FASHION MARKETING –

Group Assignment

 The Fashion Consumer & Organizational Buyer

 Fashion Retailing and Visual Merchandising

Submitted to:
S.M. AKTERUJJAMAN
ASSOCIATE PROFESSOR
DEPARTMENT OF BUSINESS ADMINISTRATION
BGMEA UNIVERSITY OF FASHION & TECHNOLOGY (BUFT)
MBA in Apparel Merchandising
Submitted by: (1 Year)
 Md. Majharul Islam 201-020-4222 Batch – 201 Sec: 1
 Mahir-E-Alam 201-024-4222
 Md. Abdul Kaium Shah 201-030-4222
 Md.Mehedi Hasan 201-037-4222
 Arin Das 201-045-4222
 RakibulHasan 201-046-4222
 Khalid Ahmed 201-047-4222
 SajjadHossain 201-049-4222

February 21, 2021

 BLOCK 3: The Fashion Consumer & Organizational Buyer

1 Q. Define Consumer Buyer & Organizational Buyer in fashion marketing.

Consumer buyer: Consumer buyer can be a user or a buyer or may be both. Consumer buyer can act as
an individual or as a representative of an organization.

Organizational buyer: Organizational buyers are individuals who represent a business. In general,
organizational buyers, who make buying decisions for their companies for a living, tend to be somewhat
more sophisticated than ordinary consumers.

2 Q. What is meant by Consumer Behavior?

“Consumer behavior describes how consumers make purchase

decisions and how they use and dispose of goods and services,
and also analysis the factors that influence purchase decisions.”

Consumer behavior involves the psychological processes that

consumers go through in recognizing needs, finding ways to
solve these needs, making purchase decisions (e.g., whether or
not to purchase a product and, if so, which brand and where),
interpret information, make plans, and implement these plans
(e.g., by engaging in comparison shopping or actually purchasing
a product).

3 Q. Why do we study fashion buyer?

A fashion buyer is someone who makes purchasing decisions for a clothing retailer.
We study fashion buyer to know:
 The role of consumer behavior in fashion marketing.
 Consumer behavior & target market accordingly.
 Consumer behavior & the marketing mix-
a. Consumer behavior & product.
b. Consumer behavior & promotion.
c. Consumer behavior & price.
d. Consumer behavior & distribution.

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4 Q. Show the fashion consumer decision making process.

Fashion consumer decision making process as below:

Problem recognition

Information search

Evalution of alternative

purchase

Post purchase evalution

Fig: consumer decision making process

There are three types of consumer decisions to consider:

1. Nominal
2. Limited
3. Extended

1. Nominal Decision-Making
Nominal decisions are often made about low-cost products. They include frequent purchases, purchases
from a familiar brand or product, buying that requires low involvement, or little search efforts. In other
words:
 Make sure the product is available where your customers are shopping
 Maintain the right pricing structure and introduce new concepts when interest drops
 Create advertisements that ensure memorability for your brand.

2. Limited Decision-Making
Limited decision-making is a little more involved than nominal decision-making, but it’s still not a
process that requires in-depth research. Limited decisions are made about mid-cost products, semi-
frequent purchases, or purchases from a somewhat familiar brand. They require a little involvement,
and perhaps some searching.

When customers make limited decisions, they take a small amount of time to ponder over their
purchase, but they might not go online to look for testimonials and reviews. Instead, they could consider
their memory of their product, and make decisions based on logical inferences.

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3. Extended Decision-Making
Finally, extended decisions are made about higher-cost products, and infrequent purchases. They
require a lot of involvement, often center around unfamiliar brands or products, and need extended
thought and search efforts to ensure buyer confidence.

For instance, we don’t buy a huge flat-screen television every day, so when the time comes to make this
kind of investment, we want to know for sure that we’re making the right choice in everything from
brand to picture quality.

Major purchases come with more risk for the customer, and that means that there’s more cause to
consider things from a deeper perspective. Rather than grabbing the first television you see, or buying
one just because it’s on sale, you’d generally ask for advice from friends and family, find out as much as
you can about different specifications, and spend a substantial amount of time looking up product
reviews and testimonials.

5 Q. Show the types of fashion customers.

Types of fashion customers as below:

 Promiscuous: This type of customer will shop around for the best deal.
 Occasional: This type of customer will sometimes buy from the definite brand.
 Loyal: This type of customer will usually buy from the definite brand.
 Insistent: This type of customer will only buy from the definite brand

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6 Q. Draw the graph of fashion consumer behavior model.

Consumer behavior model:

Fig: Fashion consumer behavior model

7 Q. Discuss the psychological process of fashion consumers.

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Psychological process of fashion consumers as below:

A. The buyer’s perceptual process

 Selective exposure: Selective exposure is a theory within the practice of psychology, often used
in media and communication research that historically refers to individuals' tendency to favor
information which reinforces their pre-existing views while avoiding contradictory information.
 Selective attention: Selective attention is the process of focusing on a particular object in the
environment for a certain period of time. Attention is a limited resource, so selective attention
allows us to tune out unimportant details and focus on what really matters.
 Selective distortion: A tendency to interpret information in ways which reinforce
existing attitudes or beliefs.
 Selective retention: The process whereby people more accurately remember messages
that are closer to their interests.

B. Learning:

 Association learning: Associative learning is the process by which someone learns an association
between two stimuli, or a behavior and a stimulus.
 Cognitive learning: A theory that defines learning as a behavioral change based on the
acquisition of information about the environment.

C. Consumer attitudes:

D. Consumer Motivation

Fig: Maslow’s Hierarchy of Needs

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E. Consumer Personality

• Lifestyle
• Self image
• Ideal self-image – How we like to see ourselves
• Social self-image – How we think we are seen
• Ideal social self-image – How we would like others to see us

8 Q. Discuss the sociological factors of consumer behavior.

Sociological factors of consumer behavior are

1. Social groups
2. Opinion leadership
3. The family
4. Social stratification:

Class % Descriptions
A 2.8 Upper middle class - Higher managerial, administrative and
professional.
B 18.6 Middle class - Intermediate managerial, administrative and
professional.
C1 27.3 Lower middle class- Supervisory, clerical or junior managerial,
administrative or professional.
C2 22.1 Skilled working class. Skilled manual workers.
D 17.6 Working class. Semi-skilled & unskilled manual workers.
E 11.4 Those at about the lowest level of subsistence.

5. Geo-demographics
6. Diffusion of innovation

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9 Q. Explain the factors that influence the rate of diffusion.

Factors influencing the rate of diffusion are:

A. Relative advantage: The more immediate and important the benefits, the faster the rate of diffusion
in terms of lower cost or long product life.
B. Compatibility: The innovation must match cultural values, beliefs and expectations. More recent
examples compatibility concerns are ethical use of labor and the use of sustainable raw materials in
garment manufacture.
C. Possibility of trials: The ability to try on garments or easily exchange those that cannot be tried on,
i.e. mail order items, is a key factor.
D. Observability or communicability: Ease with which information about an innovation is transmitted.
F. Perceived risk: The greater the risk the slower the diffusion. Risk can be financial, physical or social.
In addition, a perception may exist that a delay in purchasing will lead to lower prices.
G. Type of target market: Some groups are more willing to accept change than others, e.g. the
young, the affluent or the highly educated.
H. Type of decision: Depends on whether the purchase of the innovation is an individual or a
collective decision.
I. Marketing effort: The rate of diffusion is not completely beyond the control of the firm selling it.
Greater promotional spending can speed the diffusion process.

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 BLOCK 9: Fashion Retailing
INTRODUCTION TO RETAIL:

The word retail is derived from a French word with the prefix
re and the verb tailor meaning “to cut a piece off or to break
bulk”. In simple terms, it implies a first-hand transaction with
the customer. Evidently retail trade is one that cuts off smaller
portions to large lumps of goods. It is a process through which
goods are transported to final consumers. It embraces the
direct-to-customer sales activities of the producer, whether
through his own stores by house to house canvassing or by
mail order business. A retailer is a merchant or occasionally an agent or a business enterprise, whose
main business is selling directly to ultimate consumers for non- business use. He performs many
marketing activities such as buying, selling, grading, risk trading and developing information about
customer’s wants. If over one half of the amount of volume
of business comes from sales to ultimate customers, i.e.
sales at retail, he is classified as a retailer. Retailing occurs in
all marketing channels for consumer products. Retailing is a
convenient, convincing and comfortable method of selling
goods and services. Retailing, though as old as business,
trade and commerce has now taken new forms and shapes.
This is because of new management techniques, marketing
techniques and also due to ever changing and dynamic
consumer psychology.

What is retailing:

The distribution of consumer products begins with the producer and ends at the ultimate consumer.
Between the producer and the consumer there is middleman – the retailer, who links the producers and
the ultimate consumers. Retailing is one area of the broader term, e-commerce. Retailing is buying and
selling both goods and consumer services. With more number of educated and literate consumers
entering the economy and market, the need for reading the pulse of the consumers has become very
essential. Retail marketing is undergoing radical restructuring. This is because of increase in gross
domestic product, increase in per capita income, increase in purchasing power and also the ever
changing tastes and preferences of the people. The entry of plastic money, ATMs, credit cards and debit
cards and all other consumer finances, the taste for the branded goods also added for the evolution of
retail marketing. Retail marketing is not just buying and selling but also rendering all other personalized
consumer services. With the RM picking up it has given a new look for various fast moving capital goods
(FMCG) goods. This not only increased the demand for various goods in the market but also made retail
marketing the second largest employment area, the first being agriculture.

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Importance of Retailing:

The retailer is an intermediary in the marketing channel because he is both marketer and customer, who
sells to the last man to consume. He is a specialist who maintains contact with the consumer and the
producer; and is an important connecting link in a complex mechanism of marketing. Though producers
may sell directly to consumers, such method of distributing goods to ultimate users is inconvenient,
expensive and time consuming as compared to the job performed by a specialist in the line. Therefore,
frequently the manufacturers depend on the retailers to sell their products to the ultimate consumers.
The retailer, who is able to provide appropriate amenities without an excessive advance in prices of
goods is rewarded by larger or more loyal patronage. All middlemen basically serve as purchasing agents
for their customers and as sales specialists for their suppliers. To carry out those roles, retailers perform
many activities, including anticipating customers wants, developing assortments of products, acquiring
market information and financing. It is relatively easy to become a retailer. No large investment in
production equipment is required, merchandise can often be purchased on credit and store space can
be leased with no down payment or a simple website can be set up at relatively little cost. Considering
these factors, perhaps it’s not surprising that there are just over a 6 million retail outlets operating
across the Indian cities from north to south and from east to west. This large number of outlets, many of
which are trying to serve and satisfy the same market segments, results in fierce competition and better
values for shoppers.

Wheel of Retailing Concept:

1. New retailers often enter the market place with low prices, margins but as their sales start increasing
they quickly shift to a high cost, high revenue model. The low prices are usually the result of some
innovative cost- cutting procedures and soon attract competitors.

2. With the passage of time, these businesses strive to broaden their customer base and increase sales.
Their operations and facilities increase and become more expensive.

3. They may move to better up market locations, start carrying higher quality products or add services
and ultimately emerge as a high cost price service retailer.

4. By this time newer competitors as low price, low margin, low status emerge and these competitors
too follow the same evolutionary process.

5. The wheel keeps on turning and department stories, supermarkets, and mass merchandise went this
cycles.

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Types of Fashion Retailers

1. On Site Retailers:

A retail sale happens when a finished product or “good” is purchased by the end user. You buy
your groceries, shoes and most items from a retail seller. When, for instance, your grocer buys
cases of soup for resale that is called a wholesale transaction. Your grocer is a “retailer” as he
sales his goods to you, the end user. Your hairdresser is also a retailer but they sell services to
you, again the end user.

Specifically let’s discuss on-site (within the walls of your store) marketing. We can, and should,
look closely at reaching out and attracting potential customers via print ads, radio, TV and
especially online advertising as it is second in cost only to your on-site marketing.

2. Off Site Retailers:

These are retailers that do not have a physical presence but is somehow manifested either digitally or
through references.

CLASSIFICATION OF RETAIL FORMAT

A. Store based retailer: Store based retailing can be further classified

I. On the Basis of form of ownership.

1. Independent retailer:

An independent retailer is one who owns and operates only one retail outlet. Such stores can be seen
under proprietorship. The individual retailer can easily enter into a retail market. The owner is assisted
by local staff or his family members. These kinds of shops are passed from one generation to other
generation. The independent retailer maintains a good relationship with the customers. Small scale
retail business: Single owners can easily start and manage small business units profitably with the help
of one or two assistants. It can be a grocery store, stationery shop, or a cloth store, etc.

2. A Chain retailer:

When two or more retail outlets are under a common ownership it is called a retail chain. For example:
One of a number of retail stores under the same ownership and dealing in the same merchandise. It is
called chain retailing. Chain Stores are groups of retail stores engaged in the same general field of
business that operate under the same ownership or management, chain stores are retail outlets owned
by one firm and spread nationwide. For example, Van Heusen, Food world, Shopper’s stop etc.

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3. Franchise:

A franchise is a contractual agreement between franchisor and a franchisee in which the franchisor
allows the franchisee to conduct a business under an established name as per the business format. In
return the franchisee has to pay a fee to the franchiser. For example: Pizza hut, McDonalds, etc.

4. Leased Department:

These are also known as Shop in Shops. When a section or a department in a retail store is rented to the
outside party it is called leased department. The licensor permits the licensee to use the property and in
turn the licensee pays a fee to the licensor for using his property.

5. Consumer Co-operatives:

A consumer co-operative is a retail organisation owned by its member customers. The objective is to
provide commodities at a reasonable price. For example: Sahakari Bhandar, Apna Bazaar etc.

II. On the Basis of Merchandise offered

1. Departmental Stores:

A departmental store is a large scale retail institution that offers several products from a pin to plane
such as clothing, grocery etc. Retail establishment that sells a wide variety of goods. Departmental
stores are the largest form of organized retailing
today, located mainly in metro cities, in proximity to
urban outskirts. They lend an ideal shopping
experience with an amalgamation of product, service
and entertainment, all under a common roof.
Examples include Shoppers Stop, Piramyd, Pantaloon.

2. Convenience stores:

These are relatively small stores located near the residential area. They
offer limited line of convenient products such A ` store is a small store
or shop that sells items such as candy, ice cream, soft drinks, lottery
tickets, cigarettes and other tobacco products, newspapers and
magazines, along with a selection of processed food and perhaps some
groceries, etc.

Such stores enable the customers to make quick purchase and offer them few services. They stock a
limited range of high-turnover convenience products and are usually open for extended periods during
the day; Prices are slightly higher due to the convenience premium.

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3. Super Market:

These are retail organisations that provide low cost high

volume self-service operation to meet consumer’s
requirements. Most of the super market charge lower price.
Example: Subhiksha.

They are the large self-service outlets, catering to varied

shopper needs. These are located in or near residential high streets. A supermarket, also called a grocery
store, is a self-service store offering a wide variety of food and household merchandise, organized into
department.

It is larger in size and has a wider selection than a traditional grocery store and it is smaller than a
hypermarket or superstore. Supermarkets usually offer products at low prices by reducing their
economic margins.

4. Hyper Market:

A hypermarket is a superstore which combines a supermarket and a

department store. Hyper markets are huge retail stores that offer
various products such as clothes, jeweler, stationery, electronic
goods at cheaper price. Example: Big Bazaar, Star Bazaar, Giant
Stores etc. They focus on high volume.

4. Specialty stores:

A specialty store is a store, usually retail, that offers specific and specialized types of items. They offer a
narrow product line that concentrates on specialised products such as jeweler, fabrics, furniture etc.
Customer service and satisfaction are given due importance. For example, a store that exclusively sells
cell phones or video games would be considered specialized. A specialty store specializes in one area.

5 Catalogue showrooms:

Catalogue retailers usually specialize in hard good such as house wear, jewellery, and consumer
electronics. A customer walks into this retail show room, goes through the catalogue of the products
that he would like to purchase.

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6 Off-price retailers:

They buy products from manufactures in off seasons as a deep discount and sell them at less than retail
prices. The merchandise may be in odd sizes, unpopular colors or with minor defects. They may be
manufacturer owned and care called factory outlets. B. Non-Store Retailing: A direct relationship of the
retailer with his customer is on the basis of non-store Retailing. In India around twenty percent of retail
sale is from non-store. The proportion of non-store is growing steadily.

It is classified as under:

1. Direct Selling:
Direct selling is a retail channel for the distribution of goods and services. There is no fixed retail
location. In direct selling there is a direct contact of the retailer with his ultimate customers. It is
highly an interactive form of retailing. Products like cosmetics, jewellery, food items are sold in
such manner. The retailers visit home place or work place of the customers to sell the products.
It is also known as network marketing where the products and services are sold face to face.
2. Mail order:
It is a retail format in which offerings are communicated to the customers through a catalogue,
letters or brouchers. Such retailing is suitable for specialty products. The buyer places an order
for the desired products with the merchant through a telephone call or website. Internet and
online payment options, has made shop from home easier.
3. Tele Marketing:
It is a form of retailing in which the products are advertised on television. Details about the
product in regard to its features, price, warranty, direction to use etc. are mentioned and
explained. Phone numbers are provided due to which customers can make a call and place an
order for the product. Beside these the other two non-store retailing are as follows
4. Automatic Vending:
This is a form of non store retailing in which the products are stored in a machine and dispensed
to the customers when they deposit cash. Vending machines are placed at convenient and busy
locations like air ports, shopping malls, working place etc. This machine primarily contains
products like chocolates, snacks and drinks etc.
5. Electronic retailing:
It is also called as e-tailing or internet retailing. It is a retail format in which products are offered
to the customers through internet. The customers can evaluate and purchase the products from
their homes or office place. This kind of retail is gaining importance in recent years.

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Service Retailing: Services retail would involve the retail of various services to the end consumer. Key
services have been identified as:

• Retail banking
• Service contracts which may be entered in to for servicing for consumer durables like
maintenance of water filters, computer system etc.
• Car rentals, Shops selling mobile connections, courier services etc.
A key area within services retail is retail banking. Retail banking refers to the dealing of
commercial bank with individual customers. The retail banking products would include fixed,
current saving accounts on the liabilities side; and mortgages and loans (e.g. personal, housing,
auto and educational) on the assets side. Related ancillary services include credit cards or
depository services.
While retail banking offers phenomenal opportunity for growth, the challenges are equally
daunting. There is a need of constant innovation in retail banking. In bracing for tomorrow, a
paradigm shift in bank financing through innovative products and mechanisms involving
constant up gradation and revalidation of the banks’ internal systems and process is called for.
Banks now need to use retail as a growth trigger.

Catalogues

Categories are groups of products that meet similar needs. Departments are groups of categories that
meet related needs. The store is a collection of departments. •Catalogue Shopping is an off-site retailing
method where customers are given certain brochure-type papers where clothing or accessories for the
running season is displayed from where they have the option of choosing their preferred style to
purchase.

• Example: Season Release Magazines.

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 BLOCK 10: Visual Merchandising
Q1. Write down history of Visual Merchandising

>Began to evolve around the 18th century and was considered the 1st step of evolution in store design.

>Product used to be displayed only when approached and not independently.

>The major changes in VM started in the 19th century where it became more independent and started
having designer involvements.

>VM techniques were used only in traditional stores especially in stores selling wedding dresses and
other occasion based shops.
>Visual Merchandising of the modern times appeared 1st in United States during late 19th century when
fashion stores started imitating clothing displays with those of museum artifacts.

Q2. What are the functions of Visual Merchandising?

Functions of Visual Merchandising are given below:

>A tool to enhance sales and targets.

>A tool to enhance merchandise on the floor.

>A mechanism to communicate with customer and

influence him/her to buy.

>Use season based displays to introduce new arrivals to

customers.

>Setting the company apart in an exclusive position.

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Q3. Point out advantages of Visual Merchandising.

Followings are the advantages of Visual Merchandising:

>Easier for Shoppers to locate the desired category and merchandise.

>Easier for Shoppers to self-select.

>Making it easier for the shopper to coordinate and accessorize.

>Providing information on sizes, colors and prices.

>Informing about the latest fashion trends by highlighting them at strategic positions.

Q4. What are the challenges of Visual Merchandising?

Some of the Challenges of Visual Merchandising include

>Rising Costs of Materials.

>Lack of trained personnel.

>Important competitive information revealed (such as product price).

>Lack of proper resources or VM accessories (props, mannequins, hanger or dummies).

>Disregard of retail management towards visual merchandising.

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Q5. Define Image Mix. What are the components of Image Mix?

Image Mix refers to the six sets of components that help in designing the product display in-store and
on the window.

Components of Image Mix:

>Employee
>Merchandise
>Fixtures
>Sound
>Odor(Smell)
>Visual

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