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Fashion Merchandising and Marketing Midterm

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Style
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a particular shape or type of apparel item identified by the distinct features that make it unique
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Silhouette
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overall shape or outline of a garment a. straight or tubular b. bell shaped c. bustle
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Vanity Sizing
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-cut a size 6 like an 8 so you wear a size down -psychological -more prevalent in higher price zones
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Vertical Integration
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operate at more than one level of the supply chain
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Bustle
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shape that has back fullness and pulls in to make the butt look bigger
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Haute Couture
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(high fashion) the most fashionable, expensive, and exclusive designer clothing a. custom designed b. made to order
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classic
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An item of clothing that continues to be popular even though fashions change
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accessories
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fashion items that are added to complete or enhance outfits
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4 P’s of Fashion Merchandising
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-price -place -promotion -product
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Relationship Marketing
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creating a lasting and mutually-beneficial relationship with key suppliers and customers 1. seek out those who spend the most 2. cheaper than finding new clients 3. add value to key customer accounts
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Marketing Concept
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is the idea that businesses must satisfy customer needs and wants in order to make a profit
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Product
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the focus of the marketing mix because it is the product that is ultimately delivered to the consumer
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Public Relations
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-a promotional technique that uses any form of communication to create a positive image for the business -The exposure generates sales and creates a positive image of the organization ie- working with a nonprofit
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Publicity
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any NON-PAID message that communicates information about a company’s merchandise, services, and/or activities
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Advertising
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a paid message that business sends about its fashion products or services to inform, remind or persuade consumers
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Personal Selling
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Personal communication between customers and sales personnel
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Marketing
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the process of developing, promoting, and distributing products to satisfy customers’ needs and wants
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Behavioral Segmentation
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-Classification of customers by buying intent and behavior -Allows marketers to reward best and most loyal customers
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Geographic Segmentation
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-Can be collected at point of sale -Dividing the market into groups according to a particular region -People residing in similar regions have similar purchasing habits or preferences
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Merchandising
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the planning, buying, and selling if fashion apparel and accessories to offer the right merchandise blend to meet customer demand
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Country of Origin
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“made in” -substantial transformation necessary to be called made in Italy -65% of work done to be made in US
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Zeitgeiset
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spirit (sign) of the time
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Suffragist
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women part of the women’s suffrage movement in the late 19th and early 20th centuries; the feminist movements highly influenced fashion as women wanted to start working –> working apparel for women
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Samuel Slater
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-created water-powered cotton mill – revolutionized textile industry
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Ready-to-Wear (RTW)
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-“off the rack” -mass produced in factories -standard sizes -thousands made -for sale in many sizes
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Chambre syndicale de la haute couture
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-controls every part of fashion week – 60-100 pieces per show -Paris
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Pret-a-Porter
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The haute-couture designs translate into the lesser-priced but still costly French designer ready-to-wear
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tailored clothing
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clothing that has been adjusted to fit a person specifically – a section of men’s clothing -mostly suits
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casual sportswear
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– section of men’s clothing – nice men’s clothing that is comfortable but still fancy
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couturiers
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male fashion designers in haute couture maisons
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tweens
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group of pre-teens, aged eight to twelve
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licensed apparel
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apparel that has a brand or character on it that the original company makes an agreement with in order to have them be able to use the thing
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customer
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the person who buys the apparel
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acceptance
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-a requirement of fashion -agreeance that everyone likes a thing
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market segmentation
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-a way of analyzing a market by categorizing specific characteristics -Marketers divide the people into groups of possible consumers based on various shared characteristics -Fashion marketers to concentrate on meeting the needs of certain types of buyers rather than the needs of all shoppers
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demographic variable
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statistics that describe a population in terms of personal characteristics such as age, gender, income, ethnic background, education, religion, occupation, and lifestyle
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psychographic variables
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-studies of consumers based on social and psychological characteristics such as attitudes, interests, and opinions -Consumers’ attitudes and values are often represented by how they choose to spend their time and money
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emotives
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fashion is unique because marketers can use emotions to promote a product
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planned obsolescense
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fashion is perishable; it goes out out fashion after the season
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supply chain
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three segments of the fashion industry: primary (textile), secondary (manufacturing), tertiary (retailing)
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channels of distribution
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involves moving the product each step from the design idea to the customer’s hands; number of businesses involved in the actual planning or movement of the product; actual transport of the product (land or air); on test she asks about “Multichannel Distribution”
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American Look
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simple, stylish, preppy style brought to the US after WWII by Claire McCartell
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Courturieres
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female designers in haute couture maisons
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New Look
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created by Christian Dior after WWII in which the skirts were longer and fuller again
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outerwear
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another category of men’s clothing
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marketing mix
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the 4 P’s of marketing: Price, Product, Place, Promotion; Product is focus because it is ultimately delivered to the customer
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gross income
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all earnings from salary, wages, dividends, interest, etc.
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disposable income
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the gross income – all taxes; income you will spend on necessary things
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discretionary income
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disposable income – spending on necessary items; what people will spend on fashion; people with more discretionary income will spend more on fashion products
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controllable environmental factors
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the 4 P’s (price, product, promotion, place)
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uncontrollable environmental factors
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economy, legal issues, cultural influences, competition, politics
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franchising
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the franchiser (manufacturer) sells the entire package and allows the franchisee to carry the brand’s product to be sold in the store in exchange for a higher percentage loyalty; franchising agreements have more control and a higher loyalty than licensing agreements
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style #
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the number assigned to a design in the firms line
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Democratization of fashion
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we can all wear fashion at different price points
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target customers
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those who are likely to buy from you
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customer base
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group of customers who repeatedly purchase the goods of a business
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segmenting in the market
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when marketers divide the people into groups of possible consumers based on shared characteristics
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geographic theory
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•fashion begins in heavily populated areas where there is emphasis on fashion ex: in the US, starts on east & west coast, then trickles to center of US
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niche market
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subset of the market focusing on a specific product •product features aimed to satisfy specific market needs, price ranges, product quality, and intended demographic
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speed-to-market
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We don’t see the product even if its created, until we need it
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just-in-time production
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The purpose of JIT production is to avoid the waste associated with overproduction, waiting and excess inventory. (Having the exact amount of material for the exact amount of clothing you want to produce)
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products
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what a company is offering for sale to customers to satisfy their needs and wants (includes goods & services) •focus of marketing mix because the product is ultimately being delivered to the consumer (70% new products and 30% classic product lines each season)
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goods
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tangible items (can physically touch)
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services
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intangible items (can’t physically touch)
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substantial transformation
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Product undergoes significant change during development stage
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raw materials
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the basic material from which a product is made
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chic
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elegantly and stylishly fashionable
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fashion dolls
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dolls primarily designed to be dressed to reflect fashion trends
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metrosexual
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a heterosexual urban man who enjoys shopping, fashion, and similar interests traditionally associated with women or homosexual men
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trade show
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exhibition organized so that companies in a specific industry can showcase and demonstrate their latest products and services
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hemline index
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hemlines on women’s dresses rise along with stock prices
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fashion centres
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Paris, Milan, London and New Yor
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Why is fashion unique from other consumer products?
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-it has emotional appeal -is perishable -is democratic -requires group acceptance
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Three Segments of Fashion Industry
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1. Primary (Mill) 2. Secondary (Merchandising) 3. Tertiary (Retailing)
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Primary Segment
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producers of raw material, natural or man made; textile is the most important
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Secondary Segment
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firms which convert the primary material into the finished product
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Tertiary Segment
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retailing
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Fashion (Apparell Industry)
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the existing type of clothing that is preferred by a large segment of the public
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Market Segmentation
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1.Demographic 2.Psychographic 3.Geographic 4.Behavioristic * find an example
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Marketing Functions
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1. Market Research 2.Financing 3.Pricing 4.Promotion 5.Product Service Management 6.Distribution 7.Selling
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1. Market Research
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gathering & using info about what consumers want 1.input 2.storage 3.analysis 4.output 5.decisions
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2.Financing
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planning ways to cover the costs of successfully operating a business
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3.Pricing
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process of setting the value or cost at the right level -cost of production +a profit
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4.Promotion
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Communicating with the customers about the product to achieve the desired result -advertising, personal selling, publicity, and public relations
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5. Product Management
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Designing, producing, maintaining, improving, and/or acquiring products or services to meet customer needs
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6. Distribution
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Involves moving the product each step from the design idea to the consumer
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7.Selling
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Assists the customer in identifying and satisfying a want or a need
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ex: A newspaper article about the grand opening of a new boutique appears
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ans: promotion
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ex: Styles of swimsuits are selected to be sold in a department store
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ans: product management
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ex: T-shirts are transported from the factory to the Gap by truck
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ans: Distribution
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ex: Management attended a trade show to select merchandise for the spring season
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ans: product management
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ex: Shoes sold in a department store have a markup of 35% based on cost
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ans: pricing
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ex: management has decided to use television commercials rather than newspaper ads
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ans: market research
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ex: A consumer answers survey questions after sampling a new line of skin care
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market research
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ex: Money is borrowed to purchase a computer system for a large, independently-owned clothing store
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financing
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ex: Cotton for use in the production of t-shirts was shipped by truck to the company
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distribution
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ex: A salesperson answers a customer’s questions about the care of a leather coat
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selling
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Why does mass customization provide fashion marketers with the competitive advantage?
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customers believe that they are creating something themselves, even though the product is already made – usually over 100 euro
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Are clothing designs protected under copyright or trademark law in the United States?
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-Fashion industry only has trademark protection: can copy everything but the logo
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Differentiate between knock offs and counterfeited products? Are they legal?
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Knock offs: copy another’s design without trying to pass it off as something else, no logo LEGAL Counterfeits: passed off as originals copying everything including label ILLEGAL
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Why would a brand license out their name? Who benefits from licensing agreements? Explain and give examples.
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-Brands (the licensor) frequently license out their name to a company (the licensee) who can produce goods that require specialist manufacturing or distribution. -The licensor benefits from the royalties that the licensee will pay to them. They also benefit from wider brand awareness that is normally associated with a larger product range. For example, you can easily grow your customer base by offering lower priced products like sunglasses and perfumes as they are more affordable to a larger group of people, compared to high end clothing. The licensee makes money by selling the licensed products, and when they have a strong portfolio of brands, they can easily attract more licensors and more customers.
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why is fashion important?
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The fashion industry employs more people worldwide than any other industry today. Whether it is garment production in Asia, a weaver in Guatemala, a thread supplier in India, or a retailer in Europe, almost every country in the world is involved in some sort of fashion-related activity. The buying, selling, and producing of fashion built careers in the support services sector like fashion journalism, photography, and forecasting. Trade among countries continues to grow with the United States and other countries initiating trade with one another.
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– The marketing environment consists of controllable and uncontrollable factors. The marketers degree of success/failure depends on how responsive and adaptive to these factors. Describe how fashion companies handle periods of recession in the economy.
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As fashion is not a necessity companies must adjust to sluggish economy. This impacts the company in that investments such as factory or store expansion will not be justified, and sales will be down. Companies may lay off employees to cut labor costs, decrease production and inventories, and lower future projections for sales and profits. Fashion companies will analyze product offerings and pricing to accommodate the changing marketplace. Discount retailers such as Target, Walmart, and TJX (T. J. Maxx and Marshalls) usually thrive during period of recessionary periods due to their pricing policies and mass purchasing power. Other companies may look for value items, new suppliers to adapt to the changing consumer demand and habits to survive, others may close stores or go out of business.