Fashion Marketing Fms1

Fashion Marketing

Meaning & definitions Marketing process-needs, wants & demand, product &

services, value, satisfaction & quality, exchange, transaction, markets, marketing

Demarketing, demand management, marketing management Marketing management philosophies/concepts

MARKETING According to Prof. Philip Kotler

“Marketing is human activity directed at satisfying needs and wants through exchange processes”.

Marketing ManagementThe Term Market is derived from the Latin Word “Marcatus”,Which means trade , Merchandise, ware traffic or place of Business.

Marketing is becoming more a battle based on information thanOne based on sales power.

Few Definitions of Marketing Management:-

1) MARKET: A market consists of all the potential customers sharing a particular need or want who might be

willing and able to engage in exchange that needor want.

Marketing Management

Institute of Marketing Defines “Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently and profitably”

3) Marketing (Management) is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges with target groups that satisfy customer and organizational objectives.

4) Marketing is the art of creating and satisfy customers at a profit

5) Marketing starts with the consumer and ends with the consumer satisfaction of the consumers becomes the most important goal of a business enterpriseMarketing is getting the right goods and services to the right people at the right places at the right time at the right price with the right communication and promotion.

7) According to Marketing Guru Prof. Philip Kotler “Marketing is human activity directed at satisfying needs and wants through exchange processes”.

8) In short marketing is “ Meeting needs Profitably”

Fashion Marketing Fashion Marketing is the application of a range of techniques and a business philosophy that centers upon the customer and potential customer of clothing and clothing related products and services in order to meet the long term goals of the organization. Within the fashion Industry there is a enormous variations in the size and structure of businesses serving the needs of customers.

Modern Marketing Department organised by functions In marketing Vice president heads the department, under him we have various

specialized functional managers: 1. Marketing Administration Manager 2. Advertising & Sales Promotion Manager3. Sales Manager4. Marketing Research Manager5. New Products Manager6. Customer Service Manager7. Market Logistics Manager8. Direct Marketing Manager9. Internet Marketing Manager

Current Market situation The Current situation is one which is influenced by the convergence of a number of trends.

ENVIRONMENT

COMPANY (MARKETER)

SUPPLIERS

COMPETITORS

MARKETING INTERMEDIARIES

END USERMARKET

MAIN ACTORS & FORCE IN A MODERN MARKETING SYSTEM

Growing International Competition. Very rapid and comprehensive channels of communication Technological improvements leading to a very reliable products The growth of the “Quality” movement, further enhancing reliability. Consumers have more power than ever before Consumers have access to more information than ever before. Marketers can gather more information about consumers more quickly

and easily.

Marketing MixMarketers use numerous tools to bring to desired response from their target markets. These tools constitute a Marketing Mix.

Marketing Mix: is a set of marketing tools that the firm uses to pursue its marketing objectives in the target market or marketing mix is blending of marketing variables, such as four p’s :

Product PricePromotion

Place– referring to distribution

Four P components of the Marketing mix

Environmental Variables of MarketingNon-controllable variables

• Competition• Consumer• Economic conditions• Government policies• Climatic conditions, etc.,

Controllable variables• Marketing mix-product, place, promotion & price

Marketing, an interaction between marketing mix & Environmental Variables

Four P components of the Marketing mix

MARKETING MIX

ProductProduct VarietyQualityDesignFeaturesBrand NamePackagingSizesServicesWarranties

PriceList PriceDiscountsPayment Period

PromotionSales PromotionAdvertisingPublic RelationsDirect MarketingOr personnel Selling

PlaceChannelsCoverageLocationsInventoryTransport

Target market

Using the Marketing mix variables, the marketing manager tackles the Environmental Variables

• Marketing mix elements can be combined in an infinite number of ways. It means that he can achieve his marketing objective, using different combinations of the Marketing mix.

• Selecting optimum among the many possibilities- depending on the objective & context, relevant weightage has to be assigned to each of the elements.

Ex: Element-sales promotion: higher weightage is given to sub elements advertising & brand building when the objective is higher market share over the loner term Personal selling & sales promotion will get a higher weightage , if the objective is higher sales in immediate run

• Linkage between marketing effort, marketing mix & marketing budget- marketing mix in effect, signifies the manner in which the marketing effort or marketing budget of the firm is distributed over the different components of the marketing job.

• Marketing mix expressed in rupee terms becomes the marketing budget

• Assembling the Marketing mix, the main task in marketing-Assembling the Marketing mix involves a number of decisions relating to each of the Marketing mix elements; product, price, channel & promotion

• Selecting an optimum combination is the Name of the Game- the name of the game is to select a combination, which will have the desired impact on the market & will also cost-effective

• marketing mix has to be juggled constantly1. Change in environmental variables2. Change in customer preference3. Changes within the firm

Robert Lauterborn suggested that the seller’s four P’s correspond to the customer Four C’s

Four P’s Four C’sProduct Customer Solution

Price Customer costPlace ConveniencePromotion Communication

PRODUCT• A Product is any thing that can be offered to market to satisfy a

need. • The product is bundle of satisfactions that a customer buys• It represents a solution to customer problems.• The product is almost always a combination of tangible and

intangible benefits.

SERVICE: Services can be defined as an activity or a series of activities which take place in interactions with a contact person or a physical machine and which provides consumer satisfaction.

Intangible /Psychological Benefits

Special Features

Brand

Quality

Guarantee / Warranty

Safety

After Sales Services

PRODUCT

Product Attributes / Characteristics

Product Classifications Durability & Tangibility:

Non durable goods: are tangible goods normally consumed in one or few uses, like cold drink and soap etc.

Durable goods: are tangible goods that normally survive many uses: Televisions, Computers, cell phones, clothing etc.

Services are intangible, variable and perishable products, examples Hair cuts, repairs, etc.

Product Levels 1. Core Benefit level

2. Basic Product Level3. Expected Product Level4. Augmented Product Level5. Potential Product Level

1. The Core benefit level is the fundamental need

Differences between Product & Service

ProductService

1. Tangible 1. Intangible

2. A thing 2. An activity or Process3. Production & Distribution are separated from consumption

3. Production,Distribution and consumption are simultaneous process.

4. Customers do not participate in the production process

4. Customers participate in the production process

5. Can be kept in stock 5. Cannot be kept in stock

6. Transfer of ownership 6. No Transfer of ownership

Ex: - Hotel- Guest is buying rest & Sleep

2. Basic / Generic Product Level:

* The product containing only those attributes or characteristics absolutely Necessary for its functioning but with no distinguishing features.

Ex: Thus hotel room includes a bed, bathroom, towels, desk, dresser and cupboard.

3. The Expected Product level: Ex: Hotel guest expect a clean bed, fresh towels, working lamps, and a relative degree of silence/ calm/ Quiet.4. The Augmented Product Level: At the fourth level, the marketer prepares an augmented product that exceeds customer expectations.

Ex: A hotel can include remote-control television set, fresh flowers, rapid check-in, express check-out, fine dining, and room service.5. The Potential Product level:

Here is where companies search for new ways to satisfy customers and distinguish their offer.

Ex: All Hotel rooms are occupied.Example of air conditioner

Core benefit: cooling and comfort Basic: sufficient cooling capacity, and acceptable energy, adequate

air intake and exhaust Expected: at least two cool speed, removable air filter, with

warranty Augmented: electronic touch pad controls, thermostat setting,

automatic mode of adjusting fan speed based on thermostat & customer service

Potential: silent running

Product Line & Product Mix

Product mix: which is larger entity denotes, the complete set of all products offered for sale by a company.Product mix is composed of several product lines

Width of product mix-denotes the no. of product lines it carries Length of product mix-no. of items/brands in the line Depth of product line-total no. of items under each brand in the line

in terms of variants, shades, models, packs, sizes, etc,

Product Line LAMPS

• Table• Ceiling• Track• Desk

Selected Acme Furniture Co. Products

Product Product Line 1Line 1



Selected Selected Acme Acme Furniture Co. Furniture Co. ProductsProducts

TABLESTABLESKitchenKitchenDining RoomDining RoomEndEndCoffeeCoffeeOutdoorOutdoorConferenceConferenceComputerComputer

CHAIRSCHAIRSDining RoomDining RoomLiving RoomLiving RoomBedroomBedroomOutdoorOutdoorDeskDesk

LAMPSLAMPSTableTableCeilingCeilingTrackTrackDeskDesk

Product Line & Product MixProduct Line & Product MixProduct Mix








Product Line & Product MixProduct Line & Product MixDepth of Product Mix








Product Line & Product MixProduct Line & Product MixWidth of Product Mix

Product ManagementIn simple terms, product management means managing the various product lines & the overall product mix of the company.Main Tasks in Product Management

• Appraisal of each product line & each product/brand in the line

• Decisions on packaging

• Product differentiation & positioning

• Managing brands & brand equity

• New product development

• Managing the PLC of products/brands

• Managing product qualityManaging Existing Products

• Line Extension• Product

ModificationProduct Modification

• Quality Modifications

• Functional Modifications

• Aesthetic Modifications

New ProductSix categories of new products

1. New to the world : new products that create an entirely new market. 2. New product lines: new products that allow a company to enter an

established market for the first time.3. Additions to existing product lines: New products that supplement a

company’s established product lines (Packages, sizes, flavors)4. Improvements and revisions of existing products: new products that

provide improved performance or greater perceived value.5. Repositioning: Existing products that are targeted to new markets or

new market segments.6. Cost reductions: New products that provide a similar performance at

lower cost.

New Product Development Process The eight stages of the new product development process in shown

in figure. The marketing challenges arising at each of the eight stages.

Idea generation• The new product development process starts with this search for

ideas. New product ideas can come from interacting with various groups and from using generating techniques.

• Ideas for new products can come from customers, scientists, competitors, employees, channel members and top management.

• Companies can also find good ideas by researching competitor’s products and services.

• New product ideas can also come from inventors, university, commercial laboratories, advertising agencies, market research firms.

• Ideas can flow from many sources, there chances of receiving serious attention depends on some one in the organization.

1.Idea generation

2.Idea screening

3.Concept Development

And Testing

4.Marketing Strategy

Development

5.Business analysis

6.Product development

7.Market Testing

8.Commer-cialization

At any given stage if you think that this product is not feasible in the market, drop the idea

Idea screening • The company then sorts the proposed ideas in to three groups i.e.,

promising ideas, marginal ideas and rejects.

• Ideas will be written down and reviewed each week by an committee.

• The surviving ideas then move in to full-scale screening process.

• In screening ideas, the company must avoid two types of errors. A drop error occurs when the company dismisses the good idea.

A go error occurs when the company permits a poor idea to move in to development and commercialization.

• The purpose of screening is to drop poor ideas as earlier as possible.

• The screening description states the product idea, the target market, the competition, the roughly estimates of market size, product price, development time and costs and rate of return.

Concept development and testing

• Now concept development is done of the idea expressed in to meaningful consumer items because consumers do not buy product ideas, they buy product concepts.

• A prototype is made and tested to target consumers for getting their reactions. The concepts can be presented symbolically or physically.

• If reactions are positive then the company moves to marketing strategy development.

Marketing strategy development

• After a successful concept test, the next stage is developing a preliminary marketing strategy plan introducing the new product in to the market.

• The strategy/ plan consist of three parts.1. The first part describes the target market size, and behavior; the

planned product positioning; and the sales, market share, and profit goals sought in the first few years.

1. The second part outlines the planned price, distribution strategy, and marketing budget for the first year.

1. The third part describes the long – run sales and profit goals and marketing mix strategy over time.

Business analysis • After management develops the product concept and marketing

strategy, it can evaluate the proposal business attractiveness.

• Management needs to prepare sales, cost and profit projections to determine whether they satisfy company objectives.

• If they do concept can move to the development stage.

Product development • Up to now, the product has existed only as a word description, a

drawing or prototype. This step involves a large jump in investment.

• At this stage the company will determine whether the product idea can be translated in to a technically and commercially feasible product.

• Some of the functional tests that products go through before they enter the market place.

Alpha testing the product is given to the employees with in the firm to see how it performs in different applications.

Beta testing it enlists a set of customers to use the product and give feed back

Market testing • After management is satisfied with functional and psychological

performance, the product is ready to be dressed up with a brand name and packaging, and put in to market test.

• The new product is introduce in to authentic setting to learn how large the market is and how consumers and dealers react to handling, using and repurchasing the product.

Commercialization• If the company goes ahead with the commercialization, it will face

its largest costs to date. The company will have to contract for manufacture or build or rent a full-scale manufacturing facility.

• The company must decide whether to launch the new product in a single locality, a region, several regions etc.

• The product does well, the company considers exporting to neighbouring countries.

Why product fails• The high-level executive pushes a favorite idea through inspite of

negative market research findings.

• The product is not well designed.

• The product is incorrectly positioned in the market, not advertised effectively or over price.

• The product fails to gain sufficient distribution coverage or support.

• Competitors fight back harder than expected.

Product Life Cycle A product passes through certain distinct stages during its life, and this is called the Product Life Cycle (PCL) The four distinct stages in PLC

1. Market introductory stage2. Market growth stage3. Market maturity stage4. Market decline stage

Market introductory stage• At this stage, there may not be a ready market for the product

• Sales are low

• Profits seem a remote possibility

• Demand has to be created & developed

• Customers have to be prompted to try out the product

• This stage poses several problems for the marketer

• The complexity of problems & the duration of the stage depend upon the nature of the product, its price, its technological newness & the consumer’s view of the product

• The pricing strategy to be adopted-marketing skimming, & market penetration.

• Market development & promotion

Market growth stage• Demand for the product increases & size of the market grows

• Sales & profits go up

• More competitors & increased competition

• Marketer has reconsider his marketing strategies- pricing strategy

• Marketing & distribution efficiency become decisive factors at this stage

Market maturity stage• Demand tends to reach a saturation point

• Price competition becomes intense & the pioneer tries to distinguish his brand by subtle product differentiation & exploits the brand loyalty he has built up

• Market modification-convert nonusers, enter new market segments, win competitors’ consumers

• Product modification- quality improvement, feature improvement or style improvement.

• Marketing mix modification-price, distribution, advertising, sales promotion, personal selling, & services.

Market decline stage• Sales begin to fall at this stage

• The demand for the product shrinks, probably due to new & functionally advanced products becoming available in the markets

• Total sales & profits diminishes at this stage

• Some firms at this stage may try to link up the sale of these products with some other premium products they have developed & try to stretch the life of the declining product.

• As sales & profits decline, some firms withdraw from the market

BRAND MANAGEMENT

“COMPANIES MAKE GOODS AND SERVICES, PEOPLE BUY BRANDS”

The American Marketing Association: “ A brand is a name, term, sign, symbol or design or a combination of them, intended to identify the goods or services of one seller or group of sellers & to differentiate them from those of competitors.”

Brand can convey up to six levels of meaning:1. Attributes2. Benefits3. Values4. Culture5. Personality6. User

What is a brand?A brand is a product or a service that provides functional benefits plus added value that some consumers value enough to buy - John Phillip Jones

Functional benefits - Motivating benefits – that make the customer buy Added values: Discriminating benefits – those that prompt the

customer to buy one brand over the other Some consumers - cannot be everything to everybody

Therefore brand = Name + product + non-tangible added value (image). Without image, only a label or a name NOT a brand.Need a balance of both.

2. Brands are now valued on the Balance sheet of companies. Buyers want to buy not just production capacities but also a place in the minds of customers.

3. Why brands work

For the company Entry barriers Generators of profit : price premium , Loyalty Source of additional income – licensing Protection of trademark

For the customer: Maslow’s theory Ensures quality / guarantee Covers risk : physiological / psychological Most products are opaque. brand is an external indicator Increases efficiency : Identification continuity

BRAND

The American marketing association defines a brand as: “ A name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors”.

A Brand could be any word, term, sign or symbol that identifies and distinguishes one product form another

For example:- It could be A word with no meaning related to the product it

represents Viz., Nirma, Titan, vimal, charms, Konica etc.,

The name of the manufacturer of the product viz., Bajaj, Godrej, Tata, kirloskar etc.,

A combination of numerals and alphabets viz., Mera No. 1, No.10, Rx 100, LIV 52.

A word who meaning suggests some functions or quality of the product. For ex:- Brand names like Quick Fix (Adhesive), Band-Aid (Bandage), Duroply (plywood), Sunflame (Gas Stove) etc indirectly indicate the use of the product.

Similarly, Brand names for cosmetics should preferably suggest beauty and glamour. Brand names for food products could convey a message of taste or Health.

Companies not only need to create customers, but also keep them; and to keep customers, one need to create customer loyalty. To create customer loyal this personality is what is called as a brand.

Branding Decisions An overview of Branding Decisions:

Branding DecisionTo Brand or not to Brand: Today branding is such a force that

hardly any thing goes unbranded. Consumers want brand names to help them to identify quality

differences and shop more efficiently. Distributors and retailers want brand names because brand make the

product easier to handle, hold production to certain quality standards, strengthen buyer preferences and make it easier to identify suppliers.

Brand Sponsor DecisionA manufacturer/company has several options with respect to brand

sponsorship. The product may be launched as a manufacturer brand (sometimes

called a national brand)A distributor brand (also called reseller or private brand)

Branding Decisions Branding Decisions An overview of Branding Decisions:An overview of Branding Decisions:

Brand Or

No Brand

Manufacturer Brand

Distributor (Private)

Brand

Individual NamesBlanket Family

nameSeparate Family

NameCompany individual

names

Line ExtensionBrand Extension

Multi BrandsNew BrandsCo-brands

RepositionNo Reposition

Branding Decision Brand Sponsor

DecisionsBrand-NameDecisions

Brand StrategyDecisions

Brand Re-positionDecision

Although manufacturers brands dominate, large retailers and wholesalers have been developing their own brands

Brand-Name Decision Individual names :A individual brand name strategy permits the

firm to search for the best name for each new product.A new name permits the building of new excitement and conviction

(firm belief)A major advantage is that the company not tie its reputation to the

products acceptance. If the fails or appears to have low quality it does not hurt the

companies name.Blanket Family : It has advantages development cost is less.

Because there is no need for ‘name’ research or heavy expenditures to create brand name recognition

Sales of new product is are likely to be strong if the manufacture name is strong

Example: Campbel soup introduces new soups under its brand name with extreme simplicity and achieves instant recognition

Kissan jam introduces new jams under its brand name.Separate Family name: Separate family names for all products.

When a company produces quite different products it is not desirable to use one blanket family name. For example. Matsushita decided to use

1. Panasonic- name for audio visual products 2. National name for household offerings3. Technics name for hi-fi products.4. Company individual name: Company name combined with

individual product names. 5. Example Tata Motors for automobiles6. Tata Tea for Tea drink7. Tata Salt for salts

Brand Strategy DecisionsThe company has four choices when it comes to brand strategy the

company can introduce line extension Example new flavours, forms, colors, added ingredients

Line extension – Colgate Colgate Dental cream, Colgate Gel, Colgate Calciguard, Colgate

Total, Colgate Sensitive. Colgate Herbal.Brand Extension:- A company may use its existing brand name to launch new product in other category

Example Maggi noodles, Maggi Kechup, Maggi Soup.

Multi Brands: Company establishes different brand names for its same product category for example Seiko lasalle for high priced watches and Seiko pulsar for low price watches.

New Brands:- When a company launches new products in new category, it may find that none of the current brand names are appropriate.

Co Brand:- In which two or more well known brands are combined in an offer each brand sponsor expect that the other brand will strengthen preference or purchase intension Example:- Citi Bank Credit Card.

Brand Repositioning

Companies need to periodically audit their brands strengths and weakness, company will occasionally discover that it may have to reposition the brand because of changing customer preference or new competitors Ex- Seven-Up it positioned as a cola soft drink and it failed to acquire market, next reposition itself as non-cola drink and featured as youthful and refreshing drink.

Degrees of Brand Loyalty Insistence Preference Recognition

Brand Equity

Brands vary in the amount of power & value they in the market place. At one extreme are brands that are not known by most buyers.

• There are brands for which buyers have a fairly high degree of brand awareness.

• There are brands with a high degree of brand acceptability.• There are brands that enjoy a high degree of brand preference.• There are brands that command a high degree of brand loyalty.

Few customers are brand-loyal. There are five distinguished levels of customer attitude towards the brands:

1. Customer will change brands, especially for price reasons. No brand loyalty.

2. Customer is satisfied. No reason to change the brand.3. Customer is satisfied & would incur costs by changing brand.4. Customer values the brand & sees it as a friend.5. Customer is devoted to the brand.

Brand Equity is highly related to how many customers are in classis 3, 4, or 5. It is also related to the degree of brand-name recognition, perceived brand quality, strong mental & emotional associations, & other assets such as patents, trademarks, & channel relationships.

High Brand Equity provides a number competitive advantages:• The company will enjoy reduced marketing costs because of

consumer brand awareness & loyalty.• The company will have more trade leverage in bargaining with

distributors & retailers because customers expect them to carry the brand.

• The company can charge a higher price than its competitors because the brand has higher perceived quality.

• The company can more easily launch extensions because the brand name carries high credibility.

• The brand offers the company some defense against price competition.

THE 4: ELEMENTS OF BRAND EQUITY

1. BrandNameAwareness2. BrandLoyalty3. PerceivedBrandQuality4. BrandAssociations

Types of Brands• Manufacturer Brands• Private Distributor Brands• Generic Brands

Selecting a Brand Name• Easy to Say, Spell, and Recall• Major Benefit(s) Indicated• Suggest Product’s Use(s) and Special Characteristics• Avoid Negative/Offensive Connotations• Distinctive• If Applicable, Must Be Compatible With All Products in Its Product

Line• Can Be Used and Recognized in All Types of Media

Brand Name Protection• Registration• Guard Against Generic Use• Protect Against Counterfeiting

Branding Policies• Individual Branding• Family Branding• Brand-Extension Branding• Co-Branding• Brand Licensing

PackagingPackaging is the means of providing:

• Protection

• Containment

• Presentation

• Identification/information

• Convenience/compliance

Principles of packaging The basic principle of packaging can be summarised.The objective of good packaging is:

• To obtain a package that fulfils all the requirements

• Functionally sound, and is fit for its intended purpose

• To present the merchandise in such a way that increased sales will result.

• To contribute to sales in such a way that profits will increase.

Three sets of facts have to be known before an effective package can be devised:

- facts about the product

- facts about the method of distribution and the journey involved

- facts and considerations about the marketing• Briefly, it is necessary to consider ways in which product could be

damaged mechanically, or how it will deteriorate under climatic influences, and to consider these in relation to the hazards that the package will encounter during transport, distribution and storage.

• The questions of marketing, display aspects, sales appeal, after-sale

use of the package, etc. should first be considered as these can provide useful knowledge in devising a satisfactory package.

Packaging' consists only of:

(a)Sales packaging or primary packaging, i.e. packaging conceived so as to constitute a sales unit to final user or consumer at point of purchase.

(b) Grouped packaging or secondary packaging, i.e. packaging conceived so as to constitute at point of purchase a grouping of a certain number of sales units whether latter is sold as such to final user or consumer or whether it serves only as a means to replenish shelves at the point of sale; it can he removed from the product without affecting its characteristics.

(c) Transport packaging or tertiary packaging, i.e. packaging conceived so as to facilitate handling and transport of a number of sales units or grouped packagings in order to prevent physical handling and transport damage. Transport packaging does not include road, rail, ship and air containers.Packaging

• Package Design Considerations– Cost– Tamper Resistant– Consistency(?)

• Family Packaging– Promotional Role– Meet Reseller’s

Needs– Environmentally

Responsible• Packaging and Marketing Strategy

– Altering the Package– Secondary-Use Packaging– Category-Consistent Packaging– Innovative Packaging– Multiple Packaging– Handling-Improved Packaging

• Criticisms of Packaging – Functional Problems

– Safety Issues– Deceptive Packaging– Cost

Packaged Commodity ActUnder the prevailing Packaged Commodity Act, six declarations are required to be made on garment packing:

(i) Size in centimetres(ii) Name of the commodity(iii) Units packed(iv) Date of manufacturing(v) Maximum retail price(vi) Name and address of the manufacturer.

Marketing Information System(just for information)

Every firm must organize a rich flow of information to its marketing managers. Competitive companies study their managers’ information needs & design marketing information systems (MIS) to meet these needs.

Marketing information is crucial to effective marketing management. A marketing information system (MIS) consists of people, equipment, and

procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.

To carry out their analysis, planning, implementation, and control responsibilities, marketing managers need information about developments in the marketing environment.

The role of the MIS is to assess the manager’s information needs, develop the needed information, and distribute that information in a timely fashion.

The information is developed through internal company records, marketing intelligence activities, marketing research, & marketing decision support analysis.

Significance of Marketing Information System

Knowledge management: Today business organizations need knowledge management for success. It has become important not only in launching new business & developing corporate strategies, but carrying out every major management activity/function.

1. The huge & non-stop explosion in knowledge2. The increase in need for knowledge in managing a business3. The rapid pace at which knowledge is being replaced & regenerated. Existing

knowledge is becoming obsolete & is being replaced by new knowledge rapidly

4. The resultant need to be ultra-fast in acquisition of knowledge as well as in its application in tapping business opportunities.

5. The new appreciation by firms that knowledge remains under-leveraged & for leveraging it properly, it needs to be managed systematically.

Benefits Marketing Information SystemIn marketing planning

• Helps by making available relevant insights on the external environment as well as internal realities of the company

• Helps tap opportunities & build defenses against threats• Helps quick spotting of changing trends• Provides valuable market intelligence

In marketing implementation

• Helps implement all marketing action programmes• Helps deliver customer-oriented marketing offers/4ps• Helps in quick adjusting products & services to the needs & tastes of

customers• Helps product innovation• Helps to reduce product failures• Supports channel management• Supports sales promotion• Helps build relationships with customers

In marketing control• Imparts quality to all marketing decisions: the quality of these decisions is

actually determined by the quality of marketing information available to the decision maker. And such quality decisions are the essence of effective marketing control.

Documents

Fashion Marketing Fms1