This paper aimed at reviewing some retail marketing theories and evaluating its applicability in increasingly narrowing contexts of fashion and fast fashion sectors.
Retail marketing theories focus on attracting customers to different store forms and online sales. The retail mix should be the most suitable one to attract maximum customers to enhance revenue for the firm.
Attracting customers involve efficient customer relationship management to win their trust and loyalty. Companies adopt several methods for this. In online marketing introduction and enhancement of virtual shopping experience will be useful.
Success of retailing depends on service quality which makes customers satisfied. Repeated satisfaction will build loyalty to the firm. This is the aim of all firms. Frequent measurements and monitoring of service quality and customer satisfaction can lead to increasing loyal customers.
Fashion is not a necessity. Its customers are fashion-conscious young generation of modern lifestyles. To be successful, firms need to understand changing fashion tastes and shopping behaviour of customers. Firms use many methods for this.
Fast fashion involves rapid replacement of limited stocks with fresh fashions. The limited stocks are sold out fast resulting in large number of customers going away with unsatisfied demand. This is expected to trigger repeated visits. Unless repeated visits occur in large numbers, fast fashion will fail. Fat fashion firms can use retail marketing theories to achieve this.
Zara is used as a real life example to demonstrate how retail marketing theories can be adapted to the context of fast fashion. Zara’s online sale has not picked up well. Zara needs to be cautious in its store formats to ensure that customers do not go away permanently due to inconvenient formats and layouts. Monitoring customer visits and their conversion into purchases is essential to detect any sign of this at the earliest.
Table of Contents
- 1. INTRODUCTION
- 2. RETAIL MARKETING THEORY AND DIMENSIONS
- 2.1 ATTRACTING CUSTOMERS- CUSTOMER RELATIONSHIP MANAGEMENT
- 2.2 VIRTUAL SHOPPING EXPERIENCE IN ONLINE SHOPPING
- 2.3 MEASUREMENT, MONITORING AND CONTROL
- 3. FASHION RETAILING
- 4. MARKETING THEORY IN FASHION RETAILING-DIFFERENT METHODS OF SATISFYING CUSTOMER
Objectives and Key Themes
This paper reviews retail marketing theories and evaluates their applicability in the fashion and fast-fashion sectors. The objective is to understand how these theories can be used to attract customers, build loyalty, and enhance revenue in these specific contexts.
- Applicability of retail marketing theories to fashion and fast fashion.
- Importance of customer relationship management in retail success.
- The role of virtual shopping experience in online fashion retail.
- The impact of service quality and customer satisfaction on loyalty.
- Challenges and opportunities in the fashion retail landscape.
Chapter Summaries
1. INTRODUCTION: This introductory chapter provides an overview of retail marketing theory, focusing on attracting customers to various retail formats and optimizing the retail mix for informed customer choices. It highlights the importance of the theory for building and maintaining retail brands, encompassing visual merchandising, store design, pricing, and all aspects of the retailer-customer interface. The chapter also touches upon the economic principles of marginal revenue and marginal cost, acknowledging the complexities of measuring demand response and considering joint costs in retail settings. It sets the stage for exploring the application of these theories in the increasingly specific contexts of fashion and fast fashion, using Zara as a case study throughout the paper.
2. RETAIL MARKETING THEORY AND DIMENSIONS: This chapter delves into key dimensions of retail marketing theories. Section 2.1 focuses on attracting customers through customer relationship management (CRM), emphasizing the importance of building trust through consistent quality and superior service, drawing upon the commitment-trust theory of Morgan & Hunt (1994). It discusses the need for anticipating and detecting changes in customer behavior using data mining techniques to design effective promotional campaigns. Section 2.2 addresses the significance of enhancing the virtual shopping experience in online retail, acknowledging the limitations of online shopping compared to in-store experiences. Section 2.3 highlights the importance of measuring, monitoring, and controlling service quality and customer satisfaction as key indicators of retail marketing strategy effectiveness, using examples of dynamic retail monitoring and control systems for analyzing efficiency and cost reduction.
3. FASHION RETAILING: This chapter examines the fashion retailing industry, analyzing the factors driving demand, such as rising personal income, luxury consumption trends, and current fashion trends. It differentiates between large companies with large selections and economies of scale and smaller firms focusing on unique products and better customer service. The chapter presents a market overview, identifying promising fashion markets globally and highlighting leading fashion firms such as Zara, H&M, and others. It discusses PESTEL factors influencing market expansion, including political stability, economic strength, socio-cultural trends, technological advancements, and environmental regulations. The chapter also considers demographic trends, highlighting the opportunities presented by younger generations in rapidly growing economies. Finally, it addresses ethical challenges faced by leading fashion firms regarding working conditions, environmental impact, and cultural sensitivities.
4. MARKETING THEORY IN FASHION RETAILING-DIFFERENT METHODS OF SATISFYING CUSTOMER: This chapter explores the application of marketing theory within the fashion retail context, focusing on various methods of satisfying customer needs. It examines how superior capabilities in image differentiation and product promotion contribute to better performance. The chapter draws on research comparing customer experiences across different retailers, highlighting the importance of matching advertised lifestyles with product offerings and creating a positive store atmosphere and responsive sales staff. It also investigates the impact of factors like size, fit, availability, pricing, and shopping environment on customer satisfaction, showing the significance of addressing the specific needs of different customer segments. The chapter touches upon the role of store layout in facilitating easy navigation and purchase processes, and the importance of fast and reliable delivery in fast-fashion strategies. Finally, it discusses the influence of customer-salesperson relationships and the effect of demographic and psychographic factors on fashion expenditure.
Keywords
Retail marketing, fashion retailing, fast fashion, customer relationship management (CRM), virtual shopping experience, service quality, customer satisfaction, loyalty, fashion trends, market analysis, Zara, competitive advantage, marketing strategies.
Frequently Asked Questions: A Comprehensive Language Preview of Retail Marketing in Fashion and Fast Fashion
What is the overall focus of this document?
This document provides a comprehensive overview of retail marketing theories and their application within the fashion and fast-fashion industries. It analyzes how these theories can be used to attract customers, build loyalty, and enhance revenue in these specific sectors.
What topics are covered in the Table of Contents?
The document covers an introduction to retail marketing theory, a detailed look at retail marketing theory and its dimensions (including customer relationship management and the virtual shopping experience), a specific examination of the fashion retailing industry, and finally, an exploration of how marketing theories are applied in fashion retailing to satisfy customer needs. It uses Zara as a recurring case study.
What are the key objectives and themes explored?
Key themes include the applicability of retail marketing theories to fashion and fast fashion; the importance of customer relationship management; the role of the virtual shopping experience; the impact of service quality and customer satisfaction on loyalty; and the challenges and opportunities within the fashion retail landscape.
What does the chapter on "Retail Marketing Theory and Dimensions" cover?
This chapter examines three key dimensions: attracting customers through CRM and building trust (drawing on the commitment-trust theory); enhancing the virtual shopping experience in online retail; and measuring, monitoring, and controlling service quality and customer satisfaction to assess the effectiveness of marketing strategies.
What is discussed in the chapter on "Fashion Retailing"?
This chapter analyzes the fashion retailing industry, considering factors driving demand (income, luxury consumption, trends), differentiating between large and small firms, providing a global market overview (including leading firms like Zara and H&M), examining PESTEL factors influencing market expansion, and addressing ethical challenges.
What is the focus of the chapter on "Marketing Theory in Fashion Retailing"?
This chapter explores the application of marketing theory in fashion retail, focusing on methods of satisfying customer needs. It examines image differentiation, product promotion, customer experience comparisons across retailers, the impact of factors like size, fit, and pricing, store layout, delivery speed, customer-salesperson relationships, and the influence of demographic and psychographic factors on spending.
What are the key takeaways from the introductory chapter?
The introduction provides an overview of retail marketing theory, focusing on attracting customers and optimizing the retail mix. It emphasizes the importance of the theory for building and maintaining retail brands, including visual merchandising, store design, and pricing. It also introduces the economic principles of marginal revenue and marginal cost and uses Zara as a case study.
What keywords best describe the document's content?
Retail marketing, fashion retailing, fast fashion, customer relationship management (CRM), virtual shopping experience, service quality, customer satisfaction, loyalty, fashion trends, market analysis, Zara, competitive advantage, and marketing strategies.
What type of audience is this document intended for?
The document is intended for academic use, focusing on analyzing themes in a structured and professional manner.
Where can I find chapter summaries?
The document includes concise summaries for each chapter, providing a clear overview of the content and key findings of each section.
- Quote paper
- Barrack Kennedy (Author), 2013, Retail Marketing Theory In Fashion Retailing Context, Munich, GRIN Verlag, https://www.grin.com/document/269816
