Chapter 16: Advertisement, Public Reltions and Sales Promotion

The following video below is an H&M advertisement of their upcoming versace products: 

H&M has many that it promotes its brand and continues to get customers to come into the store.  One way H&M gets customers to come back into the store is Merchandize cards.  If the customer makes a purchase the cashier will hand them a merchandize card tha is 5 dollars off their next purchase.  Also, if you give H&M ur e-mail you will have 20% off one select item online and you will recive that same merchandize card.  With just ur e-mail you can get all these sales and privlages and H&M will tell you when the sales and promotion will happen.

Chapter 14: Marketing Channels and Retaling

Marketing Channel: A Marketing Channel is a set of activities neccesary to transfer the ownership.  It is also useful tool for the management of the company.  H&M follows these roles of a marketing channel in marketing strategies:

• Link Products to the buyers 
• Performance sales
• Influence the company's pricing strategy
• Affecting product strategy  through branding
• Customize profits, istall, maintain, offer credit, etc...  

Retailing: Retail is the sales of product or service from an individual to another.  H&M buys products and also manufactures goods in diffrent countries sucha as Bangledesh and sells it to its customers.

H&M's continued success and prosperity depends on its efficient distribution channel. H&M has effetively incorporated its supply chain to its retail distribution channel to its business strategy.  As the comapny expands more heavenly into the U.S market, its unique streamlined distribution will be a critical component of its success.

Chapter 6: Consumer Decision Making

In H&M's case the typical customers, they are making the decisions of the "routine response behavior".  Which means, the consumer is frequently buying low cost items or service with little seach or decision time.  This process can be compared to the impulse buying of the customer because of the ongoing sales frequently happenin in H&M.  Determining a customers taste in products and service, its all bout the lifestyle that person lives.  Lifestyle are indvidual factors that play a role in wether a customer is purchasing a product or service.  Also involved are phsycological factors such as motivation and values.  This makes an H&M customer and his/her wallet able to feel great when walking out of the store with watever they bought.

Chapter 5: Developing a Global Vision

H&M has succesfully expanded their global vision throghout the years.  With roughly 3,000 store in 43 diffrent markets all over the world including North America, Europe and Asia.  in a weak economy, H&M seems to be going strong and they are stil trying to show growth about 15% per year.  H&M has grown alot since they first opened their first store on 5th avenue 12 years ago.  They have gone from 1 store to 233 stores just in the United States of America.  To show even more growth H&M has finally openeded the online shopping abillity on their website, (avaiable in America).  The online shopping starting in America is a smart idea since america is one of the most profitable markets in the world. What makes H&M great is the abillity to adapt culturaly and to do it succesfully.  For example their 3.6 million dollar, 30 second Super Bowl commmercial: