MARKETING RECAP LECTURE

MARKETING RECAP LECTURE:

WHAT IS CONSUMER BEHAVIOUR?:

• The study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires (Solomon et al, 2011)

MASLOW'S HIERARCHY OF NEEDS:

• SELF-ACTUALISATION: the desire for self-fulfilment in achieving whatever someone can
• ESTEEM AND STATUS: striving to achieve a high standing in relation to other people
• SOCIAL NEEDS: we need social experience and desire products and services that facilitate social exchange 
• SAFETY NEEDS: protection from the unpredictable happening in life (e.g. accidents)
• PHYSIOLOGICAL NEEDS: the fundamentals of survival 
• SELF ESTEEM:  (Richins 1993; Kees et al, 2008) - Marketers use attractive models for a social comparison process where young female consumers compare themselves and feel inadequate against them, ironically when showed adverts with 'real sized women' the advert scored less favourably 

DIVERSE AND CHANGING MARKETS:

• Most fashion marketers try to attract several market segments at once
• consumer buying habits done remain the same changes in economic or coal conditions can affect the consumers choices 

SEGMENTING A MARKET:

• MARKETING SEGMENTATION: is a way of analysing a market by categorising their specific characteristics 

SPECIAL CHARACTERISTICS INCLUDE:

• demographics 
• psychographics 
• geographics
• behaviouristic/usage 
• station 
• geodemographic 

• DEMOGRAPHICS: are statistics that describe a population in terms of personal characteristics such as age, gender, income, ethnic background, education, religion, and lifestyle 
• PSYCHOGRAPHICS: are studies of consumers based on social and psychological characteristics such as attitudes, interests and opinions 
• GEOGRAPHICS: are statistics about where people live 
• BEHAVIORISTICS: are static about consumers based on their knowledge, attitudes, use, or response to a product 

MARKETERS MAY LOOK AT THE PURCHASE OCCASION FR A PRODUCT, THE PRODUCT BENEFITS SOUGHT BY CONSUMERS, OR USAGE LEBEL AND COMMITMENT TOWARDS A PRODUCT:

• PURCHASE OCCASION:  identifies the instance when a consumer might use a product (purchase occasion: 'after-five', or work attire)
• PRODUCT BENEFITS: identifies the benefits that consumers desire in a fashion product or service (product benefits: stain-resistance or wrinkle-free)
• USAGE LEVEL AND COMMITMENT: identifies how often they use a product and their loyalty to purchasing it (usage level and commitment: will you buy a replacement)
• GEODEMOGRAPHIC SEGMENTATION: hybrid segmentation: you are where you live (financial means, tastes, preferences, lifestyles and consumption habits)

TARGETING:

The next step is targeting, in which marketers evaluate each potential segment and decide upon which groups of customers they will invest marketing resources 

• Selected groups are known as target markets 
• How is technology making it easier for fashion firms to target potential customers?

BRAND POSITIONING STATEMENT:

• BRAND POSITIONING: is defined as the conceptual place you want to own in the target consumer's mind - the benefits you want them to think of when they think of the brand. An  effective brand positioning strategy will maximise customer relevancy and competitive distinctiveness, in maximising brand value 
• When doing research to inform a brand positioning project, you must be able to answer the following question:

1. What does the brand community currently believe about or value in the brand?
2. What might the brand community believe or value about the brand in the future?
3. What does the organisation currently claim about the brand?
4. What would organisation like the brand to become down the road?

POSITIONING STATEMENT MUST ADDRESS THREE KEY QUESTIONS:

• Who are the customers?
• What is the set of needs that the product or service fulfils?
• Why is this product/service the best option to satisfy your needs (relative to competition or substitute; support for why?)
• This statement is the roadmap for a plethora of implementation decisions involved in marketing a product (both inside and outside the company) 

THE FINAL STEP: POSITIONING:

• How do you want to be seen in the market place?
• What is your key competitive advantage?
• What do you want to highlight?
• PRODUCT DIFFERENTIATION: e.g. the lynx effect will make you more sexually attractive towards women
• SERVICE DIFFERENTIATION: e.g. kia offer a 7 year warranty 
• PERSONNEL DIFFERENTIATION: e.g. apple geniuses

WHAT IS MARKET MAPPING?

• The market map illustrates the range of 'positions' that a product can take in a market based on two dimensions that are important to customers

PRODUCT LIFE CYCLE:

The fashion cycle:

• FASHION CYCLE: the ongoing introduction, rise, peak, decline, and obsolescence in popularity of specific styles or shapes
• All styles that come into fashion rotate through the fashion cycle
• STYLE: is a basic and distinctive mode of expression
• FASHION: is a currency accepted popular style in a given field
• FAD: are temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity 
• Cycles have no specific lengths
• RECURRING FASHIONS: styles which have been in fashion at one time, gone out of fashion, and come back in fashion again 
• Fashion trends seem to recur about every generation or every 20-30 years
• Fashion cycles are less distinct now than in the past 

PRODUCT LIFESTYLE:

Stage 1: Introduction:

• The first stage of the fashion cycle is when new styles, colours, textures, and fabrics are introduced 
• The new style may be accepted by a small number of people called fashion leaders
• Promotional activities include fashion shows and advertising in high fashion magazines 
• Fashions are produced in small quantities at high prices 
• Retail buyers purchase limited numbers to see if the style will be accepted 

Stage 2: Growth (Rise):

• The second stage of the fashion cycle when consumer interest grows and the fashion becomes more readily accepted by consumers 
• Mass production brings down the price of the fashion, which results in more sales
• Styles are manufactured in less expensive materials and in lower quality construction than the original style
• Promotional efforts are increased in high fashion magazines to heighten consumer awareness
• Retail buyers order items in quantity 

Stage 3: Maturity (Peak):

• The third stage of the fashion cycle during which a style is at its height of popularity
• The fashion id demanded by almost everyone because it is now within the price range of most consumers and is mass produced in many variations 
• Each retailer tries to persuade customers that its version of the style is the best 

Stage 4: Decline:

• The fourth stage of the fashion cycle when the market is saturated and popularity decreases 
• The fashion is overused and becomes dull and boring
• As the fashion decreases in popularity, retailers mark down their prices
• Promotions centre around major clearance or closeout sales of the fashion

Stage 5: Obsolescence (Rejection of a Style):

• The fifth of the fashion cycle when the style is rejected, is undesirable at any price, is no longer worn, and is no longer produced
• Ends as an accepted fashion

EXTENSION STRATEGY:

• Can be defined as - a medium to long term plan for lengthening a products life cycle. It is likely to be implemented during the maturity or early decline 
• Extension strategies include:

1. Redesigning the product - new and improved 
2. Adding an extra feature - now with (colour, quality, texture)
3. Changing the packaging and advertising to appeal to a new market segment 
4. Providing a unique selling point (USP)