FM 117 Midterm: Midterm notes - Chapter 1-10

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FM – Fashion Merchandising Mgt
FM 117
Gary Wolf

Marketing is managing profitable customer relationships. It is the activity, set of instructions and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large. 1. Production Concept The idea that Consumers are interests in product availability at low prices. They will favor products that are highly affordable. Thus organization should work towards cheap inefficient production, intensive distribution, market expansion, and specifications color, size, material. 2. Product Concept That consumers will buy the product that will offer them the highest quality, best performance and most features. It includes Quality improvement, adding features to products. Leads towards Marketing Myopia. 3. Marketing Myopia The mistake many marketers make of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products. 4. Selling Concept The idea that consumers are not likely to buy a product unless they are aggressively persuaded to do so. Thus companys objectives are just to sell. There is lack of concern for customer needs 5. Marketing Concept The idea that to be successful a company must determine the needs and wants of specific target markets and deliver the desired satisfactions better than the competition. Companies must make what the can sell and focus on buyers needs. To implement the marketing concept, follow these 6. Two perspectives used to study consumer behavior that is done in Consumer research are POSITIVIST approach Objective information received; There is an accurate answer INTERPRETIVIST approach Subjective information is received; Open ended as to how you likeddisliked. 7. Targeting The selection of one or more of segments to pursue cultivate. Strategies of targeting Standard Target Market The market is undifferentiated; everyone is the same (Mass markets); Macys, F21, Target, Kmart, HM, Walmart. Concentrated Target Market ; NICHE market only one very defined and specific market segment. Differentiated Global Marketing Multi segmented market Ex 1. Ralph Lauren has many subsidiaries Polo, Ralph Sport each one has a different value proposition and have a different target market. 2. Saks (has most value) and Saks off 5 (discounted store) + they have ecommerce they are a multi segmented brand. But they want to emphasize and market the Luxury side (most expensive + with most value side) the most because it will have a trickledown effect and give positive response to other segments. 8. Positioning It includes developing a distinct image for the product in the mind of the consumer, Successful positioning includes Communicating the benefits of the product, Communicating a unique selling proposition. 9. Societal Concept Marketers adhere to the principles of social responsibility in marketing of their goods and services. This means they must aim to satisfy the needs and wants of their target markets in ways to preserve and enhance the wellbeing of consumers and society as a whole. 10. Customer Value It is defined as the ratio between the customers perceived benefits and the resources used to obtain those benefits. Value = BenefitCost. Perceived Value is relative and subjective. 11. Customer Satisfaction The individuals perception of the performance of the product or service in relation to his or her expectations. Customers identified based on loyalty include Loyalists Keep coming back to buy products, but not in diverse conditions. Apostles Are loyal but advocate their loyalty WOM marketing, viral marketing. Talk about product. Defectors Constantly change product or brand depends on price or how easily available Terrorists Constantly complaining about the brandproducts. Hostages Have to buy it, no choice Mercenaries Customers may be satisfied but still looking for better deals. 13. Customer Retention The objective of providing value is to retain highly satisfied customers. Loyal customers are key because they buy more products, are less price sensitive, pay less attention to competitors advertising + spread positive WOM. They are loyalists Apostles for brands. They get a lifetime value (more benefits) from the brand.
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