DESN 5300M: Fashion Marketing - Environmental Analysis and Valuation

This report provides an analysis of fashion marketing, focusing on the macro environment and client valuation, using Diane Von Furstenberg Studio as a case study. It examines political, technological, and legal elements affecting the company's operations. The report also contrasts client valuation costing with cost-plus pricing, arguing against the latter for the fashion industry due to its rigidity. The analysis emphasizes the importance of adapting to changing trends and leveraging technology for growth. This student assignment is available on Desklib, offering valuable insights for marketing students.

DESN 5300M Fashion
Marketing

Contents
Contents...........................................................................................................................................2
ANSWER 1.....................................................................................................................................1
ANSWER 3.....................................................................................................................................3
REFERENCES................................................................................................................................5

ANSWER 1
Macro environmental variables are things that emerge outdoors of a firm's inner
surroundings and could indeed have an impact on how they operate. Such external circumstances
could either facilitate or hinder the company's existing operations (Grubor and Jakša, 2018).
Executives frequently maintain records of exterior surroundings variables in order to identify and
address disputes that the elements produce, as well as consider necessary adjustments.
Exterior variables are significant since they could indeed have immediate and oblique impacts on
operational processes, employees, and income. The exterior situation of a business evolves on a
regular basis in aspects that are further than the influence of an organisation, but top management
could indeed keep a record of such adjustments and mitigate their effects. Companies can
safeguard self against dependable occurrences and minimizing the impacts of unforeseen
situations by monitoring the changing dynamics of exterior environmental variables. The Diane
Von Furstenberg Studio is an European clothing company better remembered for its tops and
dresses. The main office of the firm and premier clothing store are situated in Downtown's meat
processing neighbourhood, and it is presently accessible in 70 nations around the globe and
45 free-standing stores around the international stores.
 Political elements: These are the aspects of the financial system that are connected to
state involvement. Employment legislation, taxation policies, corporate law, protectionist
measures, customs duties, and good governance are all examples of such variables. In the
case of Diane Von Furstenberg Studio, it is critical for a region to have powerful
democratic support in order for some other nations to be interested in conducting
marketing with it. Since it is very crucial for the above mentioned company to see all the
factors of the political stability as in the next 2-3 years it is very critical to operate in such
a market whose national administration gives a lot of support to its industries so that they
can prosper and survive in the long run scenario (Lievens, 2017).
 Technological elements These are all the elements that influence operational research
and expansion. Manufacturing processes, internet and telecommunications assets, e-
commerce technological advances, and advertising are all part of it. In the case of Diane
Von Furstenberg Studio, the manner they collaborate and the processes they follow are
improved by incorporating new as well as modern technologies and creativity into their
processes in attempt to achieve the preferred outcomes. As there is an urgent need for

each and every firm to perform in an upgraded manner so that it can add value to the
company in the market in which it is operational and hence it is the same case for the
above mentioned firm as it is very crucial as well as vital for the company to use
advanced and upgraded techniques in the production and manufacturing so that in the
next 2-3 years it can become a high rated and a marketed company in the sector so that it
can help its overall growth and development.
 Legal Considerations: Alterations in regulations affecting job opportunities, availability
of raw materials, quantitative restrictions, foreign goods, and income tax are examples of
such variables. In the case of Diane Von Furstenberg Studio, it is critical that they adhere
to the correct requirements in order to carry out their functions legally and in accordance
with all processes. As there are numerous laws and thus it is very crucial for the firm in
the next 2-3 years to abode by all of them so that it can ensure its speedy success in the
market for a prolonged time period.
 Product: Clients can choose from a variety of clothing options based on their preferences
and needs. The corporation's merchandise was created with the goal of ensuring that their
clients are satisfied in a beneficial fashion. The firm Diane Von Furstenberg Studio must
develop new products in the next 2-3 years so that it can help in making an impactful
image in the market in the near future so that it can sustain and survive in the market for
long (Mekonnen and Larner, 2018).
 Place: The firm's primary intended audience is Brooklyn, and that they have warehouses
in more than 200 regions and territories, so they sell their goods in local shops. Diane
Von Furstenberg Studio must try to open as many locations as it can in 2-3 years so that it
can capture a larger share of audience and can prove beneficial fro the overall
development.
 Price: It's the price that customers spend for the goods. In the case of Diane Von
Furstenberg Studio, the valuations they’ve been provided by the corporation are based on
the amount individuals have accumulated for creating the outfits, as well as whether or
not clients could indeed manage this premium and compensate for it. Diane Von

Furstenberg Studio must keep its price lower in the next 2-3 years in the region where
there is not much scope for the people so that it can become a well known name in that
market.
 Promotion: Marketing, media affairs, and marketing program are all part of
advancement. In the case of Diane Von Furstenberg Studio, interpersonal
communications such as Meta as well as applications and other technological assistance
to help them develop a solid label appearance and reputation and entice a huge amount of
clients. Diane Von Furstenberg Studio should use wide scale advertisement so that it can
help the firm in gaining larger attention and that too within a limited time frame so that it
can add value in the long run scenario.
ANSWER 3
Client valuation costing is rooted on a purchaser's assumption of worth instead of the
vendor's expense. Because once users agree on a cost depending on how beneficial users believe
your clients are, you're using subscriber valuation retail prices. As a consequence, an advertiser
can't anticipate goods or a sales pitch without first determining a cost. Cost, on either side, is an
integral part of the advertising combination that is estimated prior to the development of
marketing strategic plan. Client valuation costing starts with a thorough examination of the user's
demands and specifications. The business then determines the exact cost predicated exclusively
on customer satisfaction preconceptions (Talikoti, 2019). The company's current capacity to
accrue expenses, and also the finished goods layout, would've been steered by the preferred
valuation. Let us just assume Corporation A, a sandwich retailer, costs 2 times as often as
Corporation B for a regular medium size sandwich pack. Consumers are ready to spend more
now for sandwich of the firm A, even though their prices are 2 times as high as those of
competitors. At Corporation A, client devotion is very important and is high too, and peer-to-
peer advertising is outstanding. As a consequence, people have such a solid rapport with their
customers. Clients are also sold on performance and reliability, offering them the perception that
they will be buying the cream of the crop. As a consequence, customers are ready to spend a
higher price for the relative benefits and continuity of the sandwich (Whitler, Krause and
Lehmann, 2018).

Cost plus price approach is not as it is because of how simple it is to enforce, the cost-plus
pricing prototype is an attempted tactic for several industry sectors. Whenever it comes to SaaS
or subscriber businesses, however, the prototype soon fell apart. This is since the subscriber
business strategy relies on commercialising your consumer experience, which is a tactic
depending on the cost your server offers. The cost-plus theory may indeed not require how much
significance you make available clients since it frames your valuation structure solely on your
capital expenses. Most memberships as well do not include the difficult expenses of producing
things. Rather, SaaS and subscriber businesses concentrate on the repeated income collected by
their clients. Almost all of your clients will be unconcerned regarding the expenses of supplying
your facility, so there will be no incentive for them all to appreciate your goods. Thus for a
company like Diane Von Furstenberg Studio it is not very good to apply as it is working in the
fashion industry as it becomes rigid more often and thus leaves a very little scope of any
innovation and thus it is not considered an excellent approach in the fashion industry as the
sector needs a lot of changes as the trend changes on a day to day basis (Wiediawati, Pratiwi and
Bimandra, 2019).

REFERENCES
Books and journals
Grubor, A. and Jakša, O., 2018. Internet marketing as a business necessity. Interdisciplinary
Description of Complex Systems: INDECS, 16(2), pp.265-274.
Lievens, E., 2017. Children and the GDPR: a quest for clarification and the integration of child
rights considerations: Panel: Generation Zero-Data & Digital Marketing Protections for
Children and Teens under the GDPR, COPPA and the new FCC Privacy Rules. In
Computers, Privacy & Data Protection: The Age of Intelligent Machines.
Mekonnen, A. and Larner, L., 2018. “Exclusivity Dared”: Impact of Digital Marketing on
Luxury Fashion Brands. In Digital Marketing Strategies for Fashion and Luxury Brands
(pp. 165-177). IGI Global.
Talikoti, S.C., 2019. Digital Marketing: The Vital Vitamin for The Future Marketing. In
Proceedings of 10th International Conference on Digital Strategies for Organizational
Success.
Whitler, K. A., Krause, R. and Lehmann, D. R., 2018. When and how board members with
marketing experience facilitate firm growth. Journal of Marketing. 82(5). pp.86-105.
Wiediawati, A.M., Pratiwi, A.A. and Bimandra, G., 2019. Pelatihan Digital Marketing Strategy
Untuk Mencapai Kemandirian Masyarakat. Dinamisia: Jurnal Pengabdian Kepada
Masyarakat, 3(1), pp.147-157.