Introduction

Marketing is a business function and set of processes involved in creating,

delivering and communicating value to customers, followed by managing
customer relationships, resulting in mutual benefit for the business and its
stakeholders.
Marketing is a buyer-oriented process involving the creation, communication, and
delivery of value even as it strives to build and retain lifetime customer loyalty.
There are various standard definitions of marketing. While the words used may
be different, it is obvious that all marketing activity is about the customer,
focused at acquiring them and retaining them.

Marketing is a business function and set of processes involved in creating,

delivering and communicating value to customers, followed by managing
customer relationships, resulting in mutual benefit for the business and its
stakeholders.

Marketing is also the science of selecting target markets via market analysis and
segmentation, with a comprehensive knowledge of buying behaviour, aiming to
provide the best customer value.

However, marketing is successful only when an organization’s mission, vision,

tasks and ability to leverage technology align with and complement each other,
and the business as a whole.

Although marketing viewed as an indicator of a firm’s success, it is a matter of

perspective.

For example, brands like Toyota, Nissan and Nestle must rely on marketing to
grow and keep their customer base. For regulated industries like utilities and
medical care and small businesses with unique products, marketing may be low
key and confined to flyers.

Evolution of Marketing
The concept of marketing has changed over time and still continues to change to
this day. Marketing supposedly evolved through classical stages as well as
contemporary stages. These distinct eras are taught in business schools and well
as to future marketing professionals. As these eras progressed, the concept of
marketing became stronger.

1. Production Orientation Philosophy:

Till 1930s, there prevailed a strong feeling that whenever a firm has a good
product, it results in automatic consumer response and that needed little or no
promotional efforts. This production-oriented marketing concept was built on
“Good wine needs no push.” That is, if the product is really good and the price is
reasonable, there is no need for special marketing efforts.
2. Sales Orientation Philosophy:
The failures of the production orientation philosophy of 1930s paved the way for
change in the outlook that was possible during 1940s. This reshaped philosophy
was sales-orientation that holds good to a certain extent even today.

It states that mere making available the best product is not enough; it is futile
unless the firm resorts to aggressive salesmanship.

Effective sales-promotion, advertising and public- relations are of top importance.

High pressure salesmanship and heavy doses of advertising are a must to move
the products of the firm.

3. Customer Orientation Philosophy:

This philosophy was brought into play during 1950s and points out that the
fundamental task of business undertaking is to study and understand the needs,
wants, desires and values of potential consumers and produce the goods in the
light of these findings so that consumer specifications are met totally.

Here, the starting point is the customer rather than the product. The enterprise is
to commence with the consumer and end with the requisite product. It
emphasizes the role of marketing research well before the product is made
available in the market place.

4. Social Orientation Philosophy:

There has been a further refinement in the marketing concept particularly during
1970s and 1980s. Accordingly, the new concept goes beyond understanding the
consumer needs and matching the products accordingly.
This philosophy cares for not only consumer satisfaction but for consumer welfare
or social welfare. Such social welfare speaks of pollution-free environment and
quality of human life.

Thus, a firm manufacturing a pack of cigarettes for consumer must not only
produce the best cigarettes but pollution-free cigarettes; an automobile not only
fuel efficient but less pollutant one.

In other words, the firm is to discharge its social responsibilities. Thus, social
welfare becomes the added dimension.

The Marketing Process Steps

1. Analysis of the opportunities in the market.

2. Selection of the target market.
3. Development of marketing mix.
4. Management of marketing efforts.

1. Analysis of the Opportunities in the Market

The first component of the Marketing Process is to analyze the market in order to
find the opportunities that should be availed. These opportunities are related to
the needs and wants of the customers that are not properly satisfied by the
competitors in the market. A company that is initiating the marketing process
focuses the opportunities that would be beneficial in the long run success so that
its performance would be effectively improved. For this purpose, the company
gets help from the marketing information system (MIS), which plays a significant
role in providing useful information about the market.

Marketing Environment – Micro and Macro Environment

The company also conducts effective market research that would tell him the
value able information about the customers, competitors, general trends, and any
extraordinary change occurred in the market that can be useful for the company.
Then company identifies the potential opportunities from the collected
information and split the whole market into different segment. These segments
are based on some factors like age group, geographical location etc. The company
evaluates each segment separately to check the potential of the segment in the
light of its strengths and weaknesses. Finally, it selects the target market segment
to proceed further.

2. Selection of the Target Market

This is the most important step of the marketing process in which the target
customers are selected. For this purpose, the company conducts a careful analysis
of the target markets in order to choose the final customers. As it is obvious that
the company do not satisfy the needs and wants of the whole market therefore it
must divide the whole market into different segments and choose the segment
that will best meet its strengths and opportunities. In this regards, there are
certain step you need to follow.

 Market Segmentation:

The process in which the whole market is split into different units of consumers,
each unit having similar wants, characteristics and behavior of consumers which
need different marketing mixes and strategies.

 Market Targeting

In this process the targeted segments of the total market are evaluated to
ascertain the attractiveness of each segment so that the one or two most suitable
and potential segments should be selected and entered. The simple rule of
selecting the target unit or segment is that it must provide the opportunity to the
company to create potential customer value in the long run. Another important
rule is that a certain company has the option to satisfy the needs and wants of
one or two segments. In this case the company focuses on that relevant segments
and develops its products and strategies for them only. Such small segments are
called “niches”. The company has also another option to split the whole market
into different segments and offers different products and marketing mixes to
each segment of the market. But the most effective method is to focus on one or
two segments and after succeeding in those segments, further new segments
should be targeted.

 Market Positioning:
This concept relates to the positioning of the product of a company in the minds
of the customers as compared to the products of competitors. In other words the
company tries to maintain a clear and specific perception in customers about its
products. When a company wants to position its product, it first specifies the
competitive edge for which it offers competitive advantages to its target
customers. The whole marketing program of the company should concentrate its
identified positioning strategy. The positioning is effective when the company
truly provides the efficient, competitive offering to its customers in order to give
them maximum value as compared to the offering of competitors.

3. Development of Marketing Mix

After setting of a complete marketing strategy of a company, then it is ready to

initiate the planning of its marketing mix.

 Marketing Mix

Marketing Mix is composed of certain variables of markets that are mixed by the
company in order to generate certain desired response in the targeted segments.

In fact the demand of the product is influenced by the use of certain activities of
the marketing mix. The marketing mix is composed of the following four P’s.

01- Product: means any offering (goods or services) to the market by the
company.

02- Price: means the money paid by the customers to obtain the product.

03- Place: means the efforts which ensure the availability of the product in the
market to customers.

04- Promotion: means all the efforts by the company that ensure the sale of
products to customers through better provision of information about the
advantages of the product.

A company develops an effective marketing program in which a suitable

combination of marketing mix is blended so that they are efficiently coordinated
into a useful program to provide the greater customer value in order to
accomplish the company’s objectives.

4P’s of marketing mix are from the seller perspective. In certain cases the 4C’s
are replaced by the 4P’s which are

1. Product means Customer Solution

2. Price means Customer Cost
3. Place means Convenience
4. Promotion means Communication

4. Management of Marketing Efforts

This is actually the action phase of the development marketing program in which
a suitable marketing mix is set for a target market. For the management of
marketing efforts four functions are adopted which are as follow.

01- Analysis of the Market in which the company identifies the internal strengths
and weaknesses along with the external opportunities and threats.

02- Marketing Planning in which certain marketing plans or strategies are

developed so that the overall objective of the marketing should be accomplished.

03- Marketing Implementation in which the developed plans and strategies are
practically implemented in order to achieve the marketing objectives.

04- Marketing Control in which the performance results of the marketing

plans and strategies are evaluated and necessary steps are taken to ensure the
accomplishment of overall marketing objectives of the company.

STP

The STP Model consists of three steps that help you analyze your offering and the
way you communicate its benefits and value to specific groups.

STP stands for:

• Step 1: Segment your market.

• Step 2: Target your best customers.

• Step 3: Position your offering.

This model is useful because it helps you identify your most valuable types of
customer, and then develop products and marketing messages that ideally suit
them. This allows you to engage with each group better, personalize your
messages, and sell much more of your product.
Introduction

Urban Outfitters, is one of the fastest growing success stories in the retail apparel
sector over the past several years, and has become one of the most popular
brand houses to younger generations despite its 40+ year operating history. The
retailer markets its apparel with a similar multi-brand approach, utilize to cater to
consumers with differing willingness-to-pay characteristics. Urban Outfitters, Inc,
run over 4000 retail locations across five retail brands, there are Free People,
Terrain, Urban Outfitters, Anthropologie, and BHLDN brands; which operated
wholesale segment by Free People brand. Company now headquarters is in
Philadelphia Navy Yard. Urban Outfitters founded in 1972 in Philadelphia,
Pennsylvania by Richard Hayne and is originated as Free People. Products that the
company sells in a typical urban outfitter store cover anything from many
different funky vintage fashions from clothing to home furniture. The product line
range developed from hipster, bohemian, retro, humorous, furniture, vintage,
and incorporate high class brands with various designer partnerships. The Urban
Outfitters brand focus on young adults aged around 18 to 30 with a selection of
choices such as footwear, accessories, men and women fashion apparel along
with gifts and apartment.
The 4 p’s market mix
Products
Urban relies on small but frequent inventory flows Broad versus Deep: no large
bets in a few select items but broad assortment across a range of categories and
styles The Urban Outfitters Store provides a range of unique style miscellaneous
and furnishings products such as hipflasks and vintage, the product differentiation
prop up the retailer primary competitive advantage strategy. Moreover, new and
classic style clothes and daily household appliances (eg old fashion curtains and
cocktails modulator) will sometimes sell together at the same time; this is
because would like to give some specific customer found a long-awaited surprise.
Urban Outfitters targets young adults aged 18 to 30. The product offering
includes women’s and men’s fashion apparel, footwear and accessories, as well as
an eclectic mix of apartment wares and gifts. Apartment wares range from rugs,
pillows and shower curtains to books, candles and novelties. Urban Outfitters is
uniquely positioned thanks to its mix of own-label and third-party branded

assortments. Urban not only sells its own brand, but also exclusive products and
external brands, such as Ray Bans, UNIF, House of Holland, Vivian Westwood etc.
Price
Although the price of Urban Outfitters products is much higher cost than other
competitor such as GAP or H&M, but it is undeniable that Urban Outfitters always
keep their product uniqueness and quality to support their pricing strategy.
However, if compared with competitor such as Zara and Topshop, the pricing of
Urban Outfitters share quite similar level with them and as a result, Urban
Outfitters cost has showed the standard and specialty of their product, just like
the competitor above, is not “one of kind” products that can be seen in small
shops
Promotion
“We spend the money that other companies spend on marketing and advertising,
to magnify our store experience” - Richard HAYNE, URBN group founder and CEO
Urban outfitter promotional policy is mainly based on social media. As UBRN’s
targeted customer is from age group of 18-30, brand has kept up with current
generation’s fascination and enthusiasm with social media. URBN’s social media
outlets include: Twitter, Facebook, Instagram, Blogs and Foursquare. Twitter by
far has highest activity among all media outlets; with 915000 followers for
@UrabnOutfitters; 117000 followers for @freePeople. Another place URBN
thrives is at brands Facebook page; where they post pictures, contests and
upcoming events. With likes of 2,054,703 likes for UrbanOutfitter; 1,294,471 likes
for Free people, 912,795 likes for Anthropologie; Facebook is one of its main
promotional tools.
Place
Urban outfitters mission is to create store not only to shop but a place to live;
which is incorporated in all their store outlets. Majority of stores are in upscale
metropolitan area. Keeping in mind the demographics of its consumer and for
convenience URBN also have online store services and catalogue services
Urban Outfitters, mission is “ Not only a shop but a place to live”; has stores 840
m² (in average) located in large metropolitan areas, 2011 : 187 stores - 161 North
America, 26 Europe - Target: 350 stores - 300 North America, 50 Europe – along
with online stores in US, UK, France and Germany, worldwide deliveries and the
Urban Outfitters catalog.
Suppliers and Distribution Channels Urban Outfitters buys goods and product
from a various domestic and distributors. Furthermore, Urban Outfitters currently
focus on establishing a unique operating system, for some new store, the
company will spend 3% of total sales profits to elect a group with a mix of 20
procurement officers and fashion designer to travel around the world. Both will
travel down to the street, attraction or even small pubs to get new idea regarding
to current fashion trends and also decide which kind of materials or product
should import or purchase for Urban Outfitters in the future. The purpose of this
strategy is to always keep up to date to customer needs and wants, fashion idea,
and obtain customer feedback. Currently, Urban Outfitters is using an operations
system called “direct-to-customer”.

Segmentation
Urban Outfitters. Urban Outfitters targets young adults aged 18 to 30 through its
unique merchandise mix and compelling store environment. We have established
a reputation with these young adults, who are culturally sophisticated, self-
expressive and concerned with acceptance by their peer group. The product
offering includes women’s and men’s fashion apparel, footwear and accessories,
as well as an eclectic mix of apartment wares and gifts. Apartment wares range
from rugs, pillows and shower curtains to books, candles and novelties. Stores
average approximately 9,000 square feet of selling space, and typically carry an
estimated 35,000 to 40,000 stock keeping units (“SKUs”). Our stores are located in
large metropolitan areas, select university communities, specialty centers and
enclosed malls. Our stores accommodate our customers’ propensity not only to
shop, but also to congregate with their peers.

Targeting
Urban targets a slightly older, college and post-university customer, Urban
Outfitter sells chic and urban fashion. UBRN’s consumer group is from 18-30 age
group. Different brands of Urban Outfitters cater to different socio-economic
group. Urban outfitters for low range; free people for mid range and
anthropologie for high range. URBN uses lifestyle retailing to target the customer.
Not only does the brand sell apparel, home ware, and accessories but they appeal
to their customer’s sense of well-being as a whole. Lifestyle retailing affects both
individual and social identities. They first need to understand their individual
identity and then their social identity. Retailers have the power to shape and
mold these perceptions. Urban outfitters understands the importance of feeling
part of a social group, while still being in tune with your personal identity. That
balance must be in harmony. Once the social identity overtakes the personal
understanding of the self, the balance is lost and the brand has failed. Lifestyle
retailers aim to sell a wide variety of product to their customers, adding
convenience to their lives. For the customers, they seek out a lifestyle that is
recognizable and fits with their ideals. Even those who are not aware of this
process fit into a lifestyle that is exemplified by their favorite retailer.

Positioning
The considerable variety of stock gives Urban Outfitters a wide range of prices.
Whilst not in a position to compete with throw away fashion, prices differ from
label to label. With its wide assortment of products and equally varied pricing
URBN has positioned itself as one of the must have brands for young, hip,
urbanite. It is well priced to be in position with its competitors such as GAP,
Hollister, Zara; But has maintained unique identity as hip, eccentric and quirky;
cause of its vintage inspired, bohemian product assortment.
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hipster: Urban Outfitters soars - The Buzz - Investment and Stock Market News
buzz.money.cnn.com Company Profile for Urban Outfitters Inc in.reuters.com
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