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Fashion Marketing Terms

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Demographics

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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.

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Return on Investment (ROI)

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A performance measure used to evaluate the efficiency of an investment; calculated using the formula

ROI = \frac{{Net Profit}}{{Cost of Investment}} \times 100$%; for example, a fashion brand may calculate ROI on a marketing campaign to gauge its effectiveness.

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Visual Merchandising

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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.

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Trade Show

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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.

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Consumer Behavior

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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.

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Omnichannel Marketing

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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.

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Content Marketing

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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.

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Market Segmentation

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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.

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Fashion Forecasting

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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.

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Bounce Rate

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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.

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Lookbook

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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.

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Brand Equity

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The value a brand adds to a product beyond its functional benefits; for example, Nike's swoosh symbol.

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Fast Fashion

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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.

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Unique Selling Proposition (USP)

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A factor that differentiates a product from its competitors, such as TOMS shoes' promise to donate a pair for every pair purchased.

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Affiliate Marketing

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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.

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Point of Sale (POS)

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The place where a retail transaction is completed; for example, Zara's screens that show additional product information at their checkout counters.

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Product Life Cycle

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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.

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Engagement Rate

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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.

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Market Share

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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.

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Lifestyle Brand

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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.

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Influencer Marketing

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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.

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Brand Ambassador

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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.

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A/B Testing

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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.

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SWOT Analysis

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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.

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Conversion Rate

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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.

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Psychographics

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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.

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Market Penetration

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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.

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Target Market

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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.

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Guerilla Marketing

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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.

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Word of Mouth

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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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