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5Ps Marketing Mix Theories: Price, Place, Promotion, Package & Product VS Product, Price, Promotion, Physical Distribution & People

5P theory thinks that Marketing Tactics includes Price, Place, Promotion, Package and Product.

According to survey data of transnational corporations,there are 63% consumers do a product decision according to the packaging and decoration. For the housewife who would be attracked easily by the perfect packaging and decoration and their consume would be more than the originall 45%.Thus,The packaging acts a important role in the marketing practise.So,we make Package as the fifth P of 4Ps marketing theory and make a team called 5Ps

The Package Tactics of 5Ps marketing theory

Package and Products

*For  The characteristics of cotton f, strengthen packaging of wrinkle-free, mildew, moisture storage function to extend product life;
* To make the product emergence into products, in packaging design fully integrated into the commercial information, trade mark, functional descriptions and instructions such as essential elements;
* Combine features of the product attributes (size, raw materials, selling point), select packaging materials, targeted to selected internal and external packaging.

4P theory emphasizes the traditional angle from the enterprise product, the inverse of the new marketing 4P theory emphasizes products from the consumer angle. For packaging, from a consumer point of view we need to consider the following:

* Similar packaging for consumer awareness mode (packaging appearance, color, layout, materials, specifications, etc.), what you want to design custom packages to meet consumer awareness to save the cost of information dissemination;
* The face of market information and interference, can rambled to make creative packaging, but only fully express product attributes for consumers to see that this is what the creative product packaging

Package and Price

Packaging materials costs and design costs: different materials, specifications and workmanship direct impact on cost. Stall design and different design is not a fee, but do not compress to reduce costs, design costs, because no matter how the price of packaging materials costs, the costs must be reflected through the design and its value; * production costs and logistics Cost: both are made by hand or machine and cost of production are inseparable, and packaging finished products, its transportation costs in the logistics can not be ignored;

In fact, good packaging does not necessarily require high cost, and good packaging design for the goods often add a lot of commercial value, the following package for the goods described on the simple ways to add value:

* Meet the consumption habits of creative cognition packaging (shape, color, layout, materials, specifications, etc.) is to add value to commodity prices means the most; * design of packaging a consumer’s perspective, to facilitate the use of portable, to facilitate their with post-processing; * ingenuity and consistent brand idea of packaging design and brand value for the brand Zengtian culture; * Packaging is not equal to high-value high-cost packaging, and environmental trends to meet the green packaging design for the unique charm of goods;

Package and Place

* In order to save costs and distribution logistics consumption, it is necessary flow of time compression and packaging sectors. In the strength permitting, you can set up their own logistics center and distribution center;
* Flow of goods in the process of channel has its own into a fixed amount of packaging, do not ignore the “big package” role, in order to channel business point of humanity (such as for the removal), and brand design “big package.” This is also the channel for dissemination of company brand to one of the ways.
* Sincere, open and objective provider to receive channels on the packaging of the proposal to allow commercial and enterprise channel through thick and thin, masters;
* Through channels to receive the consumer packaging business evaluation, timely adjustment of packaging strategies.

Package and Promotion
Marketing in the new theory of the inverse 4P, promotions, and consumers understood how to communicate effectively. In packaging, is actually to communicate with the market as an important vector.

* For different types, different grades of product sales mix, through a unified package;
* In the package purchase promotional gifts or interest coupons, and strengthen consumer spending motivation;
* Into a simple market research questionnaires, interactive communication with consumers in a timely manner;
* Place the fashion information booklet, to enrich the brand of soft spread;
* Place simple and practical combination of the products and other goods using small volumes; (such as socks match shoes, pants, skirt)

5Ps Marketing Theory

Other opinions about 5Ps Marketing Theory

5 P’s to Effective Marketing
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You’ve done everything right in your site design. Your navigation is clear and simple to use, graphics load quickly and the design is pleasing as easy to look at. Even the best design cannot guarantee your site success. If you want to succeed and stand out, you will need to incorporate important marketing elements into your site’s design.

The essential elements of marketing are easy to remember and include the following:eb product, price, promotion, physical distribution and people.

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Product
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Identify what it is that you are really selling. Don’t worry about complicated schemes, just focus on making it clear what you are selling. Start by identifying the benefits of your product. Be sure to point out the things that your customers can really identify with. It is a good idea to focus on how the product solves problems and adds value for your customer base.

Once you’ve identified the benefits and values, take a step back and ask the hard question, “So what?” This forces you to uncover the core benefits of your product and anticipate your customers’ concerns. You will also discover even deeper benefits and value that you never even thought of for your product.

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Price
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What numbers can say about your product. Internet buyers are more price sensitive than traditional consumers. Why? Because they can easily shop around for competitive pricing and features. Your pricing should be competitive, yet still allow you to turn a profit. Your pricing structure can say a lot about your product.

If priced too high, it can drive customers away, while a price that is too low may leave potential customers wondering what is wrong with the product. Find ways to create values. Justify your pricing. Spell out what customers get. If it is 24/7-customer support and weekly updates, let them know.

A low price shouldn’t be the only competitive edge your product has. While the price may motivate customers to buy, don’t forget to back it up with features and value because if price is the only thing that entices your customers, rest assured that someday, someone will beat your price and nab your customers.

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Promotion
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Promote on your site. Don’t spend all the time and effort trying to attract visitors without promoting your products and services. Motivate your customers to positive action by adding call to action statements throughout your site. List testimonials and customer statements about the value of the product. If your product is related to other Web sites, list links to those sites for customers to look at. Case studies are also a good way to demonstrate how your product produces results or solutions in a variety of situations. Don’t overlook the traditional promotions that tout “saving up to 15%” or getting added support. Offer value-added services.

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Physical Distribution
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Distribution beyond product delivery. The distribution of your product goes beyond just getting the product to your customers. Don’t forget to make it easy for them to not only receive the product, but also use and return it if necessary. If the product requires assembly or installation be sure that clear concise instructions are included and even available online.

Have a clear return policy indicating time limits and any other conditions well in advance. Make them aware from the beginning instead of surprising them down the road. In the end, even a customer who returned a product can still be a satisfied customer-based on their experience in dealing with you and your site.

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People
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Provide customer service. Two-way communication can help you build relationships with your customers and result in more closed sales. Internet shoppers are fairly independent, but can become easily disillusioned with your site and product if the information they need is not accessible.

Even if you have a small operation, customer support is fairly easy to implement. Have clear links to support information throughout the site including the purchasing process. Any place where transition is required should have clear links just in case customers need help.

Make support policies clear. If you plan to offer support only for certain hours of the day, indicate that on your page. Set expectations. Let your customers know when you’ll get back to them. It takes you an average of 3 hours to respond to an email, let customers know. People, in general, are easier to work with when they know what to expect ahead of time.

The 5 P’s of marketing can help you improve your site where it matters most-in the content and overall customer satisfaction of your site. By combining the elements of product, pricing, promotion, physical distribution and people with your site’s design elements, you’ll be on your way to more success on the Internet.

Source: onlinembawiki.com

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The future of 21st Century – Fashion Marketing

From selling to selling the right product, from just capturing more customers to having a satisfied customer, from luxury to sustainable luxury, from customer exploitation to customer awareness – the turn of the century saw a lot and has much more to come.

Selling the Right Product

With improved consumer consciousness and a higher level of education there has to be more concentration on product rather than the media communication. More importance is placed on capturing and retaining customers that promoting the right product. It is important to have a right product before have the right advertising. Right product does not just stand for quality and value for money but also the appropriateness of the product at a particular time.

The product should target the right customer base and should keep in consideration “the mood of the people”. For example at the time of recession, luxury should not be emphasized on in terms of advertisement. Such an advertisement could result in boycott of the brand. Concentration on getting the product right will not just result in satisfied customers but also will eventually attract more customers. Innovation of the product to build marketing into the product is the next step.

With increasing emphasis on ethics and corporate social responsibility the performance actions of a company that influence a consumer to buy the product are to change from the famous “4 P’s of Marketing” by Professor Neil Borden of the Harvard Business School to a new concept of “5 P’s of Marketing”.From Product, Promotion, Price, Placement to Product, Promotion, Price, Placement and Principle.

Principle – The code of conduct of the company, the social responsibilities and ethics will hold an important stand in the consumer’s decision of buying a product. More environmentally conscious products will penetrate the market. A customer would not like to buy a product if it is made by workers who are not paid sustainable wages or buy a product which is not dyed with eco friendly dyes. If a company is known for malpractice the consumer will put aside other factors and make a wise choice to stand against the product. Strategies like “one rupee to rural education on purchase of this product” will gain popularity.

With fashion moving from a common foundation for all at a certain period of time to individualism, targeting a common market could result in depriving the customer of choices and mass rejection. The customer would be more bold and independent; hence catering to customer preferences at a fast changing pace will be a necessity. The famous fifteen days lead time of Zara, the 300 new styles every week of Hennes & Mortiz are good examples to state here. Fashion symbolizes change; hence the common lead time of three to six months will gradually become unacceptable.

A concept of “by the customer, of the customer and for the customer” is emerging. An example of this would be “www.threadless.com”. In this one can design a shirt and put it for public view. The public can vote for the best design and that shirt would go into production. This gives the consumers satisfaction in terms of choice and also a sense of control. There is a dire need of innovation of processes that will allow the customer to choose their product or service.

Marketing on the internet started with online consumer surveys and moved to online retailing. A lot in this is still unexplored. In reference to the pace of technological advancements, in the later half of the century a 3D virtual shopping experience is a possibility. With the internet fast becoming a popular channel of retailing, the concept of e-tailing (electronic retailing) in fashion is captivating the consumers. Internet is catering to the convenience of the consumer. With e libraries, online catalogues and made to order the customers have a lot to choose from. With increasing value of time over money, a customer prefers to pay a little extra for delivery at doorstep. This is a topic of intense research in garments because for new customers fit preferences are difficult to infer.

Customer segmentation should not be based on differences but on similarities. The popularity of online social networking could help define a different league of customer segregation. With likeminded people forming groups and communities on Facebook, Orkut and other social networking sites a method of customer segregation could be devised based on the groups and communities.

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Google Boutiques.com, a World of Fashion

Google unveils a new shopping portal, Boutiques.com. It showcases the power of search in the world of fashion. You can shop and choose from a variety of styles, designs and collections of famous designers and stylists. Shoppers can easily catch up with the trend because it allows users to save likes or dislikes in the site.

Shopping is the watchword today. Almost everyone around the globe is on a Shopping spree. Google understands this and thus, has launched a new shopping portal entitled Boutiques.com to add on to its almost full kitty of world class products and services. The portal, as they say, combines the goodness of both social and search. It allows for finding and discovering styles and fashions collections that have been put together by renowned celebrities, designers, stylists and fashion experts, to name a few.

Through this site, Google will be able to analyze the tastes of consumers by ways of a number of clicks, Google Trend data, computer vision and machine learning technology and ultimately, letting them know the entire world of fashion. As is the case with Youtube,  whenever a user logs into his/her account, the site would know the user’s taste for fashion and recommend those results that suit the taste.

Google got the technology from its acquisition of Like.com, along with which came the technology team behind it. They were already working hard on that and had also launched a site of their own called WhatToWear.com. The team at Google now consists of PhDs in Computer Science and Fashion Designers and Stylists. In fact, it is an amalgamation of computer nerds and fashion nerds. Altogether, the team is working on creating a new route to browse, find and buy world class fashion under one roof.

Source: Marketingconversation.com by ROBIN PANGILINAN

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How to Define your Target Market

To build a solid foundation for your business, you must first identify your typical customer and tailor your marketing pitch accordingly.

With the current state of the economy, having a well-defined target market is more important than ever. No one can afford to target everyone. Small businesses can effectively compete with large companies by targeting a niche market.

Many businesses say they target “anyone interested in my services.” Some may say they target small business owners, homeowners, or stay-at-home moms. All of these targets are too general.

Targeting a specific market does not mean that you have to exclude people that do not fit your criteria from buying from you. Rather, target marketing allows you to focus your marketing dollars and brand message on a specific market that is more likely to buy from you than other markets. This is a much more affordable, efficient, and effective way to reach potential clients and generate business.

For example, an interior design company could choose to market to homeowners between the ages of 35-65 with incomes of $150,000+ in the Baton RougeLouisiana, market. To define the market even further, the company could choose to target only those interested in kitchen and bath remodeling and traditional styles. This market could be broken down into two niches: parents on the go and retiring baby boomers.

With a clearly defined target audience, it is much easier to determine where and how to market your company. Here are some tips to help you define your target market.

How to Define Your Target Market: Look at Your Current Customer Base

Who are your current customers, and why do they buy from you? Look for common characteristics and interests. Which ones bring in the most business? It is very likely that other people like them could also benefit from your product/service.

Dig Deeper: Upselling: Dig Deeper Into Your Customer Base

How to Define Your Target Market: Check Out Your Competition

Who are your competitors targeting? Who are their current customers? Don’t go after the same market. You may find a niche market that they are overlooking.

Dig Deeper: In Praise of Niche Marketing

How to Define Your Target Market: Analyze Your Product/Service

Write out a list of each feature of your product or service. Next to each feature, list the benefits they provide (and the benefits of those benefits). For example, a graphic designer offers high quality design services. The resulting benefit is a professional company image. A professional image will attract more customers because they see the company as professional and trustworthy. So ultimately, the benefit of high quality design is to gain more customers and make more money.

Once you have your benefits listed, make a list of people who have a need that your benefit fulfills. For example, a graphic designer could choose to target businesses interested in increasing their client base. While this is still too general, you now have a base to start from.

Dig Deeper: How to Conduct Market Research

How to Define Your Target Market: Choose Specific Demographics to Target

Figure out not only who has a need for your product or service, but also who is most likely to buy it. Think about the following factors:

    • Age
    • Location
    • Gender
    • Income level
    • Education level
    • Marital or family status
    • Occupation
    • Ethnic background

Dig Deeper: Why Demographics Are Crucial to Your Business

How to Define Your Target Market: Consider the Psychographics of Your Target

Psychographics are more personal characteristics of a person, including:

    • Personality
    • Attitudes
    • Values
    • Interests/hobbies
    • Lifestyles
    • Behavior

Determine how your product or service will fit into your target’s lifestyle. How and when will they use the product? What features are most appealing to them? What media do they turn to for information? Do they read the newspaper, search online, or attend particular events?

Dig Deeper: Understanding How Your Customers Think

How to Define You Target Market: Evaluate Your Decision

Once you’ve decided on a target market, be sure to consider these questions:

    • Are there enough people that fit my criteria?
    • Will my target really benefit from my product/service? Will they see a need for it?
    • Do I understand what drives my target to make decisions?
    • Can they afford my product/service?
    • Can I reach them with my message? Are they easily accessible?

Don’t break your target down too far! Remember, you can have more than one niche market. Consider if your marketing message should be different for each niche market. If you can reach both niches effectively with the same message, then maybe you have broken down your market too far. Also, if you find that there are only 50 people that fit all of your criteria, maybe you should reevaluate your target. The trick is to find that perfect balance.

You may be asking, “How do I find all this information?” Try searching online for research others have done on your target. Search for magazine articles and blogs that talk about your target market or that talk to your target market. Search for blogs and forums where people in your target market communicate their opinions. Look for survey results, or consider conducting a survey of your own. Ask your current customers for feedback.

Defining your target market is the hard part. Once you know who you are targeting, it is much easier to figure out which media you can use to reach them and what marketing messages will resonate with them. Instead of sending direct mail to everyone in your zipcode, you can send only to those who fit your criteria. Save money and get a better return on investment by defining your target audience.

Dig Deeper: How to Find New Customers and Increase Sales

Source: Inc.com By Mandy Porta

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HOW TO: Score the Best Fashion Deals on the Social Web

Mollie Vandor is the Product Manager for Ranker.com and Media Director for Girls in Tech LA. You can find her on Twitter and on herblog, where she writes about the web, the world and what it’s like to be a geek chic chick.

Just because the economy is still depressed doesn’t mean you have to be. In fact, there are plenty of ways to live it up without seeing your bank balance plummet — especially if you know how to use social media to live the good life on tight budget.

Even the most reclusive social media shut-ins need to leave the house for some in-person networking at some point. And when you do, you don’t want to look like the poor slob who just threw on whichever pants were closest to the computer screen. Nor do you want to be the designer diva who can’t afford cab fare because she blew all her bucks on a brand name bag. Fortunately, thanks to a few online tips and tricks, high fashion doesn’t have to come with a high price tag.


Smell the Savings


 

 

 

 

Coco Chanel once said, “A woman who doesn’t wear perfume has no future.” While Coco may have been overstating her case a bit, it’s true that perfume and cologne are great accessories to any outfit. Of course, buying the good stuff can also be a great way to flush a fortune down the drain. That’s why sample sizes should be your new best body-odor-fighting friend.

Don’t let their small size fool you — one of these little bottles will still probably give you a good six months of sweet scents, depending on how heavily you use it. Sample perfumes start as low as $1.99 on AmazonAmazon.com, and because they’re so small, shipping is extremely cheap. If you buy from a bigger retailer like FragranceNet, they’ll also usually throw in other goodies like more perfume or makeup samples.


Personal Stylists Are Out of Style


 

 

 

 

Before you buy any clothes to go with that signature scent, use a site like Polyvore or ShopStyle to be your own personal wardrobe stylist — no hefty retainer required. These sartorial social networks let you “try before you buy” by giving you the tools to put together looks online, so you can see how clothes and accessories will work together.

With huge databases of designer duds, this is a great way to test drive an outfit before you spend cold, hard cash on it, and a great way to keep track of what you already have in your closet. Plus, with everyone posting different looks, these are also great places to get inspiration for new ways to wear the stuff you’ve already shelled out the cash for.


Keep Your Cash


 

 

 

 

When you are ready to make a big clothing or beauty purchase, make sure you use a service like eBates, which gives you a percentage of what you spend on their partner sites back as a cash rebate. So, it’s basically like you’re paying yourself to shop — or at least that’s what you can tell yourself to justify spending so much on shoes.


Sample Sale Sites


 

 

 

 

Of course, you can avoid spending full price on anything by signing up for a private sale site. These sites are the online equivalent of a sample sale, giving you exclusive access to amazing deals on designer looks. And, many of them will even e-mail you when a sale matching your particular preferences pops up.

With so many sale sites to choose from, it can sometimes be difficult to decide which ones are worth opening your inbox too. If you’re looking for basics like great jeans or tees, then BlueFly is probably your best bet. This mainstream online shopping mall also has a fantastic private sale area, where anyone can browse big discounts on designer duds from brands like Theory, Prada and Louboutin. You don’t even have to sign up to use it, although registered users can ask to be notified about new deals via e-mail.

If you’re into the higher end of high fashion, then Gilt GroupeNet-A-Porter and Haute Look are all great bets for big name brands. Gilt Man gives guys the same exclusive deals on a site built just for them. Gilt Groupe even has an iPhone/iPad/Android app to let you shop sales on the go. Net-A-Porter lets you do the same from your iPhone/iPad.

For more unique, up-and-coming designers, head to Rue La La, which has a slightly younger aesthetic and a lot of fun, playful finds. If you’ve got little ones to outfit too, use Zulily. They’ve got great clothes and accessories for kids, and a few things for mom too.


Vintage: Everything Old is New Again


 

 

 

 

If brand new brands aren’t your bag, the web is also a great place to track down fabulous vintage finds, which often cost far less than their shiny new counterparts. In the dark ages before the InternetInternet, finding that amazing designer piece of vintage clothing was like searching for the proverbial needle in a big, messy thrift store haystack. But now, there are some great options for perusing the previously worn racks from the comfort of your computer screen.

EtsyRusty ZipperArchive Vintage and Posh Girl Vintage are just a few of the places where you can score hot looks with a little bit of history behind them. CMadeleines has a great listing of vintage duds by designers, including pieces by Chanel, Dior and Hermes. And, TheFrock has fantastic vintage dresses, including a great bridal boutique.

Speaking of brides, if you’re looking to accessorize all of those fabulous outfits you just bought online, you can score great jewelry deals — including deeply discounted bridal bling — at I Do, Now I Don’t. This site specializes in the sale of jewels by scorned exes who want to unload them fast for much less than what they were purchased for in the first place. You can bid on necklaces, bracelets, rings and more, or buy them outright. Just try to avoid reading the stories about why the items are being sold, unless you want to spend a whole lot more in retail therapy to get your mood back up.


Why Buy When You Can Rent?


 

 

 

 

If you just need a single look for a particular event, or you want to get all the benefits of a brand name buy without all that pesky commitment and cold, hard cash, then you want a runway rental service. These sites offer what A-list celebrities have been privy to for years; borrowing. Designer duds and amazing accessories can be rented for far less than you’d pay to actually own them.

It’s sort of like Netflix for your closet. Bag, Borrow or Steal and From Bags to Riches offer amazing purses and accessories, and Rent the Runway has clothing options guaranteed to get even the most finicky fashionista frothing at the mouth — or the keyboard, as the case may be.


Fashion Goes Social


 

 

 

 

Even if you’re not necessarily an online shopper — or renter — you can still get great gear at low prices using the web. You can follow brands like Louis Vuitton on FoursquareFoursquare and Toms Shoes on GowallaGowalla for insider info, good deals and the chance to win great stuff.

Or you can use Stylophane to quickly find your favorite fashion brands on FacebookFacebook. If you want to find coupons you can use in the real world, CheapTweet will let quickly scan everyone who is sharing a fashion or beauty sale on TwitterTwitter in real time, so you know which coupons to print out and which ones to pass on. You can also send a tweet to @couponbot with the name of your favorite store, and see what deals come back.

Of course, you should also make sure you accessorize your favorite mobile device with an app like ShopSavvy, which lets you scan bar codes of stuff you’re thinking about buying to see if there’s a better price elsewhere. Because if you’re paying the bill for a decent smartphone data plan, you definitely can’t afford to pay full price for fashion when there’s a sale going on somewhere else.

No matter what your style, saving money is always in. Especially with the recession turning penny-pinching into the hottest trend for fall. But thanks to the Internet, you can be on top of that trend – and many more – without a lot of extra effort or energy. Because saving money on style is great. But saving money on style while sitting at home in your pajama pants is even better.

Original Source: Mashable.com

 

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DIESEL, LIVE, BREATH AND WEAR PASSION

INTRODUCTION

Have you ever heard of passion in the marketing mix? How about people? Those two Ps never seem to figure alongside the famous four which you, will of course, know by heart. This case study shows that having the depth of passion and the right people are crucial missing links in binding the regular Ps together.

PRODUCT

Diesel sells nice jeans. Close, but no ‘A’. Actually, it’s not that close. The reason Diesel has grown is because it knows it is about a lot more than selling nice jeans. Diesel is a lifestyle: if that lifestyle appeals to you, you might like to buy the products. Renzo describes this as an end of the ‘violence’ towards the customer forcing them to buy and rather an involvement in the lifestyle.

The brandIt might be useful to ask a question – what actually is a brand? The answer could take a variety of routes and go on for pages but a useful way to think of a brand is as a set of promises. Those promises form the basis of the customer’s relationship with that company. In the case of Diesel those promises are very personal, very passionate.

The Diesel brand promises to entertain and to introduce customers to new, experimental experiences. Its product line now goes far beyond premium jeans and includes fragrances, sunglasses and even bike helmets.  These products complement, convey and support the promises of passion and experience made by the Diesel brand.

Being such a crucial element of its work you might imagine the product design team at Diesel to ‘plot’ in something akin to a war room, pushing little squadrons of well-dressed soldiers around with long sticks. Actually, this is where that elemental passion which created Diesel sets them apart from many others. The whole team at Diesel lives the brand. They are all incredibly passionate about their creations. So when it comes to expressing that passion, ideas come naturally. Living and breathing the set of promises the Diesel brand communicates means employees can listen to their instincts, creating products straight from within.

Diesel builds its entire existence around the passion for what it does. With a founder who sees his work as an art and not a science, the company has redefined how a brand sees and communicates with its customers since 1978. It is the Diesel story we will look at in this case study.

Diesel is a global clothing and lifestyle brand. With a history stretching back over 30 years, the company now employs some 2,200 people globally with a turnover of €1.3 billion and its products are available in more than 5,000 outlets. However, this list of numbers is far less interesting than the company, people and founder behind them. Diesel is a remarkable company with a unique mindset. A mindset which puts sales and profit second to building something special, something ‘cool’ and something which can change the world through fashion.

The story begins with a young Renzo Rosso passionate about the clothes he wears but disappointed in the options available to him in his home town Molvena, Italy. Acting on impulse, he decided to use his passion to make the clothes he wanted to wear. Renzo was drawn to the rebellious fabric of the 1960s and rock & roll: denim. It inspired him to create jeans which would allow him and others to express themselves in ways other clothing simply could not.

Proving popular, Renzo made more and more of his handcrafted creations, selling them around Italy from the back of his little van. The still-young Renzo is the proud owner and CEO of Diesel along with that impressive list of figures. That impulse and passion apparently paid off.

PROMOTION

‘Be stupid’With the launch of the recent marketing campaign around the phrase ‘Be Stupid’, Diesel took a look at what brought its current pipeline: it was Renzo Rosso, all those years ago, taking the ‘stupid’ move to make jeans he wanted to wear. Then he took the even more stupid move of trying to sell those jeans to others, believing he might not be the only fool in Molvena! As it turned out, there were quite a few more to be found and Renzo’s ‘stupid’ move ended up creating something which millions of people around the world now enjoy.

Promotion and marketing at Diesel takes a very different route to many other companies. It is always about engaging with the customer as opposed to selling at them: creating an enjoyable two-way dialogue as opposed to a hollow one-way monologue. All elements of Diesel’s promotion aim to engage the customer with the lifestyle. If they like the lifestyle, they might like the products.

For example, the Diesel team saw music as an inseparable part of that lifestyle and realised that exploring new music and new artists was all part of trying something different and experimenting with the unusual. 10 years later, Diesel:U:Music is a global music support collaborative, giving unsigned bands a place where they can be heard and an opportunity to have their talent recognised. It’s not about selling, it’s about giving people something they will enjoy and interact with.

Tied to Diesel:U:Music is an online radio station. It is another example of where Diesel unconventionality has created something which pushes conceptions and the usual ways of doing things. The radio station takes a rather unusual approach of not having a traditional play list but rather gives the choice to the resident DJ. This freedom is reflected in the eccentric mix of music which is played on the station.

Above- and below-the-lineIn promotion and marketing, we often talk about ‘above-the-line’ and ‘below-the-line’ methods of reaching consumers. Above-the-line marketing is aimed at a mass audience through media such as television or radio. Below-the-line marketing takes a more individual, targeted approach using incentives to purchase via various promotions. In this case passion again acts to blur and gel the boundaries between the two approaches. If we had to define this approach in terms of theory, we would call it ‘through-the-line’, i.e. a blend of the two.

The passion and energy embodied by the Diesel lifestyle is communicated through a mix of above-the-line and below-the-line approaches. The balance and composition of that mix is what the Diesel team hands over to their passion and feel for the company and brand. That energy guides the way this abstract theory is realised in projects such as Diesel:U:Music and the ‘Be Stupid’ campaign, which entertain and interact with their potential customers.

PLACE

Another, drier, way of describing ‘place’ in the marketing mix is ‘channel’ or distribution channel. The way a business chooses to offer its products to its customers has a huge impact on its success.

Only around 300 of the 5,000 global outlets which sell Diesel products are owned and managed by the company itself. The majority are large department stores offering many other brands or boutiques with a very specific style of their own. How do you maintain the quality of a product and its communication when dealing with so many different partners and distribution channels?

CultureThe strong culture within Diesel again holds the answer. Every employee is able to communicate the brand appropriately in their given role within the company. As such, the managers of the Diesel-branded stores know that their function is to act as a flagship. They focus on the core campaigns like ‘Be Stupid’ giving a solid focus and image for the brand. Employees in each of the stores all know the campaigns intimately and are very aware of the image they should put across to customers entering the stores.

Their retail partners such as the department stores are a crucial link in the chain. Diesel works closely with these partners to ensure they express the same level of passion when offering their products. This is done through separate and individual campaigns. These provide visitors with a unique experience which again encourages them to get involved with the Diesel lifestyle as opposed to forcing products on them.

DistributionThis approach to distribution can be seen as a mix of exclusive and selective distribution over intensive distribution. Exclusive distribution involves limiting distribution to single outlets such as the Diesel flagship stores. Selective distribution involves using a small number of retail outlets and partners to maintain the quality of presentation and communication to the customer. Intensive distribution, on the other hand, is commonly used to distribute low price or impulse goods such as sweets.

PRICE

The price of a product is so much more than a little, or rather big, number on a tag. The price of a product is the most direct and immediate tool a business can use to convey the quality of its product at the point of sale. If done right, the price reinforces the rest of the marketing, drawing in the target customers by conveying the appropriate quality.

Pricing strategiesDiesel uses a model based on premium pricing. As we have discussed, Diesel is far more a lifestyle than a clothing brand.  Through the vision and passion of Renzo Rosso, the company has created a whole new approach to engaging with its customers. The price of Diesel’s products needs to reflect the substance and value of that experience.

A strategy such as penetration pricing used by businesses making high-volume, relatively low-margin products would be inappropriate as it would undermine the quality association thus devaluing the brand and experience.

We do not pay a premium price for Diesel jeans because they are a premium quality, that is taken for granted. We pay a premium price because the jeans and the brand fit in with and even encourage a premium, dynamic lifestyle built ‘for successful living’, as Diesel would say.

The team at Diesel must be intimately in tune with that lifestyle so they can see how their diverse range of products from jeans to fragrances and even bike helmets fits within that lifestyle. That feel for what Diesel is and how we, the potential customers, interact with it allows the company to price those products in a way which complements and neatly fits into that lifestyle.

PEOPLE

Besides the fact Renzo has, let’s say, done alright for himself, he has inspired thousands of people who proudly work to build the brand through a shared passion and contagious ambition.

Looking at the structure within which all those people work can help us to understand just why they are so happy to be there. Renzo realised people and their ideas form the heart of the company. So that everyone’s voice can be heard and each person working for Diesel has an equal say, the company adopts a flat hierarchy. This means there are very few layers of management and everyone is encouraged to communicate with each other: sharing ideas, solving problems and trying to communicate that energy with people outside the company – the customers.

TeamworkWhen decisions are made in this flat hierarchy they are made as a team. The team as a whole can then track the progress of that idea and monitor the results. Feedback is important because if everything has gone to plan, the achievement has to be acknowledged so that everyone can take pride in what they have done. If something has not gone to plan, group feedback allows an evaluation of why and the ability to learn for the future.

MotivationImportantly, this acknowledgment or learning happens equally across the company so everyone is kept up to speed on the ups and downs of business. This sense of belonging both to a team but also to a particular responsibility is very important for employee motivation. The better you understand your work and your environment, the happier you are likely to be with your job. The happier you are, the less likely you are to want to leave and so this open approach has the very positive company-wide effect of high employee satisfaction and a low staff turnover. Specifically in the fashion industry this means that the people working for Diesel have a stronger sense of identity and a deeper understanding of the brand making them even better at what they do.

CONCLUSION

The marketing mix is all good and well but it doesn’t paint the full picture. To understand it we must look at the ‘touchy, feely’ elements of business which are less often discussed. Diesel has built its existence around that touchy, feely passion with every one of its 2,200 employees living the Diesel brand. Diesel is the perfect company to allow us to see how this dry theory actually works in real life: how the passion of a founder like Renzo Rosso can be communicated around a company and breathed into each and every one of its diverse products.

Diesel grew into a global household name for premium clothing but it all started from that one man wanting to do something unusual, something ‘stupid’. Stubbornly he stuck to his belief in doing the unusual and it has created a global company whose products are enjoyed by millions. More importantly, this has created a lifestyle – a whole new approach to the way we see a brand. Diesel is an experience which interacts with and entertains its customers – a far deeper relationship than most other brands.

Being driven by passion and the desire to do something special naturally ties these elements together. Understanding theory like the marketing mix in a company like Diesel can be difficult if we expect the elements of price, place, product and promotion to be separate from each other. It becomes easier if, like a magic eye picture, we look beyond the dry theory and realise all of these elements are inseparably bound together by the passion of people like Renzo Rosso who have dedicated their lives to treating their work as an artistic expression of their feelings.
Read more: http://www.thetimes100.co.uk/case-study–live-breathe-and-wear-passion–159-414-7.php#ixzz16R3XM1mV

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AIMS OF MARKETING DEPARTMENT

Marketing involves a range of processes concerned with finding out what consumers want, and then providing it for them. This involves four key elements, which are referred to as the 4P’s (the marketing mix). A useful starting point therefore is to carry out market research to find out about customer requirements in relation to the 4Ps.

Market research

There are two main types of market researchQuantitative research involves collecting a lot of information by using techniques such as questionnaires and other forms of survey. Qualitative research involves working with smaller samples of consumers, often asking them to discuss products and services while researchers take notes about what they have to say. The marketing department will usually combine both forms of research.

The marketing department will seek to make sure that the company has a marketing focus in everything that it does. It will work very closely with production to make sure that new and existing product development is tied in closely with the needs and expectations of customers.

Modern market focused organisations will seek to find out what their customers want. For example, financial service organisations will want to find out about what sort of accounts customers want to open and the standard of service they expect to get. Retailers like Argos and Homebase will seek to find out about customer preferences for store layouts and the range of goods on offer. Airlines will find out about the levels of comfort that customers desire and the special treatment that they prefer to receive.

A useful definition of marketing is the anticipation and identification of customer needs and requirements so as to be able to meet them, make a profit or achieve other key organisational objectives.

Source: Thetimes100.uk

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Filed under Fashion Marketing, Marketing, Marketing Mix, Place, Price, Product, Promotion