Lecture

Lecture

What is consumer behaviour?

-The study of the process involved when individuals or groups select, purchase, use or dispose products, services, ideas or experiences to satisfy needs and desires. (Solomon et al, 2011)

Maslows Hierarchy of Needs

-Self actualisation needs; the desire for self fulfilment in achieving whatever someone can
-Esteem and status; striving to achieve a high standing in relation to other people
-Social needs; we need social experience and desire products and services that facilitate social exchange
-Safety needs; protection from the unpredictable happening in life e.g accidents
-Physiological needs; fundamentals of survival

How does your own self concept create influence behaviour?

Self esteem- (Richins 1993; Kees et al, 2008)

-Marketers use attractive models for a social comparison process where young female consumers compare themselves and feel inadequate against them.

Diverse and changing markets

-Most fashion marketers try to attract several market segments at once.
-E.g Gap sells to men, women and children
-Consumer buying habits don't remain the same
-Changes in economic or social conditions can affect the consumers choices

Segmenting a market

- Marketing segmentation is a way of analysing a market by categorising their specific characteristics

Specific characteristics include:
-Demographics- are statistics that describe a population in terms of personal characteristic s such as age, gender income, ethnic background, education, religion and a lifestyle
-Psychographics- are studies of consumers based on social and psychological characteristics such as attitudes, interests and opinions
-Geographic- are statistics about where people live
-Behaviouristic/usage- are statistics about consumers based on their knowledge, attitudes, use, or response to a product
-Situation
-Geodemograpahic

Marketers may look at the purchase occasion for a product, the product benefits sought by consumers, or usage level and commitment towards a product:

-Purchase occasion- identifies the instance when a consumer might use a product
-Product benefits- identifies the benefits that consumer desire in a fashion product or service
-Usage level and commitment- identifies how often they use a product and their loyalty to purchasing it
-Geodemograpahic segmentation- hybrid segmentation: you are where you live

Targeting

The next step is targeting, in which marketers evaluate each potential segment and decide upon which groups of customers they will invest marketing resources

- Selected groups are known as target markets

How is technology making it easier for fashion firms to target potential customers?
-Easy access
-Social media

Brand positioning stae]tement

Brand positioning is defined as the conceptual place you want to own in the target consumers mind- the benefits you want them to think of when they think of your brand. An effective brand positioning strategy will maximise customer relevancy and competitive distinctiveness, in maximising brand value.

When doing research to inform a brand positioning project, you must be able to answer the following:
- What does the brand community currently believe about or value in the brand?
- What might the brand community believe or value about the brand in the future?
- What does the organisation currently claim about the brand?
- What would the organisation like the brand to become down the road?

The final step is positioning:

How do you want to be seen in the market place? What is you key competitive advantage? What do you want to highlight?

-Product differentiation
-Service differentiation
-Personal differentiation

Marketing mapping

The market map illustrates the range of positions that a product can take in a market based on two dimensions are important to customers

Low price-high price
Basic quality-high quality
Low volume-high volume
Neccesity-luxury
Light-heavy
Simple- complex

The fashion cycle

-Fashion cycle: the ongoing introduction, rise, peak, decline and obsolesce in popularity of specific styles or shapes.
-All styles that come into fashion rotate through the fashion life cycle

Stage 1- Introduction
- The first stage of the fashion cycle is when. new styles, colours, textures and fabrics are introduced
- The new style may be accepted by a small number of people called fashion leaders
- Promotional activities include fashion shows and advertising in high fashion magazines
- Fashions are produced in small quantities at high prices
- Retail buyers purchase limited numbers to see if the style will be accepted

Stage 2- Growth
- The second stage of the fashion cycle when consumer interest grows and the fashion becomes more readily accepted by consumers
- Mass production brings down the price of fashion, which results in more sales
- Styles are manufactured in less expensive materials and in lower quality construction than the original style
- Promotional efforts are increased in high fashion magazines to heighten consumer awareness
- Retail buyers order items in quantity

Stage 3- Maturity peak
- The third stage of the fashion cycle during which a style is at its height of popularity
- The fashion is demanded by almost everyone because it is now within the price range of most consumers and is mass produced in many variations
-Each retailer tries to persuade customers that it's version of the style is the best

Stage 4- Decline
- The fourth stage of the fashion cycle when the market is saturated and popularity decreases
- The fashion is overused and becomes dull and boring
- As the fashion decreases in popularity, retailers mark down their prices
- Promotions centre around major clearance or closeout sales of fashion

Stage 5- Obsolescence (rejection of style)
- The fifth stage of the fashion cycle when the style is rejected, is undesirable at any price, is no longer worn and is no linger produced
- Ends as an accepted fashion

Extension strategy
- Can be defined as a medium to a long term plan for lengthening a products life cycle. it is likely to be implemented during the maturity or early decline

Extension strategies include:
- Redesigning the product
- Adding extra feature
- Changing packaging and advertising appeal to a new market segment
- Providing a unique selling point