Bell Ringer

1. Bell Ringer What is the total price of a $133.38 item if the sales tax rate is 6%?

2. Bell Ringer Answer • $133.38 * 6% = $8.0028 • $133.38 + $8.00 = $141.38

3. Agenda • Bell Ringer – (5 minutes) • Discuss Learning Objectives / Vocabulary – (5 minutes) • Marketing Strategies Lecture – (40 minutes) • Introduce activity for next week.

4. Learning Targets • Describe the 4 components of the marketing mix. • Identify the four types of promotion. • Identify the seven functions of marketing.

5. What is Marketing? • Marketing is the creation and maintenance of satisfyingexchange relationships. • Creation suggests product development • Maintenance indicates that marketing must continue as long as a business operates • Satisfaction implies meeting the needs of both businesses and customers when exchanging products or services. • Exchange relationships occurs when the parties involved both give and receive something of value.

6. What is Marketing? • Customer needs should be the primary focus of marketing. • To satisfy customers’ needs, you need to perform 3 activities. • Identify your customer and the needs of that customer • Develop products the customers consider better than other choices • Operate your business profitably

7. The Marketing Mix • To perform the tasks associated with marketing, marketers rely on a marketing mix. • The marketing mix describes how a business blends the six functions of marketing.

8. Functions of Marketing • Distribution: Determining the best way to get a company’s products or services to customers is part of the distribution function. • Marketing-Information Management: Gathering and using information about customers to improve business decision making involves marketing-information management. • Pricing: The process of establishing and communicating to customers the value or cost of goods and services. • Product/Service Management: Designing, developing, maintaining, improving, and acquiring products or services for the purpose of meeting customer needs and wants. • Promotion: Using advertising and other forms of communication to distribute information about products, services, images, and ideas to achieve a desired outcome. • Selling: Any direct and personal communication with customers to assess and satisfy their needs and want.

9. Distribution • Determining the best way to get a company’s products or services to customers is part of the distribution function. • Example: Distribution of products may involve transportation services, warehouse/distribution centers, and retailers. • Distribution technology allows businesses to track and monitor merchandise all the way from the manufacturer to the retail outlet to the customer.

10. Distribution • Getting the product to the consumer. • Getting the raw material for fabric, manufacturing textiles to making a garment available to a customer. • How and where a product will be distributed, where the customer will purchase the item, and when the product is distributed.

11. Distribution • The path a product takes from the producer to the consumer. • A product moves from the manufacturer, to the wholesaler, to the retailer, and then to the consumer.

12. Fashion and Distribution Soft-Goods Chain • Textile Segment -> includes fiber, yarn, and fabric production • Apparel Segment -> responsible for producing the finished garments and accessories. The apparel is designed, produced by manufacturers, and sold to retailers. • Retail Segment -> includes stores or outlets that sell the products to customers.

13. Marketing – Information Management • Gathering and using information about customers to improve business decision making involves marketing-information management.

14. Pricing • The process of establishing and communicating to customers the value or cost of goods and services.

15. Pricing • Businesses must offer products and services are prices that consumers are willing to pay. • The price of a fashion product depends on the cost of producing the item, the markup, and customer demand.

16. Product / Service Management • Designing, developing, maintaining, improving, and acquiring products or services for the purpose of meeting customer needs and wants. • Spandex is a current textile used in apparel because it is lightweight, yet extremely strong, and a synthetic fiber.

17. Product • Product offerings must be constantly evaluated and updated, because what is popular this year may not be popular next year. • Marketers must consider how the product is perceived by consumers. • Involves producing, packaging, and naming a product.

18. Promotion • Using advertising and other forms of communication to distribute information about products, services, images, and ideas to achieve a desired outcome.

19. Promotion • Any form of communication that a business or organization uses to inform, persuade, or remind people to buy its product. • Four types of promotion: sales promotion, public relations and publicity, and advertising

20. Types of Promotion Sales Promotion Fashion retailers use special contests, displayed merchandise in windows, or special coupons. The purpose is to increase customer traffic in a store so people will buy products.

21. Types of Promotion Public Relations and Publicity Public Relations Activities that promote the image and communications a company has with employees, customers, and the public. Publicity  Unpaid mention of a business, its employees, or its merchandise in the media.

22. Types of Promotion Advertising A paid message that a business sends to the public about the product. Appear in magazines, newspapers, brochures, television commercials, and outdoor signage.

23. Promotion Mix at the Mall

24. Selling • Any direct and personal communication with customers to assess and satisfy their needs and want.

25. Marketing Strategies • Increase the number of customers • Increase the average transaction • Increase the frequency of repurchase

26. Financing • It is not one of the six core standards, but it is closely related. • Requires a company to budget for its own marketing activities and to provide customers with assistance in paying for the company’s products or services.

27. Quick Quiz (40 points) • Describe the 4 P’s of Marketing? • What three marketing strategies are used to increase retail businesses? • Describe the 3 activities must a business perform in order to satisfy customer’s needs? • List the 4 types of promotion and give an example of each.

28. Partner Role Play Situation: You are to assume the role of assistant manager of a children’s clothing store. The store’s owner has decided to open a new store. The owner wants the new store to build on the success of the existing store but plans to carry a different merchandise line. The new store will carry clothing for young women. The store’s owner wants the new store to have its own identity. Activity: The store’s owner has asked you to create a few marketing ideas for the new store. Your ideas should consider the four P’s of marketing. Evaluation: You will be evaluated on how well you meet the following performance indicators: Develop a marketing plan (next page)

29. What to Include: I. EXECUTIVE SUMMARY ½ page description of the plan II. OBJECTIVES—What the promotional campaign is to accomplish III. SCHEDULE OF EVENTS—Promotional activity(ies) must include the following: A. Special events (example: fashion shows, demonstrations) B. Advertising (example: paid/co-op advertisement in various types of media) C. Publicity (example: press releases sent to various types of media) D. Other in-store activity(ies) (example: involvement of sales employees, etc.) IV. STATEMENT OF BENEFITS TO THE RETAIL ESTABLISHMENT V. BIBLIOGRAPHY

30. What to Include • ½ description of your store and your promotion plan. • Statement describing your promotional objectives. (Think 3 things that all businesses must do to make a profit) • Description of your special event, advertising method, publicity event, and any other event you may use. • Statement of benefits. How will each promotion benefit your company. • Bibliography page • Copy of your magazine advertisement.