Fashion

Marketing

Submitted to:
Asst. Prof. Mrs. Pragati Sinha

Submitted by:
Sneha Singh
FMM, 1st Semester

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Acknowledgement

I gratefully acknowledge the assistance, support and encouragement to the authorities of the
MIT Institute of Design, for their contribution throughout the project. This Journal would
not have been possible if Asst. Prof. Pragati Sinha had not guided and whose contributions
in stimulating suggestions and encouragement helped me in understanding the subject.

I have been continually guided by my professors and colleagues at MIT Institute of Design
They gave me good comments and criticisms on all the topics, and their responses
improved the topics immensely.
At last but not least my gratitude goes to all of my group mates who directly or indirectly
helped me to complete this project report.

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Preface

Marketing Fashion aims to offer you a contemporary visual guide to the fundamental
principles of marketing theory and branding practice. This journal explains key theoretical
concepts, illustrating how these might be applied within the ever-evolving context of the
global fashion and retail industry. Readers are led through the marketing process from
initial research through to the creation of marketing and branding campaigns. Examples
and case studies drawn from a broad range of fashion businesses help explain key
concepts, and comprehensive lists of industry resources. Marketing Fashion provides
many useful tips and inspirational ideas aimed at assisting the reader to:
•Study and understand marketing theory and practice
•Understand how fashion marketing and branding principles are put into action
•Design fashion products that can be marketed with ease
•Recognize the importance of research and market analysis, marketing mix, marketing
campaigns and marketing channels
•Analyse fashion consumers and understand their needs
•Create exciting and effective marketing and promotional campaigns for grasim brand.

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Fashion Marketing

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1.Fashion Marketing
Fashion marketing is now an essential area of study for all who plan a career in the fashion industry.
Students studying fashion, textile or accessory design, fashion management or buying and
merchandising will all find that marketing is the integral part of their study. Fashion, however, is
never static and fashion marketing does not always conform to standard theoretical formulae. To be
successful within the world of fashion marketing we need to build upon basic principles and adapt
ideas so as to meet the challenges of each new market situation.
Fashion firms depend upon customers making repeat purchases and the key to such loyalty is the
satisfaction of customers, needs with garments which are stylish, durable, easy to care, comfortable,
deliver perceived value for money.

Marketing and branding play a critical role in today's fashion industry, they are stimulating and
exciting disciplines that inform many of the creative decisions involved in design and product
development. Marketing bridges the gap between the intangibilities of fashion and the concrete
realties of business. It can be viewed as a holistic system connecting commercial goals and value
system of a business organization with the personal ideals, desires and actual needs of consumers.
Fashion is by its very nature a marketing tool. Marketing is part of its DNA it is inherent in its
substance and spirit. If it was not called fashion it would be plain apparel or garments, and these
words contrive to kill the very essence and flamboyance of fashion itself. Fashion allows us to
dream, it can transport us from the mundane to the glossy world of models catwalks and fantasies In
the magical realm of fashion, clothes transmute into season's must-haves a garment's shape and
proportion becomes a silhouette, a colour transforms from plain brown into glamorous mocha and
sheath of black fabric becomes a little black dress. It is hardly that fashion is so seductive, when so
much of the media focus centres on the more glamorous aspects of the industry Acres of press
coverage are dedicated to the reporting on the biannual designer catwalk shows, beautifully styled
fashion spreads display tantalizing looks created from the new season's collections and adverts
promoting an assortment of fashion, accessories and perfume.
Fashion is a complex cultural phenomenon but it is also a global manufacturing and retail industry,
the scope of which is immense. The industry extends to the agricultural, chemical and fibre
industries that produce and supply the raw materials for textile manufacturing through to those
working at the more glamorous end of the spectrum in the world of styling art direction,
photography advertising and media. Marketing operates at every level of the fashion system and
affects the entire industry supply chain from product development to retail; it is as relevant to
couture, luxury labels and designer brands as it is to independent niche labels or to the mass market
and volume apparel businesses. Marketing is the common denominator that ties it all together.
Fashion market sectors:
The fashion market is broken down into specific sectors so that companies are better able to analyze
market data and monitor their business results more effectively. Market statistics can be compiled
and analyzed by one or more of the following criteria-

•Market or product category-Apparel, accessories, perfume or homeware. The apparel market can be
further subdivided into womenswear, menswear and childrenswear.
•Product type, end-use of product or fashion style- Denim, lingerie, sportswear formal wear or
contemporary fashion.
•Market level- couture, luxury, mid-market, or value market
•Location of market- global, international, national or regional 5
Role Of Fashion Marketers

• Observe Fashion trends and keep abreast with fashion world.

• Give directions to manufacturers on quantity and kind of merchandise to produce.
• Responsible for identifying target market and target customers.
• Communicating and influencing customers
• Linking Designers or Brands or Retailers to public.
• Changing and reinventing strategies to meet demands of dynamic fashion industry.

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2. What is Marketing?
Marketing is intriguing in that it has been variously described as a business function,
business philosophy and also as a management or social process. Marketing should
really be viewed as a holistic system connecting a business with its customers.
Professor Philip Kotler, who has been described as the godfather of modern
marketing, believes that what makes a company is its marketing. Kotler considers
marketing to be both a science and an art. It is strategic and creative, requiring
systematic research and analysis as well as innovation, intuition and gut instinct.
The range and potential of marketing can be almost limitless, it may start way before
any product has been designed and continue long after a customer has purchased. This
scope and multi-dimensional nature could make a clear definition appear rather illusive.
Marketing Definitions
Each of the definitions chosen below highlights a particular facet
of the marketing dynamic. Viewed together they reveal the broad
scope of marketing.
Marketing is the management process responsible for identifying
anticipating and satisfying customer requirements profitably
- Chartered Institute of Marketing (CIM) UK

Marketing is the human activity directed at satisfying needs and wants

through an exchange process."- Kotler (1980)

Marketing is the social and managerial process by which individuals

and groups obtain what they need and want through creating and
exchanging products and value with others."-Kotler (1991)

Marketing is creating, communicating and delivering

value to a target market profitably"-Kotler (2008)

Collectively these definitions summarize the fundamental elements

of marketing as:
. An understanding of customer requirements
. The ability to create, communicate and deliver value
. A social process
. An exchange process
. A managerial and business process
While the fundamentals of marketing may be similar for any industry the exact nature
of their application will differ from one sector to another. In the following pages we will
see how each of these elements of marketing can be applied in the context of fashion,
and in particular, how they relate to the connection between the consumer
and their clothing.

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An understanding of customer requirements:
The definition from the Chartered Institute of Marketing draws attention to the
significance of identifying and anticipating the needs of customers. Naturally this is an
important first step in being able to design, produce and deliver merchandise that
satisfies or indeed exceeds consumer desires, requirements or expectations. An
underlying concept of marketing is to produce what people want to buy, not just what a
fashion designer wants to design or fancies making. It is important to research
consumers in some detail identifying who they are and what they might want. While it
is true that many professionals within the fashion industry do have an intuitive
understanding of their customers, this in itself does not eliminate the need for research.
Predicting future fashion and market trends and working to anticipate what consumers
might want is a significant issue for the fashion and apparel industry information
gathered from market research, retail analysis and trend forecasting is used with the aim
of determining the trends, styles, colours or technologies most likely to appeal to
customers in the coming seasons.
Some high-street fashion retailers can go from design to delivery in a matter of weeks,
but the reality is that many apparel and manufacturing businesses start their initial
research and design developments months in advance of a season or product launch,
adidas, for example, can take 12-18 months to develop and produce a new product.
This lengthy process time, also known as the lead-time. is one of the reasons why
anticipating the future is crucial.

Communicating value
Boden Owner's Club Manual
Boden is a British mail order and online clothing brand selling to over a million
customers in the UK, Europe and the United States. Boden produce colourful, quirky
and distinctive womenswear and menswear collections and Mini Boden, a line for
children and babies. Inspired by the high standards of US mail order companies,
Johnnie Boden started his pioneering upmarket catalogue in the UK in 1991. The Boden
website was launched in 1999, now approximately 62 per cent of UK sales and 72 per
cent of US sales are taken over the Internet. The Boden brand has been built up so
successfully because it offers fair-priced, well-made clothing with a colourful sense of
fun and style, delivered directly to the customer's home. When Johnnie Boden launched
the catalogue this was a novel idea. The Boden catalogue and website are used not only
to sell the product but also to communicate the Boden lifestyle and brand ethos. The
Spring/Summer 2009 catalogue included an insert entitled, The Boden Owner's Club
Manual. The small booklet is jam-packed with information on the details and quality of
garment design and the value of the Boden product.

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 The designers behind the Boden brand believe
design details make a difference, so The Boden
Owner's Club Manual is used to highlight the hidden
extras that make a Boden trenchcoat so special.

Johnnie Boden uses the cost-per-wear principle to

calculate the true value of a pair of Boden chinos. By
dividing the retail price by the number of times the
trousers have been worn over the years, it is
possible to determine their value per wear. The
message is that although the chinos might not be the
cheapest on the market, they are good quality and
will stand the test of time.

Creating, communicating and delivering value:

Successful business relies on a strong and effective interrelationship between the
activities of creating, communicating and delivering. If one of these aspects fails, it will
affect the efficacy of the total result. It is no good creating or advertising wonderful
products if they are not delivered. Similarly if products do not match the quality levels
expected by customers, or service is not up to standard, then value will not have been
delivered.
So what exactly is value? Value does not just refer to low price or what might be termed
'good value. In this instance it is used to express a much larger concept and refers to the
range of potential issues that customers might value, care about or connect with
emotionally. Value may be contained within the product offering -the actual fashion
range or collection -but it can also relate to the inherent value or status of a brand. Value
is also linked to the overall service a company might provide and to customer experience
and satisfaction. The concept of value works both up and down the supply chain;
whatever is delivered must not only be of value to consumers but must also create profit
and value for the business as well.
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Remarkable marketing:
Remarkable marketing is the art of building things worth noticing right to your product
or service. Not slapping on marketing as a last-minute add-on, but understanding that if
your offering itself isn't remarkable, it's invisible.” Seth Godin

The company LittleMissMatched was founded in the US by three entrepreneurs who

recognized a great marketing opportunity- how to solve the age-old problem of the
disappearing sock.
“Why do we have to wear socks that match?" the entrepreneurial friends pondered.
"Why not start a company that sells socks that don't match, why not sell them in odd
numbers so even if the dryer eats one, it doesn't matter."

LittleMissMatched only ever sells socks in odd numbers, three in a pair! Now that is
remarkable. And if you get three odd socks that co-ordinate in fun and colourful ways
then in essence you get three combinations per pair. Instead of just one. Revolutionary!
Not just boring socks but a crazy way to express yourself and be creative. With a core
philosophy of nothing matches but anything goes', the kooky founders of Miss Matched
Inc. tought they had created tweenie sock heaven. They saw their market as girls from
four years to teens, but to their surprise the idea caught the imagination of a much wider
audience. Now LittleMissMatched is a full lifestyle brand with a range of products for
children and adults, including colorful and mismatched gloves and hats, sleepwear, flip
flops, bedding stationery, gifts and hair accessories.

Marketing as a social process:

Marketing is a social process where individuals or groups can create and exchange
products or information with each other. Fashion has a unique ability to be used as a
vehicle for social connection and communication individuals often choose to dress in a
specific and recognizable style so that they can express their ideas visually and signal
membership to a like minded group, joining what is known as a style tribe. This is a
term for a collection of people who dress in a common distinctive style. They may not
actually know each other directly but might share similar values and cultural attitudes,
by adopting a specific mode of dress, tribe members can shape their identity and gain a
sense of belonging.

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Style tribes – Exactitudes:
Exactitudes (a contraction of exact and attitude), is a project by Rotterdam- based
photographer Ari Versluis and stylist Ellie Uyttenbroek. They started working together
in 1994 to systematically document the conspicuous dress codes of numerous fashion
style tribes around the globe. Selected individuals are photographed standing in an
identical pose in a studio setting. The resulting photographs are placed in a grid
framework that serves to amplify the striking similarities of each member of the style
tribe. The Exactitudes project lustrates clearly the subliminal influence and pull of a
style tribe. The people photographed by Versluis and Uyttenbroek vere spotted in the
street and had no personal knowledge of the others photographed in their tribe.
Although only 12 individuals appear in each tribal collective, responses to the work via
blogs indicate that many people who viewed the photographs were able to identify
themselves in one of the featured tribes.
We frequently purchase clothes either consciously or subconsciously based on what
peers, friends, colleagues or celebrities are wearing. When consumers promote products
or pass on style ideas to each other it is known as peer marketing. In many cases this
can prove to be a far more powerful marketing tool than advertising or promotion
controlled directly by a company. When a marketing message spreads rapidly from
person to person it is known as viral marketing. The rise of web-based
communication and proliferation of blogs, social networking and sites such as YouTube
has been instrumental in the growth of this new marketing medium. Viral marketing
utilizes the connectivity amongst individuals to capture attention and create a buzz.
Forward-thinking fashion companies such as Levi's and Louis Vuitton are already
integrating viral marketing into their promotional strategies.
Exchanging products and value with others:
Marketing is an exchange process. The commodities for exchange are the goods and
services and the currency is of course money, However there are other commodities of
value to bear in mind, such as ideas, information, connectivity and emotion. Viewed
creatively, the exchange process can be seen as a trade system with exciting potential to
generate a diversity of assets for both consumers and businesses. A business model that
incorporates this wider view is co-creation. This is when a company creates its
products or services in co-operation with consumers. Crowdsourcing is a type of co-
creation where tasks such as design, which would normally be carried out internally by
company employees, are outsourced to the public, thus allowing the larger collective or
'crowd' to get involved. The Internet has been a pivotal instrument in the development
of co-creational projects. Its potential and connective power offer opportunity to "tap
into the collective experiences skills and ingenuity of hundreds of millions of
consumers around the world” (www.trendwatching.com). Within the apparel sector,
there is an increasing number of casual clothing companies building businesses around
the concept of co-creation. They understand and connect with a particular group of
creative, technologically competent consumers, happy to express themselves and share
ideas online. This consumer cluster, termed Generation by analysts
at trendwatching.com (the C stands for content), is not related by age but by an attitude
to sharing creative content via the Internet. The benefit of crowdsourcing is that it
democratizes the process of design, shifting emphasis from manufacturers towards
consumers, or users as they can also be termed.
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 Products, Services, Value, Ideas, Communication

Business
Customers
Venture

Money, Information, Data, Ideas, Communication

This 'user-centred innovation' has advantages over manufacture-centred innovation in that
users can create exactly what they want rather than relying on manufacturers to do it for
them. Crowdsourcing allows value to be created jointly by a company and its users. It
opens up the possibilities for exchange and brings diversity and new ideas into a company.
Although users may offer ideas for free, they are usually rewarded with a prize, small fee or
sometimes a percentage of sales if their design is chosen. The benefit of crowdsourcing is
that it allows a company to communicate with its consumer base, gain knowledge of their
needs and preferences and reduce risk by producing product or designs that consumers
want.

Consumers get involved:

Threadless

Run Rhino T-shirt from Threadless

Threadless was one of the first clothing companies to place crowdsourcing at the heart of its
business model. Launched in 2000, the Chicago-based T-shirt company opened up the
design process to any creative individual willing to submit designs suitable for printing on
the T-shirts. The concept is managed as an online competition. Each week
design submissions are posted on the website; the six T-shirts receiving the highest number
of votes from the online community are put into production and sold via the online store.
Winning designers receive a prize worth $1,000. This system of crowdsourcing is effective
because users are motivated by the possibility of winning and the opportunity to have their
work available for sale, while Threadless minimizes risk by only manufacturing the designs
chosen by their customers. Encouraged by the popularity of Threadless and the success of
crowdsourcing, new casual apparel companies, such as Yerzies and nvohk, are adopting and
developing this co-creation business model.

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 A managerial and business process:
Marketing must be managed as an integrated function of business and the ultimate aim is not only
to satisfy customers but also to ensure a profitable result. As the Chartered Institute of Marketing's
definition states:
“…the management process responsible for identifying, anticipating and satisfying customer
requirements profitably.

3.1 Types Of Marketing

1. Promotional Marketing
Promotional marketing is a business marketing strategy designed to stimulate a customer to take
action towards a buying decision. Promotional marketing is a technique that includes various
incentives to buy, such as:
•Contests: We all enjoy winning something for free. Contests offer an attractive marketing vehicle
for small business to acquire new clients and create awareness.
•Coupons: According to CMS, a leading coupon processing agent, marketers issued 302 billion
coupons in 2007, a 6% increase over the previous year. Over 76% of the population use coupons,
according to the Promotion Marketing Association (PMA) Coupon Council. Coupons still work
and provide an affordable marketing strategy for small business.
•Sampling: Try before you buy. Giving away product might appear profit-limiting, but consider
how giving your customers a small taste can lead to a big purchase. Retail genius Publix
supermarkets share samples of their award-winning key lime pie not because people question the
goodness of the pie but to get their customers to buy more.
2. Direct Mail Marketing
A channel-agnostic form of advertising that allows businesses and nonprofits organizations to
communicate directly with the customer, with advertising techniques that can include text
messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution,
promotional letters, and outdoor advertising. Direct marketing messages emphasize a focus on the
customer, data, and accountability. Characteristics that distinguish direct marketing are:
Marketing messages are addressed directly to the customer(s). Direct marketing relies on being
able to address the members of a target market. Addressability comes in a variety of forms
including email addresses, mobile phone numbers, Web browser cookies, fax numbers, and postal
addresses.
•Direct marketing seeks to drive a specific “call to action.” For example, an advertisement may ask
the prospect to call a free phone number or click on a link to a website.
•Direct marketing emphasizes trackable, measurable responses from customers regardless of
medium.
•Direct marketing is practiced by businesses of all sizes—from the smallest start-up to the leaders
in the Fortune 500. A well-executed direct advertising campaign can prove a positive return on
investment by showing how many potential customers responded to a clear call-to-action. General
advertising eschews calls-for-action in favor of messages that try to build prospects’ emotional
awareness or engagement with a brand. Even well-designed general advertisements rarely can
prove their impact on the organization’s bottom line.

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3.Guerrilla Marketing
Guerrilla Marketing is a marketing technique where marketers use creative, imaginative yet
unconventional marketing tactics to get maximum reach and better results without involving
heavy costs and resources.
Example- This is an incredible way of catching the pedestrians’ attention in the streets – a ball
lodged into a side of a building. The ball also carried the Nike logo, which caught the attention
of millions during the time it was in the building. This is a powerful message that goes deeply
into the subconscious part of people’s mind, which makes it a highly efficient marketing
technique.
4. Personalized Marketing
Personalized marketing (also called personalization, and sometimes called one-to-one
marketing) is an extreme form of product differentiation. Whereas product differentiation tries
to differentiate a product from competing ones, personalization tries to make a unique product
offering for each customer. Nike ID is a popular brand that has developed a strong business
around this personalization marketing concept.

5.Reverse Marketing
In reverse marketing, the idea is to get the customer to seek out the business rather than
marketers seeking the customer. Usually, this is done through traditional means of advertising,
such as television advertisements, print magazine advertisements, and online media. While
traditional marketing mainly deals with the seller finding the right set of customers and
targeting them, reverse marketing focuses on the customer approaching potential sellers who
may be able to offer the desired product.
In 2004, Dove launched the Dove Campaign for Real Beauty focusing on the natural beauty of
women rather than advertising their product. This campaign caused their sales to soar above $1
Billion and caused Dove to re-create their brand around this strategy. Although successful, this
campaign caused a lot of controversy and discussion due to what people saw as an
advertisement with a contradictory message.

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6. Mobile Marketing
Marketing on or with a mobile device, such as a smart phone. Mobile marketing can provide
customers with time and location sensitive, personalized information that promotes goods,
services, and ideas.
Example- Zara launched own app back in mid-2012. The company decided not to overload the
app with features and screens, but bet on simplicity and convenience. The app has nothing
excess and for someone it may even seem too minimalist.

7.Cloud Marketing
In this new form of marketing, all marketing resources and assets are brought online so
customers (or affiliates) can develop, modify, use, and share them. Consider how Amazon.com
gets customers to buy digital books, movies, and televisions shows in a digital library that is
accessible in the customer’s online account or on their digital device like their Kindle Fire.
8.B2C Marketing
The ultimate goal of B2C marketing (business-to-consumer marketing) is to convert shoppers
into buyers as aggressively and consistently as possible. B2C marketers employ merchandising
activities like coupons, displays, store fronts (both real and online) and special offers to entice
the target market to buy. B2C marketing campaigns are focused on a transaction, are shorter in
duration, and need to capture the customer’s interest immediately. These campaigns often offer
special deals, discounts, or vouchers that can be used both online and in the store.
9.B2B Marketing
Business-to-business marketing is a marketing practice of individuals or organizations
(including commercial businesses, governments, and other institutions). It allows businesses to
sell products or services to other companies or organizations that in turn resell the same
products or services, use them to augment their own products or services, or use them to
support their internal operations. International Business Machines is a well known B2B
marketer. IBM’s business has grown because taking a very intelligent approach at marketing
their products to other business and governments around the world.

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10. Direct Marketing
Advertise and promote your products and services to customers using a range of digital devices
including computers, smartphones, and tablets. Internet Marketing is an essential practice in
Digital Marketing. Once a target market has been clearly identified, it is possible to work in
conjunction with the USPS or a professional mail carrier that knows where your customers live.
Direct marketing can be an effective way to reach consumers right where they live at home.
While there is often a negative side to this approach (consumers don’t want to be bothered with
a flurry of mail), many smart companies execute direct marketing well. Catalog retailer L.L.
Bean, for example, created direct marketing programs that their customers looks forward to
receiving.
11. Transactional Marketing
Driving sales can be challenging, especially for retailers that have to consistently sell products
in high volume to consumers. In order to stay with the demands of investors, retailers have to
encourage consumers to buy using coupons, discounts, liquidations, and sales events. High
volume big-box retailers like Target are constantly running promotional events in order to get
interested consumers into their stores.
12. Word of Mouth Marketing
Word-of-mouth Marketing is the passing of information from person to person by oral
communication. Customers are very excited to share with the world the brands they love. Many
consumers find meaning in sharing stories of their favorite products and services. Word of
Mouth is one of the ancient ways people learned about what to purchase. Modern marketers
have learned how to create authentic word of mouth for their companies and the products they
represent.
13. Viral Marketing
Cult Brand marketers are constantly creating new business ideas that keep their products in the
heart and minds of the global consumer. Each time a new product is created, customers have to
be given a reason to dream about their future purchase. Sometimes marketers of Cult Brands hit
on something so great that people can’t help but share with others. Getting your customers
talking about your products and services is very important to growing awareness for your
business.
Example- Nike took advantage of the fact that consumers’ desire for a healthy lifestyle were the
main focus in people’s lives. Thus, the launch of Just Do It. The Just Do It campaign was
designed to attract consumers to the idea of sneakers as a fashion statement. Nike wanted to
reach females, teens and 18-40 year old male consumers. This campaign went viral all over the
web and social media sites such as Youtube. People were starting to make their own version
to Just Do It commercials and the word was getting out about Nike and their products.
14. Seasonal Marketing
Seasonal events offers a great way to meet new consumers. Sometimes these events can be
actual changes of weather or national holidays. For a retailer like Hallmark, Valentine’s Day
represents a large portion of their business. By tuning into the various seasons that are
important to your customers you can become more relevant in their lives.
15. PR Marketing
One of the most important marketing strategies is public relations. Many effective marketers
work with the media to bring awareness to their products and the benefits their products offer.
Also, in many cases where things go wrong, a good PR marketing strategy is vital. When
Apple’s founder Steve Jobs was alive, Apple held a major press conference to announce every
new product. This tradition is now continued by their new Apple CEO and CMO. 16
16. Outbound Marketing
Outbound marketing refers to any kind of marketing where a company initiates the
conversation and sends its message out to an audience. Sometimes it’s important for companies
to let their potential customers know they exist. By developing a list of prospects a company
can begin to reach out to their individual target groups in order to find new customers.
17. Inbound Marketing
Inbound marketing is a strategy that focuses on attracting customers, or leads, via company-
created Internet content, thereby having potential customers come to the company rather
than marketers vying for their attention.
Starbuck is all about "connecting," whether that's chatting with a customer over a steaming
latte, interacting with fans on the company's Facebook page or posting fascinating photos
on Instagram. The well-known coffee chain has effectively created an emotional connection
with its customers. In countries like the U.K. and Ireland, this connection made the company’s
recent campaign to have its baristas start connecting with customers on a first-name basis that
much smoother. The company launched the campaign with a promotion promising customers a
free latte to come in and introduce themselves.
Digital Marketing
Digital marketing is the marketing of products or services using digital technologies, mainly on
the Internet, but also including mobile phones, display advertising, and any other digital
medium.
Example- Digital Marketing Lessons From A Luxury Lingerie Brand
The real secret to Victoria’s Secret’s success is a smart marketing strategy that focuses on
conversions. Behind the super glamorous façade there are shrewd digital marketing minds to
propel the brand to new heights of success. Here are the digital marketing lessons everyone can
learn from Victoria’s Secret.
1. Social media marketing adds fuel to the brand
Victoria’s Secret is ubiquitous on the social media channels; Twitter, Instagram, YouTube and
Facebook pages generate a lot of attention and furthers the brand reach for Victoria’s Secret.
With 25 million likes on the official Facebook page, 670, 000 YouTube subscribers and more
than 7 million followers on Twitter, Victoria’s Secret is getting the right kind of attention.
Instead of posting boring promotional content, Victoria’s Secret uses the appeal of their Angels
and visual aesthetics to create compelling and informative content. Audiences can learn how to
work out and go behind the scenes at the latest fashion shows.
2. Email marketing campaigns yields great ROI
Victoria’s Secret emails bring value to subscribers-exclusive coupons, sneak peek at new
collections and members only shopping events are the perks of signing up. The key to retaining
email subscribers is to provide something beneficial, and Victoria’s Secret understands this.
Members are reluctant to unsubscribe for fear of missing out. Compared to other methods of
digital marketing, email marketing is still the most effective for return on investment.
According to an E-Consultancy survey, 68% of companies rated email marketing’s ROI as
good to excellent. On average, companies attribute 23% of their sales to email marketing. If
Victoria’s Secret’s focus on email marketing is anything to go by, it is essential for anyone’s
online marketing strategy.
3. Choose a user friendly website design
Victoria’s Secret has a user friendly website with easy navigation and strategically placed call
to action buttons. Despite the glamorous image of the brand, the website design is simple and
intuitive to use. 17
4. Conversion optimized mobile marketing
Victoria’s Secret has mobile apps for Android, iPad, iPhone and the iPod. When it comes to
boosting their mobiles sales, the lingerie brand uses many different ways to convert. Digitally
enabled catalogs and interactive quizzes for mobile users to participate in are especially
effective in converting leads into paying customers. After answering a mobile quizz about bras,
the mobile user is directed to the stores in time for Valentines Day. Furthermore, there is a
mobile chat feature that allows Pink Nation members to socialize with one another or have
exclusive access to fashion shows.
5. Know your target audience and stick to it
Since the brand’s conception, Victoria’s Secret have always targeted attractive, affluent and
fashion forward females as customers. The launch of a new sports range in 2014 has widened
their appeal to health conscious customers as well. Despite a backlash from feminists and plus
size models-most notably the Lane Bryant #I’mnoangel campaign, Victoria’s Secret never loses
focus of who buys from them the most.

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3.2 Scope of Marketing
The scope of marketing deals with the question, ‘what is marketed?’ According to Kotler,
marketing people are involved with ten types of entities-
1. Goods:
Physical goods constitute the major part of a country’s production and marketing effort.
Companies market billions of food products, and millions of cars, refrigerators, television and
machines.
2. Services:
As economies advance, a large proportion of their activities is focused on the production of
services. Services include the work of airlines, hotels, car rental firms, beauticians, software
programmers, management consultants, and so on. Many market offerings consist of a mix of
goods and services. For example, a restaurant offers both goods and services.
3. Events:
Marketers promote events. Events can be trade shows, company anniversaries, entertainment
award shows, local festivals, health camps, and so on. For example, global sporting events such
as the Olympics or Common Wealth Games are promoted aggressively to both companies and
fans.
4. Experiences:
Marketers create experiences by offering a mix of both goods and services. A product is
promoted not only by communicating features but also by giving unique and interesting
experiences to customers. For example, Maruti Sx4 comes with Bluetooth technology to ensure
connectivity while driving, similarly residential townships offer landscaped gardens and
gaming zones.
5. Persons:
Due to a rise in testimonial advertising, celebrity marketing has become a business. All popular
personalities such as film stars, TV artists, and sportspersons have agents and personal
managers. They also tie up with PR agencies for better marketing of oneself
6. Places:
Cities, states, regions, and countries compete to attract tourists. Today, states and countries are
also marketing places to factories, companies, new residents, real estate agents, banks and
business associations. Place marketers are largely real estate agents and builders. They are
using mega events and exhibitions to market places. The tourism ministry is also aggressively
promoting tourist spots locally and globally.
7. Properties:
Properties can be categorized as real properties or financial properties. Real property is the
ownership of real estates, whereas financial property relates to stocks and bonds. Properties are
bought and sold through marketing.
Marketing enhances the need of ownership and creates possession utility. With improving
income levels in the economy, people are seeking better ways of saving money. Financial and
real property marketing need to build trust and confidence at higher levels.
8. Organizations:
Organizations actively work to build image in the minds of their target public. The PR
department plays an active role in marketing an organization’s image. Marketers of the services
need to build the corporate image, as exchange of services does not result in the ownership of
anything. The organization’s goodwill promotes trust and reliability. The organization’s image
also helps the companies in the smooth introduction of new products.
19
9. Information:
Information can be produced and marketed as a product. Educational institutions,
encyclopedias, non-fiction books, specialized magazines and newspapers market information.
The production, packaging, and distribution of information is a major industry. Media
revolution and increased literacy levels have widened the scope of information marketing.
10. Idea:
Every market offering includes a basic idea. Products and services are used as platforms for
delivering some idea or benefit. Social marketers widely promote ideas. Maruti Udyog Limited
promoted safe driving habits, need to wear seat belts, need to prohibit children from sitting near
the driver’s seat, and so on.

4. Market Research And Marketing Research

KOTLER defines, marketing research as the systematic design, analysis and reporting of data
and findings relevant to a specific marketing situation facing the company.

Marketing research is a vital component of both business and marketing. For a fashion compa-
ny to be able to determine its future business direction and marketing strategy, it will need to
continuously gather, analyse and integrate information obtained from a diverse range of
business, fashion and market sources. You can see that the criteria of the 7P marketing mix -
product, price, place, promotion, people, process and physical evidence -are all valid topics for
marketing research.
Kotler defines marketing research as:
“Systematic problem analysis, model-building and fact-finding for the purpose of improved
decision-making and control in the marketing of goods and services."
Marketing research may take place in order to analyse and resolve a specific problem but it can
also take place in order to keep up to date, assess the state of the market, stay proactive in a
declining market, anticipate future trends, pursue opportunity or to develop and expand a
business.
Research is an essential activity because it can help to eradicate false assumptions, expose
potential risks and ensure that decisions are underpinned by relevant and current data. Research
needs to be systematic and carefully planned, but it can be a creative and insightful
exercise. Getting to know one's subject in depth and investigating a broad spectrum of relevant
issues can be a stimulating experience that provides useful insight. The aim of research is not
only to find reliable, unbiased answers to questions about the market, substantiate plans,
determine production sources, reveal risk factors and determine strategy but also to seek ideas
and direction, draw inspiration and foster innovation.

Areas covered by Market

research

Market Segmentation Consumer

Market Size Market Share Competitors
Potential Studies Profiles

20
 MARKETING RESEARCH

1. Business 3. Distribution & 5. Promotional

Routes to Market Research

• Finance
• Business • Logistics • Personal Selling
Models • Catalogue • Advertising
• Business • Bricks & Mortar • Viral Marketing
Opportunity Stores • Public Relations
• Political & • Internet • Sales Promotions
Economic

2. Market 4. Product 6. Fashion

Research Research Research

• Technological • Fashion
Developments Forecasting
Consumers The Market Competitors • Product Design • Trends picked up
Place
• Product by Press
Manufacture & • Designer Catwalk
• Demogra • Products & Supply Chain Trends
phics • Retail trends Prices • Fabrics, Material • Consumer
• Psychogr • Prices • Operations & & Components Fashion Trends
aphics • Emerging Services
• Consumer Markets & • Market Share
trends & trends in the
behaviour market + size
of the market
& state of the
market

Reference: Marketing Fashion by Harriet Posner

Summary: This chart outlines the wide-ranging topics that must be considered the remit of marketing
research. Marketing and market research need to be carried out simultaneously; the topics shown in the
chart are not isolated from each other. Market research forms a subset of marketing research and refers
specifically to investigations of the market itself, comprising the marketplace, competitors and consumers.
Marketing research relates to a much wider-ranging set of concerns, which include business, politics
economics, cultural and social trends, fashion trends, developing technologies, logistics, promotion and
product research

21
Interpretation of the scope of marketing research:

1. Product Research
Product means the goods and services which are sold to the consumers. It includes consumer
products and industrial products. Product research studies the individual product. It studies the
making and marketing of the product. It studies the technological developments, product
design, pricing, product manufacture and supply chain, fabrics, materials and components, etc.
The product is modified (changed) as per the needs and wants of the consumers. Therefore, the
product will not fail in the market.
2. Consumer Research
Consumer is the person who purchases the goods and services. The consumer is the king in the
market. Consumer research studies consumer trends and behavior. It studies the consumers
needs, wants, likes, dislikes, demographics, psychographics; buying motives, etc. This data is
used to take decisions about the product, its price, place and promotion.
3. Market Research
Market research studies the markets, market competition, emerging market trends, etc. It also
does sales forecasting. It estimates the demand for new products. It fixes the sales territories
and sales quotas.
4. Competitors Research
This research in marketing is an assessment of the strengths and weaknesses of current and
potential competitors. Competitors Research studies the pricing of the product, operations and
services of the competitors. It selects a suitable method of pricing and it fixes the price for the
product. It compares the companies price with the competitor's price. It studies the market price
trends. It also studies the future price trends.
5. Promotional Research
Promotional research studies the promotional strategies of the product. It fixes the advertising
objectives and budget. It selects a suitable media for promotion. It also evaluates the
effectiveness of advertising, viral marketing, public relations and other sales promotion
techniques.
6. Sales Research
Sales research studies the selling activities of the company. It studies the sales outlets, sales
territories, sales forecasting, sales trends, sales methods, effectiveness of the sales force, etc.
7. Distribution Research
Distribution research studies the channels of distribution. It selects a suitable channel for the
product. It fixes the channel objectives. It identifies logistics, catalogue, brick& mortar stores,
internet etc.
8.Business research
It is a field of practical study in which a company obtains data and analyzes it in order to better
manage the company. Business research can include financial data, business models, business
opportunities, etc.
9. Fashion Research
Designers conduct research on fashion trends and interpret them for their customers. This
research includes fashion forecasting, fashion shows, trend picked up by the press etc.

22
Market Research
The fashion market in particular is a challenging arena. Designers must come up with fresh new
ideas every season and thousands of products must be pumped out from factory to store on a
regular basis. All the same time, retailers worry about slowing sales, customers are tightening
their wallets and magazines are losing advertisers. It is crucial therefore that organizations,
whether large or small, carry out market research investigations to gain an in depth
understanding of the market situation, assess shifts in trends, understand competitors and gain
knowledge of consumers and their requirements. The market research process
involves gathering, analyzing and interpreting information, data and statistics on:
•Market size
•Market trends
•Competitors and their market share
•Consumer
Once research information has been gathered then its relevance can be assessed and the data
analyzed. The aim is to establish facts that can help with business and marketing decisions.
There are two basic types of market research investigation, classified by the type of informa-
tion gathered. Research can either be qualitative or quantitative. Added to this, research
material can be gathered using a combination of primary and secondary research methods.

23
5. Core Marketing Concepts

Needs, wants, and Demands:

Needs are the basic human requirements. People need air, food, water, clothing, and shelter
to survive. People also have strong needs for recreation, education, and entertainment. These
needs become wants when they are directed to specific objects that might satisfy the need. A
consumer in the United States needs food but may want a hamburger, french fries, and a soft
drink. A person in India needs food but may want chappatis, rice, curry, and yogurt. Wants are
shaped by our society.
Demands are wants for specific products backed by an ability to pay. Many people want a
Mercedes: only a few are willing and able to buy one. Companies must measure not only
many people want their product, but also how many would actually be willing and able to buy
it.
These distinctions shed light on the frequent criticism that "marketers create needs” or
“marketers get people to buy things they don't want." Marketers do not create needs: Needs
preexist marketers. Marketers, along with other societal factors, influence wants. Marketers
might promote the idea that a Mercedes would satisfy a person's need for social status. They
do not, however, create the need for social status.
Understanding customer needs and wants is not always simple. Some customers have
needs of which they are not fully conscious, or they cannot articulate these needs, or they
use words that require some interpretation. What does it mean when the customer asks for
a "powerful" lawnmower, a "fast" lathe, an "attractive" bathing suit, or a "restful" hotel? The
marketer must probe further. We can distinguish among five types of needs:
1. Stated needs (The customer wants an inexpensive car.)
2. Real needs (The customer wants a car whose operating cost, not its initial price, is low.)
3. Unstated needs (The customer expects good service from the dealer.)
4. Delight needs (The customer would like the dealer to include an onboard navigation
system.)
5. Secret needs (The customer wants friends to see him as a savvy consumer.)
Responding only to the stated need may shortchange the customer. Many consumers do
not know what they want in a product. Consumers did not know much about cellular phones
when they were first introduced. and Nokia and Ericsson fought to shape consumer perceptions
of them. Simply giving customers what they want isn't enough any more, to gain an edge
companies must help customers learn what they want .

24
Target Markets, Positioning, and Segmentation:
A marketer can rarely satisfy everyone in a market. Not everyone likes the same cereal, hotel
room, restaurant, automobile, college, or movie. Therefore, marketers start by dividing the
market into segments. They identify and profile distinct groups of buyers who might prefer
or require varying product and service mixes by examining demographic, psychographic.
and behavioral differences among buyers.
After identifying market segments, the marketer then decides which present the greatest
opportunity-which are its target markets. For each. the firm develops a market offering
that it positions in the minds of the target buyers as delivering some central benefits). For
example, Volvo develops its cars for buyers to whom safety is a major concern. Volvo, there-
fore, positions its car as the safest a customer can buy. Scorpio, a sports-utility vehicle
(SUV) launched in India by Mahindra & Mahindra in 2002, is designed for people who
prefer a sturdy vehicle that offers luxury and comfort. Scorpio, therefore, is positioned as a
vehicle that offers the luxury of a car and the thrill of an SUV. In advertisements, Scorpio is
referred to as a "car," although the design of the vehicle resembles an SUV. Companies per-
form best when they choose their target market(s) carefully and prepare tailored marketing
programs.

Offerings and Brands:

Companies address needs by putting forth a value proposition, a set of benefits that they
offer to customers to satisfy their needs. The intangible value proposition is made physical by
an offering, which can be a combination of products, services, information, and experiences.
A brand is an offering from a known source. A brand name such as McDonald's carries many
associations in people's minds that make up the brand image: hamburgers, fun,children, fast
food, convenience, and golden arches, All companies strive to build a strong, favorable, and
unique brand images.

Value and Satisfaction:

The offering will be successful if it delivers value and satisfaction to the target buyer. The
buyer chooses between different offerings based on which she perceives to deliver the most
value. Value reflects the sum of the perceived tangible and intangible benefits and costs to
customers. It's primarily a combination of quality, service, and price ("qsp"), called the
customer value triad."Value increases with quality and service and decreases with price,
although other factors can also play an important role in our perceptions of value.
Value is a central marketing concept. We can think of marketing as the identification, creation,
communication, delivery, and monitoring of customer value. Satisfaction reflects a person's
judgments of a product's perceived performance (or outcome) in relationship to expectations. If
the performance falls short of expectations, the customer is dissatisfied and disappointed. If it
matches expectations, the customer is satisfied. If it exceeds them, the customer is delighted.

Supply Chain:
The supply chain is a longer channel stretching from raw materials to components to final
products that are carried to final buyers. The supply chain for women's purses starts with
hides and moves through tanning, cutting, manufacturing, and the marketing channels to
bring products to customers. Each company captures only a certain percentage of the total
value generated by the supply chain's value delivery system. When a company acquires
competitors or expands upstream or downstream, its aim is to capture a higher percentage 25
of supply chain value.
Marketing Channels:
To reach a target market, the marketer uses three kinds of marketing channels.
Communication channels deliver and receive messages from target buyers and include
newspapers, magazines, radio, television, mail, telephone, billboards, posters, fliers, CDs,
audiotapes, and the Internet.
Beyond these, just as we convey messages by our facial expressions and clothing, firms
communicate through the look of their retail stores, the appearance of their Web sites, and
many other media. Marketers are increasingly adding dialogue channels such as e-mail, blogs,
and toll-free numbers to familiar monologue channels such as ads.
The marketer uses distribution channels to display, sell, or deliver the physical product or
services to the buyer or user. They include distributors, wholesalers, retailers, and agents.
The marketer also uses service channels to carry out transactions with potential buyers
Service channels include warehouses, transportation companies, banks, and insurance
companies that facilitate transactions. Marketers clearly face a design challenge in choosing
the best mix of communication, distribution, and service channels for their offerings.

Marketplaces, Marketspaces, and Metamarkets:

The marketplace is physical, such as a store we shop in; marketspace is digital, as when we
shop on the Internet.
Northwestern University's Mohan Sawhney has proposed the concept of a metamarket
to describe a cluster of complementary products and services that are closely related in the
minds of consumers, but spread across a diverse set of industries. The automobile
metamarket consists of automobile manufacturers, new car and used car dealers, financing
companies, insurance companies, mechanics, spare parts dealers, service shops, auto
magazines, classified auto ads in newspapers, and auto sites on the Internet. In purchasing a
car, a buyer will get involved in many parts of this metamarket, and this creates an
opportunity for metamediaries to assist buyers in moving seamlessly through these groups,
although they are disconnected in physical space. For example, Maruti Suzuki India, through
their Web site marutitruevalue.com, helps buyers and sellers of second-hand
cars to sell, buy, or exchange Maruti-certified used vehicles. This Web site provides useful
information that facilitates informed transactions for both buyers and sellers.
Metamediaries also serve other markets, such as buying, selling, and renting real-estate
properties (e.g., MagicBricks.com) and travel and tourism (MakeMyTrip.com, Yatra.com,
and Cleartrip.com).

Competition:
Competition includes all the actual and potential rival offerings and substitutes a buyer
might consider. Suppose an automobile company is planning to buy steel for its cars. There
are several possible levels of competitors. The car manufacturer can buy steel from Tata Steel
or the Steel Authority of India Limited (SAIL) or import from abroad; or buy aluminum for
certain parts to lighten the car's weight; or buy engineered plastics for bumpers instead of
steel. Clearly, Tata Steel would be thinking narrowly of competition if it thought only of other
integrated steel companies. In fact, in the long run steel companies are more likely to be hurt
substitute products than by other steel companies.

26
Marketing Environment:
The marketing environment consists of the task environment and the broad environment. The
task environment includes the actors engaged in producing, distributing, and promoting the
offering. These are the company, suppliers, distributors, dealers, and the target customers. In
the supplier group are material suppliers and service suppliers, such as marketing research
agencies, advertising agencies, banking and insurance companies, transportation companies,
and telecommunications companies. Distributors and dealers include agents, brokers,
manufacturer representatives, and others who facilitate finding and selling to custom. The
broad environment consists of six components: demographic environment, economic
environment, physical environment, technological environment, political-legal environment,
and social-cultural environment. Marketers must pay close attention to the trends and
developments in these environments and make timely adjustments to their marketing
Strategies.

Modern Concepts Of Marketing

Modern concepts of marketing means finding out the consumer and make the goods as per their
needs rather than to provide them what the seller has made.
Thus, it is very essential for the seller to get the answer of the question what are the things
which the consumer want? And how these things can be made available to them? Only then he
can survive in the market and earn profit.
There are 6 modern concepts of marketing which are very important from the point of view of
marketer.
The Production Concept:
The production concept is one of the oldest concepts in business. It holds that consumers
will prefer products that are widely available and inexpensive. Managers of production
oriented businesses concentrate on achieving high production efficiency, costs, and mass
distribution. This orientation makes sense in developing countries such as China, where the
largest PC manufacturer, Lenovo, and domestic appliances giant Haier take advantage of the
country's huge and inexpensive labor pool to dominate the market. Marketers also use the
production concept when a company wants to expand the market.
The Product Concept:
The product concept proposes that consumers favor products that offer the most quality
performance, or innovative features. Managers in these organizations focus on making
superior products and improving them over time. However, these managers are sometimes
caught up in a love affair with their products. They might commit the "better-mousetrap“
fallacy, believing that a better mousetrap will lead people to beat a path to their door. A new
or improved product will not necessarily be successful unless it's priced, distributed,
advertised, and sold properly.
The Selling Concept:
The selling concept holds that consumers and businesses, if left alone, won't buy enough of
the organizations products. The organization must, therefore, undertake an aggressive selling
and promotion effort. The selling concept is expressed in the thinking of Sergio Zyman, Coca-
Cola's former vice president of marketing, who said: "The purpose of marketing is to sell more
stuff to more people more often for more money in order to make more profit.“

27
The selling concept is practiced most aggressively with unsought goods, goods that buyers
normally do not think of buying, such as insurance and encyclopedias. Most firms also practice
the selling concept when they have overcapacity. Their aim is to sell what they make, rather
than make what the market wants. However, marketing based on hares high risks. It assumes
that customers who are coaxed into buying a product will like or bad-mouth it or complain to
consumer organizations, but they might even buy it again.
Consumer concept:
Not only marketing concept is sufficient rather the companies are using consumer concept
which means to give attention to individual consumer it can be done through one to one
marketing.
Societal marketing concept:
This concept means that company should not only work for the consumer but also for the
society. So the company should make balance between company’s profits, consumer wants
and society welfare.
The Marketing Concept:
The marketing concept emerged in the mid-1950s Instead of a product-centered, "make
and-sell" philosophy, business shifted to a customer-centered, "sense-and-respond
philosophy. The job is not to find the right customers for your products, but to find the right
products for your customers. Dell Computer doesn't prepare a perfect computer for its
target market. Rather, IT provides product platforms on which each person customizes the
features he desires in the computer.
The marketing concept holds that the key to achieving organizational goals is being more
effective than competitors in creating, delivering, and communicating superior customer
value to your chosen target markets.
Theodore Levitt of Harvard drew a perceptive contrast between the selling and marketing
Selling focuses on the needs of the seller, marketing on the needs of the buyer. Selling is
preoccupied with the setters-need to convert his product into cash; marketing with the idea of
satisfying the needs of the customer by means of the product and the whole cluster of things
associated with creating, delivering, and finally consuming it. Several scholars have found that
companies that embrace the marketing concept achieve superior performance. This was first
demonstrated by companies practicing a reactive market orientation-understanding and
meeting customers' expressed needs. Some critics say this means companies develop only
very basic innovations. Narver and his colleagues argue that more advanced. high-level
innovation is possible if the focus is on customer’s latent needs. Narver calls this a proactive
marketing orientation. Companies such as 3M, Hewlett Packard, and Motorola have made a
practice of researching latent needs through a "probe and-learn process. Companies that
practice both a reactive and a proactive marketing orientation are implementing a total
market orientation and are likely to be the most successful.

28
6. Integrated Marketing
In 1989, the American Association of Advertising Agencies defined integrated marketing as: ‘an
approach to achieving the objectives of a marketing campaign through a well-coordinated use of
different promotional methods that are intended to reinforce each other.’ Today, integrated
marketing needs to go beyond merely integrating messages and communications. Integrated
marketing is about message and content consistency across channels.
Organizations that excel put the customer at the center of its strategy. Customers aren’t interested
in who was responsible for campaign components such as the email, Web site, direct mail, or call
center. When a customer clicks through an e-mail and lands on your home page, or receives an
offer in the mail and calls customer service to inquire further, he/she expects a seamless
experience.
Integrated marketing requires a unified approach to marketing and sales. Marketing needs sales
and sales needs marketing. Marketing can help identify the company’s most valuable customers,
develop targeted campaigns, which can enable sales to closes deals.

Advertising

Personal Sales
Selling Promotion

Word-of-
Events &
mouth IMC
Experiences
Marketing

Interactive Public
Marketing Relations

Direct
Marketing

Integrated Marketing is an approach to creating a unified and seamless experience for

consumers to interact with the brand/enterprise; it attempts to meld all aspects of marketing
communication such as advertising, sales promotion, public relations, direct marketing, and
social media, through their respective mix of tactics, methods, channels, media, and activities,
so that all work together as a unified force. It is a process designed to ensure that all messaging
and communications strategies are consistent across all channels and are centered on the
customer.

29
Two key themes of integrated marketing are that (1) many different marketing activities
communicate and deliver value and (2) when coordinated, marketing activities maximize
their joint effects. In other words, marketers should design and implement any one marketing
activity with all other activities in mind.
For example, using an integrated communication strategy means choosing communication
options that reinforce and complement each other. A marketer might selectively employ
television, radio, and print advertising, public relations and events, and PR and web site
communications, so that each contributes on its own as well as improving the effectiveness of
the others. Each communication must also deliver a consistent brand image to customers at
every brand contact.
Applying an integrated channel strategy ensures that direct and indirect channels, such as
online and retail sales, work together to maximize sales and brand equity

One company that has made extensive use of integrated marketing communications is Nike, a
brand associated with athletic activities and sport. Commencement of Nike’s success was with
its “Just do it” campaign. With this campaign, Nike tapped into the spirit of the inner joy
experience of consumers. The profound feeling of joy and fitness was communicated through
this campaign. The company utilized various communication platforms for their advertisement
in order to capture attention of their target consumer segment, increasing Nike’s sale by 1000%
over a period of ten years.
With “Just do it” campaign Nike started its journey to success…
Nike Swoosh is one of the well-known logos. The logo has made the organisation one of the
most successful and valued brands worldwide as it has created a strong brand image which
symbolizes performance, dominance and winning. Nike has been successful in spreading their
brand message across the globe that has made them gain sustainable competitive advantage
over their competitors like Adidas and Reebok.
Talking about celebrity endorsements, this is one of the key strategies that Nike has adopted.
They have been very careful while selecting the face of the brand. The idea is to ingrain the
celebrity image in consumer’s mind which would help them associate with the brand product
with famous personalities making the brand valuable and attractive. Famous athletes like
Michael Jordan, Maria Sharapova, Cristiano Ronaldo and Tiger Woods have endorsed the brand
and conveyed the importance of athleticism making the brand name heroic and iconic. Such
celebrity advertisements create strong impact on consumers and further improves brand loyalty.

30
Nike has set up a perfect example of efficient use of social media which has become an
essence of brand promotion in today’s competitive world. Utilization of social media like
Facebook, YouTube, twitter and many more in order to build public relation and to deal with
criticisms has been aced by Nike. Evidence suggests that approximately 92% of consumers
trust recommendations made by family and friends over advertisements or ‘Word of Mouth’.
Consistent efforts towards customer engagement and persuasion through application like
Nike+ and even considering @Nike support where Nike responds to their followers on twitter
has made Nike the best example of organized customer service. Such efforts has given Nike a
huge fan following and loyal customer base, helping them to build company’s “word of mouth
marketing”.

“Write the future”, a campaign during FIFA 2010 is a very good example of Nike’s skillful
utilization of strategy. The prime goal was to become the top brand in the world of football
beating Adidas as the official sponsor of FIFA 2010 and to achieve tremendous revenue growth
in the football apparel segment. The gist of the campaign was to ignite communication with the
epic 3-minute film which would inspire audience with flashes of success and failure, past and
future. Some of the best players like Cristiano Ronaldo, Wayne Rooney, Didier Drogba and
many others were featured in the film. Nike wanted to create an opportunity for their
consumers so that they could participate in the experience via social media. Nike employed
social media platforms like Facebook, YouTube and Xbox 360 to reach to their fans. During
this campaign, the Nike Facebook fan following raised to 336% which was from 1.1m to 4.8m.
The result was, Nike won the world cup and became world no.1 sports brand in the football
field.

The IMC program of an organisation is a strategy which involves a perfect blend of several
IMC tools. This would help an organisation to succeed in “connecting” with rather than
“collecting” their fans and customers which is a need of today’s competitive world. IMC has a
long term effect wherein unified, expressive and consistent messaging helps the brand to
develop deeper relations and to build trust with the target audience thereby providing
monetarily effective results to an organisation.
Nike has mastered the art of promotion and their “Write the future” campaign has proven that if
you “Want to make a statement at the party, just crash the party”.

31
7. The marketing mix:
The marketing mix provides a framework that can be used to manage marketing and
incorporate it within a business context. The concept of the marketing mix is that several
strategic ingredients need to be considered and blended effectively to achieve the marketing
and strategic goals of a company The principles that underpin the marketing mix were first
shaped in the US during the 1940s and 1950s. The term was originally coined in response
to the idea that marketing managers were considered as
“mixers of ingredients". Neil H. Borden, Professor of Advertising at Harvard Business
School, originally listed 12 marketing variables, but in the 1960s E. Jerome McCarthy
rationalized these into four simpler variables – product, price, place and promotion
-known as the 4 Ps of marketing
The marketing mix can be thought of in a similar way to a recipe where the four ingredients
of product, price, place and promotion can be blended in varying proportions giving
emphasis to whichever aspect is most appropriate to the company, brand or product in
question.
The mix employed will be unique to each company or situation, so there is no correct
formula. Fundamentally it comes down to ensuring that the product is right for the specified
market, that it is priced correctly, that the balance of merchandise is correct, that it is in the
right place at the right time and that customers are aware of the offer or service through
appropriately targeted promotions. Whatever the market level, an effective
marketing mix will need to weigh up a company's overall objectives while also taking into
account any changes and challenges operating in the market at any given time.

• Merchandise • Marketing
• Fashion shows skimming
• Signage • Market
• Special events penetration
• Product line
• Discount
Product
Product &
& • Value
Price
Price
Personal
Personal

Promotion
Promotion Place
Place

• Print • Exclusive
• Billboard • Inclusive
• Facebook
• Internet

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Product
For apparel, product relates to product design, style, fit, sizing, quality fashion level as well
as performance and function. In the fashion and textile industry, product is rarely a singular
item. Commonly it will be a complex range or integrated collection of product. Designers
are generally required to construct well-balanced collections or wholesale or retail ranges
that include a variety of different product categories offered at appropriate price points for
specific target markets. When taking a strategic marketing approach to product, some useful
questions to consider are:
• Are the products suitable for the specified market?
• Do the products meet the tangible needs of consumers?
• How will the products satisfy the intangible desires or aspirations of customers?
• Does the total product offer or range address the variety of needs relating to the target
customers?
• Is the balance of the range or collection correct? Does it have enough choice and variety
within it?

Product attributes and benefits:

Product attributes refer to the features, functions and uses of a product Product benefits
relate to how a product's attributes or features might benefit the consumer. At the most basic
level, clothing has core attributes, which offer protection, and safeguard against exposure
and nudity. At the next level there are the tangible attributes, integrated into the design,
manufacture and function of the garment These are intrinsic to the product itself and offer
concrete and physical benefits to the consumer. So a raincoat made from a water-repellent
fabric will have the intrinsic attribute of being waterproof and have the benefit of keeping a
wearer dry Such a garment may be presented in-store with accompanying marketing
material informing consumers a the specific attributes and benefits of the design or
waterproof material. An of clothing can also have what are known as intangible attributes.
These are more abstract in nature and connect to the ideals, perceptions and desires of the
consumer. These intangibles are extremely important for fashion as consumers do not really
buy a product but a set of expectations and interpretations, each person perceiving a
product's combination of attributes benefits according to their own particular needs and
viewpoint.
The total product concept
The example of the waterproof coat illustrates what Theodore Levitt called the augmented
product or the total product concept. Levit's model describes four different levels to a
product:
• The generic or core product
• The actual or expected product
• The total or augmented product
• The potential product

33
The Regatta women's jacket and men's jacket have several important functional product
attributes: made from Isotex 1000 XPT,- an extreme performance fabric, the jackets are
waterproof, breathable and windproof. The jackets also incorporate technical and functional
design details such as taped seams, a detachable hood, a centre front zip with storm flap and
a map pocket.

Synthesizing the practical with the emotional:

A waterproof coat or jacket is a good example of a garment that can be designed with many
practical features and tangible attributes. A coat made of a fully waterproof material has the
obvious benefit of keeping the wearer dry in the rain. For someone who wanted a coat to
protect them during outdoor or country pursuits, a loose-cut practical warmed
jacket might provide the benefits they require. If in addition it had a detachable inner lining,
then the benefits of flexibility and keeping warm could be added to the list. At an emotional
level, a consumer might choose a waxed Barbour country jacket, not only because of the
durability, warmth and protection it offered, but because emotionally
the wearer connected to the heritage and values of the Barbour brand. The wearer might feel
earthy' or 'connected to the land' when they wore it. They may appreciate quality and
tradition and practicality. A different consumer, on the other hand, who wanted to feel active
and alive' or daring and adventurous' might purchase a lightweight waterproof with high-
performance features, even if they wore it in an urban setting or to go to the shops. The
wonderful benefits of a high-performance or practical country jacket are likely to be of no
interest to someone who wanted to feel alluring, fashionable and chic while they kept dry.
For this consumer the silhouette or shape of the coat may be of major importance, along
with the fashion status of a brand name. They may desire a designer label raincoat with a
belt so that they can cinch in their waist and show off their figure to best advantage.
Each of the garments described provide the functional benefits necessary for specific uses
or activities. But clothing provides more than the merely functional. The clue to
understanding this is to view attributes from the consumer perspective and try and
determine what consumers might feel, desire or aspire to when they purchase fashion
product. Each attribute will generate a set of emotional meanings that augment the tangible
or physical benefits. This is why fashion in general and branding in particular can be so
powerful - they have a unique ability to confer the intangible and create a short-cut straight
to the emotional. 34
 French actress Fanny Ardent makes a
simple, classic raincoat look alluring and
desirable.

If we consider a waterproof coat such as a classic

trench, then at the most basic level the product is a
coat. At the next level it is a waterproof coat with
specific design features and styling details offered at
a particular quality and price. The next tier up is the
total or augmented product. This represents
everything that the customer receives when they
purchase the raincoat, including all elements that
contribute to added value, intangible benefits,
branding and emotional benefits. The total
augmented product relates to everything that is
currently being offered, but there is another highly
significant layer to consider and that is the potential
product. This is everything that could be offered or
might be offered in the future. For fashion the future
happens very fast and designers spend most of their
time working on potential product. They must
innovate and update, moving product design forward
each season with new design ideas, fabrics and
technologies. The concept of potential product is
therefore of vital importance.
Levit's model highlights another important point.
"Consumers don't buy products or product
attributes. They purchase benefits and emotional
meaning." This means that potential product must
also be about identifying innovative ways to deliver
extra value and benefits to the customer.

35
The total product
concept:
Intangible
Associations
The Potential Product The Generic
This represents the Product
Design
potential features not Features This is the
yet offered. It is also core product,
about innovation Quality such as a
and concerns what Added coat, a
Price Perceived
the product could Value jumper, a
Value
be in the future Styling dress etc.

Packaging

Branding Warranty

The Total Product

This is what Levitt
The Actual or calls the augmented
Expected Product product. It represents
The real product is everything the
a combination of customer receives.
the generic product Generic product +
plus the tangible tangible attributes+
attributes. This intangible attributes.
represents the The total product
customer’s basic represents the added
minimum value, that is, all
expectation or extras added to
requirements elevate the product
and make it different
from product offered
by competitors.
Price
In this context price means manufacturing costs, wholesale and retail prices, discounted prices
and of course margin and profit. For marketing purposes it is possible to view pricing from two
perspectives; one is from the point of view of cost, what an item actually costs either to
produce or for a buyer to purchase. It considers tangible expenditure so that a cost price can be
calculated. The second standpoint, selling price, looks at the situation from the customer or
end-consumer's perspective. It considers what might be a realistic selling price and factors in
issues such affordability and perceived value. Perceived value reflects the apparent worth of a
product; this may not directly relate to the actual cost of production or wholesale purchase
price. An understanding of customers' perceptions of value is therefore very important,
as is knowledge of competitor pricing within the marketplace.

36
 The price of fashion begins with the cost set by the designer. The designer’s costs related to
the Design, creation, and production of the fashions are identifies. The price that fashions
are ultimately set at are historically dictated not by the designer but by the retailer’s
designation. For example, a discount store typically operates on a low profit margin(hence
the name discount store). Discounters offer merchandise at low, competitive prices
department stores are categorized based on the type of merchandise sold. They offer a wide
variety of soft lines(i.e. apparel for the entire family) and hard lines(e.g. home furnishings).
A department store features semiannual storewide sales. Continuity in pricing strategy
provides security to retailers and consumers. Retailers are able to predict at a relatively
good rate of assurance when their competitors will promote sales and how much of a price
reduction consumers will be offered. As the new millennium approached, fashion retailers
catering to various target markets were faced with increased competition from e-retailers,
catalog retailers, and stronger marketing efforts by brick-and-mortar retailers.

Pricing Strategies:

Market skimming- set prices high; generate a larger-than-average gross margin.

Market penetration- set initial price low; entice consumers to shop.
Product line pricing- price-point each quality level within a merchandise line
Discount pricing- set a low price to stimulate customer traffic.
Psychological pricing- price merchandise as the basis of making customers “feel more
favorable” toward the merchandise.
Promotional pricing- design prices to encourage customers to purchase a newly introduced
product.
Membership pricing- have customers sign up for a retailer’s membership.
Value-based pricing- pricing strategy whereby the customer perceives the value of the product
to be worth the price

Place
In essence, place is about getting the right product to the right place at the right time and in the
right amount. It concerns logistics and the various methods of transporting, storing and
distributing merchandise and the means by which a company's products reach their target
customer; termed as route to market' this relates to distribution and sales channels The key sales
channels by which apparel product reaches the end-consumer are:
•Direct routes such as the Internet or purchasing via telephone
•Service-orientated channels, in other words a retail store, or what is
termed as bricks and mortar retail
•Catalogues-some companies start by producing a catalogue. They may
then expand to open stores or operate a concession within another store
•Most printed catalogues now also operate a second channel online
•Public events such as sports or fashion events, or craft or country fairs
•Trunk shows for invited customers
Routes to market for the fashion trade can be via the following channels- Trade fairs
Agent's showroom, Company-owned showrooms either at head office or located-in key global
locations, Intermet, Via a sales team, Direct from manufacturer, Via an agent, Trunk shows.
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Trade fairs and Exhibitions
A trade fair (trade show, trade exhibition or expo) is an exhibition organized so that companies
in a specific industry can showcase and demonstrate their latest products, service, study activities
of rivals and examine recent market trends and opportunities.
Industry trade fairs provide an important opportunity for companies to showcase their new
product ranges and sell to retail buyers from around the globe. This advantage of trade fair or
exhibition is that buyers can view and compare a variety of brands all showing at the same event.
Apparel & Fashion Trade Shows:
Every year around 368 Apparel & Fashion Trade Shows are hosted by 53 countries and gives you
ample opportunities to establish a strong market reputation and sell your products to the global
buyers. Most of the Apparel Trade Shows are organized in Germany, China, and USA.
Trade shows are usually held in convention centres that can house numerous exhibitors. They
generally occur once a year. Many members of a particular industry attend trade shows to re-
connect with members of the industry, meet competitors, establish business contacts, and make
potential sales.
The India International Trade Fair, ever since its inception in 1980 has evolved as a major
event for the Business community. It is a premier event organized by the India Trade Promotion
Organization (ITPO), the nodal trade promotion agency of the Government of India. The event is
held between 14–27 November every year at Pragati Maidan, New Delhi, India. The Theme of
IITF 2013 was Inclusive Growth with Bihar as Partner State and Japan as Partner Country.
IITF is a major tourist attraction and lakhs of people visit the fair every year. This annual event
provides a common platform for the manufacturers, traders, exporters and importers. The fair
displays comprises a wide range of products and services including Automobiles, Coir Products,
Jute, Textiles, Garments, Household Appliance, Kitchen Appliances, Processed food, Beverages,
Confectionery, Drugs, Pharmaceuticals, Chemicals, Cosmetics, Bodycare & Health care products,
Telecommunication, Power sector, Electronic Sector, Furniture, Home Furnishings, Sports Goods,
Toys, Engineering Goods etc.
The participation figures verify the huge worldwide response of IITF. The 26th edition of IITF
(2006) had around 7500 national and 350 international exhibiting companies. The fair attracted a
huge audience of more than 3 million general visitors & 2,75,000 business visitors including 91
delegations from 53 countries. In fact, all business avenues will be encouraged to participate, to
represent India in its totality and open fresh avenues for major business expansions. In IITF 2012,
22 countries (including India) participated in the Fair.

38
Promotion
Promotion is about communicating with customers and includes all the tools available for
marketing, communicating and promoting a company and it’s products and services. The
combination d promotional activities, such as advertising, sales promotion, public relations,
personal selling or sponsorship is known as the promotional mix. The idea behind this is similar
to the marketing mix and relates to the mixture of promotional tools that can be employed to
achieve a company's promotional activities. Some of the most recognized promotional vehicles for
fashion are the advertising in high-profile fashion magazines like Vogue or Harper's Bazsar, Grazia
or Marie Claire; catwalk shows that gain extensive media and public interest, and the PR and
razzamatazz that surrounds celebrities and their endorsement of designer fashion. There are,
however, many more innovative and creative ways to promote fashion. One way for a retailer or
fashion wholesaler to promote their business and provide something extra for customers is to
produce an in-house magazine or seasonal brochure. Producing a high-quality, multi-page
publication is a costly and intensive process, so companies that choose to do this usually publish
on a biannual basis, timing editions to promote Spring and Autumn collections. The style and
content of the publication must reflect both the underlying values of a brand and the attitudes and
interests of targeted customers.
Magazines and brochures are also a great vehicle for communicating essential information
such as contact details for head office or customer services and locations and addresses of
stores.
Promotion in the Marketing mix of Louis Vuitton
Louis Vuitton has employed a promotional strategy for its products with the help of celebrity
endorsements. Famous actors like Jennifer Lopez, Kate Moss, Scarlett Johansson and Uma
Thurman have been associated with the brand as its ambassadors. They have featured in the high
profile ad campaigns for this brand. Louis Vuitton has also taken an active part in sponsoring mega
sporting events like motorsports and yachting.
These events are attended by mostly the elite society and by associating with these events; the
company has made a direct link with the target audience. Advertising is the main tool to create
awareness about the product and keeping with its illusion of exclusivity the company has managed
to make ads that are really individual and fashionable.
Although the company does not advertise on television but it does follow a policy of high profile
advertisement in newspapers and fashion magazines. These ads are all about exclusively handled
images that leave a distinct mark on the public. This demographic strategy has created waves in the
advertisement industry and helped in making the goods popular throughout the globe. Most of the
advertisements revolve around the celebrities and this is to create an emotional connection of the
consumer. The customers believe that they are also a part of this exclusive group.

39
8. The marketing mix today
The drawback of the marketing mix is that it tends to focus on the internal needs of the
company rather than the ever-changing requirements of customers. The traditional 4P
marketing mix was primarily developed during the rise of mass consumerism to market the
tangible benefits of product the limelight falls on issues surrounding producing, pricing and
promoting product. Newer thinking believes the consumer should be at the heart of the
matter. An expanded 8P version of the marketing mix has been developed to address this
change in emphasis, it includes three further criteria, physical evidence, process, people,
productivity and quality. It can be a common mistake to consider fashion as a product-based
industry, however - it should really be viewed as service or people-based. Fashion retail
concerns the experience of shopping so service which incorporates the extra Ps could be
viewed as a marketing tool of the highest importance.
Physical Evidence: Consumers increasingly demand more in terms of value, service, and as
the ability of fashion retailers to match each other’s product offer rises, so the criterion of
physical evidence plays an ever more important role in differentiating one retailer from another.
Physical evidence relates to the issues surrounding packaging, brochures, business cards,
website design and usage, carrier bags, staff uniforms, in-store décor, ambience, facilities, retail
fixtures, store windows and signage.
The fashion experience is about so much more than just the clothes or accessories themselves,
it's all the little extras that make a difference. The label in the garment embroidered with the
designer name, the well-designed and beautifully crafted swing ticket, the carrier bag so special
that it is kept as a treasured souvenir, or stunning windows and store displays that capture the
imagination and make a shopping trip feel thrilling. All these extras are vitally important
aspects of the marketing mix. They are persuasive factors that add value, enhance customer
perception of a retailer or fashion brand and elevate one company above another in the hearts
and minds of consumers.
Burberry Shows The Power of Packaging
Burberry bag bags are made from a smoke grey coloured thick card, with such quality that it
almost feels like fabric. At the top of the bag there’s some gorgeous two-toned ribbon tied in a
large bow above the matching smoke grey rope handles. A few inches below the ribbon there
are two royal crests, hot foil printed in gold and in the finest, most intricate detail. Underneath
the crests sat the iconic Burberry font in gold, embossed at different levels, which allows the
light to bounce from it in all directions. Burberry scarves are wrapped perfectly in brown tissue
paper sealed with a textured metallic gold sticker with ‘Burberry’ debossed in the centre and
kept in a box.

40
Burberry provides perfect luxury packaging and has managed to make a huge brand impact
through their choice of materials and processes. Furthermore they’ve reinforced their values by
using all British materials and (where possible) working with post-consumer waste and
certified sources to ensure they’re doing their bit to help the environment. This present really
reinforce in people the psychological impact that packaging can have, as it somehow managed
to make what was already a wonderful and luxurious gift even more special, by creating a
memorable, tactile experience for the recipient.
Additionally, physical evidence pertains also to how a business and it’s products are perceived
in the marketplace. It is the physical evidence of a business’ presence and establishment. A
concept of this is branding. For example, when we think of “burger”, we think of McDonalds.
When we think of sports, the names Nike and Adidas come to mind. We immediately know
exactly what their presence is in the marketplace, as they are generally market leaders and
have established a physical evidence as well as psychological evidence in their marketing.
They have manipulated their consumer perception so well to the point where their brands
appear first in line when an individual is asked to broadly “name a brand” in their niche or
industry.

Process
Process describes the customer's experience of the brand or service from first of contact
onwards. It considers the experiences and procedures they have to go through in order to make
a purchase and includes issues such may as information flow, ordering, payment, delivery
service and return of products in the modern marketing climate, with increased reliance on
marketing selling via the internet, process is a potent tool, especially for businesses wishing to
build customer loyalty and ensure customer retention Whatever nature of a business, it is
always worthwhile to take time to review the process customers go through when they make a
purchase or use a website to see the steps from the customer perspective rather than just what
might be efficient for the company.
A customer purchasing a wedding dress will go through a series of steps from first
consideration to final purchase and ultimately wearing the dress on her wedding day. The first
step may be looking at wedding magazines and doing online research to find suitable dress,
designers or retailers. Next, there could be telephone conversations or emails to gather further
information or book an appointment to view a collection sessions to select fabric and develop a
personal design, followed by several fittings, the final fitting, taking delivery of the dress and
then the wedding itself. Each step in the process is a moment where the consumer and company
providing the service interact. Every interaction provides an opportunity for the business to
differentiate itself from competitors, create value and ensure a positive experience for the
customer.
Process expands the marketing viewpoint beyond the product itself and recognizes the value of
smooth interactions and good service. In combination with great product, process builds
trust, loyally and repeat custom. Hopefully, a wedding dress will be a one-off, once-in-a-
lifetime purchase, so positive custorner experience is less likely to result in a repeat purchase
but it will certainly contribute towards an enhanced reputation and customer recommendations
Conversely customer irritation with any part of the process could lead to a lost sale, deteriora-
tion in trust and erosion of customer goodwill or loyalty In the case a wedding dress there may
be other people to please along the way-the mother or a best friend or bridesmaid. Process may
appear to relate to systems and organization but in reality it is al about people and their poten-
tial.
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People
People in this instance does not just refer to consumers, it has much wider implications and
opens up the scope to include all those who add value to the development and delivery of a
product or service. People can therefore include employees, partners, stakeholders, collabo-
rators, producers and suppliers. It can be a trap to consider fashion as only a product-based
industry it is just as important to view it as retail and a service experience. People add value
along with the entire length of the supply chain and are, of course, integral to the service
provided by any company. People should therefore be considered as a vital part of the marke-
ting mix.
Google, which consistently is ranked as one of the best places to work, gives their employees
all kinds of perks. Google give five months with full pay: salary, bonus, stock. Twice a year
they do upward feedback surveys with about 10 - 15 questions about their boss. Managers
see what percentage of employers are favorable, neutral or unfavorable [on specific skills].
Google offers free meals and snacks to all of its employees. Google’s maternity leave plan
was 12 weeks paid time off. Later the plan changed, now new mothers get 5 months paid
time off with full pay and benefits.
Productivity & Quality
Productivity means, in what way our customers are benefitted by our offering. This
is less about how we as a business improving our own productivity for cost management,
and more about how our company passes this onto its customers. This always needs to be
tied with quality; we supply the best, and use the best products, procured fairly at the lowest
cost.
Marketing Mix Variables Potential Areas For Differentiation

Product •Design & construction of product

•Quality of products, fabrics & components
•Range of products on offer
•Fashion level of merchandise

Price •Prices in comparison to competitors

•Pricing structure and price architecture of a range

Place •Routes to market

•Locations of stores

Promotion •Designer collaboration

•Advertising
•Celebrity endorsement
•Sales promotions
•Limited editions

Physical Evidence •In-store environment- signage, seating, changing rooms

•Internet site
•Marketing extras- swing ticket and labeling, carrier bag,
brochure, in-store, magazine

Process •In-store and customer service

•Website design & ease of use
•Aftercare, return of products

People •Structure of company

•Opportunities for staff
•Ethics of garment production

Productivity & Quality •Achieve financial goal

•Offering good deal to customer- best quality with low cost.

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 Changing the P’s to C’s
The most up-to-date marketing theories, such as relationship marketing recognize the
importance of building long-term relationships be business and its customers, the aim being to
attract loyal customers who will spend consistently over time. A model devised by Professor
Robert Lauterborn reframes the marketing mix. By changing the P’s into C’s, Lauterborn shifts
the emphasis away from product, price, place and promotion onto the customer.

Marketing Mix- P’s Lauterborn Model- C’s

Product Customer needs & wants

Price Cost to the consumer

Place Convenience

Promotion Communication

Marketing mix 4c’s is one of the business tools that you should take advantage of as an internet
marketer. It’s a modern version of the 4Ps (Product, Price, Place, and Promotion).
The 4Cs (Customer/consumer value, Cost, Convenience, and Communication) enables us to think
in terms of our customers’ interests more than our own. From being business-oriented, we’ll
become customer-centric.
Here are some of the best tactics pros use to enjoy the benefits of the 4C’s in marketing.

Costs
Clients
Consider all costs involved in
Find what the customer wants
satisfying your clients,
and needs. Then create the
including costs that clients
product, service, or solution.
themselves will have to incur
to satisfy their needs
4 C’s

Communications Convenience
All interactions between your How and where does the
organization and clients customer want to purchase?

43
Customer/Consumer Value
Our marketing campaigns must focus on bringing value to our consumers/customers. We may want
to follow these tactics to create more value for our customers/consumers:
•Address the needs and wants of our customers/consumers, and minimize the cost of our solution.
•Unify our goals of (a) generating income or making money from our business, and (b) delivering
high value to our customers/consumers.
•Be proactive in delivering solutions to your customers/consumers. Become their partners in
writing their own successes.
•Speed up our turnaround time. Increase the efficiency of the delivery of our services or products.
•Always show appreciation to our loyal customers/consumers. One way to do this is to feature
them in your social media pages.
•Listen to customer/consumer feedback. Whether the feedback is negative or positive, we’ll be able
to use it to improve our business.
•Apply the standard formula on how to create customer/consumer value, which is “benefits-cost=
customer value”.
•Strengthen customer service with a goal of delighting our customers. How we delight/satisfy our
customers is what matters.
•Give more to our customers/consumers.
Our three options:
1. Give them the same quantity/quality of product/service but lower the cost.
2. Keep the same cost, but increase the quantity or improve the quality of our
product/service.
3. The ideal is increase/improve the quantity/quality while lowering the cost.
We should keep in mind, customer/consumer value is what is going to determine our place in the
market.
Cost
The price of a product or service is the amount we set for the item/s the customers/consumers will
get from our business. This is from the business’s point of view.
Shifting to the perspective of our customers/consumers, the price becomes the cost. It represents
the amount our customers/consumers will pay for our product(s) or service(s).
Cost is a major factor that determines whether customers or consumers will buy or avail the
products or services. There is no standard formula for costing, but it depends largely on
customers/consumers.
Cost means we need to consider how much our customers/consumers are willing to pay for the
value of our offer (product or service). It also depends on the type of market we are targeting to
capture.
For instance, if our target is the A-B crowd, our product or service should carry premium costs. If
the market is C-D, costs must be lower. Thus, we have to know what type of customers we wish to
target.

44
Here are the three common types of consumers:
1. Status-conscious – These consumers want first-rate products or services and are willing to
pay for the cost of the item(s). They look at these products/services and corresponding
costs as a way to define and maintain their status.
2. Convenience-conscious – These consumers will pay for the cost of the product(s) or
services(s) if they find them convenient. They are willing to pay extra as long as their
purchase means convenience.
3. Budget- conscious – These consumers buy products or services that fit their budget. They
are the people who want more value for their money. Thus, they are always on the lookout
for lower-cost product(s) or service(s).

Convenience
These days, people decide in favor of buying based on convenience. Thus, we notice that
practically all businesses have started to create their online presence.
Using the marketing mix 4c’s, convenience means that we make it easy, simple, and fast for our
customers to avail of our product(s) or service(s). We provide them everything they need to buy
from our business.
Thus, it is important to:
•Simplify the process our customers have to go through in doing business with us.
•Make our customers feel good about complying with our business process.
•Consider rewarding our customers for complying with our business process and for their loyalty to
our business.
•Always seek new ways to connect with customers/consumers and to distribute/deliver product(s)
or service(s).
Our goal should be the convenience of our customers/consumers in availing or buying from our
business. This will prevent our customers from seeking convenient solutions elsewhere, especially
from the competition.

Communication
The final element in marketing mix 4C’s is communication. With this marketing mix, we do not
“promote” our business; rather, we communicate value to our customers/consumers. We give our
customers/consumers meaningful content to engage them. We do not just make our target audience
aware of our business; we build rapport and relationship with them.
Whereas before, we promote our business through advertising, press releases or public relations,
direct marketing, and the likes; today, we engage our consumers/customers through interactive
communication.
Here are some of the proven ways to benefit from interactive communication as part of marketing
mix 4c’s:
•Make communication more personal. Deliver personalized communication through our customers’
preferred media or channel.
•Take advantage of the power of the search engines to reach our target market. Make our site,
search-engine and user-friendly.
•Leverage on the social media to connect with our customers/consumers.

45
To do this we need to:
• Find out what social media sites our consumers are hanging out often. Join the social
networking site(s).
• Familiarize ourselves with the culture and language of the social networking sites we are
joining or have joined.
• Upload optimized content that allows us to (1) attract our target audience, (2) build
rapport with them, and (3) engage our audience.
• Increase the engagement of our audience and maintain our interactive communication
with them.
As an internet marketer, we have to be able to keep up with the dynamism of the web. While
traditional marketing is still useful, it is best that we embrace dynamic changes such as the shift
to marketing mix 4c’s.

Example- Nike is introducing a performance hijab to better serve Muslim female athletes.
Sportswear giant Nike is developing a high-performance hijab for Muslim women athletes, the
latest move to fold the Muslim clothing industry into the mainstream.
The Nike Pro Hijab, which will be available in stores in spring 2018, is the result of “an ongoing
cultural shift that has seen more women than ever embracing sport,” Nike said in a statement. “This
movement first permeated international consciousness in 2012, when a hijabi runner took the
global stage in London.”
That runner was Saudi Arabia’s Sarah Attar, who along with Emirati weightlifting Olympian Amna
Al Haddad helped inspire the product.
Al Haddad spoke to Nike extensively about issues she had with existing athletic hijabs: She had
difficulty finding performance-grade head coverings — she only owned one, and had to hand-wash
it every night during competitions — and its weight, movement and lack of breathability made it
difficult to focus. Nike’s new pull-on head covering is designed with a single layer of
durable mesh, which features small holes to increase airflow while remaining opaque enough for
Muslim women’s needs. The back of the hijab is slightly longer, so it doesn’t come untucked to
uncover the neck.

Nike’s goal, therefore, was to provide customer value and convinience with that they create a
lightweight hijab that was “inconspicuous, almost like a second skin,” the company said. Its design
is now being used by select Muslim women in the Persian Gulf region’s competitive sports scene.
Outside the world of sportswear, too, the mainstream apparel industry is capitalizing on
the booming market for modest clothing.

Summary- Nike not only focuses on their business, but on consumers/customers. They are better
off connecting with their consumers/customers on a more personal level.
The goal is to delight them through interactive communication at their convenience that will
enable us to increase customer value at a lower cost.

46
9. Understanding The Customer & Customer Behaviour
Researching and understanding the customer is central to marketing. Indeed recognizing the
requirements and needs of the customer is essential for those tasked with creating and selling
fashion products. This issue concerns business at every point in the supply chain from
manufacturer to retailer - without customers there is no business, so detailed knowledge of their
preferences, motivations and purchasing behaviour is crucial. This knowledge better equips
designers, manufacturers and retailers to design, produce and sell products and services that fulfill
or exceed consumer requirements.
Not al consumers are the same - each individual will have their own complex set of motivations
and shopping behaviour - however it is possible to group consumers into clusters of broadly similar
characteristics, needs or fashion traits. This process is known as customer segmentation and is a
key feature of STP (segmentation, targeting and positioning) marketing strategy. Basic customer
analysis can be carried out effectively by a small start-up with limited budget; the type of research
carried out by someone setting up their own fashion boutique. A national brand wishing to expand
into a new global market may require more in-depth and detailed analysis, for this the services of a
professional market research consultancy may be necessary. There are various criteria behind
consumer research and analysis, or segmentation variables, used to classify and profile existing or
potential new fashion consumers. The process of creating a consumer profile are explained with
details on how to write a customer pen portrait.

Marketing
Strategy

Business Product Design

Strategy And Range Plan

Understanding
Of The
Customer

Customer
Brand Identity
Service

Distribution and
Retail Channels

Before going any further, it is important to establish the difference between the often
interchangeable terms of consumer and customer The consumer, or end-consumer, is the eventual
wearer of the product and will generally be the customer who purchases the garment or accessory.
However in the case of a baby or small child, while they would be the end-consumer, they would
not be the purchasing customer. In this case, a baby or childrenswear retailer needs to understand
not only the special requirements of a baby or child but also the motivations and expectations of
the person who purchases the clothes, most generally the mother.

Summary- Understanding of the customer is central to all aspects of effective marketing.

Many businesses become so focused on internal processes or monitoring the activities of their
competitors that they fail to recognize the needs or changing requirements of their customers.
Solid background knowledge and understanding of customers is essential and should underpin
key business and marketing decisions 47
Customer is a broader term. It can be used to refer to the end-consumer who will be a customer of a
particular fashion retailer or it can be used to describe a business customer, which could be a
business or organization operating within the fashion supply chain. In the first instance the
relationship described is B2C another business, it is termed as B2B (business-to-business). A
boutique owner, for example, who purchases collections from a wholesale design company is a
B2B customer. Companies supplying this boutique must not only have a good knowledge and
understanding boutique owner as their business customer but also a thorough of the end-consumers
or customers who purchase from the boutique.
Customer segmentation
Customer segmentation is one of the key functions of marketing, It aims to a large customer base
into smaller subgroups that share similar needs and characteristics. Typical criteria for
classification are age, gender, occupation, financial situation, lifestyle, life stage, residential
location, purchasing behaviour and spending habits. Segmentation helps enhance a company's
understanding of its customers so that it can position its brand and offer products and services
designed to appeal to the targeted customers. Lifestyle plays a crucial role in segmenting fashion
consumers, clothing needs and style preferences will be highly influenced by a person's type of
work, peer group, and their sporting or leisure activities. Attitudes and opinions on a variety of
issues, such as politics, art and culture or environmental issues, might also impact someone's
choice of clothing. When analysing a consumer's lifestyle and determining what type of customer
they might be, the aim is to gain insight about what they buy, why they buy, which companies they
purchase from, and how and when they purchase.
Segmentation variables
At the beginning of any consumer analysis it is important to determine the segmentation variables
that will be used to classify and characterize consumers. It is normal to use a combination of
criteria; the exact mix will be dependent on the objectives of the research project and the specifics
of the company and its market. Traditional segmentation falls into the following main categories-
demographic, geographic or a combination of the two known as geo-demographic all of which
focus on identifying who customers are and where they live; behavioural and psychographic
segmentation look at the psychology behind consumer purchasing behaviour. Here the idea is to
decipher what consumers think, how they behave, why they purchase and what product benefits
they require.
Segmentation variables
DEMOGRAPHIC VARIABLES PSYCHOGRAPHIC & BEHAVIOURAL
•Gender VARIABLES
•Age •Lifestyle
•Generation •Self-image
•Ethnicity •Value perceptions
•Marital status •Purchasing motives & behavior
•Life-stage •Interests & hobbies
•Occupation •Attitude & opinions
•Education
•Income

48
 GEOGRAPHIC VARIABLES USAGE & BENEFIT VARIABLES
•Urban /suburban/ rural Benefits sought from products
•Residential location •Usage rates
•Housing type •Volume of purchases
•Size of city or town •Price sensitivity
•Climate •Brand loyalty
•End-use of product

Demographic segmentation
Demographic segmentation is one of the most widely used methods of classification. It uses key
variables such as age, gender, generation, occupation, income, life stage and socio-economic status.
Each of these factors is extremely important in its own right, but should not be considered in
isolation - for example, age. A woman may spend heavily on lounge-wear or exercise clothing for
yoga or Pilates; she may work from home and require only casual clothing. Another woman of
exactly the same age and stage in her life might be employed in a professional office and need an
extensive wardrobe suitable for work. In general men spend less on fashion than women but this is
not always the case. Male consumers can be extremely fashion conscious and spend a significant
proportion of their disposable income on clothing or accessories. Some young male consumers are
addicted to purchasing branded sportswear, trainers or jeans. An article in The Times newspaper on
trainer and sportswear addicts by Laura Lovett describes a twenty-one-year-old male who gains
kudos by wearing Y-3, the fashion/sportswear fusion brand created by Yohji Yamamoto in
collaboration with adidas. This customer explains that while some people collect stamps collects
Y3. Gooey Wooey, an avid trainer collector living in southwest England, has a collection of nearly
200 pairs. Gooey trades trainers online buying a pair a week or selling some of his prized limited-
edition retro sneakers to other enthusiasts.
Demographics also consider the life stage of a consumer, they may still be living with their parents
or be single, in a partnership or married, with or without children, or they could have children who
have left home. As a person passes through the various phases of life, their priorities are likely to
shift and their income and discretionary spend will also be affected. Key stages in the
life cycle are:
Dependent - children living at home, dependent on parents
Pre-family - independent adults who don't yet have children
Family - adults with children
Late stage or empty nesters- parents with children who have left home, or older people with no
children
Geographic segmentation
Geographic segmentation analyses customers by region, continent, state, county or neighborhood.
This type of information is important to consider particularly as fashion markets become ever more
global and retailers and brand managers are required to understand the particular needs of
customers in each of the countries or regions where they do business. The product offering,
marketing and promotional approach may need to be adjusted in order to address differences of
climate, culture or religion. It is also important to consider whether someone lives in a city, large
town or the countryside, as this will affect the types of shops accessible to the customer

49
 Example-
Above Right
Gooey Wooey, an avid 36-year old sneaker collector living in the southwest region of England has a collection
of nearly 200 pairs. Gooey trades online, often buying a pair a week or selling some of his prized limited
edition retro sneakers to over enthusiasts. In this image, Gooey shows off one his most expensive acquisitions,
a pair of Nike Dunk Low Pro SB 'Paris' sneakers featuring artwork by Benard Buffet. Only 202 pairs of the
limited edition were produced, so they exchange hands for prices in the region of US$4,000.
Above left
Nike sneakers on display at the Niketown store
in New York

Consumer Behaviour
What motivates us to buy into fashion, what influences our purchasing behaviour, how do our
attitudes, interests and opinions affect our purchasing choices? At a simplistic level it could be said
that the motivating force to purchase a garment, handbag or pair of shoes is a real physical need; in
other words we do not have a receptacle in which to carry our keys, money and mobile phone, or a
pair of winter boots to protect us from the cold and wet, so in order to satisfy this need we must
purchase the required item.

50
10. Porter's Five Forces Analysis
This is a tool that can be used to assess pressures within a competitive business environment.
Porter's model identifies five forces that impact the competitive power and profitability of a
business within a particular industry:
1.The bargaining power of suppliers
2. The bargaining power of buyers
3. Rivalry between competitors in the market
4. Threat of new entrants to the market
5. Threat of substitute products or services
The bargaining power of suppliers: A supplier or manufacturer will have a strong bargaining
position if they provide a unique product or a necessary service If a particular fashion trend takes
off, perhaps one featuring lace or hand embroidery, then a manufacturer in India or China with
capability to produce delicate handwork may find that they have a stronger bargaining position on
price. Suppliers that have built up a strong be costly for customers to switch to a new supplier or
especially if considerable money, time and energy have gone into product development, creating
samples and working on product fittings and specifications. Each season, suppliers and
manufacturers put pressure on their business customers by attempting to put their prices up; if
customers have driven a hard bargain the previous season, a supplier is likely to try and claw back
lost revenue. If a supplier understands that a particular style is on-trend and that there is great
demand from end-consumers, then the balance will be tipped in their favour, particularly if they
can offer a fast lead-time and deliver quickly In this case the supplier will have stronger bargaining
power and may be able to demand a higher price knowing that the buyer needs the stock urgently.
The bargaining power of buyers: On the other side of the equation, buyers will naturally want to
purchase products or services at the best possible price to ensure that they can remain competitive.
Suppliers need to keep their order books filled, so they will be under pressure to meet buyers'
demands, particularly in difficult economic times. Buyers from the large retail chains will not only
bargain for low prices but will also demand favourable discount terms and usually require suppliers
to contribute to markdown costs on stock that does not sell at full price. Fashion retailers that
produce their own collections will gain the upper hand in negotiations with manufacturers if they
place high-volume orders. Asian clothing exports from countries such as China, Vietnam,
India Bangladesh, Indonesia and Sri Lanka increased during the first half of 2009 successful
manufacturers profited from orders from value retailers such as New Look and H&M, whose
sales have risen due to customers demanding lower priced value fashion as a result of the
recession.
Threat
Threat of
of
New
New
Entrants
Entrants

Competitive
Competitive
Bargaining
Bargaining Bargaining
Bargaining
Power Rivalry
Rivalry
Power Of
Of Within
Power
Power Of
Of
Suppliers
Suppliers Within An
An Buyers
Buyers
Industry
Industry

Threat
Threat Of
Of
Substitutes
Substitutes
51
Rivalry between competitors in the market: Fashion retail is awash with a myriad of available
brands and fashion labels, all competing with one another for the end-consumer's custom. Retailers
will compete with each other to have exclusivity on certain brands, a boutique generally refuses to
carry a particular brand or label if it is stocked by a local rival and suppliers will be competing to
ensure they are stocked in the most prestigious stores. Rivalry between competitors does not only
relate to retail, it will also be an issue further back along the supply chain. Textile suppliers will
compete to gain fabric orders, while manufacturers within particular country or region are in
competition with each other to gain orders from foreign buyers, and will compete on price, quality,
lead-time or extra services such as design capability, warehousing and other logistics.
Threat of new entrants to the market: New entrants to a market can threaten companies already
operating within it. In fashion, it is costly an consuming to design, develop, produce and sell a
collection or product range so new start-ups may not pose an enormous threat in the first instance.
However, an established brand diversifying into a new market could constitute a severe threat. A
brand with loyal customers and a solid business might capitalize on their existing resources to
extend their operation into a new sector of the fashion market, a successful womenswear retailer
deciding to develop a range for men for example. For retailers there is a constant threat that
competitors or new companies will establish their stores just across the road. While this poses a
threat, it can also increase footfall, raising the number of customers visiting the area and
encouraging healthy competition.
Threat of substitute products or services: If customers can find an alternative product or service,
they may switch their custom, thus weakening the power of a business to succeed. The threat of
substitution applies equally to the end-consumer who may choose from several retailers offering
similar fashion styles at comparable prices, and to business customers who could decide to
purchase from a competitor if they offer a replacement product or service that could reasonably
substitute for the original.
Example-
Threat of New Entrants/Potential Competitors: Medium Pressure
Entry barriers are relatively low for the beverage industry: there is no consumer switching cost and
zero capital requirement. There is an increasing amount of new brands appearing in the market
with similar prices than Coke products
Coca-Cola is seen not only as a beverage but also as a brand. It has held a very significant market
share for a long time and loyal customers are not very likely to try a new brand.
Threat of Substitute Products: Medium to High pressure
There are many kinds of energy drink s/soda/juice products in the market.Coca-cola doesn’t really
have an entirely unique flavor. In a blind taste test, people can’t tell the difference between Coca-
Cola and Pepsi.
The Bargaining Power of Buyers: Low pressure
The individual buyer no pressure on Coca-Cola. Large retailers, like Wal-Mart, have bargaining
power because of the large order quantity, but the bargaining power is lessened because of the end
consumer brand loyalty.
The Bargaining Power of Suppliers: Low pressure
The main ingredients for soft drink include carbonated water, phosphoric acid, sweetener, and
caffeine. The suppliers are not concentrated or differentiated. Coca-Cola is likely a large, or the
largest customer of any of these suppliers.

52
Rivalry Among Existing Firms: High Pressure
Currently, the main competitor is Pepsi which also has a wide range of beverage products under
its brand. Both Coca-Cola and Pepsi are the predominant carbonated beverages
and committed heavily to sponsoring outdoor events and activities.
There are other soda brands in the market that become popular, like Dr. Pepper, because of their
unique flavors. These other brands have failed to reach the success that Pepsi or Coke have
enjoyed.

11. Marketing Strategy

Strategic Plans : Marketing strategies include the process of analysis and decision making which
organisation go through. Marketing plans are a part of this process.
strategic plan- to identify business alternatives, establish challenging goals, determine the optimal
marketing mix to attain these goals, and detail implementation.
A Final step - is to create a plan to monitor progress and a set of contingencies if problems arise in
the implementation of the plan.

STRATEGIC PLANNING / MARKETING STRATEGIES

It allows organisation to utilise

resources optimally

It helps in achieving goals of increased

sales and achieve sustainable
Marketing strategy competitive advantage

Involves precise and careful scanning

of internal & external environment
following which a strategic plan is
formulated

53
STEPS TO DEVELOP A MARKETING STRATEGY
STEP 1
Define the products or services that your company offers, as well as their intentions.
Determine how they are beneficial to your customer base. Once you get a full understanding of
what you are trying to sell, you can better know how to market it to the outside world

STEP 2
Establish a marketing plan of action for positioning your product or service in the
marketplace. Ask yourself where it fits in, and even if there are other similar products available
within your market range, make sure yours has its own niche.

STEP 3
Develop a market study so as to determine the type of customer you are targeting with your
product or service. Learn who they are, their age group, gender, and their buying habits.
Determine what concerns they are facing and how your product or service will resolve those issues.
A market study also provides valuable information on market growth and trends.

STEP 4
Study your competition to determine the various options available for your target customers
to choose from. Compare and contrast their product or service with yours and evaluate their
positive and negative points. Doing so will guide you more effectively as you establish your own
advertising strategy

STEP 5
Find out what sets your product or service apart from the competition. Ask yourself what is
unique about what you are offering and then put together a sales proposition that you can
implement

STEP 6
Decide on a marketing budget and make sure that your plan fits into it. A budget can be based
on the type of marketing you are planning, or you can plan the amount of your budget and ensure
that your plan fits in to that parameter.

STEP 7
Determine the various marketing methods that you can implement to best promote your
particular product or service. There are many marketing and options available, such as direct
mail advertising, Internet marketing, and promotional events. The methods and extent of your
marketing plan would obviously be dependent on your budget.

STEP 8
Be prepared to modify your marketing strategy on a regular basis. Markets and customer
tastes change all the time, so be ready to evaluate your approach and change it to meet those
customer climate changes. If you neglect to modify according to the economy, and you choose to
remain stagnant in your approach, your product will most likely be left behind the competition

54
STRATEGIC MARKETING PLAN OF NIKE
Marketing Mix strategy
Nike has the leading role in marketing and has strongest marketing mix. In particular it depends
on Pull strategy; it has established it’s seizing against the big competitors like Reebok and
Adidas (Marketing mix of Nike)
Product
Nike offers a wide range of products including shoes, apparel and equipment. Currently these are
top selling product categories, all these products clothing and equipment specialized for sports
products (Marketing mix of Nike).
The first product of Nike is running shoes. Apart from this, it offers currently in athletics,
baseball, ice hockey, tennis, soccer, lacrosse, basketball products and has wide range of sports
products such as cricket shoes, shirts, and shorts.
Nike NYX and Nike SB shoes offered for the first time in 1987. In 2008, Nike Air Jordan XX3,
basketball shoe was introduced with the high performance, designed for the environment (4P of
Nike).
Nike also offers products for tennis, golf, skateboarding, association football, baseball, football,
cycling, volleyball, wrestling, cheerleading, aquatic activities, and sells shoes for racing and
other sports and outdoor activities as recreational uses.
Recent products:
Nike has recently introduced cricket shoes are designed to be lighter 30% than its rivals i.e. Air
Zoom Yorker and Nike Air Max designed for the latest addition to its line skate Nike 6.0.
Nike recently shoe tracks the performance of a corridor on the radio device that connects to the
iPod Nano to produce the Nike + Apple Inc. with the team, while the product generates useful
statistics and enables the users to get value from product (4P of Nike).
Beside this, NIKEiD is a sub brand which allows the customers to design their customized Nike
footwear through offering a selection of shoes, what customers want; different colors and fabrics;
they can choose whatever area of the shoes they want. This customization allows customers to
create different designs in large quantities. Customers do not have to design shoes themselves
but have designs that customers can buy a selection of pre made designs. NIKEiD’s
customization process and offers are available in Nike’s website (NikeID).
Pricing
The type of products to be marketed will affect the price of a product. Nike’s pricing strategy is
considered to be competitive than other retailer shoe. The pricing is based on the basis of target
customers as a premium segment. Nike brand commands a high premium. Pricing strategy
makes use of vertical integration in which they participants at differing channel levels or take
role in operations level more than one channels to control cost and impact product pricing
(Marketing mix of Nike)
Nike has become so well known that most people will pay more dollar for quality products for
this product. That is why Nike uses Cost Based/Value Based Pricing other than its competitors
which offer low prices. The target customers of Nike are those who are niche and have almost
have the financial capability of the product, such as the use of expensive clothes is a status
symbol. This makes the customer want to continue to buy the product of Nike. Without a high
equity brand, like Nike, however, this would not be possible rise in prices (Blogspot).
Pricing strategy currently used by Nike is like, it may continue to use it. Nike's current customers
currently specify what they would be willing to pay the cost of the product to ensure the quality
and service they receive from Nike. On the basis of the services offered by Nike, to find that they
can compare the quality at a reasonable price from competitor service and prices are fairly 55
charged (Nike Marketing Plan)
Place/Distribution
Nike shoes are conceded by other multi brand stores and exclusive Nike stores worldwide. Nike
has about 20,000 retail accounts in the US and sells its products in about 200 countries
worldwide. In the international market, independent distributors, licenses and subsidies sell Nike
products. The company has manufacturing facilities worldwide and in Asia, customer service
and other operational units (Nike Marketing Mix).
Nike long term plans to open more stores and franchise to reach target customers and to expand
the maximum buyers.
In Nike Town store, shops sell sheep showmanship interested enough to do whatever. Nike town
stores can take the entire city blocks and customers can feel like future oriented. These include
basic shoe stores made during each boasting chandeliers Nike product imaginable. Nike town
product offers a complete experience. This store has all the products, but will not stay there again
create a memorable experience for the customer to bring back again (Nike 4PS).
In the international market, Nike has independent distributors, licenses and subsidiaries which
sell its products. To reduce the cost of Nike’s products, it has outsourcing strategy with China,
from developing countries in Asia, such as Vietnam. And to do more business online because
Nike tradition is as spending on online advertising as compared to advertising media, ecommerce
and online marketing contributions are planned to expanded appropriate channels
(Nike Marketing Plan).
Nike has some specific distribution outlets and use them for distribution of its products,
following are the major ones:
• Nike town shop: In big cities of countries, Nike’s outlets are there to serve customers
with products.
• Flagship stores: Nike has contracted with retail stores that has label of flagship of Nike
which serve with high volume of Nike’s products to consumers
• Nikeid: It is a Nike’s online store that is website which serves the customers of all over
the world with customization services.
• Big retail discount stores: The big stores of country also serve with some high demand
Nike products for the target customers.
All these have availability of Nike’s products; consumers who want Nike’s products can get
required products from these distribution methods of Nike.
Promotion
The marketing communications mix is effective because Nike attracts new customers and creates
balance between keeping existing customers (nike marketing communications-mix).
This is one of the strengths of Nike. Nike has introduced its offers to almost any environment
known to man and is extremely sensitive. Print advertisement in general, simple but send a
strong message. There is virtually no advertising that appears on their price and Nike are almost
always uses a popular athlete to promote its product. The Advertisement exceeds the
expectations of everyone with these shoes and they are able to demonstrate on the rise for
consumers (nike 4p).
Promotion of Nike is best; Nike uses Commercials, celebrities or billboards as ways to make its
target customer aware about its offers. But Nike needs other ways for promotion as to encourage
more new products. Then it may use the maxi environment and can create brand awareness.
Marketing implication is that Nike is a marketing strategy for online ecosystem. This means that
Nike is preparing to cut for television and print advertising, and increasing to the social media
(Nike Marketing Plan).
56
Nike also sponsors events such as Hoop It Up and The Golden West Invitational. Nike’s brand
images, the Nike name and the trademark swoosh; make it one of the most recognizable brands
in the world. Nike’s brand power is one reason for its high revenues and makes other companies
to get sponsorship from it.
Nike runs advertising in newspapers and has benefit of creating strategic alliances.
Summary- It is seen from market and company’s analysis that Nike has the potential to execute its
objectives and can offer new products and expand its share so by looking to Nike’s overall
strategies and objectives.

57
12. Marketing Vs Sales
Marketing and sales are both aimed at increasing revenue. They are so closely intertwined that people often don’t realize the
difference between the two. Indeed, in small organizations, the same people typically perform both sales and marketing tasks.
Nevertheless, marketing is different from sales and as the organization grows, the roles and responsibilities become more
specialized.

Comparision Chart

Marketing Sales

Definition Marketing is the systematic planning,
implementation and control of business
activities to bring together buyers and
sellers.
A sale a transaction between two parties
where the buyer receives goods (tangible
or intangible), services and/or assets in
exchange for money. 2) An agreement
between a buyer and seller on the price of
a security.

Approach Broader range of activities to sell Make customer demand match the
product/service, client relationship etc.; products the company currently offers.
determine future needs and has a strategy
in place to meet those needs for the long
term relationship.

Focus Overall picture to promote, distribute, Fulfill sales volume objectives

price products/services; fulfill customer's
wants and needs through products and/or
services the company can offer.

Process Analysis of market, distribution channels, Usually one to one

competitive products and services;
Pricing strategies; Sales tracking and
market share analysis; Budget

Scope Market research; Advertising, Sales; Once a product has been created for a
Public relations; Customer service and customer need, persuade the customer to
satisfaction. purchase the product to fulfill her needs

Horizon Longer term Short term

Strategy Pull Push

Priority Marketing shows how to reach to the Selling is the ultimate result of marketing.
Customers and build long lasting
relationship

Identity Marketing targets the construction of a
brand identity so that it becomes easily
associated with need fulfillment.
Sales is the strategy of meeting needs in
an opportunistic, individual method,
driven by human interaction. There's no
premise of brand identity, longevity or
continuity. It's simply the ability to meet a
need at the right time.

Summary
Despite many differences between the sales and marketing, these are not contradictory in
nature. Both these terms are closely interlinked to each other and play a very important role
in the survival of business in the long run.
The sale is a human-oriented function, so the personnel involved in the sales activity should
be given a proper training and incentives to boost his morale and earn higher revenues in
return. On the other hand, Marketing is a media oriented, so the best channels of
advertisement and promotion should be adopted to have an increased sales along with the
enhanced brand image.
58
Example- McDonalds sells food, or at least a food-like substance. They target families with kids,
to get the whole family to come eat. They offer Happy Meals and playgrounds. Their locations are
chosen for convenience. They distinguish themselves based on consistency of menu and food. You
can walk into any McDonalds anywhere and know the Big Mac tastes pretty much the same (yum).
They advertise using Ronald McDonald. All those decisions are marketing decisions.
Burger King competes with McDonalds and also sells food that’s the same everywhere, with
locations chosen for convenience. They also target families with kids, use cartoon characters in
their ads, and have a consistent menu. So other than the food, how do we tell them apart? Burger
King positions themselves as different from McDonalds by letting you eat according to your
individual taste. While McDonald’s says, “eat here and you always get the same thing,” Burger
King says “have it your way.” That positioning is a marketing decision. Of course, the irony is that
even if you have it your way, “your way” is chosen from a menu as limited as McDonalds. The
difference is in the marketing message, not in the product itself.
Once the marketing decisions are made, sales people take those decisions and march into the world
to sell the products and services, using the messages marketing chooses. With our fast food
example, sales happens at the counter. The person taking your order might suggest a specific item.
They don’t make any of the marketing decisions, but they are given a menu and they help you
choose specific items. Like any good salespeople, they try to get you to buy more by asking,
“would you like fries with that?”

Another example is Casio watch company. They sell watches to average consumers. Their position
is selling cheap timepieces, with many different models, so you can get almost any capability you
want. Rolex, on the other hand, sells to very wealthy customers. They don’t have as many models
or as much capability as Casio, and their watches cost thousands of dollars. Rolex, however,
doesn’t position themselves as a watch. Rolex says, “I’m a symbol of wealth, status, and taste.”
Rich people buy Rolexes as a status symbol, while the rest of us buy Casios to tell time. Both
watches are often sold in showrooms by salespeople. What seem to be two similar products, sold
through retail stores, are positioned as very, very different products.
The one place sales and marketing may merge is in direct mail. When a company sells their
product by sending junk mail or spam, the decision of what points to make during the sales process
becomes the very text of the letter you so happily receive in your inbox. But even here, marketing
and sales can be separate. The company can choose the product features they want to highlight to
their customers, and then hire someone to write the actual sales letter that tries to persuade the
buyer to buy.

Conclusion
Sales is when we’re face-to-face with a customer, convincing a person to buy our product.
Marketing is the collection of decisions we make about the market that leads to successful sales.
Marketing is the planning part of sales. Marketing chooses the products to make, identifies who to
sell to, what customers want, and who competitors are. Then, marketing figures out how to
distinguish the product from the competition by choosing where the product is sold, its price,
packaging, advertising messages, and where the ads run. This is called “positioning” the product.

59
12. Segmentation-Targeting-Positioning
Marketing strategy is an extremely tough challenge for a fashion manufacturer, supplier
designer brand or retailer to appeal equally to all customers or consumers. It makes sense
therefore tor a business to concentrate its resources and activities and focus on a specific area of
the market, fine tuning or positioning' the brand, product offer and services so that they appeal
more directly to a specified and well-defined target audience. This is the fundamental principle
underpinning STP (segmentation, targeting and positioning) marketing strategy.
Segmentation and targeting
Market segmentation is a key function of marketing: its purpose is to divide a market into
smaller, more focused sectors. The fashion market can be segmented in several ways, for
example by product type or market level. There is a market for couture, the luxury designer
market, the accessory market and branded sportswear. The process of segmentation can also be
used to cluster consumers into groups that share similar characteristics Consumer segmentation
is the research and analysis technique used to define these groups. It categorizes consumers in
terms of their age, attitudes, behaviors or by the type of products and services they might need.
Segmentation is a means to an end the tool that facilitates the next step in the process;
targeting. This is the process of developing products or services specifically aimed to appeal to
a particular customer segment. Companies that offer petite ranges, for example, are targeting
smaller-sized customers. A fashion brand targeting older female customers might design, cut
and size garments in such a way as to flatter the figure of the older woman.

Targeting
Positioning
Segmentation -Measure segment
attractiveness -Develop marketing
-Identify bases for
mix for each target
segmentation -Select target segment
segments

Market targeting
The list below refers to what’s needed to evaluate the potential and commercial
attractiveness of each segment.
Criteria Size: The market must be large enough to justify segmenting. If the market is small, it
may make it smaller.
Difference: Measurable differences must exist between segments.
Money: Anticipated profits must exceed the costs of additional marketing plans and other
changes.
Accessible: Each segment must be accessible to your team and the segment must be able to
receive your marketing messages
Focus on different benefits: Different segments must need different benefits.

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Positioning
Once the organization decides on its target market, it strives hard to create an image of its product
in the minds of the consumers. The marketers create a first impression of the product in the minds
of consumers through positioning. Positioning helps organizations to create a perception of the
products in the minds of target audience.
Product positioning
Positioning maps are the last element of the STP process. For this to work, you need two variables
to illustrate the market overview.
Example-Nike’s S-T-P
Market Segmentation
It has following segmentation to create consumers groups to target:
Demographics segmentation: Nike has segmented an Age and gender group that is it has such
products that serve male and female that has age range of 15-55.
Psychographics and behavioral segmentation: Nike has this segmentation to answer that why
consumers need its products and what the consumers have interest and purchasing habits. So
regarding this Nike segments its market which includes:
• Sports or athletic oriented
• Active lifestyle(interest in fitness and exercise for recreation)
Geographic segmentation: On the basis of this, Nike has segmentation to serve its target
customers all over the world. It has major markets in USA, Asia-pacific Europe, Africa but it has
continuous objective to cater markets in other countries as well like North-America, China,
Japan, and Middle-East etc. (Nike Inc, 2016)
Targeting
As for market segmentation, Nike has niche market to serve that is Nike focuses and targets
athlete or sportsperson segment and provides required products to them as footwear and apparel
products, which have quite specific and unique feature as compared to other footwear products.
Following are the some target strategies of Nike:
Its target strategies include aggressive marketing to make aware its target consumers about its
product and even Nike make its target consumers enable to get their desired products through
customization process as own signature shoe is offered to athlete that is it enabled Michael
Jordan to have his name Jordan shoes.
Apart from this, its targeting strategies include sponsorship of its products through sports team or
celebrities. It has objective of styling its product through psychological tactics on target market by
linking triumph with apparel that is products are viewed as victory when sponsorship is done by
athlete celebrities (Marketing strategy of Nike)
Another targeting strategy is Nike cross training established in 1989 which caters all the athlete
participants all over the world and trains different sport activities which has also become way to
make its target market satisfied.
Market Positioning
Nike has positioned itself in the mind of its target customers as a leader in sports goods. It has
made such products that satisfy its niche market with all products related to sports. Its slogan
‘Just do it’ has made an appeal to target customers to buy the product with sense of inspiration and
confidence and which has made it major competitor in athlete industry.
Its positioning statement is
‘For every serious athlete Nike provides perfect shoe or sports products that gives confidence for
every sport activity
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Summary- Nike has engaged market segmentation in splitting the target market depending on
consumers with similar needs, a model that has encouraged conclusive marketing mix in
meeting the exact needs of the target customers in sporting. Nike brand is globally recognized
and has brand loyalty over decades. Nike has made sure that the market segments are
measurable, accessible, viable and substantial. Market segmentation has made Nike more
effective in meeting the exact needs of the target market.

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13. The Marketing Campaign Of Grasim

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Introduction
Grasim Industries Ltd (Grasim), a flagship company of the Aditya Birla Group, was
incorporated in 1947. Grasim is primarily engaged in manufacturing of VSF, cement, chemicals
and textiles.In 1954, it commenced viscose staple fibre (VSF) production in MP and
subsequently in 1985 entered into cement business. The Punjab Cotton Mills established in
1938, was taken over by Grasim Industries Ltd. in 1964 and renamed as Bhiwani Textiles
Limited.
In the domestic market, they sell fabric under two brands, Grasim and Gravierain domestic
Ready-To-Stitch (RTS) menswear formal fabric. Grasim caters to the mid premium to premium
segments of the RTS market whereas Graviera caters to the needs of consumers in the economy
to mid premium segment.
Grasim sells suiting, shirting and apparel fabrics under its flagship brand - Grasim. This brand
is positioned as a “value-for-money” brand and therefore the company has focused on
achieving a deep penetration into Tier I, Tier II and Tier III cities. Grasim’s product pricing is
higher than the unorganised market but cheaper when compared to other branded fabrics.

The Marketing Campaign

A marketing campaign is an important tool that helps to expandthe market reach into new
verticals or demographics. As of now, Grasim is positioned as a value for money offering. The
focus of this marketing plan is to increase the brand awareness of Grasim and thereby
achieve market penetration. In order to do this it is essential that we get strong imprints into
the minds of our target customers. For this a strong emotional connect with the brand has to be
developed.
Our major target groups are Upper Class & Upper Middle Class in Tier 1 Cities and Middle
Class in Tier 2 Cities.Our overall strategy for the products that will be mass produced will be
Cost Leadership. Since we already have a strong foothold there, additional measures would be
taken to strengthen the existing position. Additionally we’ll also try offering customized
products to cater to the Upper class segment where our strategy would be to focus on Product
Differentiation. Though we don’t have a strong position here, the steps taken here will help us
set a strong foot in these high growing domains.
The qualitative outcome goals are better brand recall, ideally reaching top of the mind recall
in the target segment and greaterbrand equity. We are also trying to minimize cognitive
dissonance by trying to increase customer delight by delivering products that exceed the
customer expectations. All of these should also help in developing a strong customer base with
highbrand loyalty. On a quantitative level the goal is to increase the sales revenue by half a
million rupees in the next two years.
We will be using Celebrity Endorsements and Wedding Campaigns to achieve this. The
channels used will be Print Media (Newspapers, Magazines, Brochures, Flyers etc.), Television,
Radio and Billboards. The budget set for this would be 10-15% of annual income in the initial
period.

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Conclusion
Celebrity Endorsements will help to build an image of trust or fashionableness and Wedding
campaigns would help to have a strong emotional association. Since we are focusing on themes
that are eternal (virtues) and themes that has the front burner attention (dowry), achieving high
notice ability should not be very difficult. It will also make the customer think and discuss
some of the issues and hence help us with WOM publicity. By mixing and matching these we
hope to build both brand image and a strong sense of association. The advertisement
methodology would be Pulsing where we would adopt bursting during seasons where there is
high demand and adopt continuity during off seasons to ensure that the product stays in the
memory of the customer.
The overall experience of working in this project has been really enriching. I was able to
understand the importance of branding. I was able to learn end to end about how an
organization goes about planning for a marketing campaign. To start off how are the STP’s
(Segmentation, Targeting and Positioning) is determined, based on which an advertisement mix
has to be decided. Then how different channels of communication have to be employed based
on the message to be conveyed etc.
Work done by me For Grasim Marketing Campaign- Whole wedding campaign ideas, clientele
for wedding campaign, Graphical representation for grasim campaign and conclusion part(first
slide and last slide) interpretation of the campaign in slides related to the mentioned topics.

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14. Conclusion
After reading this journal, the reader can understand to develop effective marketing mix with
relevant strategies which aims to offer business solution. It will enable them to understand
necessary skills to future marketing managers to effectively change and evolve rapidly to keep
up with competitors, and explain how marketers can reach digitally savvy audiences, build
deep customer relationships, and influence the digital path to purchase.
To make learners aware of the fashion marketing, Integrated Marketing, role of consumer
behaviour in marketing, difference between Market Research and Marketing Research
Marketing concepts, marketing mix, marketing strategies, STP, marketing vs sales, marketing
channels and modern concepts of marketing with relevant examples and case studies.

The overall content of this journal was made to make the reader understand the importance of
branding, how an organization goes about planning for a marketing campaign. To start off how
are the STP’s (Segmentation, Targeting and Positioning) is determined, based on which an
advertisement mix has to be decided. Then how different channels of communication have to
be employed based on the message to be conveyed etc.

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 15. Bibliography
•http://northcampus.uok.edu.in/downloads/20161102133904427.pdf

•http://kalyan-city.blogspot.in/2011/07/scope-of-marketing-research-mr-branches.html

•http://cultbranding.com/ceo/52-types-of-marketing-strategies/

•https://www.marketing91.com/marketing-mix-nike/

•http://www.drbdigital.com/files/burberry_marketing_mix_7ps.pdf

•https://www.marketing91.com/marketing-mix-of-burberry-burberry-marketing-mix/

•https://www.slideshare.net/munich007/business-plan-14252778

•https://www.marketing91.com/marketing-mix-louis-vuitton/

•https://www.google.co.in/search?q=In+IITF+2017,+22+countries+participated+in+t
he+Fair.&source=lnms&tbm=isch&sa=X&ved=0ahUKEwj8lMuwkr7XAhXLOo8KHaiSDlgQ_AUIC
gC&biw=1366&bih=637
•https://www.threadless.com/participate/

•http://www.laurenceking.com/media/catalog/product/cache/2/thumbnail/920x920/040ec09b1e
35df139433887a97daa66f/M/a/Marketing_Fashion_final_layouts-73.jpg

•http://www.johnstockmyer.com/enmu/452ch1.pdf

•https://www.civilserviceindia.com/subject/Management/notes/concept-evolution-and-scope-o
f-marketing-management.html

•https://yourbusiness.azcentral.com/top-10-types-marketing-14655.html

Book References- Marketing Fashion by Harriet Posner, Marketing Management by Kotler.

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