Enterprise and marketing-1.13

Question 1

what is an enterprise?

Answer 1

A company that sells products or services to make a profit

Question 2

In fashion and textiles, what are enterprises usually? (4 things)

Answer 2

1. start up companies in there first few years of trading which are usually set up by fashion graduates- they may sell products at pop-up stalls in temporary shop premises, selling a limited range of products (usually handmade) for a short period of time
2. online businesses that sell niche products
3. project businesses set up by celebrities working in collaboration with other businesses
4. community projects for recycling, customising and mending clothing, for example co-ops

Question 3

what are co-ops?

Answer 3

Co-operatives- businesses owned by their members

Question 4

what is marketing considered with?

Answer 4

promoting a new product to a consumer or the latest fashions and appealing the product to the target market. A variety of different marketing strategies could be used to achieve this

Question 5

how can new fibres and fabrics be marketed?

Answer 5

New fibres and fabrics for sports and outdoor leisure wear can be marketed on shopping websites, or more commonly swing tickets attached on products in shops. This makes consumers aware of new technological developments and tells them why they should buy new products.

Question 6

what is the benefit of marketing new fibres and fabrics in clothing such as sportswear?

Answer 6

This makes consumers away of new technological developments and tells them why they should buy the product and how they will be benefited if they buy it- for example micro-encapsulated fibres can be marketed on swings tickets that make products such as socks odour-eating

Question 7

what kinds of customers are particularly receptive to marketing techniques? (AKA fall victim to buying new products)

Answer 7

Customers who want to be fashionable and keep up with the latest trends are receptive to marketing techniques such as fashion articles in magazines as products as described as the ‘latest must have’

Question 8

why is market research carried out?

Answer 8

Market research is carried out to identify the opportunities to develop a product to make it more suited to the requirements of the consumer/ make the product more attractive to buy.

Question 9

what is an example of market research as retailers carry out?

Answer 9

Analysis of sales data which directs product development- analysis of well selling products in the past is also useful as a retailer can build on previous successes and recognise which elements have made the product successful which the retailer can carry forward into a new product and make the product popular with shoppers.

Question 10

who is advertising and promotion targeted at?

Answer 10

Customers who are likely going to purchase the product- for example promotion for retails can be showcased in shopping locations on billboards

Question 11

how is websites selling products a good form of marketing?

Answer 11

websites selling the products promotes the products and company values. They can also give advice to consumers about buying and using the product, and encourage further purchases

Question 12

what are 11 forms of marketing techniques, specifically for the fashion industry?

Answer 12

1. websites selling the products
2. shop front and instore promotional displays and literature; sales staff wearing the clothes from the latest collections (some retailers even offer a budget for employees to spend on clothes in the new collection to wear to work as part of their uniform)
3. promotional events including fashion shows, launch parties and sales events aimed at loyal and new customers 4. packaging to promote the brand (such as shopping bags that customers carry in public and is essentially free marketing)
4. online fashion blogs and product reviews (some of which can be promotional and paid)
5. online vlogs or Youtube videos to show the product in use (some of which can be promotional and paid)
6. use of social media to show influencers wearing the product and to promote a lifestyle that encourages brand loyalty
7. pop up adverts online
8. newspaper and magazine articles and adverts
9. Tv and radio adverts
10. billboard posters, digital displays boards (like the ones in times square), adverts on buses and at bus stops

Question 13

what is brand identity determined by?

Answer 13

brandy identity is determined by the set of principles guiding the business or company. The values and style of the brand are seen in the product design and conveyed to the consumer through how they conduct their business and how they publicise it- a strapline is often used when promoting the business and brand identity

Question 14

what is a strapline?

Answer 14

A short phrase that summarises the principles of the business, the type of product they are selling, and the type of person they are aiming their product at

Question 15

what is an example of a strap line?

Answer 15

“Evans, created for curves” which highlights the product they are selling- plus size clothing for women and gives a clear message about the brand identity

Question 16

what is the difference between small, independent shops carrying out client research in comparison to large retailers?

Answer 16

Small independent shops can carry out client research by communicating to a single person directly in their shops. In comparison, larger retailers can carry out surveys and questionnaires or through the use of modern technology- large retailers can use their website to encourage shoppers to create an account and receive benefits such as discounts and free postage in exchange for the retailer being able to capture information about who is interested in their products and to track website activity

Question 17

what is the benefit of customers creating an account on websites for retailers?

Answer 17

1. for the customer, they can receive benefits such as discounts, free postage, early access to sales etc
2. for the retailer, they can capture and store information about who is interested in their products and track website activity which can allow them to develop products suited to their target market.
3. For the customer: product promotion and advertising can be tailored to customers which means shopping may become easier for them.
4. For the retailer: product promotion and advertising can be tailored to customers, which means the customer will find shopping easier, find products they were looking for and potentially buy them, meaning that revenue of the retailer can increase

Question 18

Having a system in place which builds customers profiles (usually by making them create an online account) and making use of them is known as what?

Answer 18

Customer identity and access management (CIAM)

Question 19

what does CIAM stand for?

Answer 19

Customer identity and access management

Question 20

why is labelling products important?

Answer 20

it identifies the product brand and promotes the business

Question 21

what is a swing ticket?

Answer 21

a ticket that is attached to a product in store by ribbon, cord, plastic or thread and has information about the product such as brand name, the size, price, style number and barcode

Question 22

what 4 things does a swing ticket have on it?

Answer 22

1. brand name
2. size
3. style number
4. barcode

Question 23

what is the benefit of packing for products?

Answer 23

it protects the product on its journey from the manufacturer to consumer and also gives the opportunity to promote the brand or business

Question 24

what is the aim of establishing corporate identity?

Answer 24

The aim of establishing corporate identity (the visual image of the business) is to make sure that employees and customers understand the company’s trading principles. It is usually visually expressed through the use of:
-logos and trademarks
- staff uniform
-company stationary and packaging
-shop signage
-shop/outlet design

Question 25

what are the 5 ways that corporate identity can be visually showcased?

Answer 25

1. staff uniform
2. logos and trademarks
3. stationary and packaging
4. shop/outlet design
5. shop signage

brands need to ensure that all of these things best describe their values and aims

Question 26

what is corporate identity?

Answer 26

The visual representation of a business

Question 27

what is global marketing?

Answer 27

where a company adapts its marketing strategies in order to sell products internationally.

Question 28

what is global marketing affected by?

Answer 28

-the demand from culturally diverse countries for western fashion
- rising affluence in emerging countries, for example India, increasing demand
-the rise of new, talented designers worldwide being publicised

Question 29

what is the benefit of using social media for global marketing?

Answer 29

-social media can reach a global market immediately
-social media can target customers relatively cheaply compared to traditional advertising methods
-social media can create networks and build up a community of potential buyers

Question 30

to compete with other brands and appeal to a target market, a product has to be what?

Answer 30

Reasonably priced- however, in order to conduct their business, a brand also needs to ensure that they are making a profit. Balancing the costs of manufacturing the product with the final selling price is part of the product development process, and manufacturers and suppliers will consult with fashion buyers regarding potential new ranges.

Question 31

what are entrepreneurs?

Answer 31

fashion entrepreneurs are people that look for new business opportunities. They come up with new, creative ideas and take the risk of putting their ideas into practise. Entrepreneurs also often collaborate with others to develop their ideas.

Question 32

what is collaborative working?

Answer 32

where two or more fashion designers or brands work together to develop new, innovative fashion, clothing and textile products

Question 33

what are the benefits of collaborative working?

Answer 33

1. skills can be combined, creating an overall innovative and appealing garment
2. support and encouragement can be given for creativity, creating a safe space
3. helps expand a customer base
4. reduces business costs as a workplace as facilities and specialist equipment can be shared
5. can develop brand identity

Question 34

what must the product price cover?

Answer 34

1. cost of running the business- business overheads such as rent, utilities such as electric and water rates in factories and retail shops where the product will be sold
2. manufacturing the product (including various materials and components such as zips etc),
3. packaging and transportation
4. profit for the company
5. marketing costs
6. contingency for mistakes and unpredictable costs

Question 35

what is the product price influenced by?

Answer 35

Product price is influenced by factors such as competitors pricing and demand for the product- a competitor may be selling a very similar product for a cheaper cost, which will make the consumer lean towards the cheaper product, but if the products are relatively the same price either product could be purchased

Question 36

what else is considered for the pricing of a product?

Answer 36

1. the demand for the product
2. the price per unit (the cost per unit will typically decrease when a larger quantity of products are manufactured usually due to bulk discounts)
3. the price of rival products
4. the potential for unsold stock- (when setting the price some allowance needs to be made for future price cuts to cover the cost of unsold stock and still make a profit for the brand- fashion products decrease in price overtime as fashion’s change)
5. the recommended retail price (RRP) which allows retailers enough money to pay their business running costs and also earn a profit
6. the costs incurred by online sales vs retail properties (the price for a product can be lower if it is being sent directly from the factory which can hold thousands of products, whereas if the product is being sold in a retail shop location it might be more expensive as rental costs need to be considered for the property)

Question 37

for fashion products, why does the cost decrease over time?

Answer 37

For fashion products, their cost typically decreases over time as fashions change and some products become less popular

Question 38

what is a profit margin?

Answer 38

The amount of money gained from selling products after all costs have been deducted, expressed as a low percentage. A low profit margin means that the costs are too high or the price is too low e.g 30% profit margin when a business has a net income of 30p for a £1 product

Question 39

what is a target market?

Answer 39

a particular group of people defined by factors such as age, gender, interests, location, disposable income at which a product or service is aimed.

Question 40

what is a budget?

Answer 40

a realistic and fixed amount of money designated to fund a complete project. Budgets must be realistic to include all costs involved in completing work