Global marketplace is going through drastic changes and industry players find their marketing playbook becoming obsolete. Market today consists of hundreds of salesmen, all pushing their products which are similar in nature and shoppers keep moving from store to store, bargaining. The prices fall eventually, a decision taken by the business owners hoping for a lasting relationship with the consumer. There is an increase in the amount of disposable income of the people, and media has created a change in their lifestyle. Despite consumers tend to spend more, marketers are finding it difficult to maintain or increase their wallet share due to globalization and cut-throat competition.

But successful products touch the customer emotionally. A clear understanding of the customers psychology is essential for companies to sustain themselves in the market. Businesses formulate their strategies in such a way that the product become more appealing to the consumers, and turns an ordinary shopper into a long term consumer. Brands plan their marketing so as to create and maintain a long term relationship with the consumer.

Various components are used in the marketing plans of a business; advertising, promotion, packaging, media weight level, sales force number etc. But, the number of inputs and the resulting outcome in terms of sales or profit is the workhorse. Marketing mix modeling is the art of using statistical analysis on sales and marketing to estimate and manipulate various promotional tactics on sales, and further forecast the result of promotional tactics.

Marketing Mix Modeling in the Apparel Business:

Consumers are getting quickly immune to the marketing tactics of businesses, and margins are being squeezed by demanding customers. Focus is getting shifted from mass advertising to making of new trends. Clothing industry is a very competitive arena. Due to the highly fragmented nature of apparels, and fashion sector, an apparel brand must differentiate itself from its competitors right from the stage it enters the market.

Price:

In case of apparels, especially in fashion, price is not of big importance. Gone are the times when companies competed on price. Service is the key today which will shift to focus on personality in the future. Innovative designs are no longer a competitive advantage. New sketches are transformed into garments and make their way in store shelves within a span of three weeks. New disposable fashion has shortened the product development cycle from 16 months to 20 days.

 

Promotion:

In integrated communication is as essential part of the marketing mix. This is even more important for clothing industry as communication is a critical tool in creating an impression in the minds of the consumers. An apparel, to become acceptable by public must first be adopted by a group which has acknowledged respect in the society. Celebrities are the most influential people who can influence public opinion. CPR (Consumer Personal Reference) marketing refers to the process of marketing where a customer publicizes a brand by accepting the product and spreading the trend by word of mouth.

Product:

Product not only refers to tangible items but also to intangible attributes such as brand name and customer service. Earlier it was believed that a good product will sell itself. In todays competitive market, there is no such commodity as bad product. So, manufacturers must focus on creating a product or service that will satisfy the demands of the consumers. The product characteristics must be defined with functionality, quality, appearance, brand service, support and warranty.