but it may introduce new ele-
ffExchanging. As part of the event, customers who ments in how a marketing plan is executed, since
purchased $75 worth of Hilfiger apparel received fashion goods require a somewhat different mar-
priority seating at a free concert by alternative keting approach from that of many non-fashion
rock band Third Eye Blind, held in Union Square products and services. First, lets define what
the same day as Hilfigers appearancepro- is meant by fashion: A fashion is any designed
viding value to customers (desired apparel plus product that is currently popular, that is of the
better concert seats) and value back to Hilfiger moment and subject to change, and that people
(profits from the apparel sale plus goodwill from consider desirable and appropriate at a given time.4
attendees at the free concert). Clearly, our definition of fashion encompasses
apparel and accessories, including footwear, jew-
Later chapters will discuss in more detail how elry, cosmetics, and fragrances, which tend to be
activities and processes such as these are developed the first categories most people think of when they
and incorporated into a companys comprehensive think fashion. But the concept of fashion extends
marketing plan. But whatever specific plan a mar- much further than that. Fashion plays an impor-
keter establishes, the marketing process generally tant role in home furnishings, including textiles
begins with the company looking at itself from the (microplush throws, animal print bolster pillows),
consumers point of view and determining its capa- furniture (clean-lined minimalist tables, Mission-
bilities to supply something the customer needs style futons), and appliances (electric cooktops,
or wants. It then creates, prices, delivers, and pro- gourmet coffeemakers). There is also fashion in toys,
motes a product that it believes customers will in cars, in consumer electronics, and in architecture.
deem valuable to their lifestyle. If the item is well Fashion even exists in films, music, television pro-
conceived and timely, and more important, if cus- grams, food, vacation hot spotsanything that is in
tomers buy it, then the process is successfuland favor at a given time. We will use that broad defini-
ideally, satisfied customers will reward the mar- tion of fashion throughout the text, with a primary
keter with loyalty and future purchases. In short, focus on designed goods, which well describe fur-
the ultimate goal of marketing is to bring con- ther in a moment.
tinuing satisfaction to the customer and ongoing Fashion marketing, then, can be defined as
profits to the marketer. Or, as Tom Asacker puts the application of marketing processes and activi-
it in A Clear Eye for Branding, the purpose of mar- ties to currently popular designed products. It
keting is to create and maintain a strong feeling encompasses everything that goes into the creation
with customers so they are mentally predisposed and development of a fashion product, through its
to continually choose and recommend you. 3
presentation and promotion to customers, through

Figure 1.3 Fashion can be found not only in clothing and accessories but in home furnishings, automobiles, consumer
electronics, architecture, food, films, and other currently popular designed products.

its purchase and support after the sale. Fashion It oversees production of the jacket, determines
marketing employs the same general concepts, where it will be sold, and communicates informa-
activities, and processes as the marketing of other tion about the new garment through a variety of
products, but it has its own challenges and oppor- media it thinks will reach the right customers. As a
tunities that arise from the continually changing result of these activities, skiing enthusiasts become
nature of fashion. Think of it this way: How often aware of the jacket through a Web site or an ad in
are you inspired to buy a new brand of corn flakes a ski magazine, learn where they can purchase the
or laundry detergent? But in the past six months, jacket and how much it costs, try it on in the store
how many new items of apparel did you buy? Did or order it online to try at home, and decide to buy.
you upgrade your MP3 player because you liked the After wearing it on their next ski trip, some of those
color offered in a newer model? Fashion marketers, customers are so pleased with the style, fit, comfort,
more than marketers of basic or commodity-type and other features of the jacket that they return to
items, must work to address that consumer desire the marketer to find out what additional products
for newness, stay ahead of fast-moving trends, and are offered that they might want to buy.
apply creative marketing to capture the attention In this scenario, the marketer has approached
and interest of often fickle but also savvy customers. potential customers with an integrated marketing
plan. It identified what customers want that the
Putting the Fashion Marketing company can best provide. It reached out to selected
Process into Action customers with information about its product and
The process works like this: Say that a fashion mar- made the product readily available at an accept-
keter learns that more people are taking up skiing, able price. Customers responded with a purchase,
so it decides it would like to offer a collection of were satisfied with the product, and rewarded the
practical yet fashionable skiwear. First, the com- marketer with repeat business. These are funda-
pany determines exactly who its customers will be mental marketing elements in action, where the
and what kinds of garments they would prefer and customers point of view is a marketers primary
find useful. For example, what features and styling consideration and both parties benefit from the
do customers want in a ski jacket? Using market exchange. Figure 1.4 illustrates the basic steps in
research, the company determines the number of the marketing process.
potential customers for its ski apparel, where/how
they prefer to shop, and what types of ski jackets
are already being sold by other companies; then, Fashion Marketers Long-term
also through research, it learns about the details
Goal: Customer Loyalty
customers might want in a ski jacket and the price
theyre willing to pay. Armed with this informa- As stated, the ultimate goal of fashion marketers is
tion, the company designs a ski jacket in a fresh to gain and keep customers over time. Long-term
style, color, and fabric it believes customers will like. customer loyalty is important because returning

1. Identify and 2. Conceive
Fashion analyze the the product to
Marketing potential meet customer
needs/wants
Process target market
7. Gather customer 3. Plan product

feedback for price and
potential product production
improvement
6. Evaluate 5. Inform the public 4. Place the

product sales of product product where
over time benefits customers
can buy it
Figure 1.4 In the fashion marketing process, the customers point of view is the marketers primary consideration
and both parties benefit from the exchange. by Vanessa Han and Alicia Freile
In the fashion marketing process, the customers point of view is the
marketers primary consideration and both parties benefit from the
exchange
customers tend to generate more profits for a com- need food, but you want a Taco Bell burrito. For the
panyso much so that in describing customer most part, marketers of fashion address consumers
loyalty, marketers often refer to the 80/20 rule: A wants more than their needs. In addition, to achieve
company obtains 80 percent of its business from 20 the long-term goal of customer loyalty, marketers
percent of its customers. must appeal to their customers by creating products
In order to identify the customers most likely that offer the right value, as well as by nurturing
to become loyal purchasers, marketers learn all relationships with customers to keep them coming
they can about the needs and wants of customers back for more.
they hope to attract. A need is something a person
cannot do without, whereas a want is something a
Identifying Customers
person craves or desires, influenced by his or her per-
sonality, culture, and society. For example, you need With any product, fashion marketers must know to
clothing, but you want 7 For All Mankind jeans; you whom they want to sell. This means identifying the

Marketers Insight:
Marketing Beauty Products to Chinese Women
Understanding the needs and wants of target firm, conducted a study of more than 1,000
customers is always crucial to successful Chinese women ages 20 to 29 to help marketers
marketing, but perhaps especially so in the better understand these customers. Among
category of cosmetics and skin care. Even the findings were that Chinese womenunlike
though the definition of beauty has become many American womenunderstand that using
homogenized by the globalization of media, there effective products early in life can positively
are distinct cultural and societal differences that impact their skin. However, while skin care use
affect the way women in different countries view starts at an early age, color and fragrance usage
and use beauty products, especially in China. normally is delayed until after a Chinese woman
Beauty treatments are still relatively new finishes high school. In addition, when they
to Chinese women since Mao Tse-tung forbade find something that works, Chinese women are
the use of cosmetics until the 1980s. As a generally loyal to that product.
result, while todays western women generally Unlike western women, who like to
are initiated into the beauty ritual by their experiment with small, indie brands, the Chinese
mothers, Chinese women are dependent on beauty consumer prefers to use big, well-known
outside sources for their beauty information. global brands. Shiseido was the most-used skin
So education is a valuable tool for consumers care brand cited by the panelists, who believe that
and an opportunity for skin care and cosmetics Japanese technology is the most cutting-edge,
marketers. Many companies have stepped in and also that, because Japanese skin is close
to fill the void and offer training programs to to theirs, Shiseido has the best understanding
their consultants at department store counters, of their skin care needs. For color cosmetics,
where well over half of all beauty products are however, Maybelline was the favored brandan
purchased. The payoff of that investment in unsurprising finding since LOral Group (the
education is that Chinese women are more likely parent company of Maybelline) has aggressively
to use all the products recommended to them. focused resources on all elements of the
Of course, those products still must meet marketing mix in China, including sharp pricing,
their needs and wants; and the Pao Principle, creative promotions, and heavy ad campaigns
a New York-based global business consulting featuring global and local celebrities and models.
Adapted from: Patricia Pao, Why Shiseido Beats Western Beauty Marketers, Advertising Age, September 1, 2010,
http://adage.com/china/article/viewpoint/why-shiseido-beats-western-beauty-marketers-in-china/145645/ (accessed March 8, 2012).

market, or the group of actual and potential cus-
Creating Fashion Products
tomers who have both an interest in and the ability
to buy the companys product. The market for ath- Knowing the consumers they are trying to reach is
letic shoes, for instance, is all of the people who buy the critical first step for fashion marketers in order
or might buy athletic shoes. to create the right offerings for their target cus-
The market for any given product or for any tomers. That understanding of who their customers
particular marketer is never the entire universe of are and what they want, coupled with the mission
consumers. A customer who buys athletic shoes as and capabilities of the company, forms the founda-
everyday footwear will not be as likely to buy a pair tion for development of the companys products.
of high-tech, feature-laden running shoesand In marketing terms, any offering that marketers
a serious runner might not take a second look at create and present to target markets is called a
basic sneakers designed more for fashion than for product. Products include goods, tangible items
function. So marketers go further and undertake such as coats and hats, iPods, or a Louis XV ormolu
market segmentation, defining smaller, more mirror. Products also include services, helpful or
homogeneous customer groups based on similar professional activities provided to another, such as
customer characteristics. A single market seg- hair styling, wardrobe consulting, a concert, or an
ment, then, is a group of consumers displaying like airplane ride. Some products are a combination of
needs, wants, values, and buying habits. Different goods and services, such as a meal in a restaurant,
market segments within the athletic shoe market a manicure, automobile detailing, or the work of a
might be kids, basketball players, joggers, or casual personal shopper. Products can also be ideas, such
wearers. (See Chapter 6 for more detail on choosing as views on social issues like climate change and sus-
and segmenting markets.) tainability, or the views of a political candidate.
When they select one or more segments on
which to concentrate, marketers are identifying
their target market, the group of customers What Do You Think?
deemed most likely to purchase a given product What goods are fashionable today among college
and on whom the companys marketing efforts students? What combinations of goods and services
will be focused. Depending on their offerings, are in fashion? Which fashion services seem to be
fashion companies often have different target popular?
markets for different portions of their product
lines. Donna Karan, for instance, targets a dif-
ferent group of consumers for her sophisticated Miniskirts, Flat-Panel TVs,
Donna Karan New York collection than for her and Social Media
hipper DKNY fashions. Like other marketers, fashion marketers develop
their products influenced by knowledge of the
wants of their target marketbut the nature of

fashion adds a twist: A new fashion product can quality and slim styling of the newer flat-panel
actually influence customers wants. The inherent sets, most were eager to own the fashionable new
creativity and innovation that bring about changes technology. In turn, as flat-panel televisions grew
in fashion mean that marketers often anticipate in popularity, furniture companies began phasing
what their customers want even before those cus- out heavy wall units and armoires designed for the
tomers know it themselves. So in creating products, bulkier tube models and introduced new styles of
fashion marketers must not only be on top of the stands and mounts that complement the sleekness
latest trends, but sometimes a step or two ahead of the thin TVs. Going further, furniture companies
of them. Back in the 1960s, for example, British targeting the more affluent end of the market added
designer Mary Quant was making a dramatic break desirable but more costly features such as motor-
from the styles of the day when she introduced her ized lifts that raise or lower the panel at the touch of
famous miniskirts. But young women worldwide a button, discreetly hiding the television in a stylish
quickly validated her vision and marketing savvy cabinet when not in use. These marketers under-
by snapping up the ultra-short skirts. stood that the higher-end market segment did not
Similarly, up until recent years, most consumers necessarily want the television to be a focus of their
were satisfied with their traditional televisions; but dcor, so they created a product designed with those
once they experienced the high-definition picture customers desires in mind.
Figure 1.5 Fashion marketers products can include goods, services, or a combination of the two. Boots are goods.
A professional wardrobe consultation that leads a customer to buy the boots is a service. If the customer gets the boots
resoled, the shoe repair shop is offering a combination of goods (new soles) and service (putting the soles on the boots).

At the same time, some fashion marketers are
taking advantage of the two-way communication
made possible by the Internet via blogs, social
communities, and other sites, and are using direct
customer feedback to help shape their prod-
ucts. At Threadless.com, for instance, the entire
premise is to have users submit original T-shirt
designs and other users vote on their favorites,
with the most popular designs getting made and
sold on the site. Other fashion marketers may not
take consumer input to quite that level. But vir-
tually all are using or exploring the use of social
media as a way to gain deeper insight into how
customers feel about their products, in order to
continue to create products that meet customer
needs and wants.
Building Customer
Relationships
Attracting customers and keeping them are two dif-

ferent matters. With so many businesses competing
for consumers attention and dollars, marketers
can never rest on their laurels, assuming that suc-
cess today will automatically translate to success
tomorrow. Especially in todays world, where infor-
mation about people and products travels around
Figure 1.6 Fashion products are influenced by marketers the globe in an instant, it takes continuous effort
knowledgeand sometimes anticipationof target and a willingness to adapt quickly to new trends and
customers needs and wants. Sony met customer needs
by taking an existing product (cassette player) and new customer demandsfor fashion marketers to
transforming it into the stylish, easily portable Walkman; sustain strong relationships with their customers.
then later updated it as consumers trended to CDs. For that reason, an increasingly important aspect
MP3 players were a completely new concept to most
consumers when first introduced, but Apple knew its of marketing is customer relationship man-
customers would be eager to transport all their music agement (CRM), the overall process of building
in one device when it launched the iPod. and maintaining profitable customer relationships
through providing superior customer value and

satisfaction.5 (See Chapter 6 for more discussion
of this topic.)
Managing customer relationships and building
customer loyalty is a multifaceted effort. As dis-
cussed above, it is based in part on understanding
target customers wants and needs and creating
products that meet or exceed customers expecta-
tionsin other words, delivering a product with a
high perceived value, a customers internal cal-
culation as to whether or not a product is worth its
cost (both in money and in effort to obtain it). In
deciding on a purchasewhether its a Starbucks
Frappaccino, a silk shirt, or a BMW sedancon-
sumers weigh the actual cost of the product against
the benefits they believe they will gain from it. If
the products benefits equal or exceed its cost in a
consumers mind, the perceived value makes the
purchase worth the money and effort.
Wherever they fall in the price range, fashion
marketers aim is to communicate to customers
how their products benefits exceed their cost
in other words, to enhance the perceived value of
their offerings for their target customers. When
Walmart, for example, touts its always low prices,
cost-conscious customers perceive value in the fact
that theyre paying less than they would elsewhere
for the same or similar goods. At the other end of
the spectrum, when Herms has its artisans layer
each color on separate screens and then hand-
roll the hem of its designer silk scarves, it hopes
that customers will perceive that the quality and
uniqueness of the scarves offer value to match
or exceed the lofty price tag. Or when the now-
defunct Filenes Basement held its renowned
periodic bridal gown sales, customers would line Figure 1.7 For luxury goods consumers, the perceived
value outweighs the cost of the item.
up long before the doors opened and were willing

Marketers Insight:
Zappos Makes Customer Service an Obsession
When Zappos first began selling shoes on the the woman a flower arrangement and condolence
Internet, consumers were skeptical about buying card. A blog the customer wrote about the event,
footwear that they couldnt first try on. So how did I Heart Zappos, bounced around the Web, with
the company overcome that hesitation? It made other customers contributing their own good
customer service a cornerstone of its marketing experiences with the company.
strategya strategy that remains solidly in place That culture and philosophy starts at the
even after Zappos sale to Amazon.com. And top with Zappos CEO, Tony Hsieh, who once
its customer-centric approach runs the gamut announced a surprise happy hour on Twitter and
from everyday free shipping and free returns bought drinks for the 200 people who showed up
to directing consumers to competitors if the with Zappos written on their hands. To make
company doesnt have a style or size available. sure the customer obsession permeates the
Zappos pays close attention to all details of entire organization, Hsieh requires each new
customer service. Its customer service center is hireeveryone from the chief financial officer to
staffed 24/7 with 500 employees answering 5,000 the childrens footwear buyerto go through four
calls a day. The service reps do not rely on scripts, weeks of customer loyalty training. Customer
but rather engage in regular conversations with service reps are trained to look on at least three
customers, and are given latitude to go the extra rival Web sites if a shopper asks for specific
mile to address customer needs. For example, shoes that Zappos doesnt have in stock.
when the payment deadline for shoes a customer My guess is that other companies dont do
had ordered came and went, a Zappos rep that, Hsieh states. For us, were willing to lose
e-mailed the woman to remind her the money that sale, that transaction in the short term.
was due. The woman told the rep the reason: She Were focused on building the lifelong loyalty
had meant to send back the shoes, which were and relationship with the customer. Does his
for her ailing mother, but in the meantime, her philosophy work? No question about it: Some
mother had died. The company rep arranged to 75 percent of Zappos sales come from repeat
have UPS pick up the shoes; then actually sent customers.
Adapted from: Natalie Zmuda, Zappos: Customer Service Firstand a Daily Obsession, Advertising Age, October 20, 2008, p. 36; Brian
Morrissey, These Brands Build Community: How These Web 2.0 Companies Build Good Relationships to Build Their Brands, Adweek.com,
May 12, 2008, www.adweek.com/aw/content_display/news/digital/e3i5e732e045deaaba3f3762d92cf386637?pm=1 (accessed March 8, 2012).

to scramble for the merchandise because the per- handwritten note of apology for the customers
ceived value of a designer gown at a discounted inconvenience. Marketers need to build trust with
price made the search well worth the effort. their customers by ensuring that their products
perform as expected, and they need to ensure sat-
isfaction by listening to consumers and offering
What Do You Think? excellent customer service if something should go
What has a fashion marketer done recently to wrong. These are important aspects of the overall
attract your interest and loyalty? A fashion show? marketing process that well explore further later
Discount coupons? Gifts-with-purchase? Did that in the text.
effort win you over? Why or why not?
Developing a Fashion
Enhancing a products perceived value is just
Marketing Strategy
one component of building strong customer rela-
tionships. Nurturing those relationships also Weve seen some of the basic steps that fashion
involves developing trust and ensuring customer marketers must take on the road to their long-term
satisfaction. Both of those aspects may be influ- goal of customer loyalty. Now lets look at how they
enced by what a marketer does that goes above go about developing a marketing approach that
and beyond the product itself. When cosmetics fits their business, and the elements that go into a
companies offer a gift-with-purchase, or when marketing plan.
electronics marketers bundle free movies with As part of their strategy, fashion marketers
a Blu-ray player, they are hoping that the extras need to decide in what ways they will serve their
will please customers and cause them to think customers, how they stand out from the compe-
of their company the next time. On the flip side, tition, and how they want consumers to see their
customer trust and satisfaction can be under- unique features. The sum of all benefits that mar-
mined when there is a problem with a product. If keters offer customers is known as the companys
the heating element on an espresso maker stops value proposition. For example, when Sean
working after a month or the seam on an expen- Diddy Combs launched his Sean John sports-
sive new jacket rips the second time its worn, wear, he differentiated his apparel by designing it
consumers will think twice about buying the to fill a void in the market for well-made, sophisti-
brand againunless the marketers respond in a cated fashion forward clothing that also reflected an
way that overrides customers negative feelings. urban sensibility and style. He also stated that the
The company offering the espresso maker might company would use all of our resources to ensure
offer a replacement and also give the customer that quality in both design and production of Sean
a coupon for free coffee; or the marketer of the John always exceeds your expectation.6 From
jacket might offer an immediate exchange with a those statements, you could glean that distinctive

Choosing a Marketing
Point of View
No two organizations are the same, so every com-

pany has to approach marketing in a way that makes
sense for its specific mission and capabilities, and
for its goals regarding profitability and customer
relationships. But there are five basic points of
view, or marketing orientations, that marketers can
adopt: the production concept, the product concept,
the selling concept, the marketing concept, and the
societal marketing concept.7 In most cases, fashion
marketers will focus on the final two, but lets look
at all five and how they differ.
The Production Concept

One of the earliest guiding concepts used in mar-
keting, the production concept is one in which
marketers operate under the principle that cus-
tomers want products that are inexpensive and
readily available. This orientation focuses less on the
changing wants and needs of consumers and more
Figure 1.8 The value proposition of Sean John apparel on creating efficiencies in production and distribu-
includes its fashion-forward styling, urban sensibility, tion in order to keep volume high and costs low. A
high-quality construction, and customer satisfaction.
company making plain, solid-color baseball caps or
basic toys like beach balls or jacks probably follows
styling, high quality, and dedication to customer the production concept.
satisfaction are all part of the value proposition of
Sean John apparel. The value proposition is often The Product Concept
proclaimed in a marketers slogan. Consider tag The product concept is based on the idea that cus-
lines such as American Airlines We know why you tomers want high-quality products that offer
fly, LOrals Because youre worth it, or Nikes performance and innovative features. Under this ori-
Just do it. Each of these slogans underscores the entation, a marketers product development is based
companies value proposition and why consumers less on acting on its customers desires than oper-
should believe their products will offer greater ating from its own design capabilities. An example of
benefits than those of the competition. a company using the product concept might be the

DeLorean Motor Company, whose single product, have celebrities wear the look, have it featured in
the DMC-12 sports car, featured a striking stainless- fashion magazines, give it prominent placement on
steel design and gull-wing doors (you may remember the home page of its Web site, and offer incentives
it from the Back to the Future movies). Despite its to store salespeople to persuade customers of the
innovations, the car did not generate the necessary benefits of the fashion. The emphasis of the selling
interest and sales, causing the company to go out of concept is on pushing the new look or product to
business after just a few years. customers and not primarily listening to what it is
that customers want, so its effectiveness in mar-
The Selling Concept keting fashion is limited.
The selling concept works under the theory that
goods will not be purchased widely enough unless The Marketing Concept
they are aggressively sold and promoted. Most fre- Probably the most widely followed marketing phi-
quently used with products that consumers are not losophy today, the marketing concept begins with
actively seeking, such as extended service plans, the the customer as the focus. Rather than simply trying
selling concept may be employed for some fashion to sell what the company has produced, companies
goods, such as the accessories or cosmetic as seen operating by the marketing concept determine what
on TV items that are the subject of seemingly con- customers want and then supply it. The rationale
stant commercials. Some new fashion looks may is that by satisfying customers, the marketer will
also be at least partially marketed via the selling achieve profits.
concept if they are too different to be accepted Eileen Fisher offers an example of the mar-
right away, such as an unusual new combination of keting concept in action. The designer originally
plaids and prints. The marketer might arrange to offered stylish but comfortable apparel for more
Figure 1.9 Marketers operating under the production concept, product concept, and selling concept do not have
customer wants as their primary focus.

mature women, such as loose-fitting jackets, long profits with the long-term well-being of society as a
skirts, and wide-leg pants. Over time (and with whole. Developers of electric cars, for example, are
some strong hints from her teenage daughter), addressing a consumer desire for vehicles that cost
Fisher realized that younger women appreciated less to run because they dont need gasoline, but
the timeless look of the apparel but wanted a they are also offering a solution to improve the envi-
greater selection of styles to match their lifestyle. ronment through the cars zero emissions. Another
As a result, the company began taking younger example is sportswear manufacturer and marketer
looks, like skinny jeans, and translating them into Patagonia, whose mission includes sourcing mate-
apparel in keeping with the companys overall sig- rials and using processes that are less harmful to
nature designbeing careful not to alienate its the earth, without compromising the quality of
core customers as it updated its look for new cus- its products. As the companys Web site notes, To
tomers. Eileen Fisher was responding to the desires us, quality is not only how well a product performs
of a new target market while not losing sight of and holds up, but also how its made. Among the
what the companys loyal customers wanted. In the e-fibersas it calls environmentally friendlier
process, the company satisfied both its established fibersthe company uses are recycled polyester,
and new customers, as proven by the fact that the organic cotton, hemp, chlorine-free wool, and recy-
companys sales have shown solid growth since the cled nylon; and when customers no longer plan to
new designs were introduced. 8
wear a piece of apparel, many Patagonia garments
Companies using the marketing concept are can be returned to the company to be recycled into
often called customer driven, because they look at new clothing.9 Well discuss social responsibility
the desires of their target customers, rather than more later in this chapter and throughout the book.
just their own capabilities, when developing and
marketing their products. Fashion marketing is
customer driven even when companies anticipate What Do You Think?
what customers will want before the customers What do you think of the societal marketing
know themselves, since it is based on the marketers concept? Which fashion businesses can you cite
knowledge and understanding of its customer base. that are using this concept? In your opinion, what
motivates them to do so? Profits? Societal welfare?
The Societal Marketing Concept Other reasons?
A marketing philosophy that is seeing increasingly
wider adoption, the societal marketing concept goes
beyond satisfying immediate consumer needs by
Creating a Marketing Mix
questioning whether or not a product is good for the
general welfare of all of society. Marketers who follow With their direction chosen regarding target mar-
the societal marketing concept work to balance sat- kets, intended value proposition, and marketing
isfying consumer wants and the companys need for point of view, companies are ready to develop a

Figure 1.10 Patagonia is one of a growing number of fashion marketers that use the societal marketing concept as
their philosophy.
specific marketing plan by which to carry out their For example, the Burberry trench coat was origi-
strategy. They do this through the marketing mix, nally created by the British apparel company in the
or the combination of marketing tools that a firm late nineteenth century and adopted by the military;
uses to offer its customers value and to pursue its but before long, Burberry realized that consumers
own sales and profitability goals. appreciated the garments sturdy construction and
The marketing mix is composed of four basic ele- timeless style, and adapted the trench coat for the
ments: product, price, place, and promotion. consumer market. Over the years, the company has
continued to introduce new design adaptations of
Product its classic trench coat to reflect changing consumer
As weve discussed, a fashion marketer needs to tastes. In the fall of 2010, for instance, when Angela
design and develop products that address the needs Ahrendts, Burberrys CEO, announced plans to visit
and wants of its target customers. Since fashion the companys 50-some stores in China, she wore a
and fashion customers constantly change, products current version of the coat. In addition, Burberry
must evolve with the times to remain in demand. has built on the reputation and popularity of its

PRODUCT PRICE
THE TARGET
PROMOTION MARKET PLACE
E
ZIN
GA
MA
SALE
TODAY!
JOES
CATALOG
JANES STORE
Figure 1.11 The target customer is the focus of each of the four marketing mix elements. by Vanessa Han and Alicia Freile
The target customer is the focus of each marketing mix element.
outerwear by expanding its offerings into mens materials and labor that go into production, ship-
wear, womens wear, childrens apparel, and more, ping, advertising, and so onto know the base
as it recognized additional opportunities to meet its cost of a product before they add on a suitable
customers product needs and wants. margin for profit. If the resulting price is higher
than they believe their customers will pay, they
Price must reexamine all the cost components and try to
Looking at the second element of the marketing revise the price to an amount that offers customers
mix, clearly any product a marketer introduces has the right perceived value. The target customers
to be available at a price customers are willing to for a Burberry trench coat are more than willing
pay. So in the marketing process, companies must to pay its designer price because they value the
look at a variety of expensesincluding the raw quality construction, details, and mystique. Other

companies, targeting less affluent customers, have Fashion Marketing in
created their own versions of the trench coat at a
the Twenty-First Century
lower cost, putting the price within the reach of a
different market segment. Marketing in the twenty-first century still serves
the same basic purpose that it did in the past. But
Place its tools and implementation have changed dramati-
The third element of the marketing mix refers to cally in the past decadeand continue to change, as
ensuring that products are available to customers technology shrinks the world and enables unprec-
when and where it is convenient for them to make edented innovation, and as global issues such as
a purchase. Fashion marketers knowledge of climate change and fair trade move front and center
their target customers helps them determine the in the public consciousness.
best places for selling their products, including As a result, fashion marketers face greater
the appropriateness of selling them online. For opportunities and challenges than ever before as
instance, Burberry sells its high-priced coats pri- they work to keep pace with new trends and new
marily in cities, which have a greater number of markets. Three broad areas having perhaps the most
consumers with the taste level and means to pur- impact are globalization, social media and mobile com-
chase them, and sells them in its own stores or in munications, and ethics and social responsibility. Later
other high-end stores, such as Saks Fifth Avenue, chapters will address these influences as they relate
frequented by its target customers. Other consid- to the specific marketing topics being discussed,
erations go into choosing appropriate places to sell but lets look briefly at each one for a basic under-
fashion products. Winter coats are not heavily mar- standing of its role and impact on fashion marketing
keted in warmer climates, for example, whereas in today.
regions that have cold winters, swimwear is sold
mostly in spring and early summer.
Globalization
Promotion Selling their products in other countries is nothing

The final element involves all the ways in which new for fashion marketers. Consumers in the
marketers communicate information to consumers United States, for example, have long had access
about their products, including advertising, per- to a range of fashion goods produced by companies
sonal selling, sales promotion, fashion shows, around the world, including apparel and accessories
blogs, and more. Integrating and coordinating (Benetton, Chanel), home furnishings (IKEA, Royal
the four elements of the marketing mix becomes Doulton), automobiles (Volkswagen, Porsche), elec-
the basis for the implementation of a companys tronics (LG, Samsung), and more. At the same time,
marketing strategy. How each element of the mar- American companies such as Guess, Apple, Ralph
keting mix is developed and used will be covered Lauren, and Walmart have long sold their goods to
fully in Chapters 7 to 14. customers outside the United States.

In recent years, however, there has been an interest in fashion products on a worldwide scale
acceleration in the number and types of products thanks to the Internet and mobile communications,
whose market has been expanded to include even which enable faster and wider communication of
larger portions of the globe. A number of factors fashion news to virtually all corners of the globe.
are contributing to the increased globalization of Well take a more detailed look at the global fashion
fashion marketing, not the least of which is rising marketplace in Chapter 2.
income levels in some regions and countries, giving
more consumers the means to purchase a broader
Social Media and
range of fashion goods. In addition, when marketers
Mobile Communications
believe they have reached as many target customers
as they can in their existing markets, they may As stated earlier, communication is a key component
look to new markets in other countries as a way to of marketing, but in the past, most of the commu-
increase their sales. Whats more, there is growing nication between marketers and customers flowed
Figures 1.12AB The increased globalization of fashion marketing is reflected in these recently opened Gap stores in
(a) Poland and (b) Japan.

Marketers Insight:
Turning Social Networking into Customer Loyalty
Whether they take advantage of communities mobile, and afterward received an mCoupon
such as Facebook, tools like Twitter, or the on their mobile device for in-store specials on
power of apps, savvy marketers know that social merchandise.
media can help their customer relationship Similarly, marketers ranging from Best
management efforts. And as social and mobile Buy and Barneys to designers Diane von
technologies continue to experience explosive Furstenberg and Nicole Miller are turning to
growth, marketers are transforming them into Twitter to communicate with target customers
high-performance loyalty tools by not only about anything from up-to-the-minute inventory
participating in digital communities, but by information from the sales floor, to special sales
organizing and promoting their own programs and contests, to troubleshooting a problem
that cultivate a brands loyal following of friends. product. Gap Outlet, for instance, sent its Twitter
Take Victorias Secret Pink. With more followers an offer for 15 percent off purchases of
than 6 million friends and counting in its $75 or more; and Mall of America used its Twitter
Facebook community, Pink maintains an ongoing page one holiday season to alert consumers that
conversation with its loyal fans, providing tools two of its parking areas were at capacity, and
that help manage the brands identity as well as their best bet was to park near IKEA. Said Greg
opportunities for customers to win gift cards, Ahearn, senior vice president of marketing and
receive special offers, enter contests, and much e-commerce for Toys R Us, Its one of the
more. For one special Pinkapalooza event in greatest emerging communication channels out
Los Angeles, featuring the band Fall Out Boy, there. This is a way people can stay connected
Facebook friends could download an invitation with the brand in a way theyve never been able
online, participate in games and contests via to before.
Adapted from: Social Media Can Boost Customer Loyalty, DM News, January 26, 2009, www.dmnews.com/Social-media-can-boost-
customer-loyalty/article/126250 (accessed March 8, 2012); Stephanie Rosenbloom and Karen Ann Cullotta, Buying, Selling and Twittering All
the Way, New York Times, November 28,2009, www.nytimes.com/2009/11/28/technology/28twitter.html?th&emc=th (accessed March 8, 2012).

in just one direction, with companies pushing their
Ethics and Social
message out to consumers. The growth of social
Responsibility
media and mobile communications, however, has
altered that pattern radically, turning marketing Other major influences on fashion marketing in the
into a two-way street where consumers are active twenty-first century are ethics and social responsi-
participants in responding to, and sometimes actu- bility. Ethics is a system of moral values, or a set of
ally shaping, the message. principles that define right and wrong. Both busi-
As a result, marketers are scrambling to keep nesses and consumers engage in ethical or unethical
up with the rapidly changing landscape, which behavior. Purchasing an outfit with the intent
includes media toolsand therefore requires to wear it to a special party and then return it to
media strategiesthat did not exist just a few the store is unethical consumer behavior. A busi-
years ago. Fashion marketers realize that staying ness that realizes it produced flawed merchandise
up-to-date on these new marketing techniques is and immediately alerts customers to arrange an
critical if they want to maintain a competitive edge. exchange is acting in an ethical manner. Ethics are
As one expert stated, Studying how shoppers use not always so clear-cut. To some consumers, the use
social media not only provides an understanding of fur in clothing or the testing of cosmetics prod-
of shoppers, but it also represents a vehicle for get- ucts on animals signifies unethical behavior on the
ting relevant information to shoppers when and part of marketers, while other consumers may see
where they need it. From what are now relatively
10
nothing wrong with those practices.
standard company Web sites and e-mail marketing Companies are only as ethical as the people
programs, companies have expanded their efforts who run them, and most businesses recognize
to include blogging, creating Facebook and Twitter that sound ethics engenders trust among a com-
accounts, and developing mobile marketing strat- panys stakeholdersthat is, those people and
egies that send up-to-the-minute information organizations that have an investment or other
to consumers smartphones and other handheld interest in the business, including its customers,
devices, all in order to convey their marketing employees, stockholders, suppliers, and govern-
message to consumers where they are most likely ment. A business that is trustworthy is one that
to see it and respond to it. Marketers are also mon- customers tend to return to time and again. On
itoring blogs and social media sites to learn what the other hand, poor ethics discourages customers
consumers are saying about their products so they from repeat purchasing. Say that a design company
can themselves respond or adjust their own mar- intentionally orders inferior fabric for its uphol-
keting messages. And by the time you are reading stered furniture, or purposely cuts corners in its
this, technology applications that impact mar- manufacturing process in order to make a bigger
keting strategies will very likely be evolving even profit for itself. When customers buy and use the
further. chairs and sofas and find that the products dont
hold up as expected, they lose confidence in that

Table 1.1 Sample Ethical Issues Related to the Marketing Mix
Marketing Mix
Potential Issue Unethical Activity
Element
Product Manufacturing flaws Intentionally using materials or production techniques

inferior to what the price reflects; covering up defects
that could cause harm to a consumer
Price Price manipulation Raising the regular price on an item in advance of a sale
in order to claim a reduced price for the sale period
Distribution Counterfeiting Using the Internet to sell counterfeit products, such as

(Place) apparel, handbags, or jewelry, knowing that consumers
cannot examine the goods prior to purchase
Promotion False advertising Using deception or misleading statements in advertising

or personal selling situation; withholding key product
information that could affect a purchase decision
Adapted from: William M. Pride and O.C. Ferrell, Marketing, 14th Edition (Boston: Houghton Mifflin, 2008), p. 97.
marketers goods. Table 1.1 describes sample eth- oversee the manufacture of their goods in devel-
ical issues related to the marketing mix. oping nations to verify that factory employees are
Closely related to ethics is the issue of social paid fairly and have a safe workplace. In addition,
responsibility. Social responsibility refers to the many fashion companies donate certain profits or
principle that everyone is responsible for making hold events to raise funds for charitable causes,
the world a better place for all its inhabitants. such as Banana Republics fashion show to benefit
Among the areas in which fashion marketers may the Leukemia and Lymphoma Society.
exercise social responsibility include protecting
the environment, ensuring that their workers have Environmental Responsibility
safe conditions and receive a fair wage, and giving and Fashion Marketing
back through community service and charitable The environment is among the most prominent
donations. issues of social responsibility that fashion mar-
Fashion organizations that practice the social keters are addressing today, whether through
marketing concept build their marketing efforts on adopting more ecologically sound manufacturing
a foundation of striving to maintain societys well- practices, reducing their waste and carbon foot-
being while satisfying customers needs and wants. print, or practicing sustainability through recycling
For example, Gap and Nike, among others, carefully and use of renewable resources. Creating a more

not use pesticides or chemicals in the growing pro-
cess, or using renewable materials such as bamboo,
which is plentiful and replenishes itself quickly. In
addition, because dyeing fabrics such as denim can
be a harmful source of water pollution, some cotton
farmers have begun growing cotton in shades of
green, gray, and beige to be woven into fabrics that
need no dyeing.
One apparel marketer, Fashion & Earth, sells
nothing but green fashionsthat is, apparel
made from organic and sustainable textiles
including bamboo, organic cotton, hemp, and soy.
The company states that it is championing a new
kind of business model that makes doing good for
the earth second nature, starting with the prod-
ucts we offer.11 Retailers such as Lululemon, H&M,
and Target are demonstrating social responsibility
Figure 1.13 Many fashion companies are now involved by responding to consumers requests for green
in green marketing, and some, like Fashion & Earth, offer fashions and providing garments clearly labeled
nothing but green fashions.
sustainable or organic. These goods appeal to an
increasing number of customers who are concerned
with protecting the environment for today and for
environmentally friendly business operation has the future.
been dubbed green marketing, a business
approach that protects the environment throughout
the development and marketing of a companys What Do You Think?
products. For example, a growing number of mar- Which fashion businesses stand out in your
keters are designing their products with organic mind as demonstrating social and environmental
textiles, which are produced from crops that do responsibility? How are they doing this?

Summary
The purpose of marketing is to create, commu- focus on the desires of target customers. Under
nicate, and deliver value to customers and build the marketing concept, companies determine what
strong customer relationships so that marketers customers want and then supply it, knowing that if
receive value in return. Fashion marketing applies they satisfy their customers, theyll achieve profits.
marketing processes and activities to currently With the societal marketing concept, fashion mar-
popular designed products. Because of the changing keters focus not only on what customers want
nature of fashion, fashion marketing is dynamic and but also on what is good for society as a whole. To
must constantly evolve to keep pace with trends and carry out their chosen strategy, companies develop
address consumers desire for newness. The long- marketing plans that incorporate the elements
term goal of any marketer is customer loyalty. of the marketing mix: product, price, place, and
Marketing begins with identifying the cus- promotion.
tomers the company can serve best and then In the twenty-first century, several major trends
working to build strong customer relationships. The are having a strong impact on fashion marketing.
fashion marketing process involves researching cus- Globalization is opening new opportunities for
tomer needs and wants and selecting appropriate more companies than ever to seek out additional
target markets; creating a product that offers a high markets for their products around the world. Social
perceived value to target customers; developing media and mobile communications are dramatically
a customer-driven marketing plan that commu- changing the way marketers communicate with
nicates the products benefits to customers; and customers. And ethics and social responsibility are
building trust and satisfaction with customers for playing an ever-greater role in fashion companies
long-term loyalty and profitability. marketing strategy, as consumers seek products
Most fashion organizations use either the mar- from marketers they trust to act in the best interest
keting concept or the societal marketing concept as of both customers and society, including by pro-
the approach to their marketing strategy, since both tecting the environment.

Case Study 1.1
Macys New Marketing Strategy Makes Customers the Focus
T he overriding importance of putting customers first

is not news to anyone in the business of fashion mar-
keting. But it is news when a leading fashion marketer
Creating a customer-champion team. At Macys,
Chairman and CEO Terry Lundgren calls himself the
chief customer officer.
undertakes a major overhaul of its marketing strategy in Using the Web site as the hub of the brand. Anything
order to better address its target customers needs and and everything a customer should ever want to do,
wantswhich is precisely what Macys recently did. they should be able to do on Macys.com, Sachse said.
It began with an intense research project aimed at There isnt anything more powerful that I have in my
better understanding Macys current customers. The hands than Macys.com as a marketing tool.
company conducted dozens of focus groups and talked Finding a campaign and a cause that customersand
with nearly a thousand people walking out of its stores. employeeswill rally around. For Macys, with its long,
It leveraged research data from The NPD Group, a leading storied history, one such program was its Believe
market research firm, for a holistic understanding of its campaign, where for each letter to Santa brought into
customers, and combed through all their transactional Macys, the company would donate $1 to the Make-
data to discover themes in buying patterns and shopping A-Wish Foundation. As an impetus to bring people
habits. From all those efforts, the company identified one to the stores, the campaign was very successful. We
overwhelming finding. As stated by Peter Sachse, chief had classrooms that used the Santa letter as a writing
marketing officer, What we dont need to do is get new lessonthen they came as a field trip to bring them
customers. We realized that all we need to do is take care all in, Sachse said. Whats more, the company received
of those who already love us. thousands of e-mails from its own employees about
Operating with a new customer-centric focus, Macys how proud they were of Macys commitment to give
set out on a goal to encourage each existing customer to back to communities. And employees feeling good
visit the store one more time each year. Half the battle about their company ultimately leads to a better
is won if we can get them to walk into our store, Sachse customer experience.
said. And if we convert them [to a sale] during that visit,
Adapted from: Ellen Davis, Macys CMO Takes Unconventional Approach: We
our [same] store sales will explode.
Dont Need to Get New Customers, Retails BIG Blog, March 3, 2010, http://
To accomplish that goal, there are a number of cus- blog.nrf.com/2010/03/03/macys-cmo-takes-unconventional-approach-we-
tomer-focused marketing tactics Macys is employing. dont-need-to-get-new-customers/ (accessed March 8, 2012).
These include the following:

Making merchandising decisions with the customer in Questions
mind. Macys used to let buyers make merchandising
1. W
hy do you think Macys undertook the dramatic
decisions based strictly on profit and loss statements.
overhaul of its marketing strategy?
Now the company layers customer insight over the
2. W
hy was it important for Macys to use the
sales data, which helps buyers make more holistic
knowledge it had gained about its target customers
decisions about how pulling a product might impact
when making decisions about its merchandise
customer behavior and overall sales. The product is
assortments?
no longer king, Sachse said. Instead, the customer is
3. M
acys Believe campaign showed social
queen.
responsibility, as well as building customer and
Starting all meetings by asking, What will our customer
employee loyalty. What would you suggest as a future
get out of this discussion? As Sachse noted, If theres
campaign for Macys that would build further on
no answer, the meeting is over.
those goals? What cause would it benefit, and how
would it engage customers and employees?

Key Terms 3. Citing an example, explain the fashion mar-
keting process.
customer relationship management (CRM) 4. Draw a diagram showing the components of the
ethics marketing mix and state their function.
exchange 5. How are social media and mobile communica-
fashion tions affecting fashion marketing? Give an
fashion marketing example.
goods 6. Explain the importance of ethics and social
green marketing responsibility to fashion marketers and to
market society.
market segment
market segmentation
marketing
Discussion Activities
marketing plan and Projects
marketing mix
need 1. As you go through the day, make note of
perceived value ten examples of fashion marketing that you
product observe or hear, and record what they were
services and where you noticed them. Report your
social responsibility results to the class.
stakeholders 2. Select a fashion product or company that you
target market feel loyal to, and describe how the elements of
value proposition the marketing mix are influencing your loyalty.
want 3. Search your closet and identify five items
that were each produced in a different foreign
country. What similarities did you find? Share
your findings with other class members.
Review Questions 4. Go to the Web site of a fashion marketer, and
look for two or three examples of how that
1. Write a comprehensive definition of the term company incorporates social responsibility in
marketing. Explain fashion marketing and its business. Write a brief report giving your
describe the meaning of the term fashion. opinion of how effective the companys efforts
2. Explain the long-term goal of marketing are in improving society or protecting the
and, using examples, describe how fashion environment.
marketers build customer loyalty.

Your Marketing Plan or company and provides direction and control in
reaching its goals. Every company that sells prod-
A marketing plan is a written document that ucts develops (or should develop) a marketing plan
indicates the tasks that are to be accomplished in for the company itself, as well as for its goods and
order to reach an organizations objectives; it is the services. Other types of organizations, such as uni-
foundation of the companys marketing strategies. versities, museums, and charities, also create and
The marketing plan charts the course of the product utilize marketing plans in order to accomplish their
Table 1.2 Components of a Marketing Plan
Plan Component Component Purpose
Executive Summary Offers a brief overview of the total marketing plan for easy reference to
key points
Analysis of Market Examines the current market situation for the company and its
Environment products, including research on target markets and competition, as
well as on external factors influencing the market, such as economic
trends, technology advancements, new legislation
Strengths, Weaknesses, Analyzes the company or product in relation to competitors, and

Opportunities, and Threats assesses areas that could open beneficial avenues to pursue or create
(SWOT) Analysis stumbling blocks to avoid
Marketing Objectives Sets forth the specific, measurable goals the company wants to achieve
through the marketing plan, usually within a specified time frame
Marketing Strategies Outlines the methods that will be used to attain the companys
marketing objectives, describing strategy for each element of the
marketing mix and how the strategy addresses opportunities, threats,
and other issues raised previously in the plan
Marketing Implementation Details how the marketing strategies will be put into action, including
specific activities, timeline, budget, and assignment of responsibilities
for each activity
Evaluation and Control Explains how results of the plan will be measured and evaluated for
effectiveness, allowing management to review results and make any
necessary adjustments to the plan

objectives. Many individuals have developed useful 3. Tom Asacker, A Clear Eye for Branding (Ithaca,
marketing plans for themselves as guides toward NY: Paramount Market Publishing, Inc., 2005),
attaining their career objectives. p. 29.
A course project for you as a student is to 4. Patricia Mink Rath, Stefani Bay, Richard
develop a marketing plan for a company or product, Petrizzi, and Penny Gill, The Why of the Buy:
according to your instructors directions, creating Consumer Behavior and Fashion Marketing
each part as you study it throughout the course. (New York: Fairchild Books, 2008), p. 5.
You will note at the end of each chapter this sec- 5. Armstrong and Kotler, Marketing: An
tion entitled Developing Your Marketing Plan, Introduction, 10th ed. (Upper Saddle River, NJ:
which will indicate the activities you are expected Pearson Prentice Hall, 2011), p. 8.
to complete to build your plan. Please look over the 6. Sean John, www.seanjohn.com/#/about/
sample marketing plan outline in Table 1.2, and (accessed March 6, 2012).
refer back to it as you develop your own with each 7. Op. cit.
chapter in this book. Every marketing plan is, of 8. Wendy Donahue, Making a Fashion
course, unique; however, it will also be useful for StatementOn Her Terms, Chicago Tribune,
you to review Appendix A: Sample Marketing Plan October 10, 2010, pp. 4, 5.
at the back of this book. 9. Patagonia Web site, http://www.patagonia.
Best wishes to you as you set out on this fashion com/us/patagonia.go?assetid=10097 (accessed
marketing endeavor! March 8, 2012).
10. Jim Lucas, The Time Is Now to Take Shopper
Marketing beyond the Store, Advertising
References Age, http://adage.com/article/cmo-strategy/
1. American Marketing Association, Dictionary, marketing-taking-shopper-marketing-
http://www.marketingpower.com/_layouts/ store/145430/ (accessed March 8, 2012).
Dictionary.aspx?dLetter=M (accessed March 8, 11. Fashion & Earth, About Fashion & Earth,
2012). http://www.fashionandearth.com/us/about-us
2. Gary Armstrong and Philip Kotler, Marketing: (accessed March 8, 2012).
An Introduction, 10th ed. (Upper Saddle River,
NJ: Pearson Prentice Hall, 2011), p. 5.

Marketing Fashion A Global Perspective

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Marketing Fashion:

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Patricia Mink Rath

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Preface and Acknowledgments xvii

Part I: Defining Fashion Marketing and How It Works xxii

Part II: Building a Fashion Marketing Strategy 97

Part IV: Communicating Fashions Value through Promotion 372

Appendix A: Sample Marketing Plan 459

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Part I: Social Media and Mobile

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xii Extended Contents

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Extended Contents xiii

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xiv Extended Contents

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xvi Extended Contents

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What Do I Need to Know about Developing and

How to define marketing and fashion marketing

The components of the marketing mix and their function

Major trends that impact fashion marketing in the twenty-first century

The importance of ethics and social responsibility in fashion marketing

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2 Part I: Defining Fashion Marketing and How It Works

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and Fashion Marketing? stantly evolving as customers change their minds

Chapter 1: Developing and Maintaining Profitable Customer Relationships 3

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4 Part I: Defining Fashion Marketing and How It Works

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6 Part I: Defining Fashion Marketing and How It Works

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Chapter 1: Developing and Maintaining Profitable Customer Relationships 7

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7. Gather customer 3. Plan product

6. Evaluate 5. Inform the public 4. Place the

8 Part I: Defining Fashion Marketing and How It Works

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10 Part I: Defining Fashion Marketing and How It Works

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Attracting customers and keeping them are two dif-