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1.0 WHAT IS MARKETING?

Marketing is the process of getting consumers interested in your company’s product or


service. This happens through market research, analysis, and a solid understanding of
your ideal consumer’s wants and needs. Marketing pertains to all aspects of a business,
including product development, distribution methods, sales, and advertising.
Marketing is the study and management of exchange relationships. Marketing is used to
create, keep and satisfy the customer. With the customer as the focus of its activities, it
can be concluded that Marketing is one of the premier components of Business
Management - the other being innovation.
Marketing is defined by the American Marketing Association as "the activity, set of
institutions, and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large. The term
developed from the original meaning which referred literally to going to market with
goods for sale. From a sales process engineering perspective, marketing is "a set of
processes that are interconnected and interdependent with other functions" of a
business aimed at achieving customer interest and satisfaction.
Philip Kotler defines marketing as:-marketing is about Satisfying needs and wants
through an exchange process.
The Chartered Institute of Marketing defines marketing as "the management process
responsible for identifying, anticipating and satisfying customer requirements profitably.
A similar concept is the value-based marketing which states the role of marketing to
contribute to increasing shareholder value. In this context, marketing can be defined as
"the management process that seeks to maximise returns to shareholders by
developing relationships with valued customers and creating a competitive advantage.
Marketing practice tended to be seen as a creative industry in the past, which included
advertising, distribution and selling. However, because the academic study of marketing
makes extensive use of social sciences, psychology, sociology, mathematics,
economics, anthropology and neuroscience, the profession is now widely recognized as
a science,allowing numerous universities to offer Master-of-Science (MSc) programs.
The process of marketing is that of bringing a product to market which includes these
steps: broad market research; market targeting and market segmentation; determining
distribution, pricing and promotion strategies; developing a communications strategy;
budgeting; and visioning long-term market development goals.Many parts of the
marketing process (e.g. product design, art director, brand management, advertising,
copywriting etc.) involve use of the creative arts.

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1.2 DIFFERENCES BETWEEN SALES AND MARKET ORIENTATION
Marketing entails product development, market research, product distribution, sales
strategy, public relations, and customer support. Marketing is necessary in all stages of
a business’s selling journey.
On the other hand, advertising is just one component of marketing. It’s a paid strategic
effort to spread awareness of a product or service, but it’s not the only method used by
marketers to sell a product.

The major difference between market orientation and sales orientation is that one
strategy looks outward and one looks inward. A market-oriented business looks
outward; it is externally focused, and believes that fulfilling its target audience’s wants
and needs is the key to success. Therefore, any shifts in those wants and needs may
dictate a change in product development or in how services are offered. In contrast, a
sales-oriented business looks inward; it is internally focused and believes that
developing outstanding products and services is the key to attracting customers. A
sales-oriented business isn’t concerned with the wants and needs of its target audience,
because it believes that a well-made product or a well-developed service will organically
fulfill everything that a customer wants or needs.

Market Orientation Elements


Identifying your target audience is one of your most important goals as a business
owner, but figuring out ways to attract that audience and how to convert them to long-
term buyers is equally important. When you pursue a market orientation, your main
focus is on pleasing your target audience, so you must be flexible about how you try to
capture that audience’s attention. This means that you are less concerned about
making the most outstanding product or developing the highest-quality superior service
than you are concerned about making sure that the product or service you offer will fulfill
the wants and needs of your target audience.

Sales Orientation Elements


When you adopt a sales orientation, your focus is on selling as many products and
services as possible without worrying about marketing to your target audience. The
logic is that by making a superior product or service at the right price, and combining
that with aggressive sales tactics, you can persuade people to buy whatever you’re
selling. It’s important to remember that pricing strategy is based on the value you
believe that customers will assign to your products or services. For example, luxury
items often have a higher perceived value, which means that you can price these higher
than standard items and still create sufficient demand to generate a profit.

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1.3 MARKETING PROCESS
Definition and Steps involved in the Marketing Process:- The marketing process is a
process of analyzing the opportunities in the market, selection of the target markets,
and development of the Marketing Mix and management of the marketing efforts. Below
are the 4 marketing process steps that involved in targeting the right audience in the
market.

The Marketing Process Steps


 Analysis of the opportunities in the market.
 Selection of the target market.
 Development of marketing mix.
 Management of marketing efforts.

Analysis of the Opportunities in the Market


The first component of the Marketing Process is to analyze the market in order to find
the opportunities that should be availed. These opportunities are related to the needs
and wants of the customers that are not properly satisfied by the competitors in the
market. A company that is initiating the marketing process focuses the opportunities that
would be beneficial in the long run success so that its performance would be effectively
improved. For this purpose, the company gets help from the marketing information
system (MIS), which plays a significant role in providing useful information about the
market.
The company also conducts effective market research that would tell him the value able
information about the customers, competitors, general trends, and any extraordinary
change occurred in the market that can be useful for the company. Then company
identifies the potential opportunities from the collected information and split the whole
market into different segment. These segments are based on some factors like age
group, geographical location etc. The company evaluates each segment separately to
check the potential of the segment in the light of its strengths and weaknesses. Finally,
it selects the target market segment to proceed further.

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Selection of the Target Market
This is the most important step of the marketing process in which the target customers
are selected. For this purpose, the company conducts a careful analysis of the target
markets in order to choose the final customers. As it is obvious that the company do not
satisfy the needs and wants of the whole market therefore it must divide the whole
market into different segments and choose the segment that will best meet its strengths
and opportunities. In this regards, there are certain step you need to follow.

Market Segmentation:
The process in which the whole market is split into different units of consumers, each
unit having similar wants, characteristics and behavior of consumers which need
different marketing mixes and strategies.

Market Targeting
In this process the targeted segments of the total market are evaluated to ascertain the
attractiveness of each segment so that the one or two most suitable and potential
segments should be selected and entered. The simple rule of selecting the target unit or
segment is that it must provide the opportunity to the company to create potential
customer value in the long run. Another important rule is that a certain company has the
option to satisfy the needs and wants of one or two segments. In this case the company
focuses on that relevant segments and develops its products and strategies for them
only. Such small segments are called “niches”. The company has also another option to
split the whole market into different segments and offers different products and
marketing mixes to each segment of the market. But the most effective method is to
focus on one or two segments and after succeeding in those segments, further new
segments should be targeted.
Market Positioning:
This concept relates to the positioning of the product of a company in the minds of the
customers as compared to the products of competitors. In other words the company
tries to maintain a clear and specific perception in customers about its products. When a
company wants to position its product, it first specifies the competitive edge for which it
offers competitive advantages to its target customers. The whole marketing program of
the company should concentrate its identified positioning strategy. The positioning is
effective when the company truly provides the efficient, competitive offering to its
customers in order to give them maximum value as compared to the offering of
competitors.

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Development of Marketing Mix
After setting of a complete marketing strategy of a company, then it is ready to initiate
the planning of its marketing mix.

Marketing Mix
Marketing Mix is composed of certain variables of markets that are mixed by the
company in order to generate certain desired response in the targeted segments.
A company develops an effective marketing program in which a suitable combination of
marketing mix is blended so that they are efficiently coordinated into a useful program to
provide the greater customer value in order to accomplish the company’s objectives.
4P’s of marketing mix are from the seller perspective. In certain cases the 4C’s are
replaced by the 4P’s which are

1. Product means Customer Solution


2. Price means Customer Cost
3. Place means Convenience
4. Promotion means Communication

Management of Marketing Efforts


This is actually the action phase of the development marketing program in which a
suitable marketing mix is set for a target market. For the management of marketing
efforts four functions are adopted which are as follow.

01- Analysis of the Market in which the company identifies the internal strengths and
weaknesses along with the external opportunities and threats.

02- Marketing Planning in which certain marketing plans or strategies are developed so
that the overall objective of the marketing should be accomplished.

03- Marketing Implementation in which the developed plans and strategies are
practically implemented in order to achieve the marketing objectives.

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2.0 COMPONENT OF MARKETING
Marketing should always begin with a thorough marketing plan, which allows you to
evaluate the market potential for your products or services and develop strategies to
meet that potential. A complete, written marketing plan contains seven main
components:
1. Market research and analysis: The first component of a marketing plan allows you to
gather pertinent information about the potential market for your product(s) and/or
service(s), evaluate strengths and weaknesses, and identify a target audience.
2. Marketing and financial goals and objectives: This component of a marketing plan
consists of defining your marketing and financial goals and objectives. The goals and
objectives will help you focus and evaluate your marketing efforts.
3. Marketing mix: The marketing mix component of a marketing plan describes the
specific strategies you will implement to reach your target audience, entice the target
audience to spend their money, and create a desire in them to return to your enterprise.
Strategies covering the 4 P's of marketing (product, price, place, and promotion) are
developed.
4. Marketing budget: This component of a marketing plan consists of developing a
marketing budget, which will allow you to plan for marketing expenditures.

2.1 PLACE
It’s critical that your marketing department uses their understanding and analysis of your
business’s consumers to offer suggestions for how and where to sell your product.
Perhaps they believe an ecommerce site works better than a retail location, or vice
versa. Or, maybe they can offer insights into which locations would be most viable to
sell your product, either nationally and internationally.
 Where do buyers look for your product or service?
 If they look in a store, what kind? A specialist boutique or in a supermarket, or
both? Or online? Or direct, via a catalogue?
 How can you access the right distribution channels?
 Do you need to use a sales force? Or attend trade fairs? Or make online
submissions? Or send samples to catalogue companies?
 What do your competitors do, and how can you learn from that and/or
differentiate?

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2.2 PROMOTION
This P is likely the one you expected from the get-go: promotion entails any online or
print advertisement, event, or discount your marketing team creates to increase
awareness and interest in your product, and, ultimately, lead to more sales. During this
stage, you’ll likely see methods like public relations campaigns, advertisements, or
social media promotions.
 Where and when can you get your marketing messages across to your target
market?
 Will you reach your audience by advertising online, in the press, on TV, on radio,
or on billboards? By using direct marketing mailshots? Through PR? On the
Internet?
 When is the best time to promote? Is there seasonality in the market? Are there
any wider environmental issues that suggest or dictate the timing of your market
launch or subsequent promotions?
 How do your competitors do their promotions? And how does that influence your
choice of promotional activity?
 Hopefully, our definition and the four Ps help you understand marketing’s
purpose and how to define it. Marketing intersects with all areas of a business, so
it’s important you understand how to use marketing to increase your business’s
efficiency and success.

2.3 PRICE
Your marketing team will check out competitors’ product prices, or use focus groups
and surveys, to estimate how much your ideal customer is willing to pay. Price it too
high, and you’ll lose out on a solid customer base. Price it too low, and you might lose
more money than you gain. Fortunately, marketers can use industry research and
consumer analysis to gauge a good price range.
 What is the value of the product or service to the buyer?
 Are there established price points for products or services in this area?
 Is the customer price sensitive? Will a small decrease in price gain you extra
market share? Or will a small increase be indiscernible, and so gain you extra
profit margin?
 What discounts should be offered to trade customers, or to other specific
segments of your market?
 How will your price compare with your competitors?

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2.4 PRODUCT
Let’s say you come up with an idea for a product you want your business to sell. What’s
next? You probably won’t be successful if you just start selling it.
Instead, you need your marketing team to do market research and answer some critical
questions: Who’s your target audience? Is there market fit for this product? What
messaging will increase product sales, and on which platforms? How should your
product developers modify the product to increase likelihood of success? What do focus
groups think of the product, and what questions or hestitations do they have?
Marketers use the answers to these questions to help businesses understand the
demand for the product and increase product quality by mentioning concerns stemming
from focus group or survey participants.
 What does the customer want from the product/service? What needs does it
satisfy?
 What features does it have to meet these needs?
 Are there any features you've missed out?
 Are you including costly features that the customer won't actually use?
 How and where will the customer use it?
 What does it look like? How will customers experience it?
 What size(s), color(s), and so on, should it be?
 What is it to be called?
 How is it branded?
 How is it differentiated versus your competitors?
 What is the most it can cost to provide and still be sold sufficiently profitably?
(See also Price, below.)

3.0 SEGMENTS AND TARGETING MARKETS

Market segmentation is the activity of dividing a broad consumer or business market,


normally consisting of existing and potential customers, into sub-groups
of consumers (known as segments) based on some type of shared characteristics. In
dividing or segmenting markets, researchers typically look for common characteristics
such as shared needs, common interests, similar lifestyles or even similar demographic
profiles. The overall aim of segmentation is to identify high yield segments – that is,
those segments that are likely to be the most profitable or that have growth potential –
so that these can be selected for special attention (i.e. become target markets).
Many different ways to segment a market have been identified. Business-to-business
(B2B) sellers might segment the market into different types of businesses or countries.

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While business to consumer (B2C) sellers might segment the market into demographic
segments, lifestyle segments, behavioural segments or any other meaningful segment.

The STP approach highlights the three areas of decision-making


Market segmentation assumes that different market segments require different
marketing programs – that is, different offers, prices, promotion, distribution or some
combination of marketing variables. Market segmentation is not only designed to
identify the most profitable segments, but also to develop profiles of key segments in
order to better understand their needs and purchase motivations. Insights from
segmentation analysis are subsequently used to support marketing strategy
development and planning. Many marketers use the S-T-P
approach; Segmentation→ Targeting → Positioning to provide the framework for
marketing planning objectives. That is, a market is segmented, one or more segments
are selected for targeting, and products or services are positioned in a way that
resonates with the selected target market or markets.

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3.1.1 CRITERIA FOR SUCCESSFUL SEGMENTING
Market segmentation is practised by most businesses in one form or another, as a way
of streamlining their marketing strategy by dividing broad-based target markets into
specific groups of consumers, and devising marketing methods that will appeal to each
group.

Identifying viable segments


Clearly defined market segmentation criteria not only ensure that customers are more
likely to identify – and purchase – the product that is right for them; it also minimises
wastage of resources, reducing the time spent marketing the wrong products to the
wrong customers. It is important, however, to focus resources on market segments
whose size, growth and profitability is good, both immediately and in the long run. The
following 5 market segmentation criteria should be useful when planning your own
company’s market segmentation strategy.
A market segment should be:
1. Measurable: Market segments are usually measured in terms of sales value or
volume (i.e. the number of customers within the segment). Reliable market
research should be able to identify the size of a market segment to a reasonable
degree of accuracy, so that strategists can then decide whether, how, and to
what extent they should focus their efforts on marketing to this segment.
2. Substantial: Simply put, there would be no point in wasting marketing budget on
a market segment that is insufficiently large, or has negligible spending power. A
viable market segment is usually a homogenous group with clearly defined
characteristics such as age group, socio-economic background and brand
perception. Longevity is also important here: no market segmentation expert

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would recommend focussing on an unstable customer group that is likely to
disperse, or change beyond recognition within a year or two.
3. Accessible: When demarcating a market segment, it is important to consider how
the group might be accessed and, crucially, whether this falls within the strengths
and abilities of the company’s marketing department. Different segments might
respond better to outdoor advertising, social media campaigns, television
infomercials, or any number of other approaches.
4. Differentiable: An ideal market segment should be internally homogeneous (i.e.
all customers within the segment have similar preferences and characteristics),
but externally heterogeneous. Differences between market segments should be
clearly defined, so that the campaigns, products and marketing tools applied to
them can be implemented without overlap.
5. Actionable: The market segment must have practical value – its characteristics
must provide supporting data for a marketing position or sales approach, and this
in turn must have outcomes that are easily quantified, ideally in relation to the
existing measurements of the market segment as defined by initial market
research.
A good understanding of the principles of market segmentation is an important building
block of your company’s marketing strategy – the foundation for an efficient, streamlined
and ultimately successful approach to customers, and a means of targeting your
products and services accurately, with the minimum of wastage.

3.1.2 BASES FOR SEGMENTING CONSUMER MARKET


The four bases for segmenting consumer market are as follows: A. Demographic
Segmentation B. Geographic Segmentation C. Psychographic Segmentation D.
Behavioural Segmentation.

A. Demographic Segmentation:
Demographic segmentation divides the markets into groups based on variables such as
age, gender, family size, income, occupation, education, religion, race and nationality.
Demographic factors are the most popular bases for segmenting the consumer group.
One reason is that consumer needs, wants, and usage rates often vary closely with the
demographic variables. Moreover, demographic factors are easier to measure than
most other type of variables.

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1. Age:
It is one of the most common demographic variables used to segment markets. Some
com-panies offer different products, or use different marketing approaches for different
age groups. For example, McDonald’s targets children, teens, adults and seniors with
different ads and media. Markets that are commonly segmented by age includes
clothing, toys, music, automobiles, soaps, shampoos and foods.

2. Gender:
Gender segmentation is used in clothing, cosmetics and magazines.

3. Income:
Markets are also segmented on the basis of income. Income is used to divide the
markets because it influences the people’s product purchase. It affects a consumer’s
buying power and style of living. Income includes housing, furniture, automobile,
clothing, alcoholic, beverages, food, sporting goods, luxury goods, financial services
and travel.

4. Family cycle:
Product needs vary according to age, number of persons in the household, marital
status, and number and age of children. These variables can be combined into a single
variable called family life cycle. Housing, home appliances, furniture, food and
automobile are few of the numerous product markets segmented by the family cycle
stages. Social class can be divided into upper class, middle class and lower class.
Many companies deal in clothing, home furnishing, leisure activities, design products
and services for specific social classes.

B. Geographic Segmentation:
Geographic segmentation refers to dividing a market into different geographical units
such as nations, states, regions, cities, or neighbourhoods. For example, national
newspapers are published and distrib-uted to different cities in different languages to
cater to the needs of the consumers.
Geographic variables such as climate, terrain, natural resources, and population density
also influence consumer product needs. Companies may divide markets into regions
because the differences in geographic variables can cause consumer needs and wants
to differ from one region to another.

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C. Psychographic Segmentation:
Psychographic segmentation pertains to lifestyle and personality traits. In the case of
certain products, buying behaviour predominantly depends on lifestyle and personality
characteristics.

1. Personality characteristics:
It refers to a person’s individual character traits, attitudes and hab­its. Here markets are
segmented according to competitiveness, introvert, extrovert, ambitious,
aggressiveness, etc. This type of segmentation is used when a product is similar to
many compet-ing products, and consumer needs for products are not affected by other
segmentation variables.

2. Lifestyle:
It is the manner in which people live and spend their time and money. Lifestyle analysis
provides marketers with a broad view of consumers because it segments the markets
into groups on the basis of activities, interests, beliefs and opinions. Companies making
cosmetics, alcoholic beverages and furniture’s segment market according to the
lifestyle.

D. Behavioural Segmentation:
In behavioural segmentation, buyers are divided into groups on the basis of their
knowledge of, attitude towards, use of, or response to a product. Behavioural
segmentation includes segmentation on the basis of occasions, user status, usage rate
loyalty status, buyer-readiness stage and attitude.

1. Occasion:
Buyers can be distinguished according to the occasions when they purchase a product,
use a product, or develop a need to use a product. It helps the firm expand the product
usage. For example, Cadbury’s advertising to promote the product during wedding
season is an example of occasion segmentation.

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2. User status:
Sometimes the markets are segmented on the basis of user status, that is, on the basis
of non-user, ex-user, potential user, first-time user and regular user of the product.
Large compa-nies usually target potential users, whereas smaller firms focus on current
users.

3. Usage rate:
Markets can be distinguished on the basis of usage rate, that is, on the basis of light,
medium and heavy users. Heavy users are often a small percentage of the market, but
account for a high percentage of the total consumption. Marketers usually prefer to
attract a heavy user rather than several light users, and vary their promotional efforts
accordingly.

4. Loyalty status:
Buyers can be divided on the basis of their loyalty status—hardcore loyal (con-sumer
who buy one brand all the time), split loyal (consumers who are loyal to two or three
brands), shifting loyal (consumers who shift from one brand to another), and switchers
(consum-ers who show no loyalty to any brand).

5. Buyer readiness stage:


The six psychological stages through which a person passes when deciding to
purchase a product. The six stages are awareness of the product, knowledge of what it
does, interest in the product, preference over competing products, conviction of the
product’s suitability, and purchase. Marketing campaigns exist in large part to move the
target audience through the buyer readiness stages.

3.1.3 STEPS IN SEGMENTING A MARKET


A step-by-step guide on how to construct market segments is provided below. However,
there are a number of relevant topic discussions on the marketing study guide which
may be beneficial for you. These topics are included in the side bar menu and in related
topics at the bottom of this page.

Depending upon your segmentation task you may need just to complete steps one to
three below, or you may need steps one to six – so check what is required first.

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Step One – Define the market
The first step in creating market segments is to clearly define the market of interest. As
discussed in the markets, sub-markets and product-markets section, it is important not
to define a market too broadly.
For instance, let’s assume that you are looking to segment the market for a firm that
operates a chain of book stores. It would be too top-level and too awkward to define the
market as all retailing consumers, as it is unlikely to lead to any meaningful
segmentation.
As shown in the following diagram, we need to split out the overall broad market
(retailing) into its various sub-markets (such as, supermarkets, specialty stores and so
on).
We can also further define some of these sub-markets (if they are still too broad) as is
shown for specialty stores below.
And finally, we need to determine the market’s geographic boundaries. It this case a list
of possibilities has been provided in the figure.

Step Two – Create market segments


Now that we have defined the product/market clearly (which we will refer to as ‘the
market’ from this point on), we need to determine what types (segments) of different
consumers form that overall market. To do this, we need to review the list
of segmentation bases/variables and choose two or three of those variables that we

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think (or know from market research) affect the purchasing behavior of book
consumers.
For this market, let’s pick three different variables from the list, as per the following
table. These particular segmentation variables have been chosen as they are likely to
influence the purchasing behavior of books and, therefore, should lead to the
identification of interesting segments.
MAIN SEGMENTATION EXAMPLE/S
CATEGORY BASE
Demographic Age group Pre-teens, teens, young adults, older adults
Behavioral Shopping style Enjoys shopping, functional, avoids

Now we have chosen the segmentation variables, we can use a segmentation tree
structure to help map out the segments, as shown below. Other examples for
segmentation trees can be found in how is market segmentation actually undertaken.

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As you can see, five different segments have been created by applying these
segmentation variables. In the first stage, a broad demographic split has been used (to
create children, young adults and older adults segment). The two adult segments then
have a behavior variable applied to them (whether they enjoy shopping or just like to get
in and out quickly).
Remember that are many ways to segment the same market. Provided that the
segmentation variables have some logic to them, most outcomes should be quite
acceptable.
Therefore, our five market segments in this example are:
 Children
 Young adults (18-40 years), who enjoy the shopping experience
 Young adults (18-40 years), who are functional/convenience shoppers
 Older adults (40+ years), who enjoy the shopping experience
 Older adults (40+ years), who are functional/convenience shoppers
Please see the article on market segmentation examples, as well as the list of market
segment ideas.
Step Three – Evaluate the proposed market segments for viability
Now that we have developed some market segments we may be required to evaluate
them to ensure that they are useable and logical. This would happen in a real-life firm,
but it may not form part of your particular task.
To do this, you need to quickly assess the segments against a checklist of factors. This
is discussed in more detail in criteria for effective segmentation. Basically, all that is
required is to list the evaluation criteria and to provide a supporting comment, as is
demonstrated in the following table.
If, on occasion, the segments that you have created don’t appear to meet the evaluation
criteria, then simply revisit step two and change the segmentation variables that you
have selected.
EVALUATION CRITERIA OUR ASSESSMENT
Homogeneous Segments should be similar in needs
Heterogeneous Assumes that age groups vary in needs, which is likely in
this market
Measurable Market research data can be utilized

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Substantial Given the segments are relatively broad, they should be
individually substantial
Accessible Various merchandising techniques can be used to
promote and reach each of these segments
Actionable/practical The firm has the capabilities to market to each segment,
if required
Responsive Each market segment should respond better to a distinct
marketing mix, rather than a generic offering

Step Four – Construct segment profiles


You may be required to describe the segments (develop a segment profile). The
following is a checklist of factors that you might consider. For some of these items
below you may not know actually – in that case either make a logical assumption or do
not include the factor in the segment profile. Remember that the task here is to describe
and understand the segments a little more.
An example of how to complete this table is shown in segment profiles.
KEY MEASURES
 Segment size measures
 Segment growth rate
 Proportion of the overall market
CONSUMER BEHAVIOR
 Main consumer needs
 Usage level
 Level of brand loyalty
 Price sensitivity
 Product involvement levels
 Retailer preferences
DESCRIPTION
 Geographic spread

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 Demographic description
 Psychographic description
COMPETITION/COMMUNICATION
 Main competitive offerings
 Main media choices

Step Five – Evaluate the attractiveness of each segment


If you are required to select one target market from you list of market segments, then
you need to use some form of objective assessment. Again, this topic is covered in
detail in how are target markets selected, but as a quick guide you should use some of
the following factors in assessing the attractiveness of each market segment.
Financial Issues
 Segment size
 Segment growth rate
 Profit margins
Structural Attractiveness
 Competitors
 Distribution channels
Strategic Direction
 Fit with firm’s strategy
 Fit with firm’s goals
Marketing Expertise
 Resources
 Capability
 Branding

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Step Six – Select target market/s
Using the assessment information you have just constructed, you can select the most
appropriate target market for the firm. While there are many factors to consider, you
should at least take into account: the firm’s strategy, the attractiveness of the segment,
the competitive rivalry of the segment, and the firm’s ability to successfully compete.

3.2 STRATEGIES FOR SELECTING TARGET MARKETS


 Social Media Marketing
Social media marketing can help you build engaged audiences where they already
spend their time, create multiple sources of traffic that continually bring in customers,
and grow your business through the power of online networks.
Or, it can be a time-consuming obligation that spreads you thin, resulting in a presence
your target customers don’t know or care about—a drain on resources rather than the
asset you’ve seen it become for many established brands.
The difference is creating a social media marketing strategy that keeps your actions
focused, along with a process that enables you to execute without taking too much
attention away from running your business.
But starting from scratch can be a daunting task, especially with so many different
channels to build a presence on and the commitment that comes attached.
That’s why we’ve put together this guide to walk you through how to approach your own
social media strategy, along with tools and tips to help you pull it off.

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Before you post anything, it helps to have a big picture view of what you want to get out
of your social media efforts and how you can best achieve those outcomes.
Your business (i.e. your website) is the center of your social media strategy. And your
strategy is how you tie all of your social media efforts back to its various goals.
Social media marketing can serve all kinds of functions for your business, from driving
traffic and sales, building brand awareness, amassing an engaged audience,
connecting with customers and prospects, providing support, and so much more.
This is because you have a wide range of channels to incorporate, each with its own
strengths, weaknesses, and opportunities to consider.

 Creative Marketing
A group of marketers sits behind a one-way mirror, taking scrupulous notes on a focus
group. Nearby, a marketing specialist is scraping metadata on area demographics,
looking for patterns. Another team member is reading, consuming, and interpreting
survey results. An analyst is crunching spreadsheets, shifting pivot tables and cross-
referencing sheets. This is the raw foundation of marketing: the data set. So what next?

The Creatives
Next comes the creatives. The creative process can really be looked at as more of a
shaping process than a process of pure creation. Responsible marketing begins with
the foundational data and uses it to tell a story: why this product will or won’t fit a
market, why the such-and-such market is underdeveloped, why there is or isn’t more
potential. Creatives shape and form data like clay, shaping a narrative that is sensible,
sellable, and accessible. The creative process ends when a product is created: a
tangible offering of data to enter a communication channel and affect the marketplace.
One of the foundational creative marketing roles is that of the copywriter. It is the
copywriter’s job to interpret data in a way that is accessible to either business partners
or end-game consumers. The copywriter shapes numbers into a storyline. Once a
cohesive narrative has been created, the copywriter passes his work on to the next
creative: the designer.

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The designer’s core function is to interpret the storyline into a functionally beautiful
presentation. This can mean taking a data-driven narrative and creating an infographic
that eases accessibility.
Design can go into both print and digital spectrums. If the storyline calls for a more
complex dissemination, the creative team can call in a videographer or animator to
shape storyboards into a movie. Regardless of the channel decided, the Designer must
be careful to choose a design appropriate for that channel.

The Creative Director


Overseeing all of this is a creative director. She sets the tone and pace of the project,
ensuring an adequate balance between care and efficiency. It is her job to ensure the
integrity of the project and protect the funnel that focuses the project to a consumable
end. That funnel starts with raw data, and typically a lot of it. It is then analyzed and
interpreted into a cohesive storyline. The creative director needs to be found in both
qualitative and quantitative analysis to ensure that this transition happens without losing
the meaning of the data.
The story is then focused into a market touch point: a specific, functional design that
makes sense given the limitations or opportunities of the channel being used.

Putting it All Together: the Creative Team


When building a creative team, a marketing department needs to strike a delicate
balance between research and creative expression. The creative process can look a bit
mystical, but it must start grounded in data and end grounded in production. In order to
keep this focus, a creative talent must be open to feedback, must be resilient and must
have a strong backbone. As a team expands and fills out, it can add specialists. Editors
who focus on grammar, digital specialists who focus on search engine optimization,
project managers who help steer a project through the steps of the creative process, or
web developers, who can take the design to the next level in a web setting.
The world of creative marketing is wide and broad and has room for nearly endless
opportunities.

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3.3 POSITIONING
What is market position? In marketing and business strategy, market position refers to
the consumer’s perception of a brand or product in relation to competing brands or
products. Market positioning refers to the process of establishing the image or identity of
a brand or product so that consumers perceive it in a certain way.
For example, a car maker may position itself as a luxury status symbol. Whereas a
battery maker may position its batteries as the most reliable and long-lasting. And a
fast-food restaurant chain may position itself as a provider of cheap and quick
standardized meals. A coffee company may position itself as a source of premium
upscale coffee beverages. Then a retailer might position itself as a place to buy
household necessities at low prices. And a computer company may position itself as
offering hip, innovative, and use-friendly technology products.

Positioning of a Brand
The positioning of a brand or product is a strategic process that involves marketing the
brand or product in a certain way to create and establish an image or identity within the
minds of the consumers in the target market. Market positioning of a brand or product
must be maintained over the life of the brand or product. Doing this requires ongoing
marketing initiatives intended to reinforce the target market’s perceptions of the product
or brand.

Repositioning Definition
Repositioning a brand or product means altering its place in the minds of the consumer,
or essentially changing the brand’s or product’s image or identity. When you are
repositioning, or trying to change the consumers’ perception of a brand or product after
it has already been solidified, may confuse or alienate consumers in the target market.
For example, if a premium luxury car maker suddenly slashed the prices of its vehicles
and began selling them at the same prices as cheaper brand-name vehicles,
consumers would no longer perceive the vehicles made by the luxury car maker as
prestigious status symbols, even though the car features may remain unchanged.

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4.1 FASHION INDUSTRY

4.1.1 TYPES OF CONSUMER PRODUCT


4 Types of Consumer Products
Firstly, what specifically is a consumer product? A consumer product is a product
bought by final consumers for personal consumption. But not every consumer product is
the same. There are four different types of consumer products. Marketers usually
classify consumer products into these 4 types of consumer products:
 Convenience products
 Shopping products
 Speciality products
 Unsought products.
These 4 types of consumer products all have different characteristics and involve a
different consumer purchasing behaviour. Thus, the types of consumer products differ in
the way consumers buy them and, for that reason, in the way they should be marketed.

Convenience products
Among the four types of consumer products, the convenience product is bought most
frequently. A convenience product is a consumer product or service that customers
normally buy frequently, immediately and without great comparison or buying effort.
Examples include articles such as laundry detergents, fast food, sugar and magazines.
As you can see, convenience products are those types of consumer products that are
usually low-priced and placed in many locations to make them readily available when
consumers need or want them.

Shopping products
The second one of the 4 types of consumer products is the shopping product. Shopping
products are a consumer product that the customer usually compares on attributes such
as quality, price and style in the process of selecting and purchasing. Thus, a difference
between the two types of consumer products presented so far is that the shopping
product is usually less frequently purchased and more carefully compared. Therefore,
consumers spend much more time and effort in gathering information and comparing
alternatives. Types of consumer products that fall within the category of shopping
products are: furniture, clothing, used cars, airline services etc. As a matter of fact

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marketers usually distribute these types of consumer products through fewer outlets,
but provide deeper sales support in order to help customers in the comparison effort.

Speciality products
Number three of the types of consumer products is the speciality product. Speciality
products are consumer products and services with unique characteristics or brand
identification for which a significant group of consumers is willing to make a special
purchase effort. As you can see, the types of consumer products involve different levels
of effort in the purchasing process: the speciality product requires a special purchase
effort, but applies only to certain consumers.

Examples include specific cars, professional and high-prices photographic equipment,


designer clothes etc. A perfect example for these types of consumer products is a
Lamborghini. In order to buy one, a certain group of buyers would make a special effort,
for instance by travelling great distances to buy one. However, speciality products are
usually less compared against each other. Rather, the effort must be understood in
terms of other factors: Buyers invest for example the time needed to reach dealers that
carry the wanted products. To illustrate this, look at the Lamborghini example: the one
who wants one is immediately convinced of the choice for a Lamborghini and would not
compare it that much against 10 other brands.
Unsought products
The 4 types of consumer products also include unsought products. Unsought products
are those consumer products that a consumer either does not know about or knows
about but does not consider buying under normal conditions. Thus, these types of
consumer products consumers do not think about normally, at least not until they need
them. Most new innovations are unsought until consumers become aware of them.
Other examples of these types of consumer products are life insurance, pre-planned
funeral services etc. As a consequence of their nature, unsought products require much
more advertising, selling and marketing efforts than other types of consumer products.
Below you can find relevant marketing considerations for each of the 4 types of
consumer products.

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4.1.2 BRANDING
The process involved in creating a unique name and image for a product in the
consumers' mind, mainly through advertising campaigns with a consistent theme.
Branding aims to establish a significant and differentiated presence in the market that
attracts and retains loyal customers.
Making a mark, typically by charring:
 Wood branding, permanently marking, by way of heat, typically of wood (also
applied to plastic, cork, leather, etc.)
 Livestock branding, the marking of animals to indicate ownership such as
 Human branding, as body modification or punishment
 Branding (BDSM), bonding of the partners and marking of a submissive
 Freeze branding, permanently marking by way of cold
 Vehicle title branding, a permanent designation indicating that a vehicle has been
"written off".

 Brand, a name, logo, slogan, and/or design scheme associated with a product or
service
 Branding (promotional), the distribution of merchandise with a brand name or
symbol imprinted
 Brand management, the application of marketing techniques to a specific
product, product line, or brand
 Employer branding, the application of brand management to recruitment
marketing and internal brand engagement
 Internet branding, brand management on the Internet
 Nation branding, the application of marketing techniques for the advancement of
a country
 Place branding, the application of marketing techniques for the advancement of
country subdivisions
 Personal branding, people and their careers marketed as brands
 Co-branding, two companies or brands partnering on a product or service
 Branding agency, a type of marketing agency which specializes in creating
brands
 Faith branding, the application of marketing techniques to religious institutions or
individuals

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4.1.3 PACKAGING
Packaging is the science, art and technology of enclosing or protecting products for
distribution, storage, sale, and use. Packaging also refers to the process of designing,
evaluating, and producing packages. Packaging can be described as a coordinated
system of preparing goods for transport, warehousing, logistics, sale, and end use.
Packaging contains, protects, preserves, transports, informs, and sells. In many
countries it is fully integrated into government, business, institutional, industrial, and
personal use.
Packaging is more than just your product's pretty face. Your package design may affect
everything from breakage rates in shipment to whether stores will be willing to stock it.
For example, "displayability" is an important concern. The original slanted-roof metal
container used for Log Cabin Syrup was changed to a design that was easier to stack
after grocers became reluctant to devote the necessary amounts of shelf space to the
awkward packages. Other distribution-related packaging considerations include:

Labeling. You may be required to include certain information on the label of your
product when it is distributed in specific ways. For example, labels of food products sold
in retail outlets must contain information about their ingredients and nutritional value.
Opening. If your product is one that will be distributed in such a way that customers will
want to--and should be able to--sample or examine it before buying, your packaging will
have to be easy to open and to reclose. If, on the other hand, your product should not
be opened by anyone other than the purchaser--an over-the-counter medication, for
instance--then the packaging will have to be designed to resist and reveal tampering.
Size. If your product must be shipped a long distance to its distribution point, then bulky
or heavy packaging may add too much to transportation costs.
Durability. Many products endure rough handling between their production point and
their ultimate consumer. If your distribution system can't be relied upon to protect your
product, your packaging will have to do the job.

4.2 THE FASHION CYCLE- PRODUCT LIFECYCLE


The product life cycle shows the stages a product goes through over time in relation to
its sales. Whilst individual products have their own life cycles it is important also to
understand wider market trends. The retail market also follows a life cycle. In the UK the
total retail market is in a mature state with growth slowing down. Retailers have to
compete hard, shown by declining sales in high street stores.

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In contrast, the online retail industry is a young market still showing huge growth since
its introduction period between 1998 and 2002. Between 2004 and 2007, total retail
growth was just 4.6%, whereas online retail grew by over 130% in the same period. One
of the big changes that occurred was a move by businesses from selling from a
catalogue to direct selling online. This is clearly illustrated by the growing market share
of ASOS.com.
In the fashion industry there is a fairly short product life cycle because trends and tastes
change regularly. For example, the ASOS.com website features a range of own-brand
dresses which are a 'must-have' fashion item for the summer of 2009. The product life
cycle for an ASOS.com own-brand dress typically follows the following sequence:

Introduction The dress is made available to customers on the website. Fashion leaders
adopt the new item. ASOS.com initially gives a lot of prominence to newly launched
products on its website, for example, by having links directly to these items from the
homepage and weekly newsletters.
Rapid growth ASOS.com needs to ensure adequate stocks so as not to disappoint
customers. Once the item moves into the growth stage it tends to promote itself as
customers see the item in newspapers and magazines.
Maturity At this stage, ASOS.com will remind people about the product online, through
for example, trend features on the website and in its newsletter. It may order more stock
to ensure supply. For example, one dress from the summer 2008 collection is still
selling well and has regular repeat orders.
Saturation At this point, ASOS.com may decide to reduce the price to clear remaining
stock. Sales provide an opportunity to make space in the warehouse for new products.
Decline people become tired of the item or it is replaced by a new product. Fashion and
trends have moved on.
There is a stage to the life cycle before the product is introduced Development. In this
phase, the ASOS.com buying team choose materials, styles and colours to produce a
dress design. Suppliers then produce and distribute the goods to ASOS.com's
warehouse in the UK ready for introduction to the market.

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ASOS.com regularly introduces new products as customers demand the latest trends
they have seen in magazines and on fashion catwalks. Introducing a new product
involves considerable costs:

 New stock needs to be purchased.


 The website needs to be updated with pictures of the new fashionable items.
 The ordering system needs to be updated.
 The items need to be promoted through the website, newsletter and magazine.
 There is the risk of an item selling poorly.
At the start of the life cycle, costs for a new product will be high whilst revenues are low.
However, during the growth period revenues start to outstrip costs and contribute to the
business' profitability. The life cycle in fashion can be a matter of days. Limited 100 a
collection created in collaboration with students at London College of Fashion sold out
in five hours.
4.3 OVERVIEW AND GLOBAL VIEW OF THE FASHION INDUSTRY
 Unpredictability becomes the new norm
Economic uncertainty, geopolitical turmoil and unpredictability are the current realities of
the global fashion industry. Store closures, mall vacancies and the growing dominance
of online shopping will continue to encourage fashion companies to stay nimble and
adapt to the evolving landscape by focusing on their own resources and consumer
services. What’s more, fashion companies are expected to pursue more technology,
including AI (Artificial Intelligence), to stay agile amid political tensions and economic
disturbances, including Brexit, and other international trade challenges that may
escalate this year. While uncertainty was the top word among executives in 2017,
roughly 21 percent of executives said “optimism” was the top word they’d use to
describe the industry in 2018—pointing to a more positive outlook for the coming
months.

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10 key trends that will define the fashion agenda in 2018
1. Unpredictability becomes the new norm
2. Globalization reboots
3. Asia steps up its fashion dominance
4. Personalization and curation lead consumer efforts
5. Online platforms come first
6. Mobile gains momentum
7. AI takes fashion to the next level
8. Sustainability shifts to circular economy
9. Off-price sector remains a double-edged sword
10. Startup state of mind

Globalization reboots
“We are entering a new phase of globalization, driven by digital connectivity and the
flow of data, and this will lead to much greater global connectedness, not less,” the
report noted. “Cross-border bandwidth has risen approximately 80 times since 2005,
and over the course of a decade, data flows have raised world GDP by more than 10
percent. Data flows now account for a larger share of the impact on GDP than the
global trade in goods.”
What’s more, according to the report, consumers are estimated to spend $1 trillion on
cross-border e-commerce by 2020 and more than 900 million people have international
connections on social media—potentially providing fashion tycoons the opportunity to
grow their shopper bases and boost revenues on global digital platforms.
Asia steps up its fashion dominance
Western companies may be facing more competition from Asia this year, as the
continent already accounts for 60 percent of the world’s e-commerce powerhouses,
more than half of global online retail sales and a myriad of technology innovations.
According to the McKinsey Fashion Scope, Asia is expected to account for nearly 40
percent of international apparel and footwear sales by 2018, with the Asian online
apparel market expected to reach $1.4 trillion in two years. While the continent
continues to deliver on the needs of its digitally-savvy consumer base, Asian companies
may reverse the old global expansion movement of Western companies moving East,
and instead, move outbound to other global regions, including the Americas, Africa and
Europe.

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Personalization and curation lead consumer efforts
Global fashion companies are shifting their focus on the consumer—and prioritizing
personalization in their strategic efforts to ramp up loyalty and sales. According to the
report, 41 percent of consumers demand personalization for their shopping
experiences, as they continue to value authenticity and sustainability in their wardrobes.
Fashion companies are expected to harness the power of data to tailor personal
recommendations, engage with social media influencers and tap into the needs of each
consumer by facilitating more digital experiences online and in stores.

Online platforms come first


In 2018, McKinsey & Company predicts that global online platforms, like Amazon and
Tmall, will experience two to three times more revenue compared to the past three
years. While consumers frequent websites to compare prices and products, global
online platforms are expected to expand their fashion brand partnerships and develop
additional engagement methods to stay competitive in the digital shopping space. This
year, the challenge will no longer be about collaborating with online platforms, but about
how fashion brands can use these partnerships to boost their online presences and
attract more consumers outside of the brick-and-mortar store environment.

Mobile gains momentum


According to McKinsey & Company data, there will be 8-20 times more mobile payment
transaction value this year compared to 2015. With more mobile payment solutions
becoming available worldwide, consumers will keep demanding fashion companies
deliver convenient smartphone transactions, where they can shop and pay for products
easily. More fashion companies are expected to create mobile transaction options,
including frictionless checkouts online and self-checkout in physical stores.

AI takes fashion to the next level


Artificial Intelligence is set to disrupt the fashion value chain by streamlining product
sourcing, manufacturing and distribution. This year, AI will go beyond machine
operations and shape creative processes and consumer interactions. The report
revealed that 75 percent of fashion companies plan to ramp up their AI investments in
2018 and 2019, as the technology continues to be an attractive aid in tackling business
amid retail’s uncertainty. Even though concerns remain over AI’s influence on human
jobs, experts say AI will instead benefit global fashion jobs—enabling associates to
focus on consumers and create more opportunities for employment at high-tech
distribution centers worldwide.

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4.4 QUALITY ASSURANCE IN MARKETING
We all make mistakes; it’s really inevitable in human nature, and we all know the feeling
in the pit of our stomachs when something major goes wrong. There is nothing worse
than clicking “Send” on a high-profile email blast going to 20,000 or more contacts and
seeing a spelling error in the subject line or noticing a broken link or a missing image in
the graphics. The reality is, there are no take-backs or re-dos, so getting it right the first
time is a must.
Luckily for our customers, we have a quality assurance process in place to help avoid
such problems. What exactly is quality assurance and why is it so valuable to you?
Quality assurance, while it has traditionally referred to ensuring standards in the
process of manufacturing of a tangible product, it also includes the quality of delivering
services to a customer and avoiding problems in the process of delivery.
This crucial process has such an important place in your inbound marketing because
more than likely, the stakes are high. Whether it's your monetary investment with your
marketing budget or you have potential sales on the line, your ROI depends on the
quality of marketing being delivered to your target market.

While it’s easier said than done, there are many great benefits of QA-ing your Inbound
Marketing:

Make a great first impression. First impressions can be everything when it comes to
marketing. Often times, you might just have a split second of a potential customer's
attention before he or she makes a quick decision about you. Nothing is a bigger turn-
off than having a mistake in your content, campaigns or website, which can
unfortunately lead to a lost sale.
Avoid time and money on redoing work. Time is money, and when mistakes happen,
this usually equates to additional time spent on fixing errors, proofing, testing, approving
and implementing work. This can ultimately lead to more money spent than needs to be
rather than if an error was simply caught the first time around.
Build a rapport of excellence. You have excellent services and products, but your
marketing is a hot mess. By creating top-notch content, messaging and websites, you
can properly express to your current and future customers the level of excellence they
can expect. Mistakes and errors can send the wrong message of what type of business
you are running.
Set a standard of high quality work. Happy customers are more likely to spread your
praises and recommend your business. By making quality your standard and paying
attention to the finer details of your marketing, customers will trust your work and be
more forgiving when you do happen to make a mistake.

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Encourage improvement across the company. By placing emphasis on quality, you
are creating a company-wide culture that supports improvement and teamwork and
encourages the very best work out of people. And this positive, challenging work
environment may ultimately prevent a neglectful or complacent attitude by your
employees.

Sustainability shifts to circular economy


More and more fashion companies are taking sustainability beyond their corporate
social responsibility (CSR) agendas and making circularity part of every point in their
supply chains. From sourcing to product distribution, fashion companies will creatively
explore recycling concepts, including fibers made from recycled plastic bottles and
clothing take back programs, to make the global fashion value chain more eco-friendly.
Last year, 42 percent of fashion brands shared their supplier information in an effort to
be more transparent with consumers—and the report anticipates that this trend will
continue.

Off-price sector remains a double-edged sword


Consumers love bargain hunts and off-price retailers, like TJ Maxx and Saks Off Fifth,
will remain popular this year. While challenges, including excess product stock and slow
growth remain persistent in retail’s uncertainty, the global fashion industry is turning to
off-price to boost sales and gain consumers. According to the report, off-price growth
has increased 18 percent in the U.S., 32 percent in the EU and 74 percent in China.
While the off-price sector gains momentum this year, fashion companies will have to be
cautious of their off-price channel categories to avoid the risk of margin erosion.

Startup state of mind


Agility, collaboration and versatility are expected to become the new cultural norm
among fashion companies in 2018. To stay innovative and competitive, fashion
companies will experiment with new types of talent, new ways of working, new
partnerships and new investment models.

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5.1 THE NATURE OF THEIR BUSINESS
An Economic Activity. It is an economic activity as it is undertaken with the aim of
earning money and livelihood and not for psychological satisfaction.
Profit Earning. The main purpose of business is earning profit. If the profit motive is
missing in a transaction, then it cannot be considered as business transaction. For
example, goods given in charity is not a business activity. No businessman can survive
without earning sufficient profit.
Uncertainty of risk. An important feature of business is the presence of risk factor in
the transaction. There is always a possibility of losses. It is not certain that a
businessman will always earn adequate profit, as market conditions may change,
customer's taste may change, there may be strike in businessman's own factory etc. All
these can lead to loss. So in business transaction there is always an element of risk
involved.
5.2 JOB SCOPE/ WORK ACTIVITIES
Number of different tasks that constitute a job, and the number of job cycles in a given
period.

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REFERENCES
 https://www.kunocreative.com/blog/bid/88521/benefits-of-quality-assurance-in-
your-inbound-marketing
 https://www.textiletoday.com.bd/10-key-trends-drive-global-fashion-industry-
2018/
 https://www.entrepreneur.com/encyclopedia/packaging
 https://en.wikipedia.org/wiki/Branding
 https://marketing-insider.eu/4-types-of-consumer-products/
 https://strategiccfo.com/market-positioning/
 https://www.thebalancesmb.com/creative-marketing-who-what-how-3989903
 http://www.segmentationstudyguide.com/understanding-market-segmentation/a-
step-by-step-guide-to-segmenting-a-market/
 https://www.linkedin.com/pulse/20140730082827-41390803-market-
segmentation-criteria-five-essential-criteria
 https://articles.extension.org/pages/35374/what-are-the-components-of-a-
marketing-plan
 https://smallbusiness.chron.com/difference-between-market-orientation-sales-
orientation-25893.html
 https://en.wikipedia.org/wiki/Marketing
 https://blog.hubspot.com/marketing/what-is-marketing

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