EXAM TOPIC 2

Question 1

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1. Distinguish between the following categories of samples:(10)
Fit sample

Answer 1

Fit samples In correct fabric and checked on models

Question 2

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1. Distinguish between the following categories of samples:
Final approval and pre production

Answer 2

The final garment with correct colour and trims but without care labels and tickets

Question 3

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1. Distinguish between the following categories of samples:
Production sample

Answer 3

Sent to the retailer to be checked during production

Question 4

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1. Distinguish between the following categories of samples:
Print strike off lab dips and trim approvals

Answer 4

Printed fabric needs to be approved. Colour is approved by “lab-dips”. Trimmings, for
example zips, buttons and embroidery, need to be approved.

Question 5

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1. Distinguish between the following categories of samples:
The black and red colour coding of samples

Answer 5

Colour coding of samples: Black for first sample, red for final correct version

Question 6

1. What is confusion marketing?

Answer 6

Confusion marketing occurs when the customer is bombarded by so many price offers that he/she is unable to understand the true value that the product represents.

Question 7

1. Price points

Answer 7

Price points refer to the structure of prices from low to high for the same product category. Mass-market fashion retailers have to allow for the normal distribution of customer needs, which will range from basic market entry-level items to more stylish ones where a premium price can be charged.

Question 8

1. Retailers source from three different categories

Answer 8

Retailers source products differently according to the nature of the product. Products fall into one of three categories: factored, cut-make-and-trim, and brands. Some retailers buy all three types of garment.

Question 9

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1, List the 7 methods of segmenting the market place towards defining customer profiles. (14)

Answer 9

Geographic (region, city)

Demographic (gender, occupation, income, age)
You can segment markets by many different characteristics, such as age, income, gender, race and so on.

Socioeconomic classification

Fashion attitude

Lifestyle
This type of segmentation is also called psychographics, and is measured using information captured on the activities, interests and opinions of your target customers.

Historic purchasing behaviour
In this method consumers are classified into market segments not the basis of their knowledge, attitude and use of actual products or product attributes.

Pen portraits (customer profiles)

Question 10

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1. In order to select a successful range fashion buyers undertake certain tasks. List 3/6

Answer 10

Some of the tasks undertaken by fashion buyers, in order to select a range successfully, include the following:
¡ identifying relevant fashion trends
¡ liaising with suppliers
¡ presenting ranges to colleagues and management
¡ calculating profit margins
¡ monitoring and analysing the sales performance
¡ reviewing and analysing competitors’ ranges

Question 11

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1. Discuss the relevance of market positioning and the implication for the retailer (4)

Answer 11

Market positioning provides the boundaries regarding what a target market would expect to buy from a business and provides a good starting point for determining the range of products to be included (Jackson & Shaw 2001:71). Fashion retailers who make significant changes to product ranges, whether through design, line extensions, or new products, without communicating this fact to customers, risk markdowns and high terminal stock on such products (Jackson & Shaw 2001:71–72).

Question 12

1. There are 2 critical issues to consider when developing a product range.
   Name and discuss these issue (5)

Answer 12

A critical issue in developing a range of products is to balance the width and depth of the range.

¡ Width refers to how wide a choice of products is that is to be offered. For example, a company selling clothing, accessories and make-up as opposed to a company sell- ing only accessories.

¡ The depth of a range refers to the choice of styles, colours, sizes and price points avail- able to customers in significant numbers of units within product categories. Customers expect to find new styles of fashion clothing in a variety of colours and in their size.

Question 13

1. There are 2 critical issues to consider when developing a product range.
   How do these affect the fashion retailer

Answer 13

The difficulty fashion retailers face is where to strike the balance between the width of range they offer and the depth of choice available in their range of products.

Question 14

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Compare and contrast the responsibilities of the following individuals: Buyer

Answer 14

¡ Decides on styles to be bought
¡ Negotiates production with suppliers
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Question 15

Compare and contrast the responsibilities of the following individuals: Merchandiser

Answer 15

¡ Works with buyers planning the stock mix
¡ Manages budget
¡ Controls stock deliveries and allocation to stores

Question 16

Compare and contrast the responsibilities of the following individuals: Designer

Answer 16

¡ Provides creative direction

¡ Produces product designs for the buyer to select from

Question 17

Compare and contrast the responsibilities of the following individuals: Garment technologist

Answer 17

¡ Provides technical (fabric and construction) advice

¡ Controls sample development

Question 18

Compare and contrast the responsibilities of the following individuals: Quality controller

Answer 18

¡ Monitors product quality

Question 19

Compare and contrast the responsibilities of the following individuals: Visual merchandiser

Answer 19

¡ Manages the in-store presentation of product ranges. Often uses guidelines set by the buyers when developing presentation plans

Question 20

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Describe the following concepts (5)
Season

Answer 20

The term “season” refers to a period of time during which fashion products are sold. For example, summer and winter seasons.
The traditional fashion buying cycle occurs one year before a season, with leads for orders placed six months prior to product launch. Thus buying is based on long-term forecasts, based on historic sales.
User occasions are situations when customers develop a particular need for a product, either as a result of their attitudes and lifestyle activities or because of the time of the year, such as Christmas or Easter.

Question 21

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Describe the following concepts (5)
Range

Answer 21

A range is an assortment of products, which are developed under different categories to sell to customers. Products may be organised according to size and structure of the busi- ness, historical trading and current or anticipated trading plans.
The scope of a range is linked to the market position of the company. A critical issue in developing a range of products is to balance the width and depth of the range.

Question 22

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Describe the following concepts (5)
Supply chain management
Fill in missing word (10)

Answer 22

The supply chain for fashion is complex, with many different parties being involved. Fash- ion and textiles is a volatile industry, and getting the right product in the right place at the right time can be difficult to achieve. As a result, relationships between organisations are an essential aspect of supply chain management. The retail fashion buyer is managing a complex portfolio of suppliers to meet time, fashion and cost constraints. The role of the fashion buyer is essential to a retailer’s success.

Question 23

Provide the correct terms for the factors that can influence the quality level of merchandise decisions:
Target market

Answer 23

A group of customers selected by the retailer used to conduct market surveys that have an impact on the type and quality of merchandise stocked in store.

Question 24

Provide the correct terms for the factors that can influence the quality level of merchandise decisions:
Competition

Answer 24

retailers offering higher quality products than its competitors at the same price or at least the same quality.

Question 25

Provide the correct terms for the factors that can influence the quality level of merchandise decisions: Accompanying services

Answer 25

After sales service, instalation and product repair services that influence customers perception of quality.

Question 26

Provide the correct terms for the factors that can influence the quality level of merchandise decisions: High quality merchandise

Answer 26

Merchandise sold to the middle-high income group.

Question 27

The 7 main responsibilities of a fashion buyer (7)

Answer 27

1 to develop and buy a range of merchandise that achieves the profit margins and is consistent with the retailer's buying strategy 2 to source and develop products from an effective supplier base 3 to take responsibility for the negotiation of product prices including delivery and payment terms 4 to research and evaluate all relevant product and market trends 5 to communicate effectively with suppliers, product teams and senior management within the company 6 to work within the constraints of merchandise planning 7 to effectively manage and develop the buying team

Question 28

6P's of the marketing mix (12)

Answer 28

¡ Product The complete package of benefits offered to the customer. ¡ Place The retail selling price consumers have to pay. ¡ Promotion The wide range of activities involved from product labels, ticketing and packaging to advertising and PR and visual merchandising. ¡ Place of distribution The channels through which the products are sold. ¡ People Everyone who is involved in the buying and selling of the products. ¡ Process This refers to the intended customer experience of the facility (store). ¡ Physical evidence This refers to the store presentation and the promotional material.

Question 29

Define the concept marketing segmentation and explain why it is important for the retailer: (6)

Answer 29

The process of identifying customer needs is called marketing segmentation and its purpose is to identify a market gap or opportunity where a group of customers sharing broadly similar needs are not being targeted or catered for by other businesses. It is important to remember that the final target market must be clearly identified, measurable and reach- able. A segment that cannot be reached effectively, possibly owing to fierce competition, lack of a credible brand image or inappropriate distribution channels, does not represent a meaningful market.

Question 30

Advantages and disadvantages of sourcing from overseas: (6)

Answer 30

Advantages Super low manufacturing costs. Compared to US factories. You will save 10 fold sourcing overseas. Choice – There are millions or products and thousands of factories to source from. Expertise – Everything think “Who in the hell makes this?” The odds are it is made in China. Some of the factories are the only places online who make these products. Customizable – Have an idea for a spin on an existing product? Chances are the manufacturers can customize it to your liking Every good has a bad. So here are the disadvantages: Disadvantages Cheaper quality. Not saying all the quality will be bad but the perceived quality is lower. “Made in America” is usually associated with quality. “Made in China” more so with high quantity, low quality. . Language barrier – Offer hard to communicate with suppliers. Can cause mistakes. Little to no intellectual property protection – Your stuff can be copied. They did it with Beats by Dre and will do it to anyone. Longer shipping time – Shipping from China can take weeks or months depending on how you order. Extra costs – You have to pay shipping fees, duty costs on big shipments. be sure to ask Scammers – With anything there are big scammers in China. People who disguise themselves as suppliers and take money from distant entrepreneurs. Make sure to do your research.

Question 31

Retailers source products differently which category fashion retailers prefer sourcing products from and why? (3)

Answer 31

cut-make-and-trim garments It enables them to be fully aware of the true component costs of each garment.

Question 32

Name 6 advantages and 3 disadvantages of personal selling that is applicable in the fashion buying and styling environment: Advantages

Answer 32

It contributes to a high level of customer attention. It can customise the message for the customer. It can provide immediate feedback. technical and complex information can be discussed with the customer. The performance of a product can be demonstrated. It can help to develop long-term relationships with customers.

Question 33

Name 6 advantages and 3 disadvantages of personal selling that is applicable in the fashion buying and styling environment: Disadvantages

Answer 33

Sales person can only deal with a small number of potential clients at a time. It cost more per customer. An ineffectual salesperson can damage a relationship and the image of a store.