DM in fashion industry

INTRODUCTION Marketing is one of the most crucial strategy of a firm that helping businesses become more stable in the market as well as branding their name and products to the customers With the development of modern technology and internet, branding becomes more easily in the lately year I would like to express my deep gratitude to Mr Pham Hoang Cuong for guiding me and helping me to complete this project I hope that through the project, I will receive the comments and suggestions from teachers so that my project would be more complete Nowadays, consumers having more tendency to shop online through website or social network such as Facebook, Google, Shopee… instead of coming to store directly People see that shopping online can help them earning more time and they can buy things from many stores at the same time Saw this behavior of the consumers, companies find out they need to focus on marketing online to increase profits However, according to the life style change in modern living, people not only attracted by the quality of the product but also the visual of the brand Wearing the high standard brand make people feel more fashionable and be more unique especially which the brand has the product‘s limited edition And so on, every local brand now not only want to sell as much as possible but also want the customer loyalty and trustworthy So many ways had come out to improve that and as my result, brands choose to spent lots of money on advertising online that made people recognized the value of brand Branding becomes the main factor in every big and small companies‘ success and Online Marketing becomes the most common tools used In today‘s day and age, Digital Marketing has become an intrinsic part of everybody‘s life Right from personal use to professional use, Digital marketing is a playground for people to keep their lives updated as well as to network with potential clients which will help their business grow Vietnam is the second largest country with over 462 million internet users With a massive internet, population comes the opportunity for business owners to network with potential customers This is one huge reason why Digital Marketing has emerged as one of the most sought-after profession Customers are often researching online and then buying in stores and also browsing in stores and then searching for other options online Online customer research into products is particularly popular for higher-priced items as well as consumable goods like groceries and makeup Consumers are increasingly using the Internet to look up product information, compare prices, and search for deals and promotions Research methodology In order to accomplish the above objectives, an attempt has been made to study the importance of digital marketing in business For the research work, the statistical data was collected from the secondary sources like published and unpublished data collected from different organizations, agencies, and websites Reputed journals were also used for collecting relevant information DIGITAL MARKETING (DM) in fashion industry literature CHAPTER I GENERAL THEORIES OF DM Definition of DM Digital Marketing is the marketing of goods or services by using digital tools, mainly on the Internet, but also containing smart phones, display advertising and many other digital medium The development of DM since 1990s and 2000s has changed the way brands and company use technology for marketing As digital platforms are increasingly incorporated into marketing plans and everyday life, and as people use digital devices instead of directly visiting physical shops, digital marketing campaigns are becoming more prevalent and efficient Digital marketing methods such as search engine optimization (SEO), search engine marketing (SEM), content marketing, influencer marketing, content automation, campaign marketing, data-driven marketing, e-commerce marketing, social media marketing, social media optimization, email direct marketing, display advertising, e-books, and optical disks and games are becoming more common in our advancing technology In fact, digital marketing now extends to non-Internet channels that provide digital media, such as mobile phones (SMS and MMS), callback, and on-hold mobile ringtones Digital marketers monitor things like what is being viewed, how often and for how long, sales conversions, what content works and doesn‘t work, etc While the Internet is, perhaps, the channel most closely associated with digital marketing, others include wireless text messaging, mobile instant messaging, mobile apps, podcasts, electronic billboards, digital television and radio channels, etc DM vs Traditional Marketing (4ps) The arguing for the topic ―Traditional and Digital Marketing – which one fits the need of a company?‖ is long and lasting Traditional marketing refers to any type of marketing that is not available online This include print, broadcast, direct mail, phone and outdoor advertising activities like billboards and events From newspaper to radio, this method of marketing helps brand reach target audiences Traditional marketing is an approach in which marketers classify their audience and place ads where their audience see, hear, or interact with offline On the other hand, digital marketing is enabled online and uses paid or ads on social media, as well as email marketing, influencer marketing and video marketing There are some disadvantages to offline marketing First of all, businesses have little to no interaction with the consumers that they expect to sell the products to in real time Some marketers also see traditional marketing as unreliable For example, they cannot edit or change the content of a print or a billboard once it‘s out; if marketers recorded the wrong percentage discount on that sale radio ad you recorded, they can‘t change it Moreover, traditional marketing can be more expensive For instance, it can cost about $2000$160000 to run a print ad Further, marketer never know the group of customers whom they interact or whom interested in the firm‘s products due to the difficult measuring Traditional Marketing is still a realistic and crucial tool to market certain businesses But DM is an increasingly important revenue driver In fact, a firm businesses reported that half of profit is involve in social selling Recently, merely half of marketers said they believe DM way has a edge over traditional because of its interaction opens with customers Marketer can have full control to their audience growth as well as seeing real-time results of each aspect And with chasing back the promotion of marketing, consumers find the business, brand not the other way around However, DM still has its drawbacks This way of marketing depends on technology and technology breaks When social media sites go down and a social media marketer has post scheduled to go live, the only solution is to wait it main types of digital media communications channels which every business should consider as part of digital marketing: Table Types of digital media communications channels Features of DM 2.1 SEO Search Engine Optimization is the process of increasing the website's visibility on the search results of search engines In short, the higher the site appears, and the more in search results, the more people will access the site through search engines SEO can target many types of searches including image search, video search, academic documents search, etc The methods commonly used to improve a website's ranking include website optimization (impact on source code, content, etc.) SEO strategies that can be integrated Table Percentage of Traffic by Google Results Position into the source code or design of a website or businesses can build links from other websites that lead to your site so that search engines choose the results of your website to serve searchers on the Internet for a particular keyword query user The current popular search engines that businesses often use to measure the effectiveness of their SEO campaigns: Google, Bing, Yahoo! Most businesses will choose Google to measure efficiency Also, SEO help gain web traffic and a brand gain traffic when they gain visibility and ranking Noticed that a study of online ad network Chitika- an ad network and data analytics firm that pays per click with offices in India and the U.S had found the top listing in Google‘s organic search results receives 33% of the traffic, compared to 18% for the second position Although the number one result on the Google search results page is obviously very important, these numbers show how much an advantageous website of this type compares to any of the competitors listed below under them The importance of SEO for online business seems to be quantified using these latest statistics, judged by their similarity to what was observed as part of a 2010 study, without Potentially significant changes in the near future For many people, it is not surprising that the findings also show a dramatical drop in traffic from results between Page and Page Results obtained 92% of all search traffic On average, with a 95% decrease in traffic for Page Table Percentage of Google Traffic by Result Page And you‘re on or Page 4, reports position whether Page Chitika the top consistently sees more traffic than others on the page On Pages 2, and 4, traffic dropped by 27 percent, 11.3 percent and 5.4 percent respectively from the first position to second position As current shopping and consumption trends have begun to gradually shift to online mode: this means that shoppers will search and find information on the Internet before deciding to buy And often consumers will search for places to sell the items they want to buy through search engines (most of them use Google), and often they will choose among the first 10 results that appear (page 1) in the results search Therefore, in order to have the opportunity to be selected by customers, businesses must perform SEO so that the link leading to their website will be in the first position Moreover, authority in SEO reinforce trustworthy, high standard of trustworthy and relevant Also its helps to gain the ranking of web‘s link and involves more traffic of brand‘s website The crucial element of SEO  Keywords o It's been a long time since keywords were the only important SEO technique, but that doesn't mean they're still unimportant The difference is that today, keywords must be thoroughly researched, carefully selected and judicious used in content to be effective o The more effective the keyword is in used, the more marketers will attract several customers visit their website and the link to web will be in first position in the result  Content o This is the viral part of SEO because SEO is the tool to identify and engage expected audiences For instance, an owner of a bakery wanted to increase visibility, they might publish a series of blogs about baking, choosing the right ingredients, formula, cooking tips, and so on When a person who need luxury brands have a presence on Pinterest The top three social networking sites used by marketers are LinkedIn, Twitter, and Facebook.‖ – we can see that digital market is in a state of flux A senior DM need to find a way to catch up with this dramatical change and always being so updateable this emerging trends Moreover, living in an era of technology makes people increasingly aware of the use of advanced and convenient devices such as smartphones and tablets In recent years, a series of sensors have been born that mark the development of new technologies One of the mobile devices, although quite expensive compared to the common ground, is very expensive, Iphone In 2007, the iPhone was first launched in June and published each year on different models Today, smartphones have overtaken personal computers as the primary digital device for going online with the daily time U.S adults spend with mobile media on the increase from 46 minutes in 2011 to 258 minutes in 2017 Smartphones are now the number one digital device for internet use in the US This means that the more users use advanced devices, the more online they are able to interact with the brand's advertising campaign In the same year of 2007, web-streaming services Hulu founded and the birth of Tumblr Digital marketing in today's present landscape From the years followed, the emergence of apps was not as overwhelming as before, but marketers focused more on using and promoting the development of advertising tools, so we can see a series of marketing tools today innovation based on user and customer goals For example, marketing with review articles on Facebook groups and Instagram posts Customers become smarter, they reduce their trust in advertising on websites or online newspapers To deal with this situation, marketer pay and use influencer and KOLS (Key Opinion Leadership) to PR and review for their products and services more viral This new advertising method makes it easier and more natural to reach customers, and it also creates more authenticity than conventional advertising 2018 2020 billion 4.54 billion 3.2 billion 3.8 billion 5.14 billion 5.19 billion The number of internet users worldwide The number of social media users worldwide The number of mobile phone users worldwide Follow data of the research at Smart Insights: Table 1.4 Number of users worldwide between 2018 and 2020 From the table, we can analysis that  The number of internet users worldwide (2018) has exceeded billion and moved to 4.54 billion in 2020  The number of social media users worldwide (2018) has exceeded 3.2 billion and moved to 3.8 billion in 2020  The number of mobile phone users worldwide (2018) has exceeded 5.14 billion and moved to 5.19 billion in 2020  Each of these results show the distinct rise in usership from 2018 to 2020 and expected to growth stable in the future Table 1.5 The number of users reflect the digital around the world in 2020 This chart shows the total number of Internet users showing that surprisingly, around 49% of the total Internet users are active social media users This suggests opportunities for future growth and helps explain why social media users grew by nearly 10 percent between 2019 and 2020 Companies now increasingly rely on agile marketing within the digital sphere Agile marketing measures how efficient an organization is at meeting its marketing goals It emphasizes the speed of development of new projects and drives to capitalize on in-the-moment advertising opportunities Marketing now relies on finding and sharing truths, rather than creating and selling a myth This is due to the increasing ease with which customers can research and compare products Improvements in SEO mean that keyword stuffing and using spam backlinks are no longer effective Today, they are replaced with high value content Despite the rise of digital marketing, old tried-and-true marketing mediums are still found to be largely effective Agencies still commonly use print ads, television, and radio to advertise their products and services The DM future As the result of Smart Sight as well as the growth of technologies, it is believed that DM will be more active and developments in the near future Forbes had predicted a few immediate trends:  The gaining emphasis on integrated global marketing  Usage of cohesive marketing technology stacks  Firms will focus to gain more their storing of data mining and deep analytics to optimized coordinated exposure in as many digital channels as they can On the other hand, trends found by Adobe contain:  A keep moving of increasement in video viewing and live-streaming videos  The growth in the amount of internet users might be slight reduced  Video and audio sources generating most consumer internet data traffic (soon) Measurement of DM‘s impact CHAP II DM IN FASHION INDUSTRY Principle of Marketing in Online Fashion Marketing 1.1 The Fashion Marketing Mix The 4p Marketing model (also known as the Mix marketing model first introduced by E J McCarthy in 1960) was used by marketers as a tool to implement marketing strategies The marketing department in the way businesses often use this method to create an optimal response from the market by "mixing" elements in the most optimal way It is important to understand that the principles of Marketing 4P are controllable components The definition of Marketing by the American Marketing Association as ―the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.‖ Simply put, the marketing mix is getting the right product to the chosen mar-ket segment at the correct time, in the right place and for the right price Marketing Mix (or Marketing Mix) is a concept commonly known as 4P marketing, including marketing tools used by marketers to achieve their marketing goals So these 4Ps of fashion marketing is alike the 4Ps of marketing mix which are known as: product, price, place and promotion Other approaches identify several other way of divid-ing up the mix with between and 12 components The 4P approach is still the most popular among practitioners and academics, and has the merit of facilitating, the understanding about marketing activities 1.1.1 The planning and co-ordination of marketing mix All fashion brand have a marketing mix campaigns The mix, as seen by the client, works in varying levels Over-concentration on promotion to the neglect of adequate and timely distribution is a common feature of a flawed approach There is a little point in advertising in magazines about the new range for a new autumn season in early September if retailers not have the product in stock Similarity, a public relations campaign to create an upmarket quality image can be easily undermined by a policy of almost continual discount sales All factor elements of the marketing mix should be co-ordinated towards the positioning objective Thus a brands image may be reinforced by the pricing policy and the sales force should be sufficient to meet the need of the distribution channels 1.1.2 Alternative marketing mixes Brands can pursue multi-segment strategies and provide different marketing mixes for different market segments Therefore, a designer offering a higher price in department stores to a high-end customer may come with a diffused range with less design content and low-quality fabrics more with lower prices through chain stores to the same segment of the same company Different marketing mixes from the same company can coexist easily and are often not known by consumers through the use of different company names and brands ClownZ Mono-talk 13-22 18-30 Male Female Segment Product Mid-market Mid-market Casual/leisure Extensive range Active lifestyle Broad range Sports Casual/leisure Different fibers and fabric Mid-range Slight premium over midrange Price Distribution Promotion From tops at 350.000 VND to Tops from 380.000 VND to jacket and hoodie at 650.000 coat about > VND 1.000.000VND Online shopping available Online shopping available Have high street stores in both HN and HCMCity Only stores in HN stores and stand fair stores Direct marketing, press Press advertising, free advertising, free shipping bill shipping bil over 700.000 over 700.000VND VND Billboards Billboards, Strong visual merchandising Table 2.1 Different marketing mixes aimed at similar menswear markets For example, Miracle Retails Company has two key business segments: F&B and Fashion In Fashion segments, the firm has brands which are ClownZ and MonoTalk Barely people know that these brands both come from one company This table give a brief example of alternative marketing mixes to illustrate, in part, the principle of equi-finality Figure 2.1 4Ps segments of Marketing Mix 1.2 Product Traditionally, a good product or service will be marketed on its own However, the product and services should meet the needs of a particular group of people, such as professionals, housewives, business owners, students or golfers Most products go through a reasonable life cycle, and it's important to market for them when promoting their advertising campaigns Focusing on developing a profitable product and service means ensuring high performance As such, it is crucial that marketers have in-depth knowledge of the product they are promoting main stages in the product life cycle  Introduction: Sales are low when the product is still not known, high cost due to high investment in marketing and promotional activities to create awareness All efforts of the business at this stage focused on developing distribution and communication systems  Growth: In this period, the market accepted products and the profit increased sharply Competitors start to enter the market Businesses often focus on increasing product presence  Maturity: Sales tend to go flat and the market starts to saturate Profit is flat or may decline due to the increase in marketing costs to maintain its position and market share under fierce competition from competitors  Decline: Sales plummet and profits plummet To improve the situation, businesses can introduce new products or sell products to new markets Traditionally three categories have been used to identify tangible product offerings, which are convenience, shopping, specialty Products Convenience Habitual Shopping Specialty Impulse Figure 2.2 Products classified Convenience goods Customers often tend to buy convenience goods quickly and often not compare with similar products These goods are bought according to the habit of consumers, based on loyalty to the brand and are usually purchased without prior determination Garments such as knitwear or underwear are essential household products, so we can consider this item as a prime example of convenience goods Based on this conclusion, retailers have taken advantage of this method by storing such ranges along with other non-food ranges Shopping goods Unlike convenience goods, shopping goods are often considered and compared with similar items in terms of price, quality, packaging design by shopping Products in this category will form a bulk market similar to high street fashion products However, they will lack the intrinsic seasonal variations of the fashion industry and are likely to be purchased less often than most items clothing Specialty goods This is the group of products that has the much clever standard than other two goods Specialty goods based on high-quality and higher-perceived value This make brand image become quite important because the visual of brand will more force client to buy products even the high value of the good have Group of buyers that have ability to buy specialty goods have a expectation of the exclusivity standard in the goods offering However, over the past decade, the demand for brands in almost every garment category and price range has increased significantly Therefore, it can be argued that all but the most basic clothing items can be described as specialty As a result, high streets have witnessed growth in recent years, known as personality consumers By this we mean a casual shopper with little or no store or brand loyalty but a keen eye for value for money with all design requirements and branding needed As a result, in the lower part of marathon discount chains like H&M, Matalan finds itself as the current value champion on the high street through low profit margins and can still offer deals Export feasible customers At a high level, brand builders like Gap and Next can still control higher prices despite significant operating costs, while companies with little brand power find it not easy to maintain profitable operation 1.3 Price Many factors affect the price such as production expense, demographics of customer, product demand, brand image and history For example, to make a profit and has revenue return, a company need to establish flexible price that includes all the expense (cost to produce, the cost to market and the cost of shipping, the product‘s perceived value and demographic) Moreover, to set the prices of the product, an enterprise needs to consider:  Products expense (both fixed and variable costs)  Product prices of competitors  The amount of money customers is willing to pay for the product 1.4 Place Place is where and how a company or brans will choose to sell product and services Nowadays, a start-up company or beginner can choose between selling at retail stores and online store such as website or social media channels (Facebook, Instagram…) For example, if the owner owns essential products such as food, food for the local people, the most convenient place is near the apartment complex where most of the households are concentrated If the owner wants to grow the company by trading products and services abroad, selling goods online via social networking sites or websites is a smart choice Either way, the location of sales is one of the determinants of profitability and revenue for a business and brand 1.5 Promotion Promotion in marketing is a form of product promotion for many people to know This is an important factor in the 4P Marketing model that determines the revenue of a business For customers to buy from you, they need to know about it, have a positive impression, and be confident that the product fits their needs There are many methods and tactics that help brands apply to products for the purpose of promoting to potential customers, including:  Traditional advertising via flyers, banners, billboards, television, radio or magazines  Advertise on social networking sites, Internet, Blogging  Attend fairs and events  Spend advertising with telesales, messenger and e-mail Depending on the budget of the company, marketers will choose to promote the most effective promotion, provided that the mechanism must be suitable for products and services, prices and customers What is more, any advertising method needs to ensure the attraction of potential customers, and the features and benefits of the product are highlighted and easy to understand Products packaging is also an important part of the marketing strategy, especially if the products you display are placed on shelves next to your competitors The use message and brand image that a marketer develops are important in making clients aware and love the products that the company is trading Specifically:  The message needs to convince consumers that they need or should buy the product, and it will bring them the necessary value  The brand must be compelling enough for them to remember it and think about the product or business when making your purchase decision or recommending the product to their friends The involvement of DM‘s features in Fashion Industry: 2.1 How Marketers obtain and use Consumer Info in Fashion 2.2 Social media and Fashion Consumer The implement of DM in fashion industry: In recent years, e-commerce has become increasingly diverse and a new type of online shopping model called online group buying has attracted many potential customers Purchasing group is defined as a buying event that is joined by a group of customers and is usually organized through electronic channels to reach retailers together for the purpose of being promoted when buying quantity big goods We can clearly see that the collective bargaining power of a group of cus-tomers for a better price is possible In the era of advanced technology, this type of online shopping model was very viral The country with developed technology as Hong Kong is a typical Although these buying groups only appeared in Hong Kong many years ago, there are already about 30 such websites on the market (Lee 2011) For example, uBuyiBuy.com, one of the largest buying groups website In Hong Kong, more than 280,000 registered members sold more than 173,000 group offers to about 70,000 consumers within six months of their first launch in June 2010 (Yu 2010) The site is flooded with discount codes and promotions as well as a variety of programs to attract customers Products for sale are extremely diverse, including fashion apparel, beauty products and accessories to increase the choice of customers In particular, understanding the buying trends and psychology of buyers, that women tend to shop online more and more willing to spend money on cheap items, the more online stores promote the program disguised promotion Due to the rapid growth of group purchasing, businesses face many challenges Although group purchasing sites have lower prices or lower prices to attract customers, some companies not maintain a good business situation, so the number of complaints is increasing Buying in groups online, though recognized as a new shopping model, is still a risky buying activity For example, consumers by purchasing group cannot view the products before they pay; After-sales service is often bad and there will be some opportunities that can be deceived (for example, some customers pay more than others) In addition, there are reports of companies not delivering products after receiving money and customers need to wait longer than usual Therefore, group buying is associated with many sources of uncertainty and risk (Lin 2006) In particular, the Hong Kong Police received 623 reports of suspected Internet fraud in 2010 (Yeung 2011) All of this data reflects that shopping at group purchasing sites can be subject to a certain level of risk, affecting customer purchasing decisions (Liebermann 2002) and consumer welfare It is often believed that customers perceive a higher risk in online shopping than in a store (Biswas and Biswas 2004) and that the perceived level of risk depends on many different aspects If companies can reduce customer risk, it is likely that customers will buy more in quantity and frequency through the Internet (Doolin et al 2005) As a result, for the long-term development of the buying group, group purchasing companies should seek to reduce the risk to regain customer trust Among several dimension of risk that harm to customer right, there are common risks are highly related to group buying: functional risk and financial risk Functional risk This is also known as performance risk and can be defined as perceived risk associated with frustration when online buyers can feel comfortable when products purchased online not meet the expectations of surname Higher functional risks are created online due to the inability to physically test the product and the lack of personal contact during the procurement process The level of functional risk associated with online shopping also depends on the type of product For example, it may be less risky to buy books, computers and electronic products that are more standardized than goods such as experiential fashion products through fitness, colors, fabric material and product quality (Bhatnagar et al 2000; Forsythe et al 2006; Fram and Grady 1997) Financial risk In online group buying context, it is related to the risk of losing money during the online transactions with the credit or mastercard or bank account information being stolen This risk also appears in traditional in-store shopping but it is more serious with the online shopping due to the credit card fraud Researches have also attributed financial risk associated with the online shopping to the lack of trust in retailers For example, customers may be anxious about not being able to receive purchased garments on time, being leaked personal information and credit card overloaded This risk will also arise due to direct financial losses, such as failure to get a refund if a customer wishes to cancel a transaction Moreover, if a customer discovers that similar clothing is priced lower in other places, financial losses are also incurred How DM reduce risk in online fashion purchase Online Communication in Fashion Marketing ... Measurement of DM? ??s impact CHAP II DM IN FASHION INDUSTRY Principle of Marketing in Online Fashion Marketing 1.1 The Fashion Marketing Mix The 4p Marketing model (also known as the Mix marketing model... used for collecting relevant information DIGITAL MARKETING (DM) in fashion industry literature CHAPTER I GENERAL THEORIES OF DM Definition of DM Digital Marketing is the marketing of goods or... How Marketers obtain and use Consumer Info in Fashion 2.2 Social media and Fashion Consumer The implement of DM in fashion industry: In recent years, e-commerce has become increasingly diverse and