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1.1 FASHION MARKETING BASICS 1.2 THE NEXT HOT ITEM 1.3 CAPITALIZING ON STYLE 1.4 BEATING THE COMPETITION CHAPTER 1 1 THE FASHION INDUSTRY THE FASHION INDUSTRY LESSONS 64023_FM_Ch01.qxd 9/18/02 2:41 PM Page 2

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Page 1: 64023 FM Ch01€¦ · Fashion marketers create an image of who wears a brand of clothing through promotion. Using entertainers to advertise a brand leads consumers to believe they

1.1 FASHIONMARKETINGBASICS

1.2 THE NEXT HOTITEM

1.3 CAPITALIZINGON STYLE

1.4 BEATING THECOMPETITION

CHAPTER 11THEFASHIONINDUSTRY

THEFASHIONINDUSTRYLESSONS

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WINNINGSTRATEGIESPOLO RALPH LAUREN

The timeless image projected by Polo Ralph LaurenCorporation has always dominated its distinctive

line of apparel, fragrance, accessories, and homeproducts. Polo Ralph Lauren markets a line of fresh,aristocratic clothing evoking a look of old wealth livingon country estates. The company has an uncommonapproach to marketing that promotes a consistent im-age as well as fashions.

The unique marketing technique has propelled PoloRalph Lauren into a major corporation in the fashionindustry. Founded in 1968 by Ralph Lauren, the com-pany designs, markets, and distributes fashions inter-nationally. International licensing partners operatePolo stores in more than 60 countries. Polo’s long-term growth strategies include• continuing to expand globally, especially in Japan

and Europe• adding brands that address new customer groups• opening more of its own specialty stores• improving the margin of profit.

Ralph Lauren has been the driving force in devel-oping a company that casually dresses people whowork or want to work in corporate businesses, ratherthan the world’s elite. Born in Bronx, New York, asRalph Lifshitz, he changed his name and started thecompany with a small loan. The Polo look has alwaysbeen preppy and casual and has appealed to thoseon the way up the corporate ladder.

THINK CRITICALLY1. Discuss why Polo Ralph Lauren has been popular for

more than 30 years.2. Why would Polo Ralph Lauren market an image as

well as fashions?

3

CHAPTER OVERVIEWChapter 1 introduces the fashionindustry, including the relationshipof today’s industry to the history offashion.

Lesson 1.1Fashion Marketing BasicsThis lesson defines the basic con-cepts of fashion marketing and theseven key marketing functions.

Lesson 1.2The Next Hot ItemThis lesson describes the stagesof the fashion cycle and takes alook back at fashion’s past.

Lesson 1.3Capitalizing on StyleThis lesson describes the fashionproduct mix and product/servicemanagement as it relates to cus-tomers.

Lesson 1.4Beating the CompetitionThis lesson describes trends andemerging technology in fashionmarketing.

TEACHING RESOURCESVideo, Ch. 1Instructor’s Resource CD, Ch. 1ExamView® Pro CD, Ch. 1

WINNING STRATEGIESWith students, discuss the focuson lifestyle as the marketing tech-nique used by Polo Ralph Lauren.

Think Critically1. Answers will vary. One possi-ble reason is because of the clas-sic styles.2. The lifestyle image has con-tributed to the fashion’s popularity.

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THE FASHION INDUSTRY

CHAPTERCHAPTER

11Lesson 1.1

FASHION MARKETING BASICS

MARKETING CONCEPTSFashion marketing has glamour and mystique about it that may trick

some people into thinking it has its own set of rules. In reality, fashionmarketing follows the same rules asmarketing for any other product.

WHAT IS FASHIONMARKETING?Fashion marketing is an importantbusiness function of the fashion indus-try that includes planning, pricing, pro-moting, and selling fashion products.The American Marketing Associationdefines marketing as “planning andexecuting the conception, pricing, pro-motion, and distribution of ideas,goods, and services to create ex-changes that satisfy individual and or-ganizational objectives.”

Describe the basicconcepts of fashionmarketing.

Define the sevenkey marketing func-tions.

4

Fashion retailers make decisions about what image they willproject to consumers. The combination of clothing and ac-cessories, the price lines and brands, and the way gar-

ments are displayed, advertised, and delivered to consumersare all a mix of marketing elements that contribute to the iden-tity of a store. The mix of the marketing elements may be fo-cused on a specific customer group.

Nordstrom is a chain of 75 department stores known forcatering to its customer with tuxedoed pianists entertainingshoppers. When sales began to sag, Nordstrom tried changingits image and launched a $40 million “Reinvent Yourself” pro-motional campaign. Additionally, the store changed about one-third of its women’s clothing lines to brands that appealed toyoung, hip consumers and began playing hip-hop music. Thechanges made long-time customers unhappy and did notquickly attract the hoped-for new customers.

Work with a group. Choose two department stores with whichyou are familiar. Make a list of characteristics that are differentabout the two stores. Then make a list of characteristics that aresimilar. Discuss differences in their targeted customer groups.

The Latest Style

SCHEDULEBlock 45 minutesRegular 1 class period

FOCUSAsk students to talk about the lastitems of clothing they wanted tobuy and why.

THE LATEST STYLEAsk students to discuss why asudden change in the image of astore might not be popular withcustomers.

Answers for The Latest StyleCooperative LearningAnswers will vary. Things thatmight be discussed as differentare the music played in the storeand the age group of targetedcustomers. Things that might besimilar are the acceptance ofcredit cards and the display ofclothing on mannequins.

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Fashions provide more than just the basic human need of clothingand home furnishings. Fashions fulfill a need to reflect an image ofone’s self to the world. By combining the basic marketing elements,fashion marketing helps people clarify their own image and makes aprofit for those engaged in the business. The marketing mix is how thebasic elements—product, price, promotion, and distribution—are com-bined to meet customer needs and wants.

Product is what a business offers customers to satisfy needs. Fash-ion products include suits, shirts, jeans, shoes, belts, purses, and homefurnishings such as rugs and chairs.

Price is the amount that customers pay for products. The price offashion products is dependent on the cost of producing the item, themarkup (a percentage added to the cost to generate a profit), and thecustomer demand.

Promotion includes all of the ways a customer is encouraged to buythe product. Promotion includes advertising, publicity, personal selling,and public relations.

Distribution involves getting the product to the customer. It includesall of the steps from getting the raw material for fabric to the textilemanufacturer to making a garment available to a customer.

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1.1 FASHION MARKETING BASICS

What is marketing? What are the elements of the marketingmix?

KEY MARKETING FUNCTIONSOne or more of seven key marketing functions takes place whenever

a product is marketed. The seven key functions are marketing-information management, financing, product/service management, pricing,promotion, distribution, and selling.

USING THE KEY MARKETING FUNCTIONSMarketing-Information Management involves gathering and using infor-mation about what consumers want. This information is critical to decid-ing how to make a product that will sell. Fashion changes from seasonto season and from year to year. Determining what will sell requiresfashion marketers to keep in touch with their customers. They must de-cide far in advance on the design of a garment, acquire the fabric andother materials, produce the garment, sell it to retailers, and deliver it forcustomer viewing when the customer wants it and is ready to buy it.

TEACHTiming is critical to getting theright fashion marketing mix to thecustomer. Each of the elements iscritical to the other three. Theproduct can be right, but pricedwrong. If the product is not pro-moted effectively, the customermay be unaware of it or it may bein the wrong department. Anothercommon problem is having toomany or too few of the right prod-uct. Ask students to name a fash-ion item they have tried to buyand found the store had sold outof it.

Ongoing AssessmentUse the Try It On as an opportu-nity to conduct ongoing assess-ment of student comprehension ofthe lesson material.

TEACHBy the time the students buy agarment in a store, all seven mar-keting functions have taken place.

Ask students to select a garmentand imagine their way througheach of the elements as they readabout them.

Discuss how fashion marketersmight gather data about what cus-tomers want to buy. Ask studentshow they decide to buy an itembefore they even see it in a store.

Talk to students about designing agarment, buying the fabric, payingsomeone to sew it, mailing it to acustomer, and then waiting 60days to recover those expensesand receive your take-home pay.Financing a business takes carefulplanning.

Marketing is creating, pricing, promoting and distributing goods, like clothing, to sell

them to satisfy customers as well as the business. The marketing mix elements are

product, price, promotion, and distribution.

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Financing involves planning ways to cover the costs of successfullyoperating the business. This planning includes how to cover operating

expenses while waiting for income from thefirst sales. A textile manufacturer may re-

quire payment for fabric when it is de-livered to a fashion designer, which

is long before the customer paysfor the garment. The designermay need to borrow money andpay finance fees, which addscosts to the price of the finalproduct. It takes careful bud-get planning to assure that theproduct is priced to cover allcosts plus a profit and is what

a customer is willing to pay.Pricing is the process of set-

ting the value or cost at the rightlevel. The price of a fashion product

is dependent on the cost of producingthe item plus a profit. Customer demand

can also adjust the price up or down. Theprice must cover all of the elements of the key marketing functions.

• The costs of gathering information about what customers want• The costs of financing the business• The costs of design, fabric, and construction to produce the product• The costs of advertising and promotion

• The costs of moving the product to the consumer

• The costs of selling the product to the final consumer

• Some profit for all of the people involved in each of these steps tokeep them interested in doing the work

Promotion is communicating with customers about the product toachieve the desired result—customer demand for and purchase of theproduct. The types of promotion can be categorized as advertising, per-sonal selling, publicity, and public relations. Fashion marketers createan image of who wears a brand of clothing through promotion. Usingentertainers to advertise a brand leads consumers to believe they canbe like the entertainer if they wear that brand.

Product/Service Management is designing, producing, maintaining,improving, and/or acquiring products or services to meet customerneeds. With information about what customers want and financing tomake it happen, fashion marketers can start to work on the product. De-signer R. Scott French used high-priced lingerie as the inspiration for hisline of moderate-priced lingerie. He used quality construction and fabricsto create a line of trendy lingerie, serving customers seeking a novelitem at a more affordable price. He turned an idea into a product linethat succeeded.

Distribution involves moving the product each step from the designidea to the hands of the consumer. The number of businesses involved

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1 THE FASHION INDUSTRY

Chico’s FAS is a trendywomen’s sportswearchain. When Chico’s

did 11.7 percent betterone month compared tothe same month a year

before, the gain insales was directly at-tributed to promotionsnot used in the prior

year. An additional cat-alog was mailed and

TV commercialswereused.

SELLING

DISTRIBUTION

FINANCING

MARKETING-INFORMATIONMANAGEMENT

PRICING

PROMOTION

PRODUCT/SERVICE

MANAGEMENT

FUNCTIONSOF

MARKETING

TEACHThe fashion industry designs newitems each season. Fashion mar-keters depend on customers to letthem know what they want.

Time OutAsk students if they ever buy from catalogs. Do they know anyone who does? Are cata-logs targeted at an age group?

TEACHThe price of a garment must cover all of the ele-ments that go into creat-ing it and delivering it to the consumer. Other fac-tors also influence price, like the image of the store that is selling the item. You expect to pay more in stores that have expensive fixtures andextensive services.

Another cost that must be figuredinto the price of a garment is pro-motion. Advertising is expensiveand must be covered in the aver-age price of all items, whether aparticular garment is advertised ornot.

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in the actual planning and movement of theproduct is a major factor in the final price.The channels of distribution can include in-termediaries who help a designer or manu-facturer get the product into retail stores.Distribution also includes the actual trans-portation of the product—for example, bytruck or by air.

Selling assists the customer in identify-ing and satisfying a want or a need. Sellinghelps the customer understand the benefitsof quality. For example, if customers buyonly the lowest-priced garment, they mayfind that the garment does not last. Theymay spend time and money purchasingagain, sooner than expected. If they areaware that another, more expensive gar-ment will retain its shape or color throughrepeated wearing and cleaning, it might bethe most cost-effective purchase.

USING THE BASICSThe seven key functions—marketing-information management, financing, prod-uct/service management, pricing, promo-tion, distribution, and selling—are basic toall marketing. When applied to fashionmarketing, they provide a foundation onwhich to develop a fashion business. De-veloping a strong knowledge of how to in-terconnect all seven functions is anexpectation for all successful fashion mar-keting careers. A designer who does notunderstand the key functions will need tolearn them or partner with someone whodoes. Business managers must understandand use the key functions in a way toplease customers and make a profit, or thebusiness will struggle to exist.

7

1.1 FASHION MARKETING BASICS

In February 2001,JCPenney.com intro-duced an online featurecalled “Just for Me.”The program allowedcustomers to “try on”clothing by enteringtheir measurements intothe site. According toJCPenney.com, the vir-tual model technologywas tested to determineif it was something cus-tomers would use tohelp with their swimsuitpurchasing decisions.By March 2002, the fea-ture was gone.

THINK CRITICALLY1. Why would JCPenneyremove such a forward-thinking feature from itsweb site?2. Visit JCPenney.com.What alternatives hasJCPenney provided tohelp women find theright swimsuit?

Name three of the key marketing functions. Give a fashionmarketing example of each.

Cyber MarketingDo students think JCPenney hasa leading-edge image? Wouldthey think to look for innovation onits web site?

Think Critically1. Answers will vary, but JCPen-ney indicates that customers werenot using the feature.2. Answers will vary. Visit the website to see.

TEACHDistribution means having yourproduct in the right place at theright time. Getting shipments ofbathing suits in June and July isusually after the peak of the sea-son. Ask students for other exam-ples.

Manufacturers have salespeoplewho work with retail buyers tohelp them make the right selec-tions for their customers. Addition-ally, they sometimes sendrepresentatives to work with retailsalespeople to increase their prod-uct knowledge.

Many young people think that theycan succeed in the fashion indus-try without having a workingknowledge of all of the marketingfunctions. They believe they canfocus on the parts they like andignore the rest. Explain that theywill have to pay someone else torun that part of their business andwill, consequently, give up somecontrol of the business.

Ongoing AssessmentUse the Try It On as an opportu-nity to conduct ongoing assess-ment of student comprehension ofthe lesson material.

Answers will vary. Possible answers include: Marketing-Information Management—

gather customer data about trends. Finance—plan to cover operating expenses, before

sales happen. Product/Service Management—develop a new fall collection of garments.

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1 THE FASHION INDUSTRY

UNDERSTAND MARKETING CONCEPTSCircle the best answer for each of the following questions.

1. Marketing, as a business function, isa. encouraging customers to purchase products.b. another term for grocery shopping.c. creating and maintaining satisfying exchange relationships.d. none of the above.

2. The elements of the marketing mix area. purchasing, distribution, financing, and price.b. product, price, promotion, and distribution.c. purchasing, planning, advertising, and distribution.d. planning, distribution, price, and advertising.

THINK CRITICALLYAnswer the following questions as completely as possible. If neces-sary, use a separate sheet of paper.

3. Communication Think of a recent fashion purchase you made.Imagine how the seven key marketing functions were involved ingetting the item to you, and write a narrative describing their role.

4. You have been hired to help a designer market formal wear forteens. Use all of the marketing mix elements to briefly describewhat you would do.

TEACHING STRATEGIESLimited-English-ProficiencyStudentsProvide students with translationsof key terms before presentingeach of the seven marketing func-tions. Provide posters that rein-force concepts in English andother dominant languages.

TEACHING STRATEGIESTactile LearnersAllow students to use the Internetto locate information about mar-keting-information management,such as statistics about teen fash-ion purchasing. This informationwill help convey the use of data.

ASSESSReteachIn pairs, have students name thefour elements of the marketingmix. Ask students to talk abouthow the four elements come to-gether before a customer buys.

EnrichAsk students to prepare an elec-tronic presentation that highlightsa fashion example of each of theseven marketing functions.

CLOSEAsk students to make a list of anynew information they learned fromthis chapter. Additionally, askthem to make a separate list of in-formation covered in the chapterthat they already knew.

c

b

Answers will vary but shoul d connect any fashion product with each of the

seven functions: marketing-information management, financing, product/ser-

vice management, pricing, promotion, distribution, and selling.

Answers will vary but should include: determine the price based on costs and

markup, develop a promotional plan directed toward teen consumers and re-

tailers who sell to teens, and determine how to get the product to the retailers.

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THE FASHION INDUSTRY

THE NEXT HOT ITEM

THE FASHION CYCLEFashion reflects the economy and attitude of consumers and, at the same

time, intrigues and appeals to consumers. If you are observant, youmight notice people at a concert or an airport and realize that there is simi-larity in the clothing of many people—especially people of the same age orstatus. You may see similarity in the shape of their shoes or the length orcut of their pants. You are observing a phase of the fashion cycle—thetime from when a style is introduced until it is no longer purchased.

THE PHASESFashions have a life cycle that most simply can be described as havingthree phases: introductory, peak, and decline.

The introductory phase is early in the life of the product.Many fashion retailers will herald the new season of clothingas fresh and innovative, something that the consumer wouldbe foolish to miss. The sellers wish to create excitementthrough promotion of the fashions. Journalists and celebrities

are invited to special shows to introduce the next season’s collection.Trend setters are usually already wearing the garments.

The peak phase describes the time during which salesof the items to the consumer are at the highest level. Thetarget market is generally wearing the item. A target marketrefers to a specific audience of people—for example, all ofthe people in the United States ages 13 to 18 years. This

CHAPTERCHAPTER

11Lesson 1.2

Describe thestages of the fashion cycle.

Analyze the rela-tionship between today’s fashionsand the history offashion.

9

Rarely are fashion items totally new. Most fashions are aversion of garments from the past. The silhouette or theoutline of an outfit has characteristics taken from a previ-

ous time period. During the twentieth century, silhouettes wererepeated about every 25 to 30 years. For example, hemlines onwomen’s skirts and dresses were at knee length and above inthe 1930s, the 1960s, and again in the 1990s.

This cycle seems to be shortening and blurring in the 2000s.Many silhouettes are seen as “in fashion” all at once. The cyclehas hit a new phase of confusion. The trend of casual workclothing that swept through the 1990s added to the confusionabout what was “in.” As people again began to wear more seri-ous attire to work in the 2000s, styles have started to refocus.

Work with a partner. Discuss other reasons why fashionsmight lack a focus in the early years of the twenty-first century.

The Latest Style

PROMOTION

SELLING

SCHEDULEBlock 45 minutesRegular 1 class period

FOCUSAsk students what comes to mindwhen they think of clothing wornin the 1950s. What about clothingworn during other decades? Dothey see a connection to any ofthe styles worn today?

THE LATEST STYLEAsk students what social, eco-nomic, or political events in theearly 2000s might have influencedfashion.

Answers for The Latest StyleCooperative LearningAnswers should include sloweconomy, war on terrorism, andterrorist attacks on the U.S.

TEACHAsk students to talk about gar-ments they wore in elementaryschool. If they still fit and were notworn out, would they wear them?Why or why not?

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does not mean that every sin-gle person in this group iswearing the item, but it doesmean that you will frequentlyobserve members of the tar-get group wearing the item.Trend setters have generallymoved on to newer items.

The decline phase of afashion item oc-curs when themasses have tired of the item and are no longer buying it.People may continue to wear the item, but the retail storesbegin to lower the price to a level that will squeeze out the

last possible sales. Remaining garments are finally sold in bulk to storesthat sell closeout fashions. Eventually the item is no longer available.

STYLE MATTERSThe length of time an item stays in one of the three phases is depen-dent on the style. Fads are those items that quickly move through thethree phases and disappear from the fashion scene. Fads generally areoutlandish in style or color and do not appeal to the real trend setters.

Classic styles last many decades. A classic style is timeless, mean-ing it is flattering to the wearer and is not easily dated as to when it waspurchased. Classics are not outlandish in style or color, but are subtleand refined. Classics have a style that is appreciated over many years.

10

1 THE FASHION INDUSTRY

What is the difference between a fad and a classic item ofclothing?

RETRO FASHIONSWhen the President of Afghanistan, Hamid Karzai, made his first

world tour during the U.S. war against terrorism, he wore an ankle-length overgarment called a chapan with a skin hat called a karakul.Both are traditional northern Afghan apparel. Under the chapan, hewore a single-breasted black suit jacket over a traditional southernAfghan knee-length shirt with a banded collar and loose-fitting trousers.His outfit reflected tradition, history, and the presence of a leader.Karzai made a striking appearance and succeeded in making an excel-lent first impression on a watchful world.

PRICING

Ferrari activewear isbeing marketed to

teens who are inter-ested in Formula Oneauto racing. The sport,

which has been popularin Europe for many

years, is catching on inthe United States. Thefashion items are simi-lar to ones worn by the

Ferrari Formula Oneracing team.

TEACHAsk students to talk about whystores that sell retro clothes, cloth-ing recycled from the past, aresometimes popular.

Can students name fashion itemsthat were a fad? Can they nameclassics? Are there items thatadults wear that teens also wear?

Ongoing AssessmentUse the Try It On as an opportu-nity to conduct ongoing assess-ment of student comprehension ofthe lesson material.

TEACHHamid Karzai was pictured inevery major newspaper and on TVnews in multiple outfits that wereall considered striking. He wasalso featured on pages ofWomen’s Wear Daily. His dresswas carefully crafted to send amessage of mixing Eastern andWestern cultures.

Time OutRobbie Gower owned more thanone Ferrari. She believes that thebrand appeals to all age groups,and the clothing line offers non-owners an affordable connectionto Ferrari.

A fad item moves through the fashion cycle very quickly. A classic is timeless and

frequently returns to popularity.

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STYLEHamid Karzai has style. He successfully mixed MiddleEastern, Western contemporary, and historical styles.About 30 years ago, John Fairchild, publisher ofWomen’s Wear Daily, was quoted in the Dallas TimesHerald as stating that “style is an expression of individu-alism mixed with charisma. Fashion is something thatcomes after style.” The prevailing style may define whatis fashionable at a specific time and place, with somestyles lasting as classics.

REFLECTIONSHistorically, what people wear has reflectedthe general economic health and attitudesof the United States and other Western civ-ilizations. When the economy is good andpeople feel secure, people wear brighter,more casual clothes. When the economy isweak or there is world tension, people tend

to wear more serious clothing. After the terrorist attackson September 11, 2001, Calvin Klein showed a totallyblack collection that was criticized for being too somber.Other designers such as R. Scott French were success-ful at the same time with a much lighter look that said,“Let’s move on.”

Designers whose Spring 2002 collections were pre-sented prior to September 11, 2001, became symbols ofself-centered excess that permeated the industry. Afterthe tragic events, the luxurious designer fashionsseemed too excessive for the times. For the next sixmonths, consumers were confused and not buying what was offered. Astime passed and the economy improved, so did high fashion sales.

FASHION INFLUENCEThe influence of designers as the authorities of fashion has passed intohistory. Today, what customers will buy is influenced by what they haveread and seen other people wear or not wear.

11

1.2 THE NEXT HOT ITEM

In October 2001, Marshall Field’s cele-brated the return of the “28 Shop” withinits flagship department store in Chicago.Marshall Field’s originally introduced the“28 Shop” in the 1940s. The exclusive,special-occasion shop was accessedthrough the 28 East Washington Street en-trance via an elevator lined with velvetbenches. Wealthy customers were shownevening gowns while seated in one of 28individual, elegant dressing rooms de-signed by a movie set designer. A butlerand hostess catered to customers’ everyneed.

THINK CRITICALLY1. What image does the 28 Shop project ofshopping in the 1940s?2. Do you think this shop had mass ap-peal? Why or why not?

What events or attitudes might influence the direction offashion?

PRODUCT/SERVICE

MANAGEMENT

FASHION FLASHBACKMarshall Field’s opened in down-town Chicago in 1852 and is con-sidered an innovative store.Target Corporation currently ownsit.

Think Critically1. Wealth and elegance.2. The shop was not for themasses. The clothing was veryexpensive.

TEACHAsk students to name other histor-ically significant events from thepast or present that have had animpact on fashion.

Ongoing AssessmentUse the Try It On as an opportu-nity to conduct ongoing assess-ment of student comprehension ofthe lesson material.

Answers will vary but could include economic, social, or political events.

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1 THE FASHION INDUSTRY

UNDERSTAND MARKETING CONCEPTSCircle the best answer for each of the following questions.

1. The three phases of a fashion cycle includea. design, construction, and distribution.b. price, product, and promotion.c. introductory, peak, and decline.d. none of the above.

2. Generally, the colors and styles worn by people in the UnitedStates reflecta. economic conditions and attitudes.b. what is on sale.c. their age and income.d. what they think looks good on them.

THINK CRITICALLYAnswer the following questions as completely as possible. If neces-sary, use a separate sheet of paper.

3. Why does the clothing worn by leaders influence public opinionregarding their ability to serve?

4. Communication Write a short paragraph about why a classicstyle has a long life cycle and continually returns to popularity.

ASSESSReteachWrite the terms “fashion cycle”and “target market” on the chalk-board. Ask the students to definethem and discuss their meaningsas related to fashion marketing.

EnrichAsk students to make a presenta-tion to the class relating one ofthe seven marketing functions toeach of the stages of the fashioncycle. Explain how they relate toeach other.

CLOSEIn pairs, have students develop aposter that depicts the fashion cy-cle of an item they select.

c

a

Answers will vary. People are influenced by the appearance and dress of oth-

ers and expect leaders to dress in a specific way.

Answers will vary. A classic is not extreme and has wide appeal. It looks

good on a large number of people, not just on fashion models.

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THE FASHION INDUSTRY

CAPITALIZING ON STYLE

MAKING THE RIGHT SELECTIONEach season, there are thousands of fabrics made into thousands of

apparel items from which to choose. Selecting the right items from theright supplier at the right price requires knowing what customers wantand adjusting to those wants. By making these selections, a retail storedefines the repeat customer it wants to attract.

CATEGORIZING THE GOODSProduct mix refers to all the products an organizationsells. In fashion marketing, the product mix is the combina-tion of styles, product classifications, and price lines cre-ated by a designer or carried by a retail store.

Retail stores can be categorized by the items they carryand customers they target. There are five predominanttypes of fashion retailers in the United States: department

stores, discount stores, off-price stores, chain stores, and boutiques.Department stores, such as Dillard’s, Nordstrom, and Macy’s, offer a

variety of merchandise besides fashion items. The four largest depart-ment stores in the United States are Sears, JCPenney, Federated De-partment Stores, and May Department Stores. Each of these chains hasan image that is projected by its product mix of items predominantlysold at the store.

Discount stores, such as Target® and Kmart, offer clothing that is lowpriced. Discount stores are one of the fastest-growing areas of retailing.

CHAPTERCHAPTER

11Lesson 1.3

Define fashionproduct mix.

Understandproduct/servicemanagement as itrelates to a definedcustomer.

13

When U.S. retailers hit a difficult selling season, they areoften not able to find hot, fast-selling items that will setthem apart. In this situation, many retailers will turn to a

tried-and-true item, such as the turtleneck. With so many similarturtlenecks from which to choose, customers may decide not tobuy at full price. Retailers are then forced to mark down theitems to sell them.

Turtlenecks are seen as a commodity, not as trendy item thatcreates excitement. If customers do not see anything new or ex-citing that gives them a reason to shop at a specific store, theydon’t buy. When price, not style, is the only attraction, sales willdecline.

Work with a group. Discuss how retailers could combineturtlenecks with other, more exciting items to create the rightproduct mix for increased sales.

The Latest Style

PRODUCT/SERVICE

MANAGEMENT

SCHEDULEBlock 45 minutesRegular 1 class period

FOCUSAsk students to give examples ofstores that sell expensive clothingand stores that sell affordablypriced clothing.

THE LATEST STYLEHave students brainstorm whatthey expect to see in stores duringthe next season. What changes instyles do they expect? What aretheir favorite styles of skirts orslacks? Could they be worn with aturtleneck?

Answers for The Latest StyleCooperative LearningAnswers will vary. Answers couldinclude combining turtlenecks withjackets or accessories.

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Off-price stores, such as T.J. Maxx® andMarshall, offer irregular or closeout fashions at20 to 80 percent off first-quality prices. The off-price industry accounts for hundreds of millionsof dollars a year in retail sales.

Chain stores, like Talbot and The Limited,can be found in most malls throughout theUnited States. They offer a consistent line ofproducts to a target customer.

Boutiques, such as Tootsie’s, a fine women’sspecialty store located in major cities such asHouston and Atlanta, are smaller stores with aspecific customer in mind.

14

1 THE FASHION INDUSTRY

THE STYLESpecialty stores are generally very fo cused and must select a style to

emphasize. Some of the most commonly used descriptions to char-acterize style are classic, trendy, young designer, designer, and couture.

• Classic is traditional, with a long product life cycle. The classic is ap-pealing to many people in a wide age group and various sizes.

• Trendy refers to forward-looking fashion or an updated version of aclassic. Trendy is the most current style, in the opinion of the beholder.

• Young designer describes garments created by designers who arejust starting out. It is usually a very creative style and use of fabric.

• Designer garments are high-quality, high-fashion items that are soldunder one of the well-known designer labels.

• Couture refers to original, one-of-a-kind garments made with the high-est standards of the highest quality fabrics.

CLASSIFYING A COLLECTIONIn addition to style, the function or the occasion for whichgarments are intended to be worn can be used to catego-rize them. Examples of such classifications are sportswear,activewear, and careerwear as well as eveningwear andwedding apparel.

Sportswear can include items worn for work or play. Formen, it can include sportcoats or jeans, but it is generally

PRODUCT/SERVICE

MANAGEMENT

Nordstrom DepartmentStores helped a cus-

tomer surprise his wifewith a special anniver-

sary gift. True to its pol-icy of providing

“whatever, whenever”service, Nordstrom’sset up 175 pairs of

shoes in a hotel suite.The lucky shopper se-lected 15 pairs worthabout $4,000 as her

anniversary gift.

What are the elements of a product mix?

A combination of styles, classifications, and price lines of products created by a de-

signer or carried by a retail store.

TEACHAsk students to provide local orregional examples of department,discount, off-price, chain, and bou-tique stores.

Ongoing AssessmentUse the Try It On as an opportu-nity to conduct ongoing assess-ment of student comprehension ofthe lesson material.

Time OutDiscuss the category of store thatwould provide this type of service.Would the store charge for theservice, or would the $4,000 salecover the costs?

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considered a casual version of the garment. Thisuniquely American classification can be confusingsince it generally does not refer to garments wornwhile participating in sports.

Activewear refers to apparel worn while taking anactive part in a sport. Activewear includes clothingsuch as soccer uniforms or workout shorts andshirts.

Careerwear or business attire is generally tradi-tional in design since it focuses on the workplace. Inthe 1990s, what was considered careerwear swungto a very casual interpretation, but began driftingback to a more traditional interpretation in the 2000s.Careerwear has a fashion cycle of its own, charac-terized as longer with more subtle, gradual changes.

Eveningwear has evolved to mean special occa-sion or formal wear, including cocktail, prom, orother formal-event apparel. The fabric and style ofeveningwear are considered more elegant and for-mal than other classifications. Wedding apparel is re-lated to eveningwear but includes wedding gowns,mother-of-the-bride dresses, and bridesmaiddresses, which are rarely worn more than once andare not appropriate for other events.

Other classifications include social apparel, lin-gerie, and accessories. Some garments defy classifi-cation because they can have multiple uses.

PRICING IT RIGHTDeciding on styles and classifications ofclothing to design or offer for sale isheavily influenced by the final saleprice. A garment may be perfect, but ifit costs too much for the target customer, it will not sell.

Some of the factors included in the final price of a garment are the fab-ric, construction, distribution, promotion, and profit for those involved.Bringing together the right combination of product mix—style, classifica-tion, and price—makes for a successful collection and brings in cus-tomers to shop and buy.

15

1.3 CAPITALIZING ON STYLE

The strong desire to own trendy fashions cancause some people to act unethically. DuringSpring 2001, bowling shoes by Prada, KennethCole, and Camper were selling for $100 ormore a pair, but many people in the under-age-30 crowd were not paying for the shoes.They were renting them at bowling alleys andnever returning them. The Wall Street Journalquoted Melissa Scales, a staff assistant at theNational Merit Scholarship Corporation inEvanston, Illinois, as saying “ I don’t feel badbecause I went to high school in that sametown [where she took the shoes], and I proba-bly gave them hundreds of my hard earneddollars. I felt like I deserved a pair of shoes.”Nationwide, bowling alleys were losing hun-dreds of pairs of shoes each year, and thecosts were being passed on to bowlers withhigher prices per game.

THINK CRITICALLY1. Is failing to return rented bowling shoesstealing? Why or why not?2. Do you think honest bowlers should haveto pay for shoes stolen by others? Whoshould pay for the shoes? Discuss your opinion.

What must be considered in determining the final price of agarment?

PRICING

Fashion Do’s and Don’tsA bowling alley outside of Bostonreported to The Wall Street Jour-nal that it has to order 50 newpairs of bowling shoes every fourmonths to replace those that arestolen.

Think Critically1. Yes, it is stealing.2. Answers will vary.

Ongoing AssessmentUse the Try It On as an opportu-nity to conduct ongoing assess-ment of student comprehension ofthe lesson material.

The price of a garment must cover all costs of construction, distribution, promotion,

and profit for those involved.

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16

1 THE FASHION INDUSTRY

UNDERSTAND MARKETING CONCEPTSCircle the best answer for each of the following questions.

1. Product mix refers toa. encouraging customers to purchase products.b. the selection of styles, product classifications, and price lines.c. creating and maintaining designer collections.d. buying only designer apparel.

2. Some of the ways to classify garments by function includea. sportswear, activewear, eveningwear, and careerwear.b. retail, wholesale, designer, and fad.c. shoes, hats, coats, and gloves.d. denim, silk, cotton, and nylon.

THINK CRITICALLYAnswer the following questions as completely as possible. If neces-sary, use a separate sheet of paper.

3. Research Ask five other students to classify the clothing carriedby three small chain stores in your area into one or more of thefollowing: sportswear, activewear, careerwear, or eveningwearand wedding apparel. Is some stores’ merchandise more easilyclassified than others? Do some stores clearly target one or twoclassifications of apparel?

4. Why is it important for designers and retailers to understand whotheir customers are before deciding on a product mix?

TEACHING STRATEGIESAttention Deficit DisorderStudentsA field trip to compare types ofstores will help clarify the materialcovered in this lesson. Assign at-risk students to mentors involvedin the fashion industry.

TEACHING STRATEGIESVisual LearnersModify presentation strategies toinclude more visual displays, andsupplement explanations with cur-rent, realistic examples.

ASSESSReteachIn groups, have students definethe fashion product mix.

EnrichHave students look through fash-ion publications and find pho-tographs of examples of garmentsthat characterize the five types ofstyles. Have them develop aposter for each type of style.

CLOSEAsk students to type stores in alocal or regional mall by classifica-tion: department, discount, off-price, chain, or boutique.

b

a

Answers will vary.

The store must please the customers to encourage them to buy.

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THE FASHION INDUSTRY

BEATING THE COMPETITION

DISCOVERING TRENDSWhen a fashion col-

lection hits themark and is setting atrend, everyone knowsit. A trend is whenfashion takes a partic-ular direction and the

style is acknowledged as beingright for the time. According toLinda Griffin, a fashion journalist,when a designer is showing a col-lection that is right, the audience isalready wearing similar styles. Thisphenomenon happens when gooddesigners know their customers.Staying ahead of the flow of trenddevelopment is a never-ending jobfor designers and retailers, and itrequires constant marketing-infor-mation management.

CHAPTERCHAPTER

11Lesson 1.4

Understand trendsin fashion market-ing.

Describe the useof emerging tech-nology to reach tar-get markets.

17

Providing what the customer wants means gathering and us-ing information in a way that improves product offerings.Abercrombie & Fitch opened a new chain of stores called

Hollister Co., which focused on 14- to 18-year-olds. Youngerteens want fashions that are different from the college-age grouptargeted by the namesake stores. The new stores are in the samemalls as the Abercrombie & Fitch stores, but they offer lowerprices and have merchandise that the younger crowd wants.

A third store called abercrombie caters to 7- to 14-year-olds.Separating the merchandise by tighter age groups and pricelines is intended to more precisely focus on trends in the prod-uct mix. The clothing is casual in all three stores, but the at-mosphere and price lines are different.

Work with a group. Discuss the potential for damaging Aber-crombie & Fitch’s business by siphoning customers to thelower-priced goods at Hollister Co. and abercrombie. How canAbercrombie & Fitch gather information about the likes and dis-likes of 14- to 18-year-olds?

The Latest Style

MARKETING-INFORMATIONMANAGEMENT

SCHEDULEBlock 45 minutesRegular 1 class period

FOCUSAsk students how many of themhave purchased an item of cloth-ing over the Internet. Do theyknow people who buy clothingthey have seen on TV?

THE LATEST STYLEDo the students know of a depart-ment store that has a teen advi-sory board? What is the purposeof such a board?

Answers for The Latest StyleCooperative LearningAnswers will vary. People who arevery brand conscious will want tobuy in the original stores ratherthan purchase less expensive al-ternatives.

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TARGETING THE TRENDTrends start in many different places. Fashion insiders seem to justknow what is going to be “in,” and they spread the word among them-selves and those who track fashion trends. Trends can be very seg-mented and may only pertain to a specific market niche, such as an agegroup. Lerner New York is one of The Limited stores. Lerner targets a33-year-old, working mother of two as its customer. The Lerner cus-tomer wants fashions very different from those of a high school student.Trying to sell both of these customers on the same trend could be asales disaster.

RESEARCHING TRENDSThe fashion industry and those who monitor it spend muchtime and money trying to determine the next direction ofthe flow of trends. Information about what consumers wantcan be gathered in multiple ways, including interviews, vi-sual surveys, and sales data collection. People who needto know about consumers spend time observing themwhere they work and play. Noting the colors, fabrics, and

styles the trend setters are wearing hints at what people will want next.What celebrities wear is frequently seen as a gauge of what is to come.In the late 1990s and early 2000, celebrities were wearing outrageouscostumes with maximum skin exposure. By early 2002, the trend hadswung to more traditional styles.

18

1 THE FASHION INDUSTRY

TECHNO FASHIONSEvery aspect of fashion, from a designer’s idea to the final purchase

made by a consumer, has been impacted by technology. Technologyhas increased the speed at which ideas can be turned into sales.

INSTANT GRATIFICATIONCustomers see a garment in a movie or on TV and almostinstantly search the Internet to find out where they can buyit. Web sites for entertainment venues are linked withthose of major retailers handling the fashion products usedin the entertainment. The downside is that the trend setters

quickly tire of items once they are available to everyone.

MARKETING-INFORMATIONMANAGEMENT

SELLING

Charismatic sales peo-ple are given credit forthe phenomenal salesof the Tokyo fashion

chain, Egoist. Egoist isknown as one of the

most successful retail-ers of trendy fashionsbecause the salespeo-

ple are setting thetrends. Customers

come in to see whatthe sales people are

wearing, talk with them,and then buy, buy, buy.

What is a trend? Where do trends start?A trend is the direction of fashion and what people want to buy. Trends start with

people who are fashion leaders.

TEACHAsk students for an example of atrend in fashion that has occurredrecently. How did it start?

Ongoing AssessmentUse the Try It On as an opportu-nity to conduct ongoing assess-ment of student comprehension ofthe lesson material.

Time OutDo students know of a storewhere all the salespeople wear re-ally trendy clothes that they wouldlike to buy?

TEACHAsk students why people buyclothing items they have seenpeople wear on TV.

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For example, the web site Shop theSoaps at www.abcshowstore.com offersmerchandise connected to ABC soap op-eras. The merchandise is directly related towhat is happening on a show. The mer-chandise is not trend setting, but offers themerchant a new sales opportunity and in-formation about its customer/viewer.

THE VALUE OF INFORMATIONThe Internet allows compa-nies whose business is re-searching and predictingtrends to monitor and transmitinformation instantly to theircustomers. Worth GlobalStyle Network (WGSN) is a

subscription service that offers designers,manufacturers, buyers, and retailers infor-mation about the fashion business. Obtain-ing and managing information in a timelymanner can be critical to success. Havingaccess to intelligence about fashion trendsthrough an online service reduces the timeit would take using other media. Technol-ogy shortens the distance between trendsetters and wide availability in retail stores.

CHANGING THE FASHIONLANDSCAPETechnology has changed not only the wayinformation is transmitted to users but alsothe way designers and manufacturers cre-ate garments. Prior to the use of technol-ogy, designers created hand sketches ofgarments that were then turned into pat-terns for cutting fabric. Each step wascompleted by hand. Tasks that took weeksnow take days. Now designers whohave an idea in their head, but whosesketching talents are limited, can usesoftware to create the design and pat-tern.

Technology allows consumers accessto fashion information and photos directfrom the designer and manufacturer. Re-tailers who once feared online shoppinghave found ways to use it to their ad-vantage to increase sales. Technology ismaking fashion marketing more efficient.

19

1.4 BEATING THE COMPETITION

MARKETING-INFORMATIONMANAGEMENT

Very busy people findthat online shopping for high-end fashion fitstheir crazy schedules.Web sites such as eLuxury.com offer name-brand, designer fashionsthat are trendy yet clas-sic. eLuxury caters tocustomers by offeringthe assistance of a realpersonal shopper, eitherby e-mail or a toll-freecall. Available gift selec-tions can be sorted byrecipient, occasion,brand, and price range.The selections offeredare designed for peoplewho are buying gifts forwomen. People whoneed a gift that is ele-gant, wrapped, and de-livered in a hurry canfind what they need.

THINK CRITICALLYDescribe the people who might be the targetmarket for eLuxury.

TEACHHow much do the students knowabout the amount of informationthat is collected about visitors toweb sites?

Discuss how a designer might usea software program to draw andtransmit the design to a manufac-turer in another country.

Cyber MarketingPeople who do not like pressurefrom salespeople are buying veryexpensive jewelry items online.

Think CriticallyAnswers will vary but would in-clude business people for whommoney is not a problem.

TEACHResearchers in Paris can view thetrend-setters and email photosaround the world instantly provid-ing the information. How a com-pany reacts to the instantinformation is what makes orbreaks the company.

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1 THE FASHION INDUSTRY

What impact has the Internet had on marketing-informationmanagement?

SELVEN O’KEEF JARMON

Agrass roots marketing planhas worked well for Selven

O’Keef Jarmon, a young, suc-cessful designer. Meeting peo-ple, putting together projectsthat serve as ad campaigns, andgetting tons of press has led tosales of his upscale clothingline. “You must believe in whatyou do, learn how to do fashion,put out a collection, and show itover and over as if it is a work ofart,” Jarmon said, describingwhat it takes to be a successfuldesigner. “People who knowpeople who know people want tohelp me get where I need to bebecause they love my work. Theindividual has to do the work,and there is an immense amountof work involved in creating acollection,” says Jarmon.

Jarmon acquired his interestin fashion from his aunts whomade hats and accessories forthe ladies of their church. Jar-mon worked as a design assis-tant for a Los Angeles sportsand swimwear manufacturer,

then returned to his home inHouston to begin his own line ofwomen’s wear. A fortuitousmeeting on an airline with theowner of Tootsie’s led to Jarmondesigning a private label for theupscale women’s boutique. Hissignature collections range fromhigh-end blouses starting at $145to evening gowns for $3,000. “Ihave created an audience andhave enough income to take it tothe next level,” states Jarmonabout his plans for opening aNew York address. “It is so im-portant to be in a city whereeverything is there in terms offabric, pattern makers, and thewholesale market.”

THINK CRITICALLY1. Why do you think Selven O’Keef Jarmon says that it is im-portant to know people in thefashion business?2. How might a young designermeet people in the fashion business?

The Internet has brought an enormous amount of information to fashion marketers,

but managing and using it still requires time and knowledge.

Ongoing AssessmentUse the Try It On as an opportu-nity to conduct ongoing assess-ment of student comprehension ofthe lesson material.

Trend SettersTry to contact some young de-signers in your area who are juststarting out in the business tohave as guest speakers for theclass. Like many designers, Jar-mon likes the creative part of thebusiness better than the businesspart, but he knows he must takecare of both sides.

Think Critically1. Answers will vary, but people inthe business can help a new busi-ness survive by providing informa-tion and contacts.2. Start working in the businessand make visits to fashion busi-nesses.

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21

1.4 BEATING THE COMPETITION

UNDERSTAND MARKETING CONCEPTSCircle the best answer for each of the following questions.

1. When a garment is part of a trend, it meansa. it would make a great gift.b. it is classified as couture fashion.c. the item reflects the direction of fashion.d. it is a luxury item.

2. Obtaining information about trends via the Internet meansa. you will need to check the source of the information.b. information can be received instantly.c. you need to target your customer.d. planning, distribution, price, and advertising.

THINK CRITICALLYAnswer the following questions as completely as possible. If neces-sary, use a separate sheet of paper.

3. Think of a recent fashion purchase you made. Describe it bystyle, function, and price level. What was the most determiningfactor in your decision to buy?

4. Describe the merchandise and décor of a retail store that catersto you and your friends. Classify the product mix offered by styleand functional classification.

c

b

Answers will vary. Students should list the style, the function (for example,

sportswear), the price of the item, and why they bought it.

Answers will vary.

TEACHING STRATEGIESTactile LearnersTactile learners may becomemore involved with this lessonwhen they are allowed to use theInternet to look up informationabout how technology is used infashion marketing.

TEACHING STRATEGIESVisual LearnersUse google.com to find luxuryclothing web sites that may inter-est visual learners.

ASSESSReteachReview the lesson goals and dis-cuss the Try It On questions atthe end of each section.

EnrichAsk students to talk with the buy-ers or managers of clothing storesto find out how they spot trends.Have students report their findingsto the class.

CLOSEAsk students to provide examplesof the ways they think technologyis impacting fashion.

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REVIEW MARKETING CONCEPTSWrite the letter of the term that matches each definition. Someterms will not be used.

____ 1. Planning and executing the conception,pricing, promotion, and distribution ofideas, goods, and services

____ 2. A specific audience of people to whom abusiness hopes to sell

____ 3. How the elements–product, price, promo-tion, and distribution–are combined tomeet customer needs and wants

____ 4. What a business offers customers to sat-isfy needs

____ 5. The combination of styles, product classi-fications, and price lines created by a de-signer or carried by a retail store

____ 6. All of the ways a customer is encouraged to buy the product

Circle the best answer.7. Assisting in the design and development of new products is

a. financing.b. marketing-information management.c. product/service management.d. none of these.

8. Advertising a garment in a magazine is an example ofa. promotion.b. product/service management.c. purchasing.d. none of these.

9. The phase when sales of a fashion item are at the highest level isa. the fast track.b. the peak phase.c. the classic.d. a fad.

10. Some of the most common styles area. trendy.b. designer.c. classic.d. all of these.

CHAPTERCHAPTER

11 REVIEW

THE FASHION INDUSTRY

22

a. classic styleb. distributionc. fadd. fashion cyclee. marketingf. marketing mixg. priceh. producti. product mixj. promotion

k. target marketl. trend

d

ASSESSReteachReview the goals and the Try ItOn questions in each lesson.Have students respond and dis-cuss answers.

EnrichAsk students to watch people whoare trend setters and see whatkinds of shoes they are wearing.Do they see a pattern?

PORTFOLIO ASSESSMENTHave students add the followingmaterials to their portfolios:• The narrative describing the role

of the seven functions of mar-keting in a recent fashion pur-chase.

• The paragraph about why clas-sic styles have a long life cycle.

• The description of the merchan-dise and décor of a retail storethat caters to teens.

e

k

f

h

i

j

c

a

b

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THINK CRITICALLY11. In pairs, discuss why fashion trend researchers spend time observ-

ing people at work and play. Write down what they might do withthe information they gather through observation.

12. You are the manufacturer of a new men’s clothing line. Who is yourtarget market? What stores do you want to sell your clothing line?

13. Why do political leaders spend time and money carefully choosingthe clothing to wear at public events and during media appear-ances? Why does it matter?

14. Describe the kinds of information a business needs to know aboutteenage customers’ likes and dislikes before designing and manu-facturing a new line of clothing. How can they get this information?

23

FASHION MARKETING

Answers will vary. They use the information they gather to forecast trends and

present the information to fabric manufacturers, designers, and garment manufac-

turers who hire them.

Answers will vary. The target will be an age group and/or ethnic group of males

with stores appropriate to them.

Political leaders have to keep up an image of power and confidence with the pub-

lic. If they do not, they will lose power to someone who does.

Answers will vary. Ask teens for the information.

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MAKE CONNECTIONS15. Marketing Math Using a $3 bottle of fabric paint, you created an

original design and printed it on a T-shirt that cost you $10. It looksgreat, and a small store in your neighborhood wants to buy 30 ofyour shirts. There may be more stores that you can sell to later.You can buy blank T-shirts online for $5 each, plus a total of $4shipping and handling. A bottle of fabric paint costs $3 and will dofive shirts. You want to make at least $100 profit. How much willyou charge the store for each shirt?

16. Ecology When people shop online for clothing, are they helpingto improve air quality and reduce pollution? Why or why not?

17. Technology In groups, discuss how a fashion manufacturer mightuse the Internet to save time and money. Make a list of five ways.

24

THE FASHION INDUSTRY

CHAPTERCHAPTER

11REVIEWREVIEW

30 shirts @ $5 each + $18 for ink (each bottle of ink does 5 shirts; 6 bottles of ink

@ $3 each) + $4 shipping and handling + $100 profit = $272 ÷ 30 = $9.07 for

each shirt

When people shop online they might be reducing some air pollution from their au-

tomobiles, but then the items have to be delivered to them, usually by a truck.

Answers will vary but can include: obtaining research from online research firms,

communicating with customers, looking at what other companies are doing, finding

goods and services they need, and advertising their own services.

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You are the special events director for an upscale designer clothingstore located in a fashion mall. The mall is located where two majorhighways interconnect several miles outside of a large city. Other largecities are within an hour’s drive. A sluggish economy, stiff competitionfrom major department stores, and successful designer outlet storeshave resulted in decreased sales for your specialty store. You mustdevise a series of special events during October, November, and De-cember (the busiest months for your store) to increase business. Youmust consider promotions that will increase customer traffic and specialsales strategies that may be used without losing money. Also, the storeneeds to develop stronger, personalized customer relations and loyalty.

Outline and describe a special promotions weekend for your clothingstore. Then design a newspaper advertisement that describes the week-end promotions and sets your store apart from competitors. Describeother forms of advertisement you would use to make the public awareof the promotions and draw them off the highways and from the majorcities. Once customers are in the store, describe actions that will betaken to encourage customer loyalty and repeat business.

25

FASHION MARKETING

http://www.deca.org/publications/HS_

Guide/guidetoc.html

SPECIALTY STORE PROMOTIONS PLANNING

You are working with a small retailer who wants to target career-oriented young people, ages 23 to 30, as the customers for her ap-parel store. The retailer wants help in deciding what product mix toselect. She plans to hold prices at a moderate level—above what dis-count stores offer but below upscale prices.

Work with a group and complete the following activities.

1. Determine what additional information you need to know about thetarget customer.

2. Create a spreadsheet with style options and functional classifica-tion options as column headings.

3. Search the Internet for information about the following brandnames: Polo, Tommy Hilfiger, Marc Jacobs, Nine West, and JonesNew York. You may include additional brands of your choice.

4. In rows on your spreadsheet, list the brand names and place acheckmark under the style and classification options that apply toeach brand.

5. Write a one-page report that explains your chart and makes a rec-ommendation of the brands that should be carried in the store andwhy they would appeal to the target customer.

DECA PREPThe Specialty Store PromotionsPlanning role play challenges stu-dents to create promotional strate-gies for an upscale designerclothing store that has decreasedsales due to a sluggish economyand stiff competition. Studentsplay the role of special events di-rectors who design special salesevents for October, November,and December to increase busi-ness without losing money. Stu-dents design a specialpromotional weekend, completewith a newspaper advertisement.They must explain all of theirstrategies in the role play.

Students should be given ten min-utes to prepare their solutions forthe role play. They may takenotes to use during the role play.Students will have ten minutes topresent their solution to the classand five minutes to answer ques-tions asked by the class.

THE COLLECTION POINTHelpful resources for this projectinclude a spreadsheet that can befound on the teacher resourceCD. Check out the most currentInternet addresses for the brandsand provide them to the studentsrather than allowing them tosearch. Web site addresseschange but can easily be found byusing google.com and entering thebrand name in the search window.

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