Collecting Information in the Fashion Industry

1. Collecting Informationin the Fashion Industry

2. Keeping Up with All that DATA! • Marketing Information Systems: (MIS) • Characteristics of a system • Purpose is to manage information • Effective systems: • Track rapidly changing product assortments • Provides information about the customer • Is user-friendly • Provides reliable data • Collects, stores, reports, analyzes, and uses information

3. Marketing Information Systems • Collecting Data • Use technology to obtain details about what is selling and who is buying • Information is collected by price tag scans, bar code scans, orders being placed by buyers, etc

4. Marketing Information Systems • Storing Data • Usually accumulated in an electronic format • Due to amount of data generated paper trails would be almost impossible to manage • Data is usually relevant for only a short period of time

5. Marketing Information Systems • Reporting Data • Produced in electronic spreadsheets or other report formats • Often used to compare the past with the present • Same-store sales reports: compares what is happening today with what happened a year ago

6. Marketing Information Systems • Analyzing Data • Analysis puts data into context that shows relationships and helps lead to conclusions • Used to catch trends in time to react to them

7. Marketing Information Systems • Using Data • If analysis shows ineffective sales, then appropriate reactions could be made • Concessions: working with the vendors on price or their return policy • Also used to gauge need for markdowns and closeouts

8. Marketing Research • Marketing Research: the process of gathering information about current and potential customers. Research is usually reported based upon groups of people with similarities. • Market research is vital to a successful MIS

9. Marketing Research • Market Segments: subgroups based upon demographics (age, gender, ethnic group, nationality, education, and income) and/or psychographics (ideology, values, attitudes, and interests) • Age groups and gender groups are frequent divisions in fashion markets (but can be misleading)

10. Marketing Research • Examples of market segments: • Generation X (born between 1961-1981) • Generation Y (born between 1979 – 1995) • Hispanic • Baby Boomers (born between 1946 – 1964)

11. Marketing Research • Mass Marketing: large number of potential consumers with no specific limitations • Target Markets: catering to one or two market segments as far as color, style, price, trend selection

12. According to WWD…. Consumers of moderate priced fashions are those that shop at JCPenny and Kohl’s and who shop during sales at department stores. About 43% of all moderate apparel in 2001 was purchased by women 25-40 years old with incomes of $25,000-$74,999. Women with higher incomes purchased another 42% of moderate apparel. The moderate shopper does not enjoy shopping, shoe not have the time to shop, is not overly concerned about fashion, and wants value for the price of the clothing she purchases. As a fashion marketer, how could you use this information in formulating a store’s merchandise mix and marketing strategy?

13. Judging the Potential of Your Target Market in Your AREA… • Some groups have more potential than others • Some groups have a greater concentration in an area than others • Matching the right target market with the right marketing strategy is key to a successful retail operation

14. Things to Consider… Although you may wish to target Generation Y due to their free-spending habits, you could decide to target women 45-54 years old since this group is the highest per-person spender on fashion apparel. Members of this group are generally career driven, educated, have a higher income. What could be a draw back to targeting this customer in a specific area?

15. Research Continued! • Market research allows the retailers to collect data on the targeted market in order to better meet their wants and needs • How does price affect sales? • How important is convenience to the target market? • Where on the fashion life cycle will the target market purchase clothing styles?