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Fashion Marketing Terms
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Demographics
Statistical data relating to the population and particular groups within it; fashion marketers might target products specifically for the demographic of women aged 20-30 years old.
Return on Investment (ROI)
A performance measure used to evaluate the efficiency of an investment; calculated using the formula
Visual Merchandising
The practice of optimizing the presentation of products and services to better highlight their features and benefits; for instance, a window display using mannequins to show the latest clothing collection.
Trade Show
An event where members of a specific industry gather to showcase, demonstrate, and discuss their latest products and services; Pitti Uomo is a prominent trade show for men's fashion.
Consumer Behavior
The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy their needs and wants; an example is analyzing how a celebrity endorsement affects sales of a fashion brand.
Omnichannel Marketing
A cross-channel content strategy that organizations use to improve their user experience and drive better relationships with their audience across points of contact; an example is a retailer offering a seamless shopping experience, online and in-store.
Content Marketing
A strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience; for instance, a fashion retailer producing style guides and fashion tips on their blog.
Market Segmentation
Dividing a broad consumer or business market into sub-groups of consumers based on some type of shared characteristics; such as Chanel targeting the high-end luxury market.
Fashion Forecasting
The process of predicting upcoming fashion trends based on past and present style-related data; WGSN is a company known for its global fashion forecasting.
Bounce Rate
The percentage of visitors to a particular website who navigate away from the site after viewing only one page; a high bounce rate might indicate that the site's landing page is not appealing to visitors.
Lookbook
A collection of photographs compiled to show off a model, photographer, style, stylist, or clothing line; for instance, Zara's seasonal lookbook that showcases their latest collection.
Brand Equity
The value a brand adds to a product beyond its functional benefits; for example, Nike's swoosh symbol.
Fast Fashion
A design, manufacturing, and marketing method focused on rapidly producing high volumes of clothing; H&M operates on a fast fashion model, quickly translating high-fashion design trends into the mass market.
Unique Selling Proposition (USP)
A factor that differentiates a product from its competitors, such as TOMS shoes' promise to donate a pair for every pair purchased.
Affiliate Marketing
A type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts; such as a fashion influencer receiving a commission for each sale made through a link they share.
Point of Sale (POS)
The place where a retail transaction is completed; for example, Zara's screens that show additional product information at their checkout counters.
Product Life Cycle
The cycle through which every product goes through from introduction to withdrawal or eventual demise; for example, the bell-bottom jeans trend that peaked in the 70s and has seen varying degrees of popularity since.
Engagement Rate
A metric that measures the level of engagement that a piece of created content is receiving from an audience; a fashion brand might measure the engagement rate of a post by calculating the total number of engagement actions (likes, shares, comments) divided by the number of followers.
Market Share
The portion of a market controlled by a particular company or product; as an example, if a brand of designer handbags accounts for 20% of the luxury bag market, they hold a 20% market share.
Lifestyle Brand
A brand that attempts to embody the values, aspirations, interests, attitudes, or opinions of a group or a culture for marketing purposes; Goop by Gwyneth Paltrow, for example, is a lifestyle brand promoting health and wellness.
Influencer Marketing
A form of social media marketing involving endorsements and product placements from influencers, people and organizations who possess a purported expert level of knowledge or social influence in their field; for example, a fashion blogger promoting a new line of athletic wear on Instagram.
Brand Ambassador
A person who is hired by an organization to represent a brand in a positive light, and by doing so, help to increase brand awareness and sales; such as a well-known actress wearing a designer gown to red carpet events.
A/B Testing
A method of comparing two versions of a webpage or app against each other to determine which one performs better; a fashion e-commerce site might A/B test two different landing pages to see which has a higher conversion rate.
SWOT Analysis
A strategic planning technique used to help identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning; often used by fashion brands when planning a new collection or marketing strategy.
Conversion Rate
A measure of the percentage of total visitors to a website that convert on any given goal; an example is the percentage of website visitors who make a purchase after clicking on a clothing ad.
Psychographics
The study of consumers based on their activities, interests, and opinions; a luxury fashion brand may analyze the psychographics of their client base to understand their lifestyle choices for better targeting.
Market Penetration
The percentage of a target market that consumes a product or service; if a new fashion brand sells its product to 15% of the target market in its first year, that's its market penetration rate.
Target Market
A specific group of consumers at which a company aims its products and services; for example, Levi's may target its marketing efforts toward young adults looking for durable, fashionable denim.
Guerilla Marketing
A strategy that uses unconventional, low-cost tactics to create engaging, unexpected marketing experiences; for example, a flash mob in a shopping mall promoting a new fashion line.
Word of Mouth
The process of passing information from person to person by oral communications; for instance, when a customer recommends their favorite brand of jeans to a friend.
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