1 / 19

PowerPoint for

Publisher The Goodheart-Willcox Co., Inc. Tinley Park, Illinois. PowerPoint for. T HE W ORLD OF F ASHION M ERCHANDISING. By Vicki Shaffer-White. Part 1: Basic Fashion and Business Concepts. Chapter 3 Basic Economic Concepts. Objectives:.

jgiese
Download Presentation

PowerPoint for

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. PublisherThe Goodheart-Willcox Co., Inc.Tinley Park, Illinois PowerPoint for THE WORLD OFFASHIONMERCHANDISING By Vicki Shaffer-White

  2. Part 1: Basic Fashion and Business Concepts Chapter 3 Basic Economic Concepts

  3. Objectives: • Identify economic products as either goods or services • Describe the role of profit, competition, and supply and demand in the free-market system • Distinguish between the main competitive market structures • List the basic forms of business organizations • Describe the concept of business cycles • Explain the concepts of marketing and merchandising

  4. Economic Concepts of the Fashion World • Manufacturers • Retailers • Consumers • Goods • Services • Free-market system • Competition • Supply and demand • Target market • Marketing mix (4 Ps)

  5. Economic Concepts • Free-Market System • People freely choose how to spend their money • Choices will determine: • selection • price • quality

  6. Foundation of a Free-Market System • Profit • Profit is money left after taxes and expenses • Determines whether a business succeeds • Reward for selling a desirable product to those who want it

  7. Competition • Rivalry between two or more businesses to gain as much of the total market sales as possible • May encourage: • Fair pricing • Higher quality • Better service • Greater variety • Innovation and technology

  8. Competitive Market Structures • Pure Competition • Oligopoly • Monopoly

  9. Pure Competition • No single company is large or powerful enough to influence or control prices • Many sellers and buyers • Similar products • Each buyer/seller has minimal impact • Easy to enter/exit industry Example: T- shirts

  10. Oligopoly • Few large rival firms dominate the market for that product and usually react to one another’s actions • Illegal to “set” prices among themselves • Hard to enter and exit the industry Example = blue jeans

  11. Monopoly • Opposite to pure competition • A market with no direct competitors • One company controls products and prices • Illegal in U.S. Example: If all phones in the country were operated by one phone company.

  12. Basic Forms of Business Organizations • Sole proprietorships • Partnerships • Corporations • Public • Private • S corporations • Nonprofit

  13. Business Cycles • Fluctuations in the level of economic activity over periods of several years • Fashion affected more strongly than other products during recessions and expansions

  14. The Concept of Marketing The 4 P’s (Marketing mix) Product Price Place Promotion • Process of finding or creating a profitable market for specific goods or services

  15. Product • Forecasting what is in demand • Needs and wants of customers must be translated into desirable products of the business

  16. Price: Products with lower prices sell in larger quantities High Supply and Demand Equilibrium Points $ Low Lower $ sells higher quantities Quantity High Low

  17. Place and Promotion • Place: How and where products are offered to customers • Promotion: Furthering the sales of goods or services by nonpersonal activity to a large audience

  18. Concept of Merchandising • Process through which products are obtained, promoted, and sold • Company targets the market with right merchandise blend of: • Right products • Right quantity • Right price • Right time • Right place • Right appeal

  19. Do You Know . . . • Define each of the following: • Sole proprietorship • Partnership • Corporation • List the advantages and disadvantages of the basic business organizations.

More Related