lH < = © studocu Q Business of fashion © Q UNITI Factors influencing fashion changes — Accelerating and Decelerating factors Understanding Fashion designer — types — classicist, idealist, influenced, realist, thinking poet Minimalists, Village India, Studio line. World Fashion Centers — Milan, Paris, London and New York SSE AIMS AND OBJECTIVES ‘The Business of Fashion is an online magazine and website dedicated to the world of fashion. It was founded in 2007 by Imran Amed and has gained a global following as an essential daily resource for fashion creatives, executives and entrepreneurs in over 200 countries. It is frequently described as “indispensabl required reading” and “an addiction.” 1. Understanding the fashion business Discuss about the fashion business Discuss about the business size and structure Understanding the business environment wee Understanding the business current trend INTRODUCTION ‘The Business of Fashion was founded in 2007 by Imran Amed, a fashion business advisor, writer and digital entrepreneur: The Business of Fashion began as a project of passion, aiming to fill the void for an informed, analytical and opinionated point of view on the fashion business MEANING OF BUSINESS IN FASHION Prior to the mid-19th century, most clothing was custom-made. It was handmade for individuals, either as home production or on order from dressmakers and tailors. By the beginning of the 20th century-with the rise of new technologies such as the sewing machine, the rise of global capitalism and the development of the factory system of production, and the Proliferation of retail outlets such as department stores-clothing had increasingly come to be ‘mass-produced in standard sizes ready for sale. Although the fashion industry developed first in Europe and America, presently itis an international and highly globalized industry, with clothing often designed in one country, manufactured in another, and sold worldwide, For example, an American fashion company might source fabric in China and have the clothes ‘manufactured in Vietnam, finished in Italy, and shipped to a warehouse in the United States for distribution to retail outlets internationally. The fashion industry has long been one of the largest employers, However, due to increase in labor costs it has moved from developed ‘countries to developing particularly China and African countries [I]. Fashion industry= Gstudocu Qazv- Business of fashion © Q employs people across occupation from skilled labour to fashion designers, computer Programmers, lawyers, accountants, copywriters, social media directors, and project managers. Manufacturing is only a fraction of the modern fashion industry as itis a highly sophisticated industry involving fashion and market research, brand licensing/intellectual Property rights, design, materials engineering, product manufacturing, marketing and finally, distribution The fashion industry consists of four components/levels: a) The production of raw materials, principally fibers, textiles, leather and fur. ») The production of fashion goods by designers, manufacturers, contractors, and others. ©) Marketing in the form of advertising and promotion. 4d) Wholesale/Retail sales and e- commerce. These levels consist of many separate but interdependent sectors. These sectors are Textile Design and Production, Fashion Design and Manufacturing, Fashion Retailing, Marketing and Merchandising, Fashion Shows, and Media and Marketing. Each sector is devoted to the goal of satisfying consumer demand that enable designers, manufacturers, retailers and marketing firms to operate for a profit STATEMENT OF THE PROBLEM The fashion market in Nigeria is growing speedily: so also is the growth of competition among designers. As observed by Alabi (2015), Nigeria is a creative hub of talented designers. In all the states of the federation, local fashion stylists are seen with newer and attractive styles on periodic basis. The local designers have the skill to reproduce at better and reduced prices, expensive designs of internationally known design makers. This stiffens the competition in the industry, Today, senators, bankers, celebrities, students, civil servants, ete can be proud to wear clothing and foot wears made by Nigerians for certain occasions. Although the footwear section still has a long way to go in terms of quality, Nigerian designers are making waves in the country and beyond. However, it is disappointing to note that most of these fashion designers lack relevant knowledge of the exact forces behind the behaviour of their consumers and the magnitude of impact the forces exact on fashion consumption. They pay little or no attention to factors that drive positive consumer behaviour towards their products and they think less about customer loyalty, customer word-of-mouth promotion, intemationalization as well as technological enhancement. These make it difficult= studocu Qty Business of fashion for the designers to gain sustainable competitive advantage and enhanced customer satisfaction locally and internationally. Again, fashion stylists spend little or no resources on marketing researches to find out the trend of global fashion while the few that do, find it Micult to relate global trend to the peculiar environment of Nigerian fashion consumers. Above all, there is an obvious paucity of literature and empirical studies on fashion consumer behaviour in the Nigerian context. This makes it hard for the educated fashion stylists and designers to follow any tailored fashion consumer behaviour model in their production and ‘marketing strategies. It was this wide gap that this present study sought to close. However, the researchers paid attention to clothing and footwear fashion with the Preez (2003) model of apparel shopping behaviour as a guide. This model majored on demographic, socio-cultural and psychological factors. Our study added other factors to suite the peculiarity of the study environment, while concentrating on the psychological factors only. Business models of fashion industry ‘The fashion industry is a dynamic in the sense that fashion trends and styles change continuously. Each fashion company responds differently to the changes in fashion trends, distribution and selling of clothes to its customers, The majority of companies choose to follow the latest fashion trends while new entrants try to emphasize quality over quantity by striving for a mote sustainable and long- lasting approach. These differences are generally illustrated by two business models, which have emerged over the past few years within the fashion industry, namely the fast fashion and slow fashion model. According to Fletcher fast fashion is time based whereas slow fashion is rather quality-based FACTORS INFLUENCING FASHION ‘The main factors which influence fashion can be divided mainly into five different segments: + Social Factors, + Cultural Factors. + Political Factors. + Environmental Factors. + Psychological Factors, FACTORS INFLUENCING FASHION © SOCIAL FACTOR Social influence is particularly apparent in the area of clothing and adornment. In, these merchandise categories, most products are nearly equivalent from a func: tional. point ofH = @studocu Q Business of fashion view, and consumers are, in large part, making social identity state- ments with what they buy. Fashion is more than a social process involving clothing and address, but is an expressive appreciation of novelty and individuality, which highlights both economic Production and personal consumption. ... Perrine acknowledged the social constructs are being part of not only cultural phenomena, but tradition as well. These factors include- Population growth, age distribution, health consciousness, career attitudes and so on. These factors are of particular interest as they have a direct effect on how fashion industry understands customers. The fashion industry is one of those industries that May be most affected by the impact of socio-cultural trends For instance, it has been witnessed for decades that the world population is aging. Such a demographic change may result in a threat for solely teenage oriented apparel firms because the competition for their shrinking segment becomes more intense. However, an opportunity can open up for new or more flexible incumbent fashion retailers. They may focus on more mature customers and offer appropriate sizes and simpler designs with quality durable materials. Another social trend is that customers are more and More concerned about their health, which can be confirmed by a steady increase in individual health expenditur. This may lead to a greater customer interest in the materials used, their origin and their processing methods, demanding more transparency and accountability on behalf of the fashion firms. In this respect, more and more customers have gone ‘green’ and support sustainable and ethical activities of companies, Besides this, fashion tastes and trends of teenagers and young adults are very diverse and volatile nowadays and are influenced by celebrities and the media. The ‘hipster’ trend is a recent example and companies may have to decide if they follow such temporary fads or if their business is stable enough to sustain within their usual channels. The media, however, does not only spread trends to customers but also makes aware of scandals and negative publicity about bad Corporate Social Responsibility (CSR) practices like child labor, sweat shops or inhumane working conditions. One example was the incident at the Rana Plaza in Bangladesh in 2013, a factory which makes garments for chains like Primark, where more than 1,100 workers died when the dilapidated building collapsed above their heads. As a result, changes in customer behaviour and attitudes towards fashion companies are increasing the demand to more reporting activities and auditing processes on labour conditions and wages to ensure a fairer treatment of workers. Political and legal Factors: ‘These are all about how and to what degree a goverment intervenes in the economy. TI can include - government policy, political stability or instability foreign trade policy, tax policy, labor law, environmental law, trade restrictions and so on. It is clear from the list above that= © studocu Q Business of fashion © Q Political factors often have an impact on ease of doing business, Organizations need to be able to respond to the current and anticipated future legislation and adjust their marketing policy accordingly. Legal factors include - health and safety, equal opportunities, advertising standards, consumer rights and laws, product labeling and product safety. It is clear that companies need to know what is and what not legal in order to trade successfully. [fan organization trades globally this becomes a very tricky area to get right as each country has its own set of rules and regulations Environmental Factors ‘These factors have come to the forefront by the tum of the century. They have become important due to the increasing searcity of raw materials, pollution, health hazards, carbon footprint targets set by governments to mitigate climate change, doing business in an ethical and socially responsible way etc. These are just some of the issues marketers are facing within this factor. More and more consumers are demanding that the products they buy are sourced ethically and if possible from a sustainable source, In the environmental dimension of the PESTEL framework several trends can be observed which are likely to have an impact on fashion industry. First of all, climate change and global warming might pose serious challenges to fashion companies in the future, especially within developing countries Events like droughts, tsunamis or floods are often unforeseeable and can harm the growth of cotton and the maintenance of manufacturing facilities. Since many ret ts have shifted the production to so-called developing countries in Asi Fashion industry need to be particularly aware of such environmental risks and create awareness in production units and among workers for such events. Besides, in order to counteract and reduce the consequences of the changing climate, stakeholders are putting pressure on fashion companies to reduce their carbon footprint and incorporate environmental friendly practices alongside their whole supply chain. A related critical debate that has been pursued recently and may continue to be the issue in the future is about the environmental pollution that is attributed to the supply chain activities of companies in the apparel! industry. Fashion leaves a great environmental footprint along its supply chain and life eyele, For instance, growing non-organic cotton requires a big amount of chemicals, water and pesticides, which harm human health and have a significant, long-lasting impact on the environment. Besides, overconsumption in the fast-fashion world leads to greater amounts of ‘waste creating disposability problems. Textile production facilities use a lot of energy, water and chemicals generating contaminated water and toxic volatile emissions. No one wants to eat a meal laced with plastic, but ifVv = © studocu Q= Business of fashion © Q something doesn’t change in our current textile economy, that could soon be a reality. Plastic microfibers, which are like tiny pieces of plastic lint that come off synthetic clothing in the ‘washing machine, are now entering the oceans ata rate of about half a million tons every year ~ that's equivalent to more than 50 billion plastic bottles. Once in the water, these microfibers are ingested by aquatic wildlife and travel up the food chain where they end up being consumed by humans. This problem is just one of many, highlighted in a report from the Ellen MacArthur Foundation, Entitled “A New Textiles Economy: Redesigning Fashion's Futui The report has gamered support from brands like Stella McCartney, Nike and H&M in ‘addition to the United Nations and organizations like the Sustainable Apparel Coalition and the C&A Foundation ‘The House of Commons environmental audit committee in U K has launched an inquiry to explore the carbon impact, resource use and water footprint of clothing throughout its lifecycle and supply chain, The committee has observed that the globalised market for fashion ‘manufacturing has facilitated a “fast fashion” phenomenon; a proliferation of cheap and Cheerful clothing, with quick tumover that encourages consumers to keep buying, The key to the inquiry is how consumers could be encouraged to buy fewer clothes, reuse clothes and think about how best to dispose of clothes when they are no longer wanted, An estimated 300,000 tonnes of fashion waste goes straight into landfill each year in U K, despite growing efforts to encourage consumers to recycle their wom and unwanted clothing. It is for these feasons more and more consumers, govemmments and other stakeholders demand more in daily business operations. If fashion companies want to maintain loyal customers, they need to reduce their impact on the environment and invest in Sustainable and eco-friendly practices in order to reduce waste and m: water and air sustainable and ethical practic mize the pollution of PSYCHOLOGICAL FACTOR Many psychological factors help explain what motivates us to be fas hionable. These include conformity, desires for variety seeking, the need to express personal creativity, and sexual traction. For example, many consumers seem to have a need for uniqueness: Th hey want to be different (though not necessarily sao different) Asa result, people may conform to the basic outlines of a fashion, but sill improvise to make a Personal statement within these general guidelines One of the earliest theories of fashion psychology argued that “shifting erogenous zones” (sexually Srowsing areas ofthe body) accounted for fashion changes, and that different zones become the object of interest because they reflect societal trends, For example, it was Common for Remaissance-era women to drape their abdomen in fabrics to give a swollen= Qstudocu Qry Business of fashion ‘Appearance: successful childbearing was a priority in the discase-ridden 14th and 1Sth Centuries, Numerous studies have looked at how variations in clothing influence observers’ ‘responses. For example, one study found that men tended to leave higher tips for waitresses ‘who wore red tops. The “dress for success” phenomenon illustrates the widespread belief that appearance directly impacts the way people are treated. Accelerating factors of fashion Good economic conditions: Accelerate fashion movement. stage of the fashion cycle, of fashion leaders . At the introduction new styles are: Usually accepted by only a small number Factors that Speed Up Fashion Cycle Movement * Mass media, modem communications. + Good economic conditions. + Increased competition + Technological advances, * Social and physical mobility + More leisure time. + Higher levels of education, + Changing roles of women, Decceleration factor in fashion The deceleration phase: the growth rate gradually decreases along limitation of nutrient availability and accumulation of metabolized products. Factors that influence the effects of deceleration are the initial rate of speed, the distance covered and time consumed in deceleration, the direction of forces, CONCLUSION and the area of distribution Though fast fashion model is well established, however, due to environmental issues and social values related to business ethics, the slow fashion model is gaining an edge over. Business environment is an alternative term to business marketing. Among the three factors, ‘macro factors known as PESTEL are purely of extemal nature need to be carefully understood and researched by the fashion industry for carrying out the business in ethical and environmentally ftiendly way for its sustainability. Technology is playing a great role in the= ©studocu p H Business of fashion ‘marketing of fashion products but is also posing a threat of competition. Therefore, creating a brand image based on ethics and providing environmentally friendly products has become essential for the survival in the global fashion industry.= Qstudocu Q I < Business of fashion © Q UNIT Fashion sales promotional programme for apparel marketing, communication in prop ‘motion, Personal selling, point of purchase Fashion Advertising and preparation of advertising for apparel market , Advertsing media used in apparel market, Apparel & Textile “Trade shows and fairs Adve AIMS AND OBJECTIVES ‘We here discuss about in general instructions on fashion advertising, methods used in fashion marketing industry, benefits and limitations of advertising agencies, their merits and demerits, the advertising department, structure and function of advertising agencies and Preparing budget for advertisement. After going through the unit it will be easy to |. Understanding the fashion advertising Describe the various advertising medias used Describe the Benefits and limitations of advertising, Describe the advantages of advertising Describe the tations of advertising Describe the advertising department sn P a ee Describe the structure and function of advertising agencies 8. Describe the advertising budget INTRODUCTION The present era is of mass production and mass distribution. Similar products are {aken to the market, This involves stiff competition amongst the producers, Many firms adopt the vigorous means to maintain their existence in the market, as there are many substitutes in the market. This tendency is a struggle for the producers for their survival in the modem business world. In the present business world, suitable publicity is done through advertising, which is adopted by commercial and industrial undertakings and almost all types of concems. Therefore advertisement is a method of publicity. Advertisement has the prominent place among the techniques of mass education and persuasion on the public, It is not a modem origin. It has been used from immemorial period Advertising helps the consumer to save their time in purchasing, It also helps the ‘manufacturers to sell their products. Hence quick selling is possible which leads to more production at less cost. The relation between wholesalers and retailers is improved through advertising. Advert g introduces new products, stimulates markets regarding the existing product and repeated sales. Thus advertising is advantageous to the following groups ofisiness of fashion People. FASHION ADVERTISING Above the line, paid-for a, other goods (e.g. FMCGs — nally relied on their Stores, ie. their physical Presence se for their Products; however, stores carrying similar merchandise 1. Television advertising Consumer or the target market may not see the advert, it may be lost among other non fashion adverts and it cannot always show the full range of items available in, for example, a short three-minute commercial, Television advertising is, however, @ useful medium for brand image creation. For many fashion companies targeting specif ic programs which are likely to be watched by the target may give some precision, MTV (Music Television), which is now available on a global basis, gives an opportunity for the promotion of international brands such as Levi‘s and Nike. 2, Magazine advertising Advertising in magazines is by far the most effective method of above the line (paid- for) advertising as it can finely tuned to the target market of the magazine. Magazines provide media packs, which outline their target market and pricing strategy. For example, Vogue is renowned as a style bible all over the world and has been very clearly defined target market: To be in Vogue is to be in fashion’. The media pack given demographic details on the age Profile social classification, income level and education of its core readership, and a lifestyle profile is provided for their potential advertisers. The Vogue reader _is style conscious Enjoys an effluent, active lifestyle’, dining out, pursuing cultural activities, taking frequent holidays and, of course, shopping at up market stores, spending on clothes. In addition, there are very specific comparisons with other magazines and instructions and costs associated with advertising in the publication. There is also an offer to bring advertisers together with complementary products to share the costs of a Vogue promotion;this is co-operative advertising and can be useful for advertisers who cannot afford the full cost (sourced from the Vogue Media Pack). fident when advertising in specific ‘A fashion brand/retailer can be fairly confi magazines that they can match their target market with the magazine target market and therefore not waste the advertising budget PREPARATION OF ADVERTISING FOR AI Theme is the subject matter of advertisement. A he message is conveyed to the public. An advert \d the readers, if it is to be effective. To PPAREL MARKET theme represents a particular view- point or a central idea with which t sement copy should bridge the gap between the advertiser an 1 has to provide the audience the information that and —message achieve this, the advertisement is of interest to them, The two features of message} are ~message struct] agpeal] Message structure contains details (selling points) of the products an over an audience. needs and benefits. A. two-sided argument is effective in winning The —message appeal) is the feature which brings about attitude change on the part of audience, The message appeals can be grouped broadly into two categories: id consumers* (i) The product-oriented appeals: ‘They may emphasis the physical features or the nds available in the market functions of the product or may attempt a comparison of the product with the other brat he consumer-orlented appeals: ‘They on the other hand, are direct avioral pattems of the audience, the life styles of the ‘ed at the audience's attitude, faiths and beliefs. It may emphasis the attitudinal and beh audience or their social image. In actual practice, messages quite often combine the product appeal and consumer appeal. The theme has an arresting quality, ie. it is capable of capturing attention of the people. In selecting a theme, all necessary information about consumers and about the product to be advertised must be collected with proper details. In collecting the details about consumers, information about the attitude and aspiration of genuine prospect for the product should be particularly known. Information about the product should include, characteristics of the product, benefits expected to the consumers and over the rival's products. Themes may change as the market conditions change. The theme or appeal points out the most important reason or driving force to the purchase of a certain product or service. It is an appeal based on human emotion, feelings, sentiments, needs, desire etc, We have the following common appeals with which advertising message can be effectively communicated, in brief: 1. The Theme of Beautyeed.) isiness of fashion 2. The Theme of Health 3. The Theme of Pride 4. The Theme of Comfort 5. The Theme of Economy 6. The Theme of Fear 7. The Theme of Emulation 8, The Theme of Distinetion 9. The Theme of Affection 10. The Theme of Patriotism In modem times, advertising is used by men in various walks of lite. Lintef Kirkpatrick observe that: (1) Advertising is not a Bame, for here when adverti both buyer and seller benefit, Q) Advertising is nota toy, ng is done properly and profitably, for advertisin, efforts are made to increase sales, funds come from sales volume and, therefore are based on honesty. (A) Advertising is not an exact science, for the sales are affected by number of factors such as competitors decisions, manufacturers’ promotional activities, change in price, Personnel or policies ete, and these factors cannot be controlled as 8 physical scientist may control the experiments. ADVERTIS \G MEDIA USED IN APPAREL MARKET Medium is a means through which the advert IE Message is conveyed to the consumers. The proper selection of the medium, by which th. must achieve the pre-< may be considered: le message is to be conveyed, determined goals. In brief, the following facts, which affect the media, Should the advertisement reach and influence the largest portion of the + Should it be possible to influence the pre-determined group of buyers? 3. Should it give a wide coverage at less cost? people? There are some important factors, which are also to be considered: |. The characteristics of the product and its demand 2. Fund available for advertising, 3. Nature of the market i.e, different segments 4. The nature and extent of competition prevailing. 5, Medium to be adopted Hisiness of fashion nate! Q 6. Coverage of the medium, 7. The product's nature 8. The posi m of the product in the market, 9 Size of the advertisement, 10. The probable cost of advertising. The media to be adopted, along with m. 13.1. Indoor Advertising (a) Press Media erits and demerits are discussed in detail (© Newspaper (ii) Magazine (b). Radio (c). Television (d). Film 13.2, Outdoor Advertising (a) Mural ( (Posters), (b) Advertising board, (c) Vehicular, display, (0 Electric display, (x) Sky advertising, 13.3. Direct Advertising (d) Painted display, (e) Traveling (h) Sandwich-man, (i) Handbills (leaflets). (a) Sales letters, (b) Circular letters, inserts & f) Store publications 1.3.4. Promotional Advertising (¢) Booklets and catalogues, (d) Folders, (e) Package (@) Window display (b) Interior display (c) Show-rooms (d) Exhibitions, 1.3.1. Indoor Advertising When advertising is made through newspapers, magazines, radio, TV. Programmers oF cinema programmed in Video ete., so that people can get the message at home, it is known 8 Indoor advertisement. People read or listen to the advertisement when they are in door People can be benefited by indoor advertising as they can read the newspapers or see television programmed when they are having leisure time. Indoor advertising can be studied under the following headings. I. Press Media: Advertisement in newspapers, magazines, journals ete., can be called as press advertising. It is the most popular and widely used means of advertising. It is the most economical media of advertisement, Growth of literacy and development of press also pave the way for these press media. Following are the Characteristics of press media, 1. Wide coverage is possible. 2. Varieties of advertising are possible H- It is more effective for all purposes. - Reaching of the advertisements can be judged easily. - Detailed and informative sales programme is possible 3 4. 5. 6. Permanency and mobility of publication are possible. 7. It is economical 8. It is quick in action 9. Ithas a longer life (magazine, journal etc,) 10. Detailed address and telephone number can also be given 1. Newspapers There is no doubt that the newspapers are the best and popular medium for advertising. It reaches every nook and corner of the country. It is the most powerful selling force. In India, there are many languages, Newspapers are being published in 91 languages. According to statistics, —Indian Express|| daily newspaper is published from 10 places and prints 5,67,8801 copies, —The times of India|] is published from 3 places and prints 5,30,565 copies daily and —Malayalam Manoramal| prints 5,27,657 copies. There is one paper, —Andha Bazaar} (Bengali) which prints 4, 02,491 copies in Calcutta alone. Apart from this, newspapers are published in different languages, Current news can be known and a large number of people go through them. Different types of newspapers are existing. They are National Dailies, Regional Dailies, Evening Dailies, and National Weeklies etc. When the literacy rate is increasing, this medium can easily be adopted for good result through advertising. (a) Merits 1. Newspapers are having a large demand and wide coverage. 2. The cost of newspaper is less when compared to its use. 3. Wide publicity is possible. 4. It contains interesting matter for everybody. _Business news‘ for men, _Ladies page‘ for women, _Fashion page* for youngster, _comics and puzzles‘ for children etc. as such it assures readership. 5. Speedy preparation and publication of advertising is possible. 6, Newspapers are read daily and hence continuous publicity is possible 7. Itmakes quick results. The public response is quick. Advertisement given by sellers reaches the public quickly and they act accordingly. 8. Regular and frequent advertisement is possible. 9, Itis flexible i.e,, number of pages and shape of the advertisement can also be changed.“ Studocu Q isiness of fashion 8. Regular and frequent advertisement is possible, 9 is flexible ic., number of pages and shay oft emt al be changed. “ " 10. Itis suitable for direct and indirect selling, 11. Lengthy matter for advertisement can be given 12. In local newspapers, preference is given to the advertisement of local products 13, Effectiveness of advertisement can be estimated. 14. Selection of market is possible. 15. tis newsy apart from timely (b) Demes 1 2. Frequent advertisement is required lest it should become ineffective 3. Newspaper advertising is affected by the illiteracy of the public. I affects the utility ‘of newspapers also; the effectiveness is questionable. Wis having the shortest life. —Today's newspaper is tomorrow's waste paper 4. Chances for display and demonstration are much rare. 5. People read newspapers in a hurry. Hence they do not take notice of the advertisement, Hence advertisement becomes a waste. 2. Magazines and Journals These are periodically published. They are published weekly, fortnightly or monthly. Magazines are read leisurely. Magazines are published cording to the tastes or liking of the public. There are different types of magazines. (@) General Magazines: General Magazines are read in easy-chuirs. There is generally a lengthy advertisement. The standard of reproduction is also in a better way. They give more interesting and a longer duration, E.., illustrated weekly. Blitz ete. (6) Specialists Magazines: They are technical joumals and professional journals Technicians read technical journals, Doctors, lawyers, accountants etc., read professional journals, There are special magazines for industry, banking, politic religion, agriculture insurance, transport literature ete. Special magazines for women and children are also available. (©) Special Issues: Diwali (or) Deepavali, Directory (Telephone Directory) are also published which contain a large number of advertisements along with articles, stories, special features ete. ( Merits Jome magazines enjoy national and international circulations. 1. It is having longer life than newspapers. Hence itis great help to advertisement. 2. Itis having greater reference value of advertisement. 3. Colour advertisement attracts the people very much, 4, Its published for selected people. As such, its having a high degree of selectivity. Ex. Famina is meant for women. Medical journals for doctors etc.5. 6. ‘zines creates a national image for the Product, ©. Reader's Digest. Illustrated Weekly etc 7. It satisfies the need of a Particular elass of people, say ~Commere 8. Magazines guarantee uniform | for business. ity of coverage, (i Demerits |. Mis less flexible 2. Limited circulation, 1t reaches only a limited section of people > Wis costly. High quality paper, colours and 4. Preparation cost of mag, AS such, the cost of advertising is also high. arrival of a product is not possible. § Advance planning is needed to advertise in the magazine. As such advance Submission of advertisement is necessary, 7. Itis not suitable for regional advertising, For example, Reader's Digest is unsuitable for regional advertising. 3. Radio tadio brightens the scope of advertising. (i) Merits |. Coverage and appeal are wide R It is the best means for illiterate people. - Spoken words are more effective than written words . It is flexible and timely. wee . It adds to the prestige of the advertiser. 2 . Spot programs can be arranged. (i) Demerits 1. Itis quite costly 2. Only nited time will be allowed,Isiness of fashion 3. In many cases, 4. The effectivene: 4. Television list i "eners may be iritated withthe commercial advertisements 88 of advertising cannot be measured : because one can see and ts are in Maharashtra followed by Delhi. () Merits 1. Ttappeals to the eye and the ear 2. People are impressed by pictorial presentation 3. Interest is further boosted by introducing color televisions 4. Ihas the characteristics of a salesman (i) Demerits 1. Itis an expensive medium 2. The impact of advertising cannot be measured 3. Itis suitable only for large firms 5. Film The effects of television medium and film medium are the same, Film advertising is also advantageously used by advertiser. Cinema is an audio-visual medium of communication and offers opportunities 10 advertisers for screening commercial films and slides. In India, there are about 7000 cinema houses and 3,500 touring cinemas (approximate). The maximum number of cinema houses is in Andhra Pradesh, followed by Tamil Nadu, Maharashtra, Uttar Pradesh and Kerala, The maximum number of touring cinemas is in Tamil Nadu, followed by Andhra Pradesh and Kerala. For almost all consumer goods ‘manufacturers are advantageously using this medium. @ Merits 1. Itean ereate a good impact on the audience. 2. Iteovers all classes of people-poor, middle and rich. 3. Explanation and demonstration are possible 4. It has a wide appeal. (li) Demerits 1. Producing a film is costly Effectiveness cannot be measured. 3. The co-operation of theatre owners is essential. H© studocu Qe:z isiness of fashion © [ 4. The audience becomes irritated, where more such advertising films are shown. 5. Only cine goers can be covered. 2. Outdoor Advertising Outdoor advertising passes the message to those people who are moving audience Generally almost all the people go out on some purpose or other-office, walk, sightseeing, journey, park visit ete. This outdoor advertising has the best effects of advertising, 1. Mural Advertising (Posters): ‘At present this is a common form of advertising. The posters are made in attractive colours in brief and printed. The poster is a sheet of paper. The matter is depicted on it, Then the prepared posters are pasted on walls or boards. Film showers use this medium for advertising and the posters are pasted in such a manner that they are projected to the people at less bus stand, railway station, marketplace, parks, libraries, and crowded areas. The eo: Iti flexible. It has a short life, because in cities, posters pasted in the moming, may disappear in the evening by pasting new papers on them. In certain places like cities, the space has to be hired for pasting posters ii, Advertising Boards: ‘These are also posters, but have better status than ordinary posters. The boards are fixed at the areas where people frequently assemble. Such boards are fixed at decent and neat places, They appear more attractive than posters. |. Vehicular Advertisin ‘This moving advertisement finds place on vehicles-buses, trains ete. The vehicle passes through many place and many people happen to see it. Iv. Painted display: It is an artist's work. This display is large in size, It is visible from a distance. It finds place at crossings, compound walls or erected structures built of poles or pillars. vy, Travelling Display ‘These are the advertisements as posters, small in size, written beautifully and placed inside trains, buses, tramcars, vans etc. The traveling people, in these vehicles, repeatedly notice it and keep it in their memory. vi. Electric Display Electric display is more attractive. It is popular now-a-days. The beauty and attractiveness depend upon the skill of electrical engineers, Another method is that of running bulbs strap and it looks like moving. Such arrangements are common in big cities. During night time or in dark background, itis more bright and alluring. 1t is costly vil. Sky Advertising: Sky advert written on them or attached to them are allowed to float in the air. Big kites containing kind of advertising played by and sky writing have become popular. Big balloons with message advertisement may be floated in the open air. Sky writing isare allowed to float in the ain Big. ki advertisement may be floated in the oj the pilot, through aero plane, ites containing Pen ait. Sky writing is a kind of advertising played by illumination, Kamataka State © of publicity. The inscription or Imost all the circus companies use the sither by forming smoke or by adopted big balloons for the sak ‘writing on the balloon will speak about the Products. Al high powered revoly Lottery Agencies have ing search lights to attract the attention of the public. All these types of advertisements ean be seen from a long distance. viii. Sandwich-men: . They carry posters of the ‘ter slogans. They create certain type of musical sounds, This sort of advertisement has short life, but is e ATeetive. Cinema theatres usually adopt this method of publicity. ix. Handbills (Leaflets): Handbill are common and too cheap. Handbills, which are in the form of leaflets, are distributed among the people through hired men, Som, ietimes, music bands are also played along with distribution of leaflets Only interested persons may go through the handbills, The the handbill to all, who pass nearby. An uninterested person receives it by one hand and throws it away by the other hand This type of advertising is suitable for small business people. Let us di demerits of this advertising. @ Merits i, This is the best for local advertisin; handbill distributor distributes copies of uss the merits and has the widest appeal ii, I speaks to everyone. ili, Itengages few seconds of people's time and need no effort, i. Thalways attracts the viewers, because of its style and colourful appearance. ¥. Its effect is permanent. vi It indirectly beautifies the place. With outdoor advertising, crowded places like Bombay, Calcutta, Delhi, Madras etc.. appear beautifull to look on, time the unpleasant sights are covered up. vii. Itis flexible, and at the same vill. It isa low cost medium.isiness of fashion tn: Q @ Demerits '. Tthas less advantage, compared to other media, Wreduces its value because of brevity. The effect of prospects cannot i Itean be used onk 3. Direct Advertising ii Mi tbe measured, Yas a supplementary type of advertising interest in his product, He advertisi 8. 1tis a common m Characteristics of Direct a ‘dvertising 1. Through ditect advertising, more or tess 8 personal contact can be maintained 2. There is a written form of communication i.e., letter, 3, Contacts are through post, W Merits * Apersonal relationship with the customers can be maint tained Detailed information can be conveyed, ii, tii, Effectiveness of this system can be measured iv. This system is elas v. addition or deletion is Possible. Privacy can be maintained, Vi. Itis highly selective: + sending the letters to those, whom the advertiser selects, vii. IN is cheaper. (i) Demerits tn drafting mail, specialized skill is needed, His difficult to maintain an up-to-date mailing list, ii The success depends upon the reaching ofthe recipient iv. In many ease fetches no attention of the receiver. i. Sales Letters: Sales letters are persuasive in nature. Many firms think e very letter that goes out from the firm is a sales letter, because every business letter aims at an opportunity to sell the firm's Product or earn goodwill for the firm, ‘To a certain extent, the salesman is substituted by the the purpose of salesman and sales. Drafting a sales letter is in the form of adve, sales letters because sales letters is the same, ie., push up the ntising, to create an interest in the mind of the reader. Sales letters are cheaper and convenient.isiness of fashion 4, Purpose of Sales Letter '. To confer faith in the product, 2. To get an enquiry leter from the reader, 3. To ereate an interest in the recipients mind 4. To create sales and goodwill Wi. Circulars: Mt carries communication to a number of addres information about the products. It is generally sses. The circular letter contains Yelostyled or isin the printed form. It earties nid demerits are similar to sales letters {ess attention than the sales letter. The merits a Booklets and Catalogues: and price lists, iv. Folders: These are letters or cards containing details of the products, They Folders can be sent without envelop. The folders can be folded conves made of thick paper, These contain illustration niently, as they are re generally adopted by publishers, medical firms, industrialiss lc, The folders must be attractive v. Packnge Inserts: This is a system through which leaflets about the of products. The package insert may contain details of th the same firm. Thus, it is an advertisement. Products are inserted in the packets 1€ same product or other products of vi. Store Publication: This also known as house organs‘. Cert firms may publish periodicals or magazines which contain information about the development of the firm. These will be distributed to wholesalers, retailers etc., detail. 4, Promotional Advertising free of cost. This will also explain the product in The object of promotional advertising is to increase the sales, These are also known as isplay advertising". By this, we mean that the products are systematically kept in a place so as {0 altract the attention and notice of the lookers, It demonstrates the products. The following are the important types. Window Display (outside display Window display is the medium used to attract the public by creating an interest in“ep © *UGOCcUu isiness of fashion ‘hem. The products dealt in by the firm are placed atthe front ofthe fim, trying to ereate an arousing interest in the minds of them. A good arran d system of window display naturally increases the sales. It gives a memorizing attitude to the public, shop at the sight of the display. How should a window display be? even if one is not entering the 1. It must be in a suitable position, The window should not be crowded with items, - Good light and pleasing colours are essential Articles in display must be changed often. wake It must create attention, attraction, interest, desire and action . The pri 7. It must always be kept clean and neat Merits tag should be attached to produets. It has —at the point of purchasel) effect. It attracts the onlookers Itis used as an indicator of status to the firm. Interior Display: In large-scale organizations, they use this type of display. Glass-door cupboards, sunglass show-cases are used for internal display. Window display is arranged outside, but interior display is inside the shop. The related articles are displayed within easy reach. It is easy for the buyers to get the products needed by them. Merits i, Purchasing is made easier. ii, Ir facilitates to sell allied products. iii, The whole shop becomes attracti iv, Itis flexible. iii, Show-room: Consumers always insist on prior inspection of the products, which they aim to purchase. Therefore sellers must provide facility for their inspection. Buyers are not satisfied with mere publicity. They want to have a close look at the product. In a show-room, not only the necded products are kept, but different products also. And this ereates an inward interest ‘on other products, when one makes a purchase of the needed item. In the show-room, salesmen are there to explain about the prospects. It must be highly decorated and must have ing arrangement with good atmosphere. For instance, textile mills, and firms 1g furniture, refrigerators, television sets, radio sets and other luxurious items must Hhave generally show-rooms. Merits i, The show-room appears as a sales centre. ji, Consumers ean study the product and its proper functions as well as precautions. It is known to everyone, This is also known as trade shows. The idea behind the exhibition is to promote sales of the goods exhibited. All big or small, manufacturers reserve stalls in the exhibition area to exhibit their products. Exhibitions are popular and it is the place where competitors meet. They are held on local, national or international level Merits i. Variety of products display ean be witnessed. ii, Ttis always interesting (o the public iii, Iisa ready-made market. ‘When selecting a medium for advertising, the following should be considered. 1, Objective of advertising. The financial ability of the producer. ‘The nature and extent of competition, |. The prospective buyers. The class of buyers (caste, age, sex, etc.) 3 4 5. 6. Whereabouts of his customers. 7. Nature of message. 8. Medium to be adopted, 9. The cost of medium. 10. Circulation of the medium, ADVANTAGES OF ADVERTISING Advertising is considered multi-dimensional. 11 helps in a number of marketing activities. It is a technique of sales promotion, Sales volume is increased by advertising. It helps and supports the salesman in selling the products. Consumer's knowledge about the product is increased by advertising. Advertising helps the consumer to save their time in purchasing. It also helps the manufacturers to sell their products. Hence quick selling is ers and \ introduces new products, stimulates possible which leads to more production at less cost, The relation between whol retailers is improved through advertising. Advert markets regarding the existing product and repeated sales, Thus advertising is advantageous to the following groups of people, A. Advantages to Manufacturers (1) It Increases the Sales Volume: Advertising increases the sales volume of the product. Hence mass production is possible. This leads to reduction in the cost of production (2) It Increases the Net Profit: It increases the net profit by a higher turnover of sales. It leads to higher volume of production. Hence average cost of production is less, and the profit will increase,“ep ©*UCOCUu siness of fashion (1) H Increases the Sates Volume: Advertising increases the sale Hence mass production is possible, This leads to reduction in the co (2) It Imereases the Net Profit Volume of the product. st of production, It increases the net profit by {cads to higher volume of production. Hence average cost ofp will increase 4 higher turnover of sales. ft roduction is less, and the profit (3) It Stabilizes the Sales Volume: Stabilization of sales volume is possible through adve ‘enising by the process of repetition, Ri ‘egular and frequent advertising leads to regular flow of sales. It gives the name, location, products and services of the selling houses to the Public often. During slump period, advertising tends to ensure 4 permanent class of customers to buy the product, ( Ie Controls Product Price: Control of wholesale and retail price is Possible by means of advertisement. The needy retailers ate overcharged by some greedy wholesales. The retailers charge higher prices for the products. Hence the consumers do not wan’ 1 to buy such produets, This lead to reduction in sales. Hence manufacturers print on the cover or retail price of the product, mnounce the (5) It Helps in Opening New Market: Advertising is helpful in opening or creating new markets, It helps to get lead ership in the market It helps the manufacturers to take decision the market share or not. It also helps them to sell new products or iety of products, (6) It Maintains the Existing Market: whether to expand improved vs Maintenance of existing market is essential for the success of a concern, Hence manufacturers, who look ahead, always have an eye on the future business. As such, by advertising he is very tactful to hold up the present market and to expand the market, (7) It Creates Reputation: public, It builds Advertising increases the reputation of the manufacturers in the the image of the product and goodwill of the manufacturers. It protects the ‘manufacturers from aggressive selling method adopted by his competitors. It creates an image in the minds of the customer about his brand. (8) It Secures More Dealers: Advertising secures more dealers to buy the products. Due to the goodwill eared from the public, dealers are interested in buying such a product. (9) It Is Less Expensive: Advertising is considered to be less expensive. With a smaller amount of money, advertising reaches many people, and more people will buy the product (10) Wide Information: Wider information of product is possible through advertisement Any change in qui y Or price can be made known by the manufacturers to the customers as and when itis nevessary in a quick manner. ‘Manutacturers can change the habits and prejudices of customers by tactful©) studocu Q siness of fashion © [ vii, Most advertising exhibits bad taste or sponsors it vili, Advertising is too intrusive, ix. Advertising regulates discussions of public issues through its control ofthe news media. x. Its life is shor. xi. It tends to ereate monopoly. xii, In many cases, the public are cheated. Apart from those mentioned above, economic, social and ethical objections are leveled against advertising. They are. A. Economic Objection (1) Leads to Higher Price: Large-scale production is possible taking into account advertising, and the price will be very low. If advertising fails to sell the product, then the price will be increased. Experience shows that advertising increases the price since ‘manufacturers spend a lot of money on advertising, which inereases the cost of production But generally advertising increases sales and mass production resulting in less cost of production and reduction of unit cost. @) It Forces People to Buy Thi advertisement, People do not need things like cars, refrigerators etc. but advertising forces them to buy this product. Thus it stimulates people to go in for things which they cannot afford, But it multiplies the needs. @) People Are Not Influenced By Advertising: Some influenced by advertising @) Creates Waste: Advertising is regarded as waste. When there is a change in style or fashion, old things or half-used articles are not used any further. New products are purchased, People are forced to buy things by the attraction of the ize that people are not ‘The manufacturer must be very careful about this change. When there is a change in price, model, quality ec. it will incur another big amount forthe advertisements, It is responsible for quick and premature changes in fashion and style. For instance, a particular product ean easily be used for a year. But advertising shortens the life of the product through the publicity of the latest arrivals. Thus creeps in immaturity of the product growth, This is what happens in advanced resources multiplies, () It Exaggerates the Facts: Advertisi —the best medicine for headache, || —the finest pain relieverl etc. These lead the consumer ® ig exaggerates the real fact to the consumers e. buy that product even though it is of low quality or may be ineffective. Use of superlative degree in product description is also viewed by the readers in a negative way. (6 Itis Fraud and Misleading: Advertsing is an instrument of cheating in many situations. A good advertiser can sell anything. Producers advertise their products not with a view to serve the public, but with a view to dispose oftheir products, which are really not needed to the customers. They aim at eaming profits by pushing out the dead stocks. For this, by concealing the actual facts, the advertiser makes publicity with —make to believel] statements©) studocu Q=z siness of fashion es) 5. Advantages to Community (1) Increases Employment Opportunities: Advertising generates employment opportunities directly and inditectly. Direct employment opportunities in advertising are artists, painters, singers, musicians, writers, photographers, pressmen, managing agencies etc, it creates mass sales, followed by mass production which in tum opens the door for more employment indirectly. (2) Uplifts the Standard of Living: Advertising is an effective tool which raises the standard of living of the people of advanced countries. The standard of living is measured by the amount of national income and its distribution and the consumption pattern. It leads Advertising gives stimulus to the consumers to buy new variety of products. to large-scale production of more varieties of products followed by mass consumption. Thus advertising creates demand for standardized produets. (3) Educative Value: Advertising educates the members of the community in the various uses of products. As such, people know the varieties of products and their availability in the market and uses and benefits. Thus it educates the people. People become intelligent buyers. They become economic buyers. They understand the merits and demerits of products they come across. (A) Helps Press: Advertising gives more income to the press. We cannot buy newspapers at a cheaper rate without advertisement. Commercial advertisement and broadcasting are undertaken by radios television, newspapers ete. These lead to the cheaper availability of newspapers. We can say that advertising is a boon to the producer and consumer. It is very important for modern trade and commerce. It stabilizes the sales volume and also the national income, It encourages large-scale production and increasing the profit. It reduces unemployment. 2.3, LIMITATIONS OF ADVERTISING There are a number of advantages of advertising; yet there are some drawbacks too. Several criticisms and objections are put forth against advertising. Kenneth A, Longman, in his book _Advertising’ has mentioned the following charges against advertisin ‘Advertising sells people things they neither need nor want. ii, People are not really influenced by advertising. iii, Advertising generates senseless proliferation of variety in goods and services. iv. Advertising results in higher prices. Advertising is false and misleading gis irrelevant vi, Most advertiQO H ©, studocu siness of fashion © [ acini esanee tie eapenione vt U0 (6) Attracts More Customers: Advertising gives detailed information about the produet and the availability ofthe product in a particular shop. As such, it attracts more customers in that particular shop. (4) Increases the Prestige of the Store: Customers know about the store through advertising. The goodwill or reputation earned by the manufacturer is also shared by the selling shops. Thus the prestige of the firm increases. (5) Publicity: In advertisement, product publicity and wholesale or retail shop publicity are done simultaneously. Thus, the retailers are also known to the public and thereby increase their sales too. (6) Economic Selling: Advertsing ensures more economic selling. 4, Advantages to the Customers. () Easy Purchasing: advertising helps customers in easy purchasing of the products ‘Advertisement gives useful information about the reasonableness of the price and the quality of product. There are many tables for headache, like Anacin, aspro, coldarine ete. A good advertising can help in buying the best one, @ Connecting Lin customers, It eliminates the middlemen, There is no profit for the middlemen, Hence the dvertsing is the connecting link between the manufacturer and the price is low. () Fairs It helps the customers to get product at far pric. @ Saves time: It helps customers by giving information about the availability of the product, ie., where and when. The customers can select the best product ina particular shop. ‘Thus it reduces their shopping time. (9 Best Quality Product: Advertisement generally stands for a quality product. sustomers Manufacturers advertise their product only for selling. Ifthe product is not good, will switch on to other products (brand), Manufacturers maintain their quality to retain the market, As such, itis advantageous to customers. Benefits of standardization are assured to the customers by advertising. (6 Educates the Customer: The aim of the advertising is to educate the customers about the intoduction of a new product mentioning its different uses, It gives information to the ‘customers about the availability of goods and services in the market. The customers come to know about these things and purchase the products according to their standard, Thus the standard of living of the customers increases. The comparative type of advertisement of different produets and substitutes will enable the public to understand more about a product or services. ® Mail Order Business: Advertsing helps the people to get the products directly from the producers through mail order business. There are places, where the products are unavailable- villages, rural areas. Advertising helps them to got the products through post. Thus it improves the social welfare,