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Promotion in the Merchandising Environment 3rd
Edition Kristen K. Swanson Digital Instant Download
Author(s): Kristen K. Swanson, Judith C. Everett
ISBN(s): 9781501311246, 1501311247
Edition: 3
File Details: PDF, 31.57 MB
Year: 2015
Language: english
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PROMOTION
IN THE
MERCHANDISING
ENVIRONMENT
PROMOTION
IN THE
MERCHANDISING
ENVIRONMENT
THIRD EDITION
FAIRCHILD BOOKS
AN IMPRINT OF BLOOMSBURY PUBLISHING INC
Dee Om Omayiees
Boo oR:
NEW YORK « LONDON « NEW DELHI « SYDNEY
Fairchild Books
An imprint of Bloomsbury Publishing Inc.
www.bloomsbury.com
All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or
mechanical, including photocopying, recording, or any information storage or retrieval system, without prior permission in
writing from the publishers.
No responsibility for loss caused to any individual or organization acting on or refraining from action as a result of the
material in this publication can be accepted by Bloomsbury Publishing Inc or the author.
ePDF: 978-1-62892-158-8
Typeset by Lachina
Printed and bound in china
COINIEINTS
CONTENTS
Summary 77 Human Resources Division 121
Key Terms 78 Financial Control Division 121
Questions for Discussion 79 Promotion Division 121
Activities 79 Fashion Brand Organizations 122
References 80 Design and Creation Division 123
Collection of Orders 123
CHAPTER 4—Fashion Forecasting 83 Sourcing and Production 124
The Role of Fashion Forecasting 84 Sales and Distribution 124
Forecasting Personnel 88 Communication and Promotion 124
Futurists 88 Promotion Organizations:
Full-Service Agencies 125
Fashion Forecasters 89
Account Management Division 126
Forecasting and Promotion 92
Research Division 126
Promotion as a Source 92
Media Planning Division 127
Promotion asa Resource 93
Creative Services Division 127
Fashion Trend Research from Producer
toConsumer 94 Management and Finance Division 127
Primary Market Forecasts 94 Specialized Promotion Services 128
Secondary Market Forecasts 98 Creative Boutiques 128
Retail Market Forecasts 100 Direct Marketing Agencies 128
Fashion Buying Marketplaces 100 Fashion Show Production Agencies 128
Haute Couture Shows 100 Market Research Companies 128
International Fashion Weeks 102 Media Buying Services 129
Pre-collections 102 Public Relations Firms 129
American Trade Shows 104 Sales Promotion Agencies 129
The Fashion Trend Report 105 How Agencies Attract New Clients 130
Organizing Information 105 Professionalism 130
Labeling Trends 106 Professional and Academic Organizations 131
Reporting Trends 107 Professional Organizations 131
Written Materials 107 Academic Organizations 132
Summary 108 Recognition of Outstanding Performance 132
Key Terms 109 Agency Evaluation 134
Questions for Discussion 109 Summary 136
Activities 109 Key Terms 137
Assignment: Fashion Brand Promotion Questions for Discussion 138
Campaign 110 Activities 138
References 112 References 139
Vi CONTENTS
Bottom-up Budgeting 156 Television 187
How Firms Choose Budget Methods 158 Television Formats 188
Promotion Mix Budget Allocations 158 Buying Time on Television 193
Advertising 158 Advantages of Television Advertising 194
Direct Marketing and Sales Promotion Disadvantages of Television Advertising 194
Public Relations 159 The Future of Television 194
Personal Selling 159 Radio 195
Fashion Shows and Special Events 159 Radio Formats 195
Visual Merchandising 160 Buying Time on Radio 197
Advertising Agency Compensation 160 Advantages of Radio Advertising 198
Commissions 161 Disadvantages of Radio Advertising 199
Fee Arrangements 161 The Future of Radio 199
Cost-plus Agreements 162 Support Media 200
Percentage Charges 162 In-store Media 200
Incentive-based Compensation 162 Out-of-home Media 200
Extending the Promotion Budget 163 Summary 202
Co-marketing 163 Key Terms 203
Co-branding 163 Questions for Discussion 203
Cooperative Advertising 163 Activities 204
Sponsorship 164 References 204
Types of Sponsors 165
Locating a Sponsor 165 CHAPTER 8—New Media 207
Writing a Sponsorship Proposal 165 Overview of the Digital World 209
Summary 167 Web 1.0 to Web 4.0 209
Key Terms 168 Cloud Computing versus Local Storage 210
Questions for Discussion 168 Mobile Devices 211
Activities 169 New Media and Promotion 212
Assignment: Fashion Brand Promotion Digital Advertising 212
Campaign 169
Digital Direct Marketing 217
References 170
Digital Sales Promotion 217
Digital Public Relations 217
PART 3
Digital Personal Selling 218
MEDIA 171
Digital Fashion Shows 218
CHAPTER 7—Traditional Media 173 Digital Special Events 219
Measuring the Media 174 Digital Visual Merchandising 220
Print Media 175
Social Media 221
Newspapers 176
Facebook 222
Newspaper Formats 176
Twitter 222
Newspaper Advertising Rates 176
Blogs 222
Types of Newspaper Advertising 178 E-newsletters 223
Advantages of Newspaper Advertising 179
Pinterest 223
Disadvantages of Newspaper Instagram 224
Advertising 180
Viral Marketing 224
The Future of Newspapers 181
Digital Media Awards 225
Magazines 181
New Media Social and Ethical
Magazine Advertising Rates 183
Concerns 225
Advantages of Magazine Advertising 184 Information Overload 226
Disadvantages of Magazine Advertising 185 Fragmented Media 226
The Future of Magazines 185 Privacy and Security Issues 228
Broadcast Media 185
CONTENTS _ Vil
Summary 229 Telemarketing 266
Key Terms 230 Broadcast Media 266
Questions for Discussion 230 Database Management 267
Activities 231 Sales Promotion 270
References 231 Consumer-oriented Sales Promotion 271
Sampling 272
PART 4 Coupons 273
PROMOTION MIX 233 Promotional Products 273
CHAPTER 9—Advertising 235 Gift-with-Purchase or Purchase-with-
Purchase Programs 274
What Is Advertising? 236
Contests and Sweepstakes 274
Advertising Classifications 238
Refunds and Rebates 275
Creative Strategy 239
Bonus Packs 275
Major Selling Idea 240
Price-off Deals 275
Positioning 240
Brand Image 241 Reward Programs 276
Selling Points and Buying Benefits 243 Deferred Billing 276
Trade-oriented Sales Promotion 276
Unique Selling Proposition 243
Advertising Appeals 244
Trade Allowances 277
Informational Appeals 244 Incentive Programs 278
Emotional Appeals 244 Display and Point-of-Purchase
Materials 278
Combining Appeals 245
Cooperative Advertising 279
Advertising Execution 245
Summary 280
Straight Sell 245
Key Terms 280
Demonstration 245
Questions for Discussion 281
Testimonial 245
Activities 281
Slice of Life 246
Assignment: Fashion Brand Promotion
Personality Symbol 246 Campaign 281
Imagery 246 References 282
Dramatization 247
Measuring Advertising Effectiveness 247
CHAPTER 11—Public Relations 285
Evaluation Research Methods 247
What Is Public Relations? 286
Qualities of Effective Advertising 249.
The Functions of Public Relations 287
Summary 253
Relationship Building in Public
Key Terms 253 Relations 288
Questions for Discussion 254 The Public Relations Process 288
Activities 254 Public Relations Tools 290
Assignment: Fashion Brand Promotion Internal Relations 290
Campaign 255
Investor Relations 290
References 256
Issues Management 291
Lobbying 291
CHAPTER 10—Direct Marketing Media Relations 291
and Sales Promotion 259
Public Affairs 292
Direct Marketing 260 Events and Sponsorships 292
Direct Marketing and Other Promotion Mix Publicity 292
Tools 261
Public Relations Formats 293
Advantages of Direct Marketing 262
News Releases 293
Disadvantages of Direct Marketing 263
Media Kits 297
Direct Response Media 263
News Conferences 300
Catalogs 264
Product Placement 301
Vili CONTENTS
Measuring Public Relations Effectiveness 302 Fashion Shows 332
Summary 303 Market-level Fashion Shows 333
Key Terms 304 Trade Shows 333
Questions for Discussion 304 Consumer Shows 335
Activities 304 Fashion Show Categories 336
Assignment: Fashion Brand Promotion Production Show 336
Campaign 305 Formal Runway Show 337
References 306 Informal Fashion Show 337
Multimedia Fashion Show 338
CHAPTER 12—Personal Selling 309 Fashion Show Personnel 338
Significance of Personal Selling 310 Fashion Show Planning 340
Types of Salespeople 312 Audience Selection 340
Personal Selling in the Fashion Industry 313 Theme Development 341
Business-to-Business Selling 313 Venue Selection 341
Retail Selling 313 Scheduling and Timing the Show 342
Direct Level Selling 315 Security Issues 342
The Selling Process 315 Fashion Show Elements 342
Prospecting 315 Merchandise 342
Preapproach 316 Models 344
Approach 316 Stage Design 346
Need Assessment 316 Sound 347
Presentation 316 Steps in Presenting the Fashion Show 348
Meeting Objections 317 Rehearsal 348
Gaining Commitment 317 Day of the Show 348
Following Up 318 Special Events 349
Characteristics of Good Salespeople 319 Event Ideas 349
Professional Appearance 319 Event Objectives 350
Knowledge about Products and Policies 319 Special Event Categories 351
Customer-oriented Perspective 319 Institutional Events 352
Motivation 321 Merchandise Events 353
Customer Service 321 Special Events Personnel 355
Characteristics of Poor Salespeople 322 Fashion Show and Special Event Diaries 356
Measuring Personal Selling Effectiveness 322 Summary 358
How Sales Associates Are Paid 324 Key Terms 359
Straight Salary 325 Questions for Discussion 359
Commission 325 Activities 360
Salary Plus Commission 325 Assignment: Fashion Brand Promotion
Incentive Programs 325 Campaign 360
Summary 327 References 361
Key Terms 328
Questions for Discussion 328 CHAPTER 14—Visual Merchandising 363
Activities 328 The Role of Visual Merchandising 364
References 329 Firms That Use Visual Merchandising 365
Retailers 365
CHAPTER 13—Fashion Shows and Fashion Brands 367
Special Events 331 Visual Presentations by Other
The Role of Fashion Shows and Special
Organizations 368
Events 332
CONTENTS Ix
Retail Display Locations 370 Visual Merchandising Personnel 382
Window Display 370 Summary 384
Exterior Display 372 Key Terms 385
Interior Display 374 Questions for Discussion 385
Display Components 378 Activities 386
Merchandise 378 Assignment: Fashion Brand Promotion
Functional and Decorative Props 379 Campaign 387
Backgrounds 379 References 387
Lighting 379
Display Arrangements 380 Glossary 389
Planning Visual Presentations 381 Credits 407
Index 409
Revitalization through Renovation 381
x CONTENTS
PREFACE
Promotion is everywhere. We see it. We hear it. Sometimes we welcome it into
our lives and at other times it invades our world without our permission. Promo-
tion is exciting and creative, entertaining and informative, and has influence over
us every day consciously and unconsciously. That is just as true today as it was
when we wrote the first edition of Promotion in the Merchandising Environment.
The purpose of the third edition remains the same, to explain the process of pro-
motion and to describe the promotion mix tools available for creating success-
ful campaigns. This book focuses on the comprehensive nature of promotion in
the merchandising environment of fashion brands and emphasizes promotion in a
global marketplace.
Several themes are evident throughout this text. The first is the concept of inte-
grated marketing communications (IMC). In an IMC environment, all promotion
elements are thought of as a single communication system, with each element
supporting the objectives of every other element. Advertising, direct marketing
and sales promotion, public relations, personal selling, fashion shows and special
events, and visual merchandising work together to communicate the same mes-
sage about the brand to professionals and consumers alike.
A second theme has to do with consumers’ changing attitudes. Twenty-first
century consumers are sophisticated, knowledgeable—and discriminating. Just
selling to consumers is not enough. They expect to be entertained and engaged
before they accept an idea or make a purchase. Influence has transferred from
seller to consumer.
The third theme of this book concerns the changes in technologies and dis-
tribution channels that are driving communication and promotion today. These
changes include the sharing economy, fauxsumerism, social shopping, offline
retailers, and omni-channel retailers, among others. New technologies and distri-
bution channels have come about because of the rapid increase in the use of the
Internet and “smart” devices. Promotion strategies that once were limited to tradi-
tional media—live performances, print, or broadcast formats—must now consider
digital media—smartphones, tablets, and mobile devices—and more innovative
means of communication.
This book focuses on the merchandising environment. We consider merchan-
dising to include forecasting what customers want to buy, investigating where to
find that merchandise in the marketplace, determining the price the customer is
willing to pay, and making the merchandise available through retail stores or other
PREFACE xi
outlets. Promotion is a key element at each step of the process. In the merchandis-
ing environment, promotion is twofold. It is an essential information source for end
users to keep abreast of the global marketplace. It is also a fundamental strategy
to fulfill the merchandising task for fashion brands and retailers. This text features
examples from all levels of the distribution channel to explain the role of promo-
tion in the merchandising field.
We believe that fashion is evident in many product categories beyond clothing
and accessories, and therefore, although the majority of examples in this text are
from clothing and related categories, we have included appropriate examples to
broaden students’ thinking about promotion. Promotion extends to fields beyond
fashion. This text is written to teach techniques that can be used in a fashion set-
ting or transferred to other product categories.
Throughout this book, we stress the skills necessary to become a promotion
practitioner. Photographs, illustrations, checklists, and real-world examples in
every chapter encourage creativity in those readers who will eventually produce
promotion campaigns. Tables, figures, and examples have been updated in the
third edition, as have the chapter objectives and summary points, highlighted key
terms, questions for discussion, and glossary. A semester-long advertising brand
campaign assignment is new to this edition.
This text provides a logical and informative order to promotion, from basic con-
cepts to specific activities. The third edition has been reorganized to reflect the
dramatic changes that are taking place in the promotion field. The first part of the
text introduces promotion, followed by an updated discussion about consumer —
behavior, the creative process in promotion, and fashion forecasting. The second
section of the book covers promotion preparation, including promotion organiza-
tion, along with planning and budgeting of promotion programs. The third part
of the text discusses media, and the topics are arranged according to traditional
and digital media. Similar to earlier editions, each of the promotion mix elements
is discussed in depth in the final part of the text. We discuss advertising, direct
marketing and sales promotion, public relations, personal selling, fashion shows
and special events, and visual merchandising. We have included a checklist in each
chapter to help in evaluation.
As teachers and authors, we realize that course curricula are not always pre-
pared according to a text. As always, our goal in writing this edition has been to
provide the instructor who teaches all promotion mix aspects in one course with
enough information to adequately cover each of the subjects. We also realize that
some instructors pull out certain topics, such as fashion forecasting, fashion shows,
or visual merchandising, and teach those as independent courses with textbooks
specific to that topic. Therefore, this book is written with the understanding that
each chapter may be used independently or collectively as part of the entire pro-
motion industry. .
Promotion is fun, exciting, and changing daily. When we started writing the first
edition of this text, electronic retailing and other technologies were in their infancy
stages. As we finish writing the third edition, social media and digital technologies
are commonplace. We can only guess what new technologies will emerge in the
future. We hope you will find promotion as exciting as we do.
Xil PREFACE
ACKNOWLEDGMENTS
Many people have given us help and inspiration with updating and revising Promo-
tion in the Merchandising Environment into the third edition. Many students and
graduates have been very helpful in supporting our research and writing through-
out the years. We especially thank Leah Stephens, Kaley Lodeen, and Courtney
Messerli, who offered great suggestions on personal selling, visual merchandising,
and new media for this revision.
A very special thank you goes to James Power and Christopher Everett, our hus-
bands. Without your encouragement, patience, and support, we could not devote
the effort to this writing project.
Reviewers selected by the publisher were also helpful: Kellie Schulz, Sierra
College; Janet Albert, University of Bridgeport; Leigh Southward, University of
Arkansas; José Blanco F., University of Georgia; Carol Tuntland, California State
University; Susan R. Creasey, Western Illinois University; Melinda Adams, University
of the Incarnate Word.
We also would like to thank the acquisition, editorial, and art teams at Fair-
child Books. We enjoyed working with Margaret Manos, our development editor.
Thanks also goes to Christopher Black and his staff at the project management
firm Lachina for help bringing our content to life.
During the writing of the first edition of this book, there was a popular television
advertisement for a packaging service that went something like this: “Up on the top
floor, the marketing guru is giving a lecture on thinking outside the box. Meanwhile,
you are down in shipping concerned with what's in the box.” Even though that com-
mercial no longer runs, we hope this book gives you a good foundation for working
within the box and at the same time causes you to think outside the box.
Kristen Swanson
Judith Everett
ACKNOWLEDGMENTS xiii
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PROMOTION AND
HOW IT WORKS
“It is my passionate belief that we, as a company, can use clothes
to bring a little joy and happiness to people around the world,
and help make the world a better place.”
—TADASHI YANAI, UNIQLO CHAIRMAN, PRESIDENT, AND CEO (UNiQLO, 2015, 45)
Cette licence sans frein dans les amusements qui ne valent pas la
peine qu'on sorte des rangs pour y goûter, et à plus forte raison
qu'on y coure en bousculant tout le monde, dura six mois c'est-à-
dire tout le temps de la saison froide.
Alors nous pûmes croire que la chaleur, la conscience d'avoir
perdu son argent et estropié ses chevaux calmeraient le Jeune
Garçon, et qu'il prendrait de l'aplomb.
C'est ce qui fût arrivé dans quatre-vingt-dix-neuf cas sur cent.
Vous voyez cela se produire dans toutes les stations de l'Inde.
Mais ce cas particulier fut une exception parce que le Jeune
Garçon était sensible, et prenait les choses au sérieux, ainsi que j'ai
dû déjà le répéter au moins sept fois.
Certes, nous ne saurions dire quelle impression ses excès
faisaient sur lui-même. Ils n'avaient rien qui fût de nature à briser le
cœur, rien qui dépassât la moyenne.
Il pouvait être financièrement ficelé pour toute sa vie; il pouvait
avoir besoin de quelques soins. Un jour de chaleur aurait brûlé le
souvenir de ses exploits. Un prêteur aurait pu l'aider à se remettre à
flot et à sortir des ennuis d'argent. Mais il dut se placer à un point de
vue tout différent, et se croire ruiné sans aucun espoir de
relèvement.
Son colonel l'admonesta sévèrement quand le temps froid fut
passé.
Cela le rendit plus malheureux que jamais, et pourtant le colonel
lui avait «lavé la tête» comme à tout le monde, sans plus.
Ce qui se passa ensuite est un exemple curieux de la façon dont
nous tenons les uns aux autres, et sommes rendus responsables des
actes d'autrui.
La chose qui fit brutalement entrer la poutre dans l'esprit du
Jeune Garçon, ce fut une remarque d'une femme pendant qu'il
causait avec elle.
Il ne servirait de rien de la reproduire, car c'était une cruelle
petite phrase, décochée avant qu'elle y eût songé, et qui le fit rougir
jusqu'à la racine des cheveux.
Il la garda sur le cœur pendant trois jours; puis il demanda deux
jours de congé pour aller chasser aux environs d'une résidence de
villégiature de l'ingénieur du canal, à environ trente milles de là.
Il obtint son congé, et ce soir-là, au mess, il fut plus bruyant,
plus encombrant que jamais. Il dit qu'il allait tirer «le gros gibier» et
partit à dix heures et demie dans une ekka [6] .
[6] Voiture légère indigène.
(Proverbe mahométan)
(Proverbe du Punjab)
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