FASHION BUSINESS COMMUNICATION

Syllabus

Unit:1 World of Fashion- An Overview

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
Unit:2 Legendary Fashion Designers
Study of International Fashion Designers of the World – Yves Saint
Laurent, Valentino, Pierre Cardin, Ralph Lauren, Karl Lagerfeld, Donna Karen,
Georgio Armani, Coco Chanel, Calvin Klien, Christian Dior. An overview of
Indian Fashion Designers – Manish Malhotra, Manish Arora, Ritu Beri, Tarun
Tahiliani, Rohit Bal, Wendell Rodricks, JJ Valaya.
Unit:3 Fashion Products and Promotion
The fashion industry and new product development; product mix and range
planning. Fashion and Seasons. Fashion Promotion – Fashion Communication;
Fashion Advertising and Publicity; Personal Selling – importance and steps
involved; Fashion Shows – types and steps involved in organizing a show; Sales
promotion methods /strategies.
Unit:4 Fashion Retailing
Fashion Retailing - Scope and functions, Types of Stores, Challenges for
fashion retail in India, E- retailing – growth and development, Major players of
fashion goods online. Pricing policies and strategies for apparel products,
Functions and factors Influencing pricing, pricing strategies for new products,
methods of setting prices
Unit:5 Sustainable Fashion
Sustainable Fashion – meaning and significance; Environmental concerns
related to fashion; Linear fashion and circular fashion; 4R’s in sustainability –
Repair, recycle, reuse and reduce. Eco fashion, Slow fashion; Environmental
impact of fast fashion.
Unit:1 World of Fashion- An Overview
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.

Factors influencing fashion:

Fashion, by nature, is a dynamic and transient culture, which keeps changing
in time and space. In fact, if we talk about the permanent thing, there is hardly
anything on the planet earth, which has such property, everything keeps changing.
Since, human mind is also part of this planet; so, it also seeks changes in terms of
place of living, food, and of course cloth or fashion. People want to have new
styles and new fashions.
But such changes are not essentially and always because of people’s wishes, but
rather there are many other causes that influence fashion.

Factors That Influence Fashion

Human nature, of course, is one of the most important reasons for changing
fashion, as it always demands new and trendy products. But along with it, the
following are some other significant factors that influence fashion:

1. Psychological Factor

2. Social Factor

3. Economic Factor

4. Cultural Factor

5. Political Factor

6. Environmental Factor

7. Physiological Factor
Psychological Factor
Psychological factor is an important factor that influences a person to follow a
trend or may influence the opposite. In other words, everyone follows the jeans and
shirt, but one person prefers to wear pajama kurta (the ethnic wear). So, it
expresses individuality and does not get influenced by society. Likewise, many
times, it gives importance to personal choice instead of following the trends.

Social Factor
Social factor is one of the most significant factors that influence fashion frequently
and expansively. Its area is pretty wide and includes many factors, such as place of
living (urban area or rural area), educational and cultural background, status in
society, gender, profession, and, of course, occasions. These factors, sometimes
influence separately or sometimes collectively.

Economic Factor
Interestingly, fashion is one of the indicators that reflects the financial condition of
a person in his society and economic condition of country in the whole world.
Fashion reflects the availability of raw materials, level of infrastructure, and
technological advancement in a particular country. So, if a country is rich and
developed, fashion in that country will be luxurious. On the other hand, fashion in
developing or underdeveloped countries, is at a very low level.

Cultural Factor
Culture is the traditions and practices that a society of a particular region follows in
a given period in time. Every society has its own culture; hence, not only fashion
influences culture, but rather culture also influences fashion vice-versa. For
example, an old man who always wore pajama kurta (the traditional dress) started
wearing track suits, jeans, etc.

Political Factor

Directly or indirectly, political factor also plays an important role in influencing

fashion. Time to time, government keep changing the law, economic policies, and
political policies, all these factors, collectively influence fashion. For example, in
the early 1990s, liberalization, globalization, and privatization of the Indian
economy encouraged many foreign fashion companies to launch their products in
India, which greatly influenced fashion.

Environmental Factor
Environmental factor largely includes seasons, like the winter season, which have
entirely different clothing styles, influences fashion; the summer season, in this
season, people prefer to wear only light cotton shirts and pants, t-shirts, jeans, etc.;
and in rainy season, people prefer to have differently designed raincoats and other
waterproof cloth.

Physiological Factor
It includes age, skin color, body structure, height of the person, etc. With growing
age, people change their choices. So, fashion is essentially guided by such
principles as well.

Some other factors that influence fashion are:

Dominating events: some of the significant events, like war, big national level
cultural events, fashion events/shows, etc. influence fashion.

Influence of celebrities: most of the youngsters in society, get easily influenced

by the film stars, sports persons, musicians, and other celebrity kind of people. In
fact, the dressing style, walking, speaking, and appearance styles of these
celebrities are very important factors that influence especially youngsters and they
seek same designs and brands.

Geographical Factors: geography involves many factors, but significant among

them are, of course, relief features and the location of the region (either located in a
hilly region, or along the bank of a river, desert, etc.). All these factors influence
fashion.

Technological Advancement: technology not only helped researchers and scholars

to research new things, but also influenced fashion designers. By using technology,
fashion designers create designs virtually and then decide whether it is worth it to
materialize or not.

Accelerating and Decelerating factors:

Accelerating factors:

● Communications and mass media,

● Good economic conditions,
● Increased competition,
● Technological advances,
● Social and physical mobility,
● More leisure time,
● Higher levels of education,
● Changing roles of women,
● Seasonal changes

Decelerating factors:

● Bad economic conditions (consumers have less money to spend)

● Cultural customs (passing down traditional clothing; not buying new)
● Religion (fashion may lead to corruption and temptation)
● Laws/government regulations (tariffs, quotas)
● Disruptive world events (droughts, wars, terrorism).

Understanding Fashion designer

Fashion designers work in a variety of different ways when designing their
pieces and accessories such as rings, bracelets, necklaces and earrings. Due to the
time required to put a garment out in the market, designers must anticipate changes
to consumer desires. Fashion designers are responsible for creating looks for
individual garments, involving shape, color, fabric, trimming, and more.
Fashion designers attempt to design clothes that are functional as well as
aesthetically pleasing. They consider who is likely to wear a garment and the
situations in which it will be worn, and they work within a wide range of materials,
colors, patterns, and styles. Though most clothing worn for everyday wear falls
within a narrow range of conventional styles, unusual garments are usually sought
for special occasions such as evening wear or party dresses.
Some clothes are made specifically for an individual, as in the case of haute
couture or bespoke tailoring. Today, most clothing is designed for the mass market,
especially casual and everyday wear, which are commonly known as ready to wear
or fast fashion.
TYPES OF FASHION DESIGNER
CLASSICIST

These type of designers are produce design following the traditional designs,
colours, silhouette and other design details like embroidery, bead work, etc.

The classist designer is one who is responsible for radical fashion changes in
fashion industry.

IDEALIST

They want to be ideal in the fashion industry.

Their designs also differ from other designs.

Their works are out of touch with reality.

This stare creation is only worthy for ramp shows, not for real life.
INFLUENCED
They are copied from some other designs which was already existing in the
market.
They have very little to offer by their own creativity.
They make some alterations in the existing design and produce the new designs
with their own label.
They don't want to take too much of risk.
REALIST

They are the role models for influenced designers.

• These designers are most important persons for the success of fashion industry.

They produce designs with their own ideas.

When compared to other designers their works on time consuming works.

THINKING

The mission in fashion designing is to express himself.

They also supplies lot of creative ideas for other fellow designs.

The thinking designer also holds the responsibility of educating the consumer in
experimenting with unusual fabric choice.
POETIC

They regard the consumer as an extension of his creativity.

• The first activity of this kind of designers is to recognize the choice of consumers
and then perform designers.

They spend more time on accessing real interest and needs of the consumers.

WORLD FASHION CENTRE

The ‘BIG FOUR” London, Paris, New York, and Milan. These are the fashion
capitals of the world. The fashion capitals are the cities that have a major influence
on international fashion trends, designs, production, and retailing. Also on the
events that have a huge impact on the economic output. These are events such as
award ceremonies, trade fairs, and most importantly fashion weeks.

London, Paris, New York, and Milan hold the most important role in the fashion
world. Fashion capitals normally have a wide blend of business, imagination,
amusement, social, and recreation exercises. And are also universally perceived for
having a novel and solid personality.

There are individual reasons as to why these four are famous and considered the
fashion capitals. Let’s know why:

Paris
From the 17th to the 21st century, Paris has remained a fashion capital. Why?

Best designs – Paris has some of the best designers in the world. Namely, Vuitton,
Balenciaga, Céline, Yves Saint Laurent, Chanel, Dior, Givenchy, Chloe, Jean-Paul
Gaultier, Hermès and Lanvin.
The Golden Triangle- Dior to Chanel to Yves Saint Laurent. New York has all hot
couture houses.
Paris Fashion Week is a very well-known reason why Paris is a fashion capital. It
is the final fashion week that decides what trends will be present in the coming
season.
London
The language obstruction or absence of it plays a huge part in building up urban
communities like London as the worldwide capitals of fashion. London is full of
individuals from vivid backgrounds, and this multicultural perspective made
originators who are situated in London stick out. This trademark and the
unmistakable items, with regards to fashion, permits London to rival the remainder
of the huge fashion capitals.

London’s DNA has streetwear in it. Its history has a street culture that is visible
across its fashion landscape.
London is fiercely independent and diverse. It is above all when it comes to
diversity across all statures in fashion.
No gender barriers. London fashion breaks all gender barriers. New designers
completely disregard the stereotypical norms of gender.
New York
Paris is not the only trendsetter. New York also is. People living in New York
know how integral fashion is. It is the first to host the fashion week.
Synonym for big brands and high-end lifestyle
Young, cool yet sporty, and saleable touch
Most casual of all the fashion weeks
Milan
One of the “Fours”, Milan has something as so-called Milan houses.

Its contributions to some of the best designers made it a fashion capital.

The words that describe it are enchanting and instigating.
Milan fashion week is unique and flexes on sex appeal
The style business turns for a significant stretch of years since the history of
mankind’s set of experiences. It has been known to exist together with human
culture for an extensive stretch. The style business is a powerful industry, which is
a result of history and ‘a true term that relies upon setting to give it its passionate
characteristics.’ For a long time, London, Paris, New York, and Milan have been
considered as the urban communities which house the beginning of fashion and
subsequently have been viewed as the fashion capitals of the world for a really
long time.
Unit:2 Legendary Fashion Designers
Study of International Fashion Designers of the World – Yves Saint Laurent,
Valentino, Pierre Cardin, Ralph Lauren, Karl Lager field, Donna Karen, Georgio
Armani, Coco Chanel, Calvin Klien, Christian Dior. An overview of Indian
Fashion Designers – Manish Malhotra, Manish Arora, Ritu Beri, Tarun Tahiliani,
Rohit Bal, Wendell Rodricks, JJ Valaya.

Study of International Fashion Designers of the World

Yves Saint Laurent

Yves Saint Laurent gained popularity in the world of fashion due to his
creativity in redesigning masculine clothing into beautiful, feminine pieces for
women. Perhaps one of the most renowned designers in France, Yves was the first
designer to introduce <power dressing= for women in the form of trendy, high
fashion power suits in 1966. The visionary is credited with designing the men9s
smoking jacket. His refreshing concept of ready-to-wear fashion has allowed him
to make history during his legendary time

Valentino Garavani
Born in Italy in 1932, Valentino Garavani studied fashion design at a young
age, training in Paris in 1950 and starting his own fabulous line in Rome in 1959
after working for impressive houses like Dessus and Laroche. Valentino is
celebrated for his profound ability to make women look utterly glamourous. The
Italian maestro dressed influential women, such as Jacqueline Kennedy, and goes
down in history for his signature fabric shade, Valentino Red.
Pierre Cardin
The Italian-born Frenchman is praised for his 20thcentury pieces that exuded
a futuristic flair. As Pierre Cardin rose to fame in the age of the space race, his
creations embodied the perfect touch of innovation, inventiveness, and
modishness. His 8bubble dresses9 radiated science fiction, combining earthly
elegance with out-of-this-world colors and avant-garde design

Ralph Lauren (Born 1939)

American fashion designer, mainly build his brand as an elite American lifestyle
brand that made it a globally successful fashion empire. In 1968, he named his first
full line of menswear 8Polo9. He explains his style, <I9m interested in longevity,
timelessness, style—not fashion.= He is a notable philanthropist

Karl Lagerfeld
One of the most acclaimed fashion designers in the world, Karl Lagerfeld was
born in Hamburg, Germany. As a teenager, Lagerfeld worked at Balmain for four
years before moving to Jean Patou where he became artistic director at 21. His
prolific portfolio now encompasses Chanel and Fendi along with his own house.
Known for his bold designs and constant reinvention, he9s been hailed by Vogue
magazine as the <unparalleled interpreter of the mood of the moment.= King Karl,
the one-man multinational fashion phenomenon

Donna Karan (Born 1948) Full name Donna Ivy Faske is an American Designer.
Globally known for her acclaimed comfort and simplicity integrated fashion
designs of the clothes. In 1988, debuted the DKNY line under the Donna Karan
Co. She was particularly distinguished for her signature bodysuits, dark tights,
fitted jackets, and heavy pieces of jewellery.

Armani (Born 1934) Italian fashion designer, mainly known for an extremely
luxurious, elegant and relaxed style of design. In 1975, he launched his label for
men and women ready-to-wear, later diversified into music, sport and luxury
hotels. He expresses his fashion philosophy as, <I was the first to soften the image
of men and harden the image of women. I dressed men in womens fabrics, and
stole from men what women wanted and needed—the power suit.

Coco Chanel (1883-1971) For almost six decades this French fashion designer
ruled Parisian haute couture. Her stylishly simple designs encouraged women of
fashion to desert the complex, painful clothes, that were prevalent in the 19th-
century like petticoats and corsets. She believed <luxury must be
comfortable, otherwise it is not luxury,= Her designs focus on simplicity and
comfort and later her fashion belief revolutionized the whole fashion industry.
Chanel suit, the quilted purse, costume jewellery, and the <little black dress= are
some of her best innovations and contribution to women fashion. Perfume 8Chanel
No. 59, which she introduced in 1921 became the financial basis of this brand. One
of the most influential, Karl Lagerfeld led Chanel9s couture house with tenure
(1983–2019), after her death

Klein (Born 1942) American fashion designer eminent for his design of jeans,
womenswear, menswear, cosmetics and perfumes, bath & bed linens, and other
fashion collections. He established Calvin Klein Inc. in 1968. He expressed his
design philosophy as <simple, comfortable but stylish clothes—but with nothing
over scale or extreme.= His label clothes were fairly pricey, classic and elegant.
Notably easy to wear and highly appreciated by fashion enthusiasts in the US and
other countries.

Christian Dior (1905-1957) French fashion designer ruled the fashion world during
world war two. He revolutionized fashion and introduced some variety of new
silhouettes, together with H-line, A-line, and Y-line. In 1947, he introduced the
ground-breaking new look, igniting international controversy over its
drastically lowered hemline. The look featured small shoulders, a cinched
waist, and a voluminous skirt.

Indian Fashion Designers

Manish Malhotra:
Over the past few years, Manish Malhotra has become synonymous with Indian
fashion. He is an ace fashion designer who has designed many Bollywood,
Tollywood and even Hollywood movies. Manish was born in 1966 and started his
career as a runway model. The Mumbai-born designer launched his namesake label
“Manish Malhotra” in 2005 and opened multiple stores in the country.

Manish’s clothing line features a generous dose of glamour through his usage of
contemporary colours, modern embroideries and edgy designs. Popular Bollywood
celebrities like Alia Bhatt, Jhanvi Kapoor, Kareena Kapoor etc., prefer Manish
Malhotra over other designers for his distinctively modern and sensual outfits. He
also won the “Best Costume Designer Award” several times for his stunning
creations in many iconic films like “Kal Ho Na Ho”, “Kabhi Kushi Kabhi Gham”,
etc.

Manish Arora
Manish Arora is a Delhi-based fashion designer renowned for the usage of
strikingly bold colour palettes and Kitsch motifs that transform garments into
wearable pieces of art. Manish started his design career in 1997 after graduating
from NIFT, New Delhi, and launching his label “Manish Arora”. He expanded his
business by launching his flagship store, ‘Manish Arora Fish Fry’.

Fashion experts often regard Manish Arora as the “King of Avant-Garde” for his
sophisticated and modern designs. His psychedelic prints combined with
outlandish patterns exemplify his unique taste and sensibilities. Apart from
dressing up Indian celebrities, Manish also designed outfits for international celebs
like Rihanna, Lady Gaga, Katy Perry etc.

Ritu Beri
Ritu Beri is one of the eminent fashion designers of India who launched her label
in 1990. She is the first in many aspects, including the first Indian designer to be
featured in PROMOSTYL, a style magazine, the first Indian Designer to do a
fashion show in Paris and the first Asian to become the head of a French Fashion
brand.
Ritu was also the protege of the French legend Francois Lesage, and her creative
talent was applauded by many top-league fashion designers of the world. She was
also mentioned as the “First Lady of Fashion in India” by Time Magazine,
indicating her stature in the fashion industry. Ritu is famous for giving an Indian
expression to contemporary clothing and converting them into client-pleasing
ensembles.

Tarun Tahiliani
Tarun Tahiliani is India’s first fashion designer who has created a name for himself
in the global fashion arena. His career in designing began in 1987 after co-
founding Ensemble, India’s first multi-designer boutique with his wife, Shailaja
Tahiliani. Within a short span of time, Tarun emerged as one of the country’s
biggest designers and launched several collections that range from traditional
silhouettes to western ensembles.
Over the last few years, Tarun has also created a mark for himself in the Indian
Bridal Wear segment. His clothing line features a lot of gilded opulence through
various embroidery techniques and fabrics that resonate with the evolving tastes of
his clientele.

Rohit Bal

Rohit Bal is a famous Indian fashion designer who is best known for his use of
traditional Indian motifs like the Lotus, Peacock etc., in his clothing. Rohit was
born in Kashmir in 1961 and started his career in 1986 in New Delhi with Men’s
wear segment. Soon he expanded his collections to women’s wear and accessories
like eyewear, bags etc. Rohit is renowned for using rich and opulent fabrics like
brocades, velvet etc. which lend grandeur to the outfit.

His international clientele includes popular celebrities like Cindy Crawford,

Pamela Anderson and Uma Thurman, who regularly sport his designs on the red
carpets. Rohit also won several awards the ‘Designer of the Year’ in 2001 and
2006 and winning the Lakme Grand Finale Designer in 2012.
Wendell Rodricks
Wendell Rodricks (28 May 1960 – 12 February 2020) was an Indian fashion
designer and author based in the Indian state of Goa. He was also an activist for
social causes, environment and gay rights. In 2014, the Government of India
conferred upon him its fourth-highest civilian award, the Padma Shri. Rodricks
began his career in fashion by designing for Garden Vareli, Lakmé Cosmetics and
DeBeers. When in Paris with his first portfolio in hand, he was advised to put
"your country in your clothes". He launched his own label in 1989 with his first
show held at the Regal Room of the Oberoi Hotel, Mumbai.

JJ Valaya
JJ Valaya (born 8 October 1967) is an Indian fashion designer and couturier from
New Delhi, India. He founded the House of Valaya, a luxury fashion and lifestyle
house in 1992, along with his brother TJ Singh. A founding member of Fashion
Design Council of India (FDCI) and the first global brand ambassador of Crystal
giant Swarovski. He has been designing for over 20 years. As a fine art
photographer, he released his first book, Decoded Paradox in 2011. In the same
year, he also closed the day one of the Lakme Fashion Week (LFW) winter/festive
2011 where he debuted a fashion collection inspired by photography.
Unit:3 Fashion Products and Promotion
The fashion industry and new product development; product mix and range
planning. Fashion and Seasons. Fashion Promotion – Fashion Communication;
Fashion Advertising and Publicity; Personal Selling – importance and steps
involved; Fashion Shows – types and steps involved in organizing a show; Sales
promotion methods /strategies.

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 , Advertising media used in apparel
market, Apparel & Textile Trade shows and fairs .Advertising department and
advertising agencies – structure and functions . Advertising Budget.
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
INTRODUCTION
The present era is of mass production and mass distribution. Similar products are
taken 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 modern
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 concerns. 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 modern 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. Advertising introduces new products, stimulates
markets regarding the existing product and repeated sales. Thus advertising is
advantageous to the following groups of people.
FASHION ADVERTISING
Above the line, paid-for advertising in fashion is relatively low in comparison with
other goods (e.g. FMCGs – fast moving consumer goods), which probably reflects
the fact that less money is spent by consumers on fashion than on food, transport,
leisure, fuel, housing, etc.
Fashion companies have traditionally relied on their stores, i.e. their physical
presence in the market place, being a showcase for their products; however, as
competition has increased this marketing tool (the store itself) has not had as much
impact. If the consumer does not see or visit your store because they think it is not
the store for them, then presence alone is not enough. Fashion stores therefore
advertise in order to stand out from very similar stores carrying similar
merchandise.
Television advertising
This is the most expensive method of advertising because it reaches the highest
number of people. However, for fashion retailers it is not always cost effective as
the fashion 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, a useful medium for brand image creation. For many fashion
companies targeting specific 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.
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).
A fashion brand/retailer can be fairly confident when advertising in specific
magazines that they can match their target market with the magazine target market
and therefore not waste the advertising budget.
PREPARATION OF ADVERTISING FOR APPAREL MARKET
Theme is the subject matter of advertisement. A theme represents a particular
view- point or a central idea with which the message is conveyed to the public. An
advertisement copy should bridge the gap between the advertiser and the readers, if
it is to be effective. To achieve this, the advertisement has to provide the audience
the information that is of interest to them. The two features of
―message‖ are ―message structure‖ and ―message ap eal.‖ Message
structure contains details (selling points) of the products and consumers‘
needs and benefits. A two-sided argument is effective in winning over an
audience. 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;
The product-oriented appeals:
They may emphasis the physical features or the functions of the product or may
attempt a comparison of the product with the other brands available in the market
The consumer-oriented appeals:
They on the other hand, are directed at the audience‘s attitude, faiths and beliefs. It
may emphasis the attitudinal and behavioral patterns of the audience, the life styles
of the audience or their social image. In actual practice, messages quite often
combine the product appeal and consumer appeal. The theme has an arresting
quality, i.e., 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:
The Theme of Beauty
The Theme of Health
The Theme of Pride
The Theme of Comfort
The Theme of Economy
The Theme of Fear
The Theme of Emulation
The Theme of Distinction
The Theme of Affection
The Theme of Patriotism
In modern times, advertising is used by men in various walks of life. Littlefield and
Kirkpatrick observe that:
Advertising is not a game, for here when advertising is done properly and
profitably, both buyer and seller benefit.
Advertising is not a toy, for advertising funds come from sales volume and,
therefore efforts are made to increase sales.
Advertising is not a racket, only few advertisements are designed to deceive,
majority are based on honesty.
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 etc. and these factors cannot be controlled as a physical
scientist may control the experiments.
ADVERTISING MEDIA USED IN APPAREL MARKET
Medium is a means through which the advertising message is conveyed to the
consumers. The proper selection of the medium, by which the message is to be
conveyed, must achieve the pre-determined goals. In brief, the following facts,
which affect the media, may be considered:
Should the advertisement reach and influence the largest portion of the people?
Should it be possible to influence the pre-determined group of buyers?
Should it give a wide coverage at less cost?
There are some important factors, which are also to be considered:
The characteristics of the product and its demand
Fund available for advertising.
Nature of the market i.e., different segments.
The nature and extent of competition prevailing.
Medium to be adopted
Coverage of the medium.
The product‘s nature
The position of the product in the market.
Size of the advertisement.
The probable cost of advertising.
The media to be adopted, along with merits and demerits are discussed in detail
below
Indoor Advertising
Press Media
Newspaper (ii) Magazine (b). Radio
(c). Television (d). Film
Outdoor Advertising
(a) Mural (posters), (b) Advertising board, (c) Vehicular, (d) Painted display, (e)
Traveling display, (f) Electric display, (g) Sky advertising, (h) Sandwich-man, (i)
Handbills (leaflets).
Direct Advertising
(a) Sales letters, (b) Circular letters, (c) Booklets and catalogues, (d) Folders, (e)
Package inserts & f) Store publications
Promotional Advertising
(a) Window display (b) Interior display (c) Show-rooms (d) Exhibitions.
1.3.1. Indoor Advertising
When advertising is made through newspapers, magazines, radio, T.V.
Programmers or cinema programmed in Video etc., so that people can get the
message at home, it is known as 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.
Press Media:
Advertisement in newspapers, magazines, journals etc., 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.
Wide coverage is possible.
Varieties of advertising are possible.

It is more effective for all purposes.

Reaching of the advertisements can be judged easily.
Detailed and informative sales programme is possible
Permanency and mobility of publication are possible.
It is economical
It is quick in action
It has a longer life (magazine, journal etc.)
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 Manorama‖ 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.
Merits
Newspapers are having a large demand and wide coverage.
The cost of newspaper is less when compared to its use.
Wide publicity is possible.
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.
Speedy preparation and publication of advertising is possible.
Newspapers are read daily and hence continuous publicity is possible
It makes quick results. The public response is quick. Advertisement given by
sellers reaches the public quickly and they act accordingly.
Regular and frequent advertisement is possible.
It is flexible i.e., number of pages and shape of the advertisement can also be
changed.
It is suitable for direct and indirect selling.
Lengthy matter for advertisement can be given
In local newspapers, preference is given to the advertisement of local products
Effectiveness of advertisement can be estimated.
Selection of market is possible.
It is newsy apart from timely
Demerits
It is having the shortest life. ―Today‘s newspaper is tomorrow‘s waste paper.‖
Frequent advertisement is required lest it should become ineffective.
Newspaper advertising is affected by the illiteracy of the public. It affects the
utility of newspapers also; the effectiveness is questionable.
Chances for display and demonstration are much rare.
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 according to the
tastes or liking of the public. There are different types of magazines.
General Magazines: General Magazines are read in easy-chairs. 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.g., illustrated weekly, Blitz etc.
Specialists Magazines: They are technical journals and professional journals.
Technicians read technical journals, Doctors, lawyers, accountants etc., read
professional journals. There are special magazines for industry, banking, politics,
religion, agriculture, insurance, transport literature etc. 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 etc. some magazines enjoy national and international
circulations.
Merits
It is having longer life than newspapers. Hence it is a great help to advertisement.
It is having greater reference value of advertisement.
Colour advertisement attracts the people very much.
It s published for selected people. As such, it is having a high degree of selectivity.
Ex. Famina is meant for women. Medical journals for doctors etc.

Cost is also comparatively low.

Advertisement in standard magazines creates a national image for the product, e.g.,
Reader‘s Digest. Illustrated Weekly etc.
It satisfies the need of a particular class of people, say ―Commerce‖ for business.
Magazines guarantee uniformity of coverage.
Demerits
It is less flexible
Limited circulation. It reaches only a limited section of people.
It is costly. High quality paper, colours and preparation cost of magazines are high.
As such, the cost of advertising is also high.
Introduction of a new product is ineffective, as it takes time to advertise the new
products. Hence timely information of arrival of a product is not possible.
Advance planning is needed to advertise in the magazine. As such advance
submission of advertisement is necessary.
It is not suitable for regional advertising. For example, Reader‘s Digest is
unsuitable for regional advertising.
3. Radio
Radio is the quickest medium of advertising when compared to newspapers or
magazines. Sound moves faster than other media. It is a popular medium of
advertising for a commercial firm. Radio makes its appeal to the ear. Commercial
radio broadcasting has become popular and is widely used in all countries. It is also
popular in India and the radio has started playing an important role as one of the
media of advertising. It plays its role well, especially in rural areas where
newspapers cannot reach. The maximum number of radio sets is in Tamil Nadu,
followed by Maharashtra, West Bengal, and Gujarat. Further, transistorized radio
brightens the scope of advertising.
Merits
Coverage and appeal are wide
It is the best means for illiterate people.
Spoken words are more effective than written words.
It is flexible and timely.
It adds to the prestige of the advertiser.
Spot programs can be arranged.
Demerits
It is quite costly
Only limited time will be allowed.

In many cases, listeners may be irritated with the commercial advertisements.

The effectiveness of advertising cannot be measured.
4. Television
It is of recent origin. It is more popular in advanced countries especially in the
U.S.A. In Delhi the first television centre was set up in 1962, followed by Bombay,
Calcutta, Lucknow, Madras etc. Television advertising is the latest medium of
mass communication and is widely used for advertisement. It is an audio-visual
medium, because one can see and hear. The maximum numbers of television sets
are in Maharashtra followed by Delhi.
Merits
It appeals to the eye and the ear
People are impressed by pictorial presentation
Interest is further boosted by introducing color televisions.
It has the characteristics of a salesman
Demerits
It is an expensive medium
The impact of advertising cannot be measured
It is 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 to 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
It can create a good impact on the audience.
It covers all classes of people-poor, middle and rich.
Explanation and demonstration are possible
It has a wide appeal.
Demerits
Producing a film is costly
Effectiveness cannot be measured.
The co-operation of theatre owners is essential.

The audience becomes irritated, where more such advertising films are shown.
Only cine goers can be covered.
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 etc. This outdoor advertising has the best effects of
advertising.
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 bus stand, railway station, marketplace, parks,
libraries, and crowded areas. The cost is less.
It is flexible. It has a short life, because in cities, posters pasted in the morning,
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.
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 Advertising:
This moving advertisement finds place on vehicles-buses, trains etc. The vehicle
passes through many place and many people happen to see it.
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.
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.
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, it is more bright and alluring.
It is costly.

Sky Advertising:
Sky advertising and sky writing have become popular. Big balloons with message
written on them or attached to them are allowed to float in the air. Big kites
containing advertisement may be floated in the open air. Sky writing is a kind of
advertising played by the pilot, through aero plane, either by forming smoke or by
illumination. Karnataka State Lottery Agencies have adopted big balloons for the
sake of publicity. The inscription or writing on the balloon will speak about the
products. Almost all the circus companies use the high powered revolving search
lights to attract the attention of the public. All these types of advertisements can be
seen from a long distance.
Sandwich-men:
Sandwich-men are hired by the advertisers. They move or walk down through busy
roads and streets. They dress in a peculiar way with fancy clothes. They carry
posters of the product of the advertisers. They utter slogans. They create certain
type of musical sounds. This sort of advertisement has short life, but is effective.
Cinema theatres usually adopt this method of publicity.
Handbills (Leaflets):
Handbills are common and too cheap. Handbills, which are in the form of leaflets,
are distributed among the people through hired men. Sometimes, music bands are
also played along with distribution of leaflets. Only interested persons may go
through the handbills. The handbill distributor distributes copies of 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 discuss
the merits and demerits of this advertising.
Merits
This is the best for local advertising; it has the widest appeal.
It speaks to everyone.
It engages few seconds of people‘s time and need no effort.
It always attracts the viewers, because of its style and colourful appearance.
Its effect is permanent.
It indirectly beautifies the place. With outdoor advertising, crowded places like
Bombay, Calcutta, Delhi, Madras etc., appear beautiful to look on, and at the same
time the unpleasant sights are covered up.
It is flexible.
It is a low cost medium.

Demerits
It has less advantage, compared to other media.
It reduces its value because of brevity.
The effect of prospects cannot be measured.
It can be used only as a supplementary type of advertising.
Direct Advertising
The object of direct advertising is to create a direct contact with the customers. The
advertiser can keep a close touch with the customers or the public, who are
supposed to have interest in his product. He contacts them and keeps a close touch
with through mail advertising. It is a common method. It is also known as direct
mail advertising.
Characteristics of Direct Advertising
Through direct advertising, more or less a personal contact can be maintained.
There is a written form of communication i.e., letter.
Contacts are through post.
Merits
A personal relationship with the customers can be maintained.
Detailed information can be conveyed.
Effectiveness of this system can be measured.
This system is elastic; addition or deletion is possible.
Privacy can be maintained.
It is highly selective; i.e., sending the letters to those, whom the advertiser selects.
It is cheaper.
Demerits
In drafting mail, specialized skill is needed.
It is difficult to maintain an up-to-date mailing list.
The success depends upon the reaching of the recipient.
In many cases, it fetches no attention of the receiver.
Sales Letters:
Sales letters are persuasive in nature. Many firms think every 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 sales letters because the purpose of salesman and
sales letters is the same, i.e., push up the sales. Drafting a sales letter is in the form
of advertising, to create an interest in the mind of the reader. Sales letters are
cheaper and convenient.

a. Purpose of Sales Letter

To confer faith in the product.
To get an enquiry letter from the reader.
To create an interest in the recipient‘s mind.
To create sales and goodwill.
Circulars:
It carries communication to a number of addresses. The circular letter contains
information about the products. It is generally cyclostyled or is in the printed form.
It carries less attention than the sales letter. The merits and demerits are similar to
sales letters.
Booklets and Catalogues:
These contain more particulars of the product and the firm. Booklets are in the
form of a small book. Catalogue contains more information than a booklet.
Fundamentally both are similar. Catalogue will be more attractive and it contains
illustration of products with details and price lists.
Folders:
These are letters or cards containing details of the products. They contain
illustration. Folders can be sent without envelop. The folders can be folded
conveniently, as they are made of thick paper. These are generally adopted by
publishers, medical firms, industrialists etc. The folders must be attractive.
Package Inserts:
This is a system through which leaflets about the products are inserted in the
packets of products. The package insert may contain details of the same product or
other products of the same firm. Thus, it is an advertisement.
Store Publication:
This is also known as ‗house organs‘. Certain firms may publish periodicals or
magazines which contain information about the development of the firm. These
will be distributed to wholesalers, retailers etc., free of cost. This will also explain
the product in detail.
Promotional Advertising
The object of promotional advertising is to increase the sales. These are also
known as
‗display advertising‘. By this, we mean that the products are systematically kept in
a place so as to attract 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

them. The products dealt in by the firm are placed at the front of the firm, trying to
create an arousing interest in the minds of them. A good arranged system of
window display naturally increases the sales. It gives a memorizing attitude to the
public, even if one is not entering the shop at the sight of the display.
How should a window display be?
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.
It must create attention, attraction, interest, desire and action.
The price tag should be attached to products.
It must always be kept clean and neat.
Merits
It has ―at the point of purchase‖ effect.
It attracts the onlookers.
It is 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
Purchasing is made easier.
It facilitates to sell allied products.
The whole shop becomes attractive.
It is flexible.
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 needed products are kept, but different products also.
And this creates 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 good lighting arrangement
with good atmosphere. For instance, textile mills, and firms producing furniture,
refrigerators, television sets, radio sets and other luxurious items must

have generally show-rooms.

Merits
The show-room appears as a sales centre.
Consumers can study the product and its proper functions as well as precautions.
Exhibition:
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
Variety of products display can be witnessed.
It is always interesting to the public.
It is a ready-made market.
When selecting a medium for advertising, the following should be considered.
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.)
Whereabouts of his customers.
Nature of message.
Medium to be adopted.
The cost of medium.
Circulation of the medium.
ADVANTAGES OF ADVERTISING
Advertising is considered multi-dimensional. It 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 possible which leads to more production at
less cost. The relation between wholesalers and retailers is improved through
advertising. Advertising introduces new products, stimulates markets regarding the
existing product and repeated sales. Thus advertising is advantageous to the
following groups of people.
Advantages to Manufacturers

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.
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.
It Stabilizes the Sales Volume: Stabilization of sales volume is possible through
advertising by the process of repetition. Regular 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
a permanent class of customers to buy the product.
It Controls Product Price: Control of wholesale and retail price is possible by
means of advertisement. The needy retailers are overcharged by some greedy
wholesalers. The retailers charge higher prices for the products. Hence the
consumers do not want to buy such products. This will lead to reduction in sales.
Hence manufacturers print on the cover or announce the retail price of the product.
It Helps in Opening New Market: Advertising is helpful in opening or creating new
markets. It helps to get leadership in the market It helps the manufacturers to take
decision whether to expand the market share or not. It also helps them to sell new
products or improved variety of products.
It Maintains the Existing Market: 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.
It Creates Reputation: Advertising increases the reputation of the manufacturers in
the public. It builds 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.
It Secures More Dealers: Advertising secures more dealers to buy the products.
Due to the goodwill earned from the public, dealers are interested in buying such a
product.
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.
Wide Information: Wider information of product is possible through
advertisement. Any change in quality or price can be made known by the
manufacturers to the customers as and when it is necessary in a quick manner.
Manufacturers can change the habits and prejudices of customers by tactful

advertising Thus; it helps in establishing and controlling the buyer habits of the
customers.
Advantages to Salesman
Creates a Background: Salesmen‘s mastery and skill satisfy the customers. A well
trained, active tactful salesman‘s job makes easy distribution work. The
advertisement, which is the background, will help the salesmen very much.
Customers know about the product through advertisement. When salesman
contacts them with the product, customers buy the product without any hesitation.
Curtails the Burden of the Salesman’s Job: If the advertising is done by the
manufacturer, the work of salesman is reduced. Otherwise he has to advertise
about the product and then try to sell the product. Salesman‘s function is supported
and supplemented by advertisement. Selling and advertising are ‗cup and saucer‘
or ‗key and lock‘ words. Salesmen‘s work is made easier and more encouraging
by advertisement.
Least Effort: Advertised product can be sold very easily. Salesman‘s time is saved
and he can contact more customers in a shorter period. He can meet many
customers with the least effort.
Consumer’s Needs Can Be Studied: A salesman‘s confidence is increased through
advertising by educating and stimulating the consumers. Customer‘s demand and
needs are studied by him correctly. The manufacturers are informed of this. They
will supply the products according to the demand of the customers and thus
equalize the demand and supply of their products.
Creates Enthusiasm: Advertising reduces salesman‘s job. He can do his job in a
better way to sell the products, crossing the fixed quota. Hence it creates
enthusiasm and confidence in him.
Advantages to Wholesalers and Retailers
Creates Easy Sales: Advertisement informs consumers about the quality of the
product. Hence they know about the product. Sale of that product is easy for the
wholesalers and retailers.
Increases the Turnover: Advertising helps quick sale of the product which in turn
increases the rate of turnover of the product. Thus, there is no question of old
stocks. It reduces the expenses on overhead charges.
Attracts More Customers: Advertising gives detailed information about the product
and the availability of the product in a particular shop. As such, it attracts more
customers in that particular shop.
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.

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.
Economic Selling: Advertising ensures more economic selling.
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 etc. A good advertising can help in buying the best one.
Connecting Link: Advertising is the connecting link between the manufacturer and
the customers. It eliminates the middlemen. There is no profit for the middlemen.
Hence the price is low.
Fair: It helps the customers to get product at fair price.
Saves time: It helps customers by giving information about the availability of the
product, i.e., where and when. The customers can select the best product in a
particular shop. Thus it reduces their shopping time.
Best Quality Product: Advertisement generally stands for a quality product.
Manufacturers advertise their product only for selling. If the product is not good,
customers will switch on to other products (brand). Manufacturers maintain their
quality to retain the market. As such, it is advantageous to customers. Benefits of
standardization are assured to the customers by advertising.
Educates the Customer: The aim of the advertising is to educate the customers
about the introduction 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 products and substitutes will
enable the public to understand more about a product or services.
Mail Order Business: Advertising 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 get the
products through post. Thus it improves the social welfare.

Advantages to Community
Increases Employment Opportunities: Advertising generates employment
opportunities directly and indirectly. 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 turn opens the door for more employment indirectly.
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.
Advertising gives stimulus to the consumers to buy new variety of products. It
leads to large-scale production of more varieties of products followed by mass
consumption. Thus advertising creates demand for standardized products.
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.
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 etc. 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.
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
advertising:
Advertising sells people things they neither need nor want.
People are not really influenced by advertising.
Advertising generates senseless proliferation of variety in goods and services.
Advertising results in higher prices.
Advertising is false and misleading.
Most advertising is irrelevant.

Most advertising exhibits bad taste or sponsors it.

Advertising is too intrusive.
Advertising regulates discussions of public issues through its control of the news
media.
Its life is short.
It tends to create monopoly.
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
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 increases 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 Things: People are forced to buy things by the attraction of
the 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 criticize that people are not
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. The manufacturer must be very careful about this change. When there
is a change in price, model, quality etc. it will incur another big amount for the
advertisements. It is responsible for quick and premature changes in fashion and
style. For instance, a particular product can 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: Advertising exaggerates the real fact to the consumers
e.g.,
―the best medicine for headache,‖ ―the finest pain reliever‖ etc. These lead the
consumer to 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.

It is Fraud and Misleading: Advertising 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 of their products,
which are really not needed to the customers. They aim at earning profits by
pushing out the dead stocks. For this, by concealing the actual facts, the advertiser
makes publicity with ―make to believe‖ statements by using false statistics,
tempered statements, false claims, exaggerated ideas, false comparison,
misrepresented opinions of great people, false supported reports etc., without a
base.
For instance, film stars‘ opinions with photos and signature generally appear in
many newspapers. Big political leaders‘ statements, with signatures are ample
now-a-days. Generally we may come across statements like the following. A film
star says, ―My secret in beauty lies in X brand soap‖ Some big star says, ―I am
dying for X brand cigarettes.‖ ―Do you know how we can enjoy and relax with
the X brand drinks?‖ ―Our products are wonders of the world‖ etc. All these
statements have no background but the public are cheated and this boosts the sale
of dead and ineffective products.
Leads to Monopoly: Advertising is done by large firms. It prevents the entry of
small firms and new firms in the market. People buy a particular brand. By taking
advantages of this producers raise the price. By using the advertising knife, they
cut the necks of small or new firms. These lead to monopoly.
Social Objection
The Press:The major income for the press comes from advertisement. It is true that
the cost of the newspapers is reduced. The advertising matters are presented in
such a way that advertisers are favoured, but the public are not, so sometimes the
public are affected adversely.
Ethical Objection
Cigarettes, brandy etc., are harmful to health. Advertising makes people to buy
these. It affects their health. The way in which they are advertised is bad. The
statements, poses of pictures etc., in many cases are offensive; they are vulgar and
immoral. In many cases, advertising which excites emotions, nude poses of sex,
vulgar statement etc., affect the morale of the younger generation and damage the
ethical aims of a society.
ADVERTISING DEPARTMENT.
Every good company even if it utilizes the services of an advertising agency has its
own advertising department which do independent advertising activities quite
successfully.
The internal organization may adopt any of these patterns
It can be set up along advertising sub functions copy media, etc.

Individuals can be assigned to one of the product lines – appliances automobiles,

furniture garments, etc.
It can be by type of buyer or ensures – consumers, purchasing agents or industrial
user etc.
It can be geographic – foreign domestic etc.
1. Structure and Functions of advertising department
Determining the allocation of funds to be spent on advertising and sales promotion
programmer.
Budgetary control to control the procedures of spending the sum budgeted and to
adhere to the purposes and the limitations of budget
Co-ordination with the sales department as both is complimentary to each other
Keeping in touch with the representatives of important media – companies
middleman consumer and commercial firm
Distribution of advertising materials among the customers.
Promotion and supervision of the sales promotional material
Merchandising advertising to fulfill consumer wants
Record keeping and supervising the accounting done for advertising
Check the advertising ordered by and for the company and approves payment for
it. The advertising manager is the key executive in this department
ADVERTISING FUNCTION
Advertising function:
His responsibility is to determine advertising policy
To outline company‘s advertising strategy
To design Company advertising effort
He must indulge in creative
Managerial function
Administering the advertising department
Setting advertising goals.
Drafting advertising plans and making advertising budgets
Seeing that the company‘s top management has a correct and complete
understanding of advertising
Taking part in company management
General set-up of advertising department
Board of directors
General Manager (or) Managing Director

Clerical staff Record Sales promotion Display demo‘s Miscellaneous packing dept
publicity dept
Filling Statistics
Voucher Gift Scheme Sales literature estimates schedules
ADVERTISING AGENCY
Almost all good organizations have a separate department for advertising activities
and are known as advertising department. It is headed by an advertising manager.
It is not possible for all the organizations to maintain a separate department.
Moreover, the present era is a stage of stiff competition in the field of marketing.
And this invites specialized hands to deal with the advertising campaign, which is
becoming more complex. Thus the advertising agency has come up. The
advertising agency is a service organization. It is a specialized unit in the field of
advertising. An advertising agency is a group of persons, who are experts on
various phases of advertising and related marketing areas. Such agencies are
slowly progressing in India, where as such agencies in advertising are well-
developed in the U.S.A.
The function of advertising agency is to sell goods and services to their clients,
who have messages to be conveyed to the public. They are specialists who give
expert assistance to their clients. An advertising agency is an independent concern.
It acts as an agent or consultant for the advertiser. In early periods, they sold spaces
to an advertiser and arranged for the publication in the newspaper on behalf of the
advertiser. Now there are various existing and new style of advertising has come
up. The role of advertising agency has been upgraded. Thus, the advertising agency
performs the following useful services.
They develop attractive and cheaper ideas for advertising.
The specialized agency, which has all facilities, such as artists, painters,
photographers, expert personnel etc., can offer the best advantageous services to
the advertisers.
They possess a closer relation with media owners and this facilitates in obtaining
space and timely presentation at a competitive rate.
The burden of advertiser is undertaken by them, so that they are freed and can
attend to other jobs.
The expenditure met by the advertiser for advertising can be turned into productive
expenditure with the help of agencies.
Generally advertiser fined difficulty in the preparation of advertisement copy.
Often they make wrong copy. But the agency prepares the copy quickly and
correctly. This relieves the burden of advertiser.
The agency also does the work of special packing, designing, sales training,
research,

and test marketing etc., for their clients.

Thus Advertising Agency:
It‘s a business organization established to render advertising services to its clients
and customers.
It has been defined as ―A group of advertising specialist plus marketing,
merchandising, communication and allied personal‖
It‘s a creative business [(i.e.) To prepare advertisements
A service business.
A profitable business.
SELECTION OF AN ADVERTISING AGENCY
The advertiser has to consider certain factors while selecting an advertising
agency.
They are:
The agency to be selected should have experience and must be peculiar to the
business of the advertiser.
The line of products usually accepted by the agency is to be considered.
The available facilities and equipments with them are to be ascertained.
The financial soundness of the agency is to be checked.
Goodwill and market reputation are earned through advertising.
―Time is money,‖ especially to business people. Bringing the advertisement in
time is an important factor.
Basis of remuneration for the work is to be considered. Advantages of services of
advertising agency, in brief are:
Advertiser is freed.
Benefit of economy goes to the advertiser.
The work is quick and satisfactory.
Advertising looks more attractive.
Market research is available at cheap rate.
It promotes sales.
Advantageous utilization of fund is possible.
STRUCTURE AND FUNCTIONS OF ADVERTISING AGENCY:
It develops new business by defining or describing the type of client the agency
wants.
It reduces the hazards of advertising.
It advocates the idea of advertising.
It creator the advertising manager which are in essential element which media with
to sell.
It simplifies the mediums credit operations and reduces the cost of their operations.
It carries the cost of credit losses.
It simplifies the mechanical preparation of advertising and reducer the medium
cost.
The main work of agency is to create, prepare and place advertising for the
promotional objectives.
INTEREST OF ADVERTISING AGENCY
Consumer matters - Premium
Contest premiums, sampling demonstrations, coupons, consumer education,
consumer services.
Marketing matters
Product and package development, product identification, labels, pricing, channels,
competitors, activities, marketing trends.
Dealers Matters
Direct mail to middlemen point of purchase advertising retail promotions,
advertising port folio for retailers, catalogues, merchandising clients, advertising to
dealers.
Personal selling matters
Trade shows, displays, exhibition salesmen port folios, sales training, stimulation
sales, meetings, sales literature, merchandising client, and to clients salesmen.
Trade Shows
Definition:An exhibition for companies in a specific industry to showcase and
demonstrate their new products and services. Generally trade shows are not open to
the public and can only be attended by company representatives and members of
the press. Also, an exhibition of businesses offering franchises and/or business
opportunity packages for sale.
Trade shows are sponsored by trade associations for specific industries, and there
are thousands of associations running shows every year. Generally trade shows
aren't open to the public and can only be attended by company representatives and
members of the press. To find an appropriate association for the industry you're
interested in, look through the Encyclopedia of Associations published by Gale
Research. You may also want to check magazines and newsletters such as
Tradeshow Week or go through the Tradeshow Week Data Book. These
publications should be available at your local library.
ADVERTISING BUDGET
Having determined the advertising objectives, the next important managerial task
is to determine the advertisement budget. The amount set aside exclusively for
advertising is known as advertising budget or appropriation. The firm may be
spending the amount in order to achieve the sales goals. The question raised in this
respect is now much amount cans a

producer or manufacturer spends on advertising? The financial manager has to

tackle this problem. But it is a difficult task to be solved. Generally every year, an
estimate will be made to calculate the amount for advertisement. There are
different factors to be considered before making out a budget for advertising.
Mainly PLC stages have to be looked upon. Here the emphasis is given to the basis
or methods available for determining the advertising budget or appropriation. They
are briefly discussed below:
Affordable Method:
Under this approach, a company, to determine the advertising appropriation, is to
find out what the company can afford. It can spend for advertising as much as the
funds permit. From the name itself it is clear that the affordable amount set apart
for advertising, is known as affordable method. It means that the advertising
expenses may vary from year to year.
Under this method the weakness may be (1) The opportunities of advertising are
overlooked
(2) It is difficult to plan long-term marketing development.
Percentage of Sales methods:
Here the budget amount is decided for advertising as a percentage of sales, i.e.,
relationship between advertising expenses and sales revenue. For instance, a
company may allot Rs. 5,000 in which is 2% of the preceding year‘s past or
forecast or anticipated sales i.e., Rs. 2, 50,000.
Merits
The method is simple in calculation.
A clear relationship exists between sales and advertising expenses.
Advertisement wars can be avoided.
Demerits
Past figures may be incorrect for the future.
Declining sales reduce the advertising expenses and is not a dynamic method. But,
when sales decrease, advertising must be increased.
This system takes advertising as the result of sales. But it should be the cause of
sales.
Competitive Comparison Method:
A company sets its budget solely depending upon the basis of competitor‘s
expenditure. That is under this method, the advertising appropriation is decided on
the basis of spending for advertising by the competitors. For this a company has to
collect relevant data about competitors. They will do simply what others have
done.
Objective and Task Method:
This is also known as research-objective method. The amount is set aside on the
basis of objectives to be achieved and tasks to be involved. Under this method,
three questions are involved: (1) what does the company wants to accomplish? (2)
What is necessary in order to accomplish this? (3) What will it cost do this?
Merits
Advertising objectives are achieved.
It is flexible
A clear advertisement programme can be drawn.
Demerits
The cost of objectives may not be estimated exactly.
It is more rational.
Return on Investment Method:
Here the advertising budget is considered as an investment, thereby expecting a
certain return in terms of profit. A clear study is made by emphasizing the relation
between advertisement and sales. Sales are measured with advertising and without
advertising. That is, the profit obtained by advertising is compared with the cost of
advertising
POINTS TO BE RMEMBER:
This tendency is a struggle for the producers for their survival in the modern
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 concerns.
Therefore advertisement is a method of publicity. Advertisement has the prominent
place among the techniques of mass education and persuasion on the public.
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.
Advertising introduces new products, stimulates markets regarding the existing
product and repeated sales.
Indoor advertising includes press media, radio, television, film. Outdoor
advertising includes mural (posters), advertising board, vehicular, painted display,
traveling display, electric display, sky advertising, sandwich-man, and handbills
(leaflets).
Direct advertising includes sales letters, circular letters, booklets and catalogues,
folders, package inserts & store publications. Promotional advertising includes
window display, interior display, show-rooms and exhibitions.
Advertising agency is a marketing agency that helps to promote customers needs
through advertising.
Thus advertising agency is a business organization established to render
advertising services to its clients and customers. It has been defined as ―A group
of advertising specialist plus marketing, merchandising, communication and
alliedpersonal‖.
After the advertising objectives, the next important managerial task is to determine
the advertisement budget with the effect of affordable method, percentage of sales
methods, competitive comparison method, objective and task method and return on
investment method.
Unit:4 Fashion Retailing
Fashion Retailing - Scope and functions, Types of Stores, Challenges for fashion
retail in India, E- retailing – growth and development, Major players of fashion
goods online. Pricing policies and strategies for apparel products, Functions and
factors Influencing pricing, pricing strategies for new products, methods of setting
prices

Fashion Retailing
Fashion Retailing is the link or a bridge between the fashionable product
manufacturer and the consumer. Fashion Retailers may buy fashion merchandise
from various manufactures (Vendors) directly import merchandises from all over
the country their own brands. Fashion retailers must constantly be aware of
customer’s desires. They must notice changes in people’s living patterns and tastes.
Retailers must show to put together and accessories an outfit. Students are studying
UG/PG level in fashion design, apparel tech or garment manufacturing, fashion
merchandising have enough chance to choose the fashion retailing as their career
options to become the stores merchandisers, store in-charge, and store manager
with expected emoluments/salary, by gaining wide knowledge and experience to
become the successful entrepreneur.

Functions of a Retailer
Retailer provides the goods that customer needs, in a desired form, at a required
time and place.

• A retailer does not sell raw material. He sells finished goods or services in the
formthat customer wants.

A retailer buys a wide range of products from different wholesalers and offers the
best products under one roof. Thus, the retailer performs the function of both
buyingand selling.

• A retailer keeps the products or services within easy reach of the customer by
making them available appropriate location. at

Scope:

1. Store Management.
2. Category management.
3. Customer Relationship Management.
4. Vendor Management.
5. Inventory Management. 6. Supply Chain Management.

Importance:
1. Helps in economic growth.
2. Provides various opportunities.
3. Provides employment opportunities.
4. Formation of FDI.
5. Improvement of Infrastructure and enhances the availability of
retail space.
6. Transformation of the retail sector in India.
7. Improvement in standard of living.

Different Types of Retail Stores:

The type of retail store plays a very important role, as it influences from store
layout to the type of customer you attract. Let’s look at the different retail
categories in more detail.
1. Department Store:
They are often seen in malls, a department store is a retailer offering a huge variety
of consumer goods in different areas (or departments) of a store. Department stores
have a reputation as being a little pricier than big box stores and selling higher-end
brands. Examples of department stores are, Macy’s, Kohl’s, and Neiman Marcus.
The average size of department store is around 250,000 square feet and often uses
the loop layout to connect customers to every department.

2. Off-Price Retailer:
The off-price retail model is a replica of the discount retail model. Here, mainly
retailers typically highlight the “normal” retail price alongside their lower price so
customers can see what kind of deal they’re getting. Basically, off-price retailers
are independent of manufacturers and buy large volumes of branded goods to sell
at a reduced cost. Examples include TJ Maxx, Burlington Coat Factory, and
Nordstrom Rack.

3. Discount Store:
They are famous for having lower-than-average prices; a discount store’s secrete
lies in merchandising. Retailer’s objective is to give the feel of offering all their
products for less than the average retail price. Think Dollar Tree, Big Lots, or Five
Below as examples of discount stores. These stores average size is 10,000 square
feet and leverage the loop layout to encourage customers to explore the whole
store. Smaller format stores like TJ Maxx are approximately 30,000 square feet,
while stores like Nordstrom Rack can be upwards of 120,000 square feet.

4. Warehouse:
Costco or Sam’s Club, are warehouse retailers of food and product that offer large
quantities of items at attractive discounts. These stores create a simple experience
and instead focus on moving products in higher volumes. The average warehouse
ranges from 84,000 to 146,000 square feet and generally follows a loop layout.

5. Convenience Store:
They are small in size and offers “quick trip” experiences, convenience stores are
hallmarked with longer open hours and convenient locations. They typically
provide a basic foods and drinks, alcohol, and everyday essentials. Many also have
a fuel station as part of their operations.

6. Big Box/Superstore:
Walmart, Target, Lowe’s, and Home Depot are dominating the big box retail
scene. These retailers (and others in this category) occupy a great amount of
physical space and supply a variety of goods in multiple product categories. For
instance, you can pick up plants, hand soap, mailing supplies, and a new drill all in
the same store. Big box stores typically occupy more than 50,000 square feet, with
typical ranges between 90,000-200,000 square feet. They often have their own
parking facilities.

7. Specialty Store:
As the name suggests that, specialty stores are deep assortment of brands, styles, or
models within a relatively narrow category. Examples include craft stores,
furniture stores, garden centers, sporting goods stores, and bookstores. The average
size of a specialty store ranges depending on the type of store it is. Specialty stores
can use a different types of layout based on the scale of their operations. For
smaller stores, a free flow layout inspires curiosity, while a grid, loop, or diagonal
layout is optimal for medium and larger stores.

Challenges for fashion retail in India

Due to the revolutionary changes in the global economy and the growing relevance
of running a business around-the-clock, the retail industry has been going through
a paradigm shift worldwide.

India has organised retail for a little more than ten years. However, it is mostly an
urban phenomenon, and expansion is slowly occurring.
The retail business is heavily impacted by consumerism, the modern world has
become a global village, and technological advancements have created
opportunities and challenges.

With the advent of the internet, the retail sector has grown to benefit economies
and expand business beyond geographical boundaries at both the B2B and B2C
levels.

Although there is a lot of room for firm growth in the Indian retail sector, it is
nevertheless susceptible to a variety of roadblocks and bottlenecks that might slow
the rate of progress.

Many factors, such as inadequate infrastructure, strict or rigid regulations, political

uncertainty, etc., may restrict growth potential and provide several challenges.

Retail – Issues and Challenges in the Retail Business

These are following issues and challenges in the retail business:

a. Legal and security,

b. Ethical issues,

c. Technological and

d. Non-store retailing etc.

As this is just beginning of retail business, more issues may arise during the full
phased operations.

a. Legal and Security Issues:

Organised retailing has started over the past few years as an adventure in almost all
the large cities in India by the developing and growing business organisations. The
population of retail shops and stores in the unorganized sectors as existing today is
very big.
The main areas, which may attach legal and security issues, can be enumerated as
under:

1. Land acquisition,

2. Construction of building and creating other facilities, requiring statutory

permission and clearances,

3. Elimination of middlemen and agents working in the retail business since

inception will create threats for their existence including loss of earnings for their
livelihood,

4. Employment of members of families of whose land acquisition is involved,

5. Payment of compensations for the land acquired from the landowners.

Of these, acquisition of land is a big issue affecting the legal as well as political
environments at the national level.

b. Ethical Issues:

The coming up of retail business in a big way is likely to create difficulties and
losses to a large population of the society engaged in the retail business since time
immemorial to earn their livelihood.

A few of the likely issues may be indicated as under:

1. Closure of old stores and shops and making them poor within no time,

2. Snatching the jobs of lakhs of people engaged in these old shops and stores,

3. Elimination of middlemen will also be unethical, if the men and women

employed by them are not suitably re-employed in the new retail company,
4. Land acquisition is always complained of inadequate compensations to the
landowners.

Therefore, these issues have to be well taken by the organisations and persons
concerned so as to avoid any adverse situation in the retail management process.

c. Technological Issues:

Retail management is a new venture in the supply distribution chain from original
supplier to the consumers. There are many agencies and channels associated in the
total system. This is a new venture, hence lacks in the latest facilities demanded by
the consumers. There will be difficulties at all the centers in the operations of retail
business. Hence, this will require a massive drive for the technological
developments in all the service centers from original suppliers/farmers, retail shops
staff and executives to the end consumers.

d. Non-Store Retailing:

The newly formed retail management companies like, Reliance, Guardian Lifecare
Private Limited etc. have started bringing the goods straight from the
manufacturers or farmers to the retail centers, from where the same are supplied to
the consumers directly, instead of keeping the same in an interim store room for
further work of cleaning, washing and packing etc.

Thus, these are the various jobs to be done at the retail centers subsequent to the
bringing of the goods from the original suppliers. This will increase the workload
and may create a mess in the supply distribution chain.

E- retailing
E-retail or online retail is defined retailing activities done through internet. We
have many online or e-retailers in India who provide a variety of merchandise to
customers. In general retail business is referred as Business to Consumer (B2C).
Online retail players are classified into two types category focused players and
multi category focused. Category focused players provide particular
merchandise with deep assortment. Ex: - Myntra, Jabbong (Apparels and
Lifestyle products), Bigbasket, Local banya (Grocery segment) and Fabfurnish,
Pepper fry (Furniture), Carat lane,Juvalia and you (jewellery), First cry, my baby
cart (baby products). Multi category players provide variety of merchandise with
limited assortment. Ex: - Flipkart, Amazon, Future bazar and Snapdeal etc..

Pricing Strategies
Retailers generally employ two pricing strategies: (1) everyday low pricing and (2)
high/low pricing. The benefits and drawbacks of each of these tactics are described
in this article.

High/Low Pricing
Through sales campaigns, retailers who use a high/low pricing strategy frequently
—often weekly—discount the initial prices of goods. Some shoppers, on the other
hand, get used to regular reductions and just wait for the items they want to go on
sale before stocking up at the reduced costs. This type of pricing strategy is utilised
by numerous large businesses (including, in North America, Reebok, Nike, and
Target). The fashion and shoe industries compete in part through high-low pricing
(Macy's, Nordstrom, etc.).

Everyday Low Pricing

Many retailers have embraced an everyday low-pricing (EDLP) strategy, including
supermarkets, home improvement stores, and discount stores. With this tactic, the
emphasis is placed on the consistency of retail pricing at a level midway between
the usual, non-sale price and the deep-discount sale price of high/low retailers.
Even while EDLP merchants support their policy of constant pricing, they don't
experience sales as regularly as their high/low rivals.

Everyday low pricing is a little deceptive because low doesn't necessarily mean
"lowest." Although EDLP-using shops aim for low pricing, they aren't always the
best deals available. A sale price at a high/low store could be the lowest price
offered in a market at any particular time. True EDLP retailers, such as Walmart,
Costco, or Target, almost never offer discounts because they have already beaten
the industry prices.

Advantages of pricing strategies

1. Increases revenue:
Retailers can charge higher prices to non-price-sensitive customers who will pay
the "high" price and lower prices to price-sensitive customers who will wait for the
"low" discount price by using the high/low pricing strategy.

Stirs up excitement during a sale, there is frequently an atmosphere of "grab them

while they last." Many people are attracted by sales, and many customers generate
enthusiasm. Some shops add unique in-store events like product demonstrations,
freebies, and celebrity appearances to their low prices and advertising.

2. Sells Slow moving merchandise:

Sales enable retailers to get rid of inventory that isn't moving quickly by reducing
the price.

3. Ensures affordable prices for clients:

Customers generally have doubts regarding initial retail prices. They have
developed the habit of only purchasing during sales, which is the key element of a
high/low price plan. Customers are informed by the EDLP strategy that they can
expect to pay the same low prices each time they shop at an EDLP business.
Customers do not need to read advertisements or wait for sales to start on the
things they want.

4. Lowers operating and advertising costs:

The weekly-sale advertising utilised in the high/low strategy is less necessary due
to the consistent prices brought on by EDLP. Additionally, EDLP sellers are
exempt from paying the labour costs associated with updating sale signs and price
tags.

5. Decreases stock-outs and enhances inventory control:

The EDLP strategy lessens the significant changes in demand brought on by
frequent sales with substantial markdowns. Retailers may more confidently
manage their stocks as a result. Fewer stock-outs translate into happier consumers,
which boosts revenue. In addition, by lowering the average inventory needed for
special promotions and backup stock, a more predictable customer demand pattern
enables the merchant to increase inventory turnover.
Factors for setting retail pricing
Customer price sensitivity and cost: In general, as a product's price rises, sales of
that product decline as fewer and fewer consumers think the product is a good
value. How many units will be sold at various price points depends on how
sensitive consumers are to price changes. If target market consumers are highly
price-sensitive, price increases will have a significant negative impact on sales.
Sales won't be greatly affected by price increases if clients aren't overly price-
sensitive.

Price Elasticity is commonly used to measure price sensitivity. This is the ratio of
the percentage change in quantity sold to the percentage change in price.

Competition: Customers have a wide range of options for products and services,
and they frequently look for the best deal. As a result, when setting their own
prices, retailers must take their rivals' into account.

Retailers have the option of pricing higher, lower, or online with their rivals. The
selected Pricing policy must be in line with the overall strategy of the retailer and
its comparable market standing. Consider Walmart and Tiffany & Co. as examples.
Walmart strives to undercut its rivals' prices on the goods it sells. Tiffany, in
contrast, provides its clients with important advantages that go beyond the products
themselves. Customers are ensured by the company's brand name and customer
care that they will be happy with the products they buy. Tiffany is able to charge
more than rivals because of the distinctiveness of its offering.
Unit:5 Sustainable Fashion
Sustainable Fashion – meaning and significance; Environmental concerns related
to fashion; Linear fashion and circular fashion; 4R’s in sustainability – Repair,
recycle, reuse and reduce. Moving towards sustainable fashion - Eco fashion, Slow
fashion; Environmental impact of fast fashion.

Sustainable Fashion – meaning and significance

Sustainable fashion (also known as eco-fashion) is a term describing products,
processes, activities, and people (policymakers, brands, consumers) that aim to
achieve a carbon-neutral fashion industry built on equality, social justice, animal
welfare, and ecological integrity. Sustainable fashion concerns more than fashion
textiles or products, rather addressing the entire process in which clothing is
produced, consumed and disposed of. The movement looks to combat the large
carbon footprint that the fast fashion industry has created by reducing the
environmental impact such as air pollution, water pollution and climate change.
In 2020, it was found that voluntary self-directed reform of textile manufacturing
supply chains by large companies to reduce the environmental impact was largely
unsuccessful. Measures to reform fashion production beyond greenwashing
requires policies for the creation and enforcement of standardized certificates,
along with related import controls, subsidies, and interventions such as eco-tariffs.

Brands can break their sustainable practices down into four areas.
Ethical Fashion: This covers production, working conditions and Fair-Trade
practices. Ethical fashion is a moralistic stance a company takes to ensure no
human beings or animals are hurt due to their manufacturing practices.

Circular Fashion: This is an off shoot of the circular economy, and advocates that
all materials and products in society are used and circulated among people for as
long as possible, in an environmentally safe, effective and fair manner. This
encompasses things like recycling, upcycling, and thrifting.

Slow Fashion: Slow fashion is the antithesis of Fast Fashion, taking a long-term
view and considering the whole product lifecycle. This includes sharing or renting
clothes as well as the quality of garments to help them last longer and thus reduce
the need to buy new ones.

Conscious Fashion: This is more of a message to get across to consumers,

explaining and encouraging them to buy eco-friendly products and get behind the
green fashion movement

Why sustainable fashion is important?

The fashion industry is very harmful to our planet. Second to oil, the industry is
one of the world’s largest polluters, responsible for 20% of global industrial water
pollution.

It comes as a surprise to many that most clothes are actually made out of plastic,
creating a microplastic disaster in the making. Thousands of harmful chemicals are
used in the textile mills around the world, which are dangerous to both the
environment and the people working with them, and the time has come for a global
change in the industry. That change must come in the form of sustainable fashion.

We strongly believe that a greener, more environmentally friendly business

practice is not only important for the planet, but also for a business’ future success.

As the fashion industry moves towards sustainability, there are a lot of big changes
ahead for businesses, changes we can help with.
A commitment to sustainability shouldn’t just be buzzwords and vague slogans,
which is why we are 100% committed to renewable, ethical, and eco-friendly
practices.

With decades of experience in the industry, we work together with our clients,
manufacturers, and distributors to ensure a fair and sustainable practice for
everyone.

The fashion industry has a disastrous impact on the environment. In fact, it is the
second largest polluter in the world, just after the oil industry. And, the
environmental damage is increasing as the industry grows.

A factory emitting smoke into the sky.

The textiles and fashion industries are amongst the leading industries that affect the
environment negatively. One of the industries that greatly jeopardize
environmental sustainability is the textiles and fashion industry, which thus also
bears great responsibilities. Globalization has made it possible to produce clothing
at increasingly lower prices, prices so low, and collections shifting so fast, that
many consumers consider fashion to be disposable. However, fast, and thus
disposable, fashion adds to pollution and generates environmental hazards, in
production, use, and disposal. The globalization of the textile and fashion industry
has also contributed to the uneven distribution of such environmental hazards and
consequences. Developing countries who typically produce the textile and clothing
bear the burden for developed countries who largely consume the products.

Putting the environmental perspective at the center, rather than the logic of the
industry, is thus an urgent concern if fashion is to become more sustainable. The
Earth Logic fashion research action plan argues for "putting the health and survival
of our planet earth and consequently the future security and health of all species
including humans, before industry, business, and economic growth."[83] In
making this argument the Earth Logic plan explicitly connects the global fashion
system with the 2018 Intergovernmental Panel on Climate Change (IPCC) Special
Report on Global Warming of 1.5 °C.
Furthermore, the Earth Logic fashion research action plan sets out a range of
possible areas for work in a sustainable fashion that scientific and research
evidence suggests are the most likely to deliver a change of the scale and pace
needed to respond to challenges like climate change. Earth Logic's point of
departure is that the planet, and its people, must be put first, before profit. It
replaces the logic of economic growth, which is arguably the single largest factor
limiting change towards sustainable fashion, with the logic that puts earth at its
center.

Environmental hazards
The clothing industry has one of the highest impacts on the planet. Cotton requires
approximately 15,000 liters of water to grow for a pair of jeans. High water usage,
pollution from chemical treatments used in dyeing and preparation and the disposal
of large amounts of unsold clothing through incineration or landfill deposits are
hazardous to the environment. There is a growing water scarcity, the current usage
level of fashion materials (79 billion cubic meters annually) is very concerning
because textile production mostly takes place in areas of fresh water stress. Only
around 20% of clothing is recycled or reused, huge amounts of fashion product end
up as waste in landfills or are incinerated. It has been estimated that in the UK
alone around 350,000 tons of clothing ends up as landfill every year. According to
Earth Pledge, a non-profit organization committed to promoting and supporting
sustainable development, "At least 8,000 chemicals are used to turn raw materials
into textiles and 25% of the world's pesticides are used to grow non-organic cotton.
This causes irreversible damage to people and the environment, and still two thirds
of a garment's carbon footprint will occur after it is purchased." The average
American throws away nearly 70 pounds of clothing per year. Around 5% of the
total waste worldwide stems from the textile industry, the clothing section of the
textile industry has elevated the amount of waste contributing to global waste.

Linear fashion and circular fashion

Linear fashion
Fashion currently operates under a linear fashion model designed to maximize the
production and consumption of clothing. In a linear economy, we excessively take
resources (mostly synthetics made from crude oil), make products, use them
briefly, and when we no longer want them, we throw them away and repeat the
process. Most garments aren’t currently made to be recycled, reused, repurposed,
or biodegradable, so most textiles end up in landfills or are incinerated.

Clothing has a significant impact on the environment. Biodiversity loss, excessive

water consumption and contamination, waste, greenhouse gas emissions,
hazardous chemicals, microplastic pollution, soil degradation, and forest
destruction are all byproducts of the fashion industry’s volume-based model where
clothing is regarded as disposable.

Motivated by the threat of limited resources and a growing concern among

consumers about the environmental impact of their purchases, the fashion industry
has started to embrace the idea of circular fashion.

circular fashion
Circular fashion is a holistic design approach rooted in Indigenous ancestry that
aims to “design out waste” by reducing the number of natural resources used to
make our clothing and diverting products from landfills. In short, circular fashion
(a closed-loop system) is making new materials out of old materials.

If fashion could adopt a closed-loop system, materials would be endlessly reused

and recycled, thus eliminating waste and pollution by limiting the extractive
production of virgin raw materials, regenerating natural systems, and decreasing
textile waste.

Fashion’s linear model needs radical transformation, and circularity offers just that.
In a circular system, fashion could overcome the global apparel industry's most
pressing issues, including climate change, pollution, and waste, while
simultaneously creating opportunities for responsible growth.

4R’s in sustainability

Reduce, Reuse, Recycle and Repair are also known as “the most important 4R’s”
of waste management. The concept of 4R’s is to decrease the amount of things we
use and
simultaneously also decrease the amount of things we throw away. Since we have
limited
space on earth to dispose all the waste, it is important to use the resources
efficiently and
create less waste. The 4Rs play an important role in solving the problems which
can arise
out of wrong waste management habits.

Reduce
Reduce/Reduction: To make something smaller or use less, resulting in a smaller
amount of
waste. Waste reduction simply means reducing the things that we use and only
consume
what is necessary. This way the amount of waste that is created in the end is
reduced
and avoids going to the dump. This also reduces the pressure on natural resources
which
are utilized in treating the waste as well as natural resources which are required to
manufacture new things. Reducing things that we use can also save a lot of money
since we
stop buying the product entirely. For instance, we can reduce the consumption of
bottled
water and instead carry a steel bottle to avoid sending the used bottles to
landfill/recycling
plant. Also, avoid buying new toys frequently, rather, build toys to play with.

Reuse
Reuse is a method or a practice of using something again. This can be done to use
the
product for its original purpose or to fulfil a different function. Reusing a product
more than
one time benefits us as well as the environment. Reusing also helps in saving time,
money,
energy and resources. For example, there are glass jars at home in the kitchen.
These jars
are used multiple times after being empty. Old books can be used by other people
after
being used once. The book can be used for reading or the paper of the book can be
used
for other purposes if it is a notebook. Use cloth gift bags and stop ripping the paper
off
gifts . If you remove the wrapping paper carefully, you can use it again.

Recycle
Recycling is one of the key components in the waste management system. It is the
process of converting waste materials into new materials and objects. It is the
practice of
reprocessing and reusing the items in the same or a different form which otherwise
could
have been discarded as waste. This process saves a lot of time, energy and
resources and
money. It also reduces the consumption of natural raw material used to produce
things.
It is thus important to buy recycled as well as recyclable products in order to
reduce the
pressure on the environment. For example, your old notebooks can be recycled into
recycled paper and then used again to bind notebooks.
These are some things that can be recycled: • Aluminium Cans • Building
Materials
• Cardboard • Electronic Equipment • Glass (particularly bottles and jars) • Lead •
Magazines • Metal • Newspapers • Paint • Paper • Plastic Bags • Plastic Bottles •
Steel
Cans • Tyres • Writing/Copy Paper • Garden Waste
Repair
These days, we find it easier to buy a new product than to repair and use an
existing
product. This is true of especially electronic goods like mobile phones and
domestic
appliances, which can last a long time if repaired when necessary. Reducing,
reusing and
recycling, decrease both the demands on natural resources, as well as the rate at
which
they are consumed. Fewer resources are used and supplies that are limited are
conserved.
In addition, less waste is generated, thereby reducing the amount of trash that must
be
landfilled or incinerated. As the amount of trash buried or burned decreases, so too
does
the potential for water and air pollution which can occur as a result of burning or
improper
disposal of waste. Our world has a limited supply of natural resources, including
land used
for landfills. All these techniques help us conserve such natural resources.

Moving towards sustainable fashion

Fashion is, per definition, a phenomenon related to time: a popular expression in a

certain time and context. This also affects the perception of what is and should be
made more sustainable – if fashion should be "fast" or "slow"—or if it should be
more exclusive or inclusive. Like much other designs, the objects of fashion exist
in the inter-zone between desire and discard along a temporal axis, between the
shimmering urge towards life and the thermodynamic fate of death. As noted by
cultural theorist Brian Thill, "waste is every object, plus time."

When it comes down to the garments themselves, their durability depends on their
use and "metabolism"—certain garments are made to withstand long use (ex.
outdoor and hiking wear, winter jackets) whereas other garments have a quicker
turn-around (ex. a party top). This means some garments have properties and a use-
life that could be made more durable, whereas others should be compostable or
recyclable for quicker disintegration. Clothing that aren't sold in markets become
solid waste clogging areas of water and ultimately creating "the potential for
additional environmental health hazards in LMICs lacking robust municipal waste
systems" Some garments age well and acquire a patina and a romantic
enchantment not unlike the wonder, fascination and grandeur of historical ruins,
whereas the derelict and discarded rags of last season is an eyesore and nuisance;
the first connotes a majesty of taste, whereas the second is the underclass of waste.

Fast fashion

One of the most apparent reasons for the current unsustainable condition of the
fashion system is related to the temporal aspects of fashion; the continuous stream
of new goods onto the market, or what is popularly called "fast fashion." The term
fast fashion is used to refer to the fast paced production of goods at an unethical
level which often has a negative impact on the environment. As a way to conform
to the latest fashion styles and keep consumers wanting new garments, current fast
fashion trends pre-suppose selling clothing in large quantities. Due to fast fashion
being affordable and able to keep up with the trends, there has been an increase in
apparel consumption. Consumption has risen to 62 million tonnes annually and is
projected to reach 102 million tonnes by 2030. This type of fashion is produced in
vast quantities with low-quality materials and are sold through chains such as
H&M, Zara, Forever21, Shein, etc. Fast-fashion retailer Shein is one of the most
visited fast-fashion websites in the world and ships to 220 countries, however,
there are questions about Shein's ethics and sustainability as it was responsible for
about 706 billion kilograms of greenhouse gases in 2015 from the production of
polyester textiles and uses up hundreds of gallons of water per garment.
Additionally, leaving an aftermath of 6.3 million tons of carbon dioxide while
missing 45% of the UN's goal to reduce carbon emissions by 2030. In January
2021, Shein offered over 121,000 garments made from polyester, making up 61%
of their clothing total. The fashion industry has a value of three trillion dollars. It is
two percent of the world's gross domestic product (GDP) - the total monetary or
market value of all the finished goods and services produced within a country's
borders in a specific time period. Out of the three trillion dollars, the majority is
made of fast fashion.

However, the "fast" aspect of consumption is primarily a problem for the

environment when done on a massive scale. As long as fast conspicuous
consumption was reserved to the rich, the global impact was not reaching public
attention or seen as a problem. That is, "fast" shopping sprees of haute couture is
not seen as a problem, rather it is celebrated (for example in movies such as Pretty
Woman), whereas when people with less means shop fast fashion, it is seen as
unethical and a problem. Today, the speed of fast fashion is common across the
whole industry as exclusive fashion replicates the fast fashion chains with
continuous releases of collections and product drops: the quality of a garment does
not necessarily translate to a slower pace of consumption and waste. These
releases are only exasperated by the acceleration of fashion trends. As micro-trends
are only lasting an average of 3 years, the demand for clothes has also accelerated.
In addition to its negative environmental impact, fast fashion is unethical. Keeping
up with fashion trends causes clothing to be produced in a harmful manner. "Fast"
clothing is made with synthetic fibers as opposed to natural fibers. The synthetic
fibers are made using the Earth's fossil fuels. Almost sixty percent of clothes are
made this way. Since people spend so much money on these types of clothes and
purchase them so frequently, landfills are filling up quickly. Over sixty percent of
clothes made every year end up in landfills as consumer waste, and almost twenty
percent of the world's waste is constituted by fashion products. Therefore, because
fast fashion frequently introduces new collections, consumer consumption
increases. Consequently, leading consumers to view low-cost apparel as disposable
since there are continuous releases of products. Production of these types of
clothing is also commonly exploitative, with most factories that produce "fast"
clothing employing workers on low wages in exploitative environments. Workers
from Shein reported making as little as 35 cents per garment produced, as well as
operating on 18-hour workdays with 1 day off per month. Exploitative fast fashion
production is prevalent in countries like China, Bangladesh and Vietnam. Hard
labor was always around in the fashion industry dating back to when slave labor
helped factories gather their materials. People making these clothes today suffer
from harsh working conditions, low wages, and risks to health and safety.

"Slow" fashion

Slow fashion can be seen as an alternative approach against fast fashion, based on
principles of the slow food movement. Characteristics of sustainable fashion match
the philosophies of "slow fashion" in that emotional, ecological and ethical
qualities are favored over uniform and bland convenience with minimal friction. It
requires a changed infrastructure and a reduced through-put of goods.
Categorically, slow fashion is neither business-as-usual nor just involving design
classics. Nor is it production-as-usual but with long lead times. Slow fashion is a
vision of the fashion sector built from a different starting point. Slow fashion is a
fashion concept that reflects a perspective, which respects human living conditions,
biological, cultural diversity and scarce global resources and creates unique,
personalized products.
The term Slow Fashion came about quite organically. It was coined by Kate
Fletcher of the Centre for Sustainable Fashion, following the phenomena of the
slow food movement. As with the slow food movement, Fletcher saw a need for a
slower pace in the fashion industry.

Slow fashion challenges growth fashion's obsession with mass-production and

globalized style. It becomes a guardian of diversity and changes the power
relations between fashion creators and consumers, therefore forging new
relationships and trust that are only possible at smaller scales. It fosters a
heightened state of awareness of the design process and its impacts on resource
flows, workers, communities, and ecosystems.

A slow-fashion garment often consists of durable materials, traditional production

techniques, or design concepts that are seasonless or will last for more than a
season. Several points of the production chain are affected by slowness. Textile
workers in developing countries earn higher wages because of slow fashion. For
end-users, slow fashion means that the goods are designed and manufactured with
greater care and high-quality products. From an environmental point of view, it
means that there are less clothing and industrial waste that is removed from use
following transient trends. Throughout the process, durability is considered;
emotionally, materially, aesthetically, or by including services that extend the
garment's life. Additionally, creative ideas and product innovations constantly
redefine slow fashion, so using a static, single definition would ignore the evolving
nature of the concept.

Examples of stability of expression over long times are abundant in the history of
dress, not least in ethnic or folk dress, ritual or coronation robes, clerical dress, or
the uniforms of the Vatican Guard. The emphasis on slowness in branding is thus
an approach that is specific for a niche in the market (such as Western-educated
middle-class) that has since the 1990s become dominated by "fast" models. One of
the earliest brands that gained global fame with an explicit focus on slow fashion,
the Anglo-Japanese brand People Tree, embraces the concept of ethical trade,
manufactures all products in accordance with ethical commerce standards, and
supports local producers and craftsmen in developing countries. The People Tree
brand is known as the first fashion company to receive the World Fair Trade
Organization product label in 2013, demonstrating their dedication to fair trade and
the environment.

The concept of slow fashion is however not without its controversies, as the
imperative of slowness is a mandate emerging from a position of privilege. To stop
consuming "fast fashion" strikes against low-income consumers whose only means
to access trends is through cheap and accessible goods. Those who are already
having a high position in society can afford to slow down and cement their status
and position, while those on their way up resent being told to stay at the lower
rungs of the status hierarchy. "The prestige of slowness allows a cultural signifier
for those already have social positions to preserve, and have time and money to
take it easy and enjoy the pleasures of reflection and meditate over their moral
superiority."

Environmental impact of fast fashion.

Fast fashion does not only have a huge environmental impact. In fact, the industry
also poses societal problems, especially in developing economies. According to
non-profit Remake, 80% of apparel is made by young women between the ages of
18 and 24. A 2018 US Department of Labor report found evidence of forced and
child labour in the fashion industry in Argentina, Bangladesh, Brazil, China, India,
Indonesia, Philippines, Turkey, Vietnam and others. Rapid production means that
sales and profits supersede human welfare.

In 2013, an eight-floor factory building that housed several garment factories

collapsed in Dhaka, Bangladesh, killing 1 134 workers and injuring more than
2,500. In her project, An Analysis of the Fast Fashion Industry, Annie Radner
Linden suggests that ‘the garment industry has always been a low-capital and
labour intensive industry’.

In her book, No Logo, Naomi Klein argues that developing nations are viable for
garment industries due to ‘cheap labour, vast tax breaks, and lenient laws and
regulations’. According to The True Cost, one in six people work in some part of
the global fashion industry, making it the most labour-dependent industry. These
developing nations also rarely follow environmental regulations; China, for
example, is a major producer of fast fashion but is notorious for land degradation
and air and water pollution.