WOLKITE UNIVERSITY

COLLEGE OF ENGINEERING AND TECHNOLOGY

DEPARTMENT OF GARMENT ENGINEERING
APPAREL MARKETING AND MERCHANDISING COURSE

Prepared by: Alemayehu.T

CHAPTER ONE: Marketing Management

Outlines
• Introduction • Demographic Environments
• Marketing Definition • Population growth and age
• Needs, wants & demands. • Social –cultural environment
• Marketing Functions • Economic environment
• The difference between • Literacy level of population
marketing and selling • Natural Environment
• Marketing environments
 Introduction
• Change is occurring at an accelerating rate; today is not like yesterday,
and tomorrow will be different from today.
• Continuing today’s strategy is risky; so is turning to a new strategy.
• Therefore, tomorrow’s successful companies will have to notice three
certainties:
– Global forces will continue to affect everyone’s business and personal life.
– Technology will continue to advance and amaze us.
– Deregulation reduction of governmental restriction to create more
competitions within industries.
 Cont…..
• These three developments globalization, technological advances, and
deregulation spell endless opportunities.
• Marketing deals with identifying and meeting human and social needs.
• One of the shortest definitions of marketing is “meeting needs
profitably.”
• Bankers, physicians, accounting firms, investment analysts, politicians,
architectural firms , universities, and so on have all come to appreciate
the benefits of marketing.
 Definition of marketing
• An American definition of marketing is: The process of
planning and executing the conception yad um, pricing,
promotion and distribution of ideas, goods, and services to
create exchanges that satisfy individual and organizational
objectives.
• Marketing is the process of establishing, within the general
confines of the expertise and resources we have, the
perceived needs of our target audience and determining
methods of needs satisfaction at a satisfactory profit level.
 Cont….
Marketing – the process of developing, promoting, and
distributing products to satisfy customers’ needs and
wants.
Starts at the very beginning of product development
and continues until a consumer purchases the product.
A series of activities that fashion businesses undertake
so that customers will buy products from them instead
of their competitors.
 IMPORTANCE OF MARKETING

• Marketing is important to the business, consumer as well as

the society that:-
a. Marketing helps business to keep pace arifachu with the changing
tastes, fashions, preferences of the customers.
b. Marketing helps in making products available at all places and
throughout gutum gututi darbachu the year.
c. Marketing plays an important role in the development of the
economy through generating employment.
 Cont…

d. Marketing helps the business in increasing its sales volume,

generating revenue gali qaraxa irra argamu and ensuring its success
in the long run.
e. Marketing also helps the business in meeting competition most
effectively.
f. Customer Satisfaction. The product performance and customer
expectation has a correlation between customer satisfaction.
g. Competitive Advantage: because of effective marketing there is
healthy competition in the market.
 Cont…

This competition helps them to come up with:

Inventive and creative designs or patterns.
Artistic promotion plans.
Efficient customer relationship systems, etc.
h. Brand Loyalty:- of the product grows due to effective marketing.
Brand loyalty refers to:
Repeat purchases by satisfied / delighted customers.
Brand loyalty of the product increases by suggestions and reviews of
existing clients / customers to friends, neighbors, etc.
 A FEW RELEVANT wal dhufenya TERMS ON
MARKETING

• Market: Normally people understand the term market as a

place where goods are bought and sold.
• But, in the context of Marketing, it refers to a group of
buyers for a particular product or service.
• Ex. the market for ladies readymade garments consists of
girls and women, and so on.
 Marketeer: It refers to the person who organizes the various marketing
activities such as market research, product planning, pricing, distribution etc.
 Seller: It refers to a person or organization who is directly involved in the
process of exchange of goods and services for money. This includes the
wholesaler, retailer, cajoler, intermediary etc.
 Buyer: A buyer is one who is directly involved in the process of purchase of
goods and services. He/she is one who selects the goods, makes payment
and takes the delivery.
 Consumer: One who actually uses the product or service. For example, you
bought a shirt and gifted it to your friend who uses it. Here your friend is the
consumer and you are a buyer. However, a consumer can also be the buyer.
 Distributors frequently have a business relationship with manufactures that
they represent. The distributor becomes the manufacture’s direct point of
contact for prospective buyers of certain products.
 Wholesaler: generally buy a large quantity of products directly from
distributors and sales to the retailor.
 Retailer: consist of small and large businesses that sell products
directly to consumers. The buy products from wholesaler.
 Hawker : a person who sell products on the street.
 Customer: A customer usually refers to the person who takes the
buying decision. For example, in a family, father decides on the
brand of the Nike shoes to be used by his children.
 Here, the children are the consumers and the father is the customer.
 A customer can also be the consumer. Similarly, the buyer may be
different from the customer or one can be the customer as well as the
buyer.
 Virtual Market: With advancement of technology, the buyer and
sellers can, now a days, interact with each other by using Internet.
This is called virtual market.
 The difference between marketing and selling

• The terms ‘marketing’ and ‘selling’ are related but not synonymous.
• ‘Marketing’ as stated earlier, emphasizes on earning profits through
customer satisfaction.
• In marketing, the focus is on the consumer’s needs and their
satisfaction.
• Selling’ on the other hand focuses on product and emphasizes on
selling what has been produced.
• In fact it is a small part of the wide process of marketing where in
emphasis is initially on promotion of goods and services and
eventually on increase in sales volume.
 Marketing has long term perspective of winning over consumer
loyalty to the product by providing him maximum satisfaction.
 However, selling has short-term prospective of only increasing the
sales volume.
 In marketing, the consumer is the on king whose needs must be
satisfied.
 In selling, the product is supreme and the entire focus is its sale.
Marketing starts before production and continues even after the
exchange of goods and services has taken place.
 It is so because provision of after sale service is an important
component of marketing process.
 Selling starts after the production and ends as soon as the exchange of
goods and services has taken place.
CORE CONCEPTS OF MARKETING:
1. NEED/ WANT/ DEMAND

• Wants + Buying Power

= Demand
 (2) PRODUCTS- GOODS/ SERVICES/ PLACE
• Product is an out put that can satisfy need/ want.
• products are really a via- media for services.
• Hence, in marketing, focus is on providing/ satisfying
service rather than providing products.
 (3) VALUE/ COST/ SATISFACTION
• Decision murti for purchase made based on value/ cost
satisfaction delivered by product/offeringkena/ gumata.
• Product fulfills/ satisfies Need/ Want.
• Value is products capacity to satisfy needs/ wants as per
consumer’s perception or estimation.
• Each product would have a cost/ price elements attached
to it.
 (4) EXCHANGE/ TRANSACTION bitaf gur:
• EXCHANGE: - The act/ process of obtaining a desired product from
someone by offering something in return. For exchange potential to
exist, the following conditions must be fulfilled.
• a) There must be at least two parties.
• b) Each party has something of value for other party.
• c) Each party is capable dandetti kan qabu of communication & delivery
• d) Each party is free to accept/ reject the exchange offer.
• e) Each party believes it is appropriate to deal with the other party.
 Cont…

• TRANSACTION: - Event that

happens at the end of an
exchange. Exchange is a process
towards an agreement.
• When agreement is reached, we
say a transaction has taken place.
 (5) RELATIONSHIP/ NETWORKING:

• Relationship marketing:- It’s a pattern of building long term

satisfying relationship with customers, suppliers, distributors
in order to retain their long term performances and business.
• MARKETING NETWORK: It is made up of the company and its
customers, employees, suppliers, distributors, advertisement
agencies, retailers, research & development with whom it has
built mutually profitable business relationship.

Outcome of Relationship Marketing is a MARKETING NETWORK.

 (6) MARKET:

• A market consists of all

potential customers
sharing particular need/
want who may be willing
and able to engage in
exchange to satisfy need/
want.
 (7) MARKETERS/ PROSPECTS:
• Working with markets to actualize potential exchanges for the purpose
of satisfying needs and wants.
• One party seeks the exchange more actively, called as “ Marketer”, and
the other party is called “Prospect”.
• Prospect is someone whom marketer identifies as potentially willing
and able to engage in exchange.
• Marketer may be seller or buyer. Most of time, marketer is seller.
• A marketer is a company serving a market in the face of competition.
• Marketing Management takes place when at least one party to a
potential exchange thinks about the means of achieving desired
responses from other parties.
 Marketing environments
• The Marketing environment is a marketing term and refers
to factors and forces that affect a firm's ability to build and
maintain successful customer relationships.
 Demographic
• Demography is the study of population characteristics that are used
to describe consumers.
• Demographics tell marketers who are the current and potential
customers, where are they, how many are likely to buy and what the
market is selling.
• Demography is the study of human populations in terms of size,
density, location, age, sex, race, occupation and other statistics.
 Population age & Growth
• It is sheer numbers only that matters in the interaction between
demographic factors and development variables. How a population
is distributed by such characteristics as age, space and so on is an
important determinant of the prospects for economic and social
development. Apart from defining who works and who does not, the
age structure determines future patterns of population growth.
• The spatial distribution describes the degree and quality of access of
a population to land and other resources. This is manifested in either
declining or raising population/land and population/resources
rations.
 Economic Environment
• One of the macro environment forces that create opportunity to the
company and could also bring threats. Economic environment affects
consumer buying power and spending patterns.
Due to the bad economy, people who are not extremely wealth are not able
to travel as much as they want. Since people have less money in their
pocket, airfares and hotels expenses seem less affordable.
• Economic factors affect the purchasing power of potential customers and
the firm's cost of capital. The following are examples of factors in the
macro economy:
I. Economic growth III. Exchange rates
II. Interest rates IV. Inflation rate
 Cultural Factors
• Cultural factors comprise of set of values and ideologies of a
particular community or group of individuals. It is the culture of an
individual which decides the way he/she behaves. In simpler words,
culture is nothing but values of an individual. What an individual learns
from his parents and relatives as a child becomes his culture.
• Cultural factors have a significant effect on an individual’s buying
decision. Every individual has different sets of habits, beliefs and
principles which he/she develops from his family status and background.
What they see from their childhood becomes their culture.
 Political Factors

Political factors include government regulations and legal issues and

define both formal and informal rules under which the firm must
operate. Some examples include:
i. Tax policy
ii. Employment laws
iii.Environmental regulations
iv.Trade restrictions and tariffs
v. Political stability
 Technological Factors

Technological factors can lower barriers to entry, reduce

minimum efficient production levels, and influence outsourcing
decisions. Some technological factors include:
i. R&D activity
ii. Automation
iii.Technology incentives
iv.Rate of technological change
 The Marketing Mix
The four P’s

Marketing mix is the set

of marketing tools
that the firm uses to
pursue its marketing
objectives in the target
market.
Four basic components of the marketing mix (The four
P’s)