DECA Buying and Merchandising

Indirect Competing StoresStores offer same type merchandise but with different assortments of brands and pricesProduct DeveloperDetermines which products will be developed for private labelDepartment StoreCaters to needs of several groups of customersComplementary StoresStores that stimulate each other's salesPublic CompanyMany owners or shareholders; stock traded on stock exchangeMarketGroup of customers with potential to buyTarget MarketingResponding to wants and needs of niche markets with a marketing strategy including a mix of products, services, and advertisingBasic GoodsFunctional goods that rarely change and are considered necessitiesTariffTaxes by government on imported merchandiseWholesalerFacilitates distribution of goods from producer to retailerFashion GoodsHave strong aesthetic qualities that change frequentlyPrivate LabelMerchandise that bears the name of the retail store where soldBranded MerchandiseIdentified by a name or symbol associated with certain characteristicsBrand ExtensionProducers add related products to existing line or develops a new product with same brand nameTrade ShowTemporary exhibits of vendor's merchandise usually in convention centre or hotel; few days to a weekAdvertisingConveys message to mass consumers through newspaper, radio, or TVMass MarketLarge group of customers with similar characteristicsBrand LoyalConsumer consistently purchases same brandNiche MarketSmaller group of consumers with wants that differ from the mass marketCash FlowBalance of cash going in and out of an organizationGross MarginDifference between sales and cost of goods soldTurnoverNumber of times an average inventory is sold within a time periodBalance SheetStatement of assets, liabilities, and owners equity at a particular timeAverage InventoryAverage amount of inventory on hand within a given time periodStock to Sales RatioRelationship between BOM and sales for the same monthSales per Square FootMeasures the amount of sales generated relative to the amount of space dedicated to presenting the goodsLIFOGoods acquired at the end of the period and sold before the goods purchased at the 1st of the periodFIFOGoods acquired at the 1st of the period and sold firstIncome StatementStatement of an organizations profit performance for a specific periodGMROIMeasures the amount of gross margin dollars generated per average dollar of inventory investedPhysical InventoryCounting and evaluating an inventory item by itemCostPrice retailer paysFOB FactoryRetailer pays transportation charges from supplier factoryMarkupAmount added to the cost to establish a retail priceCash DiscountDiscount on invoice when payment is made on or before a specific datePromotional PricingDiscounted price that is less than the regular priceDatingPeriod allowed for payment of invoice4-5-4 CalendarAccounting calendar used by retailers to structure their fiscal yearInvoiceVendor's itemized statement of merchandise shipped, unit cost, extended cost, and transportation chargesPurchase OrderAgreement between retailer and vendor in which terms of merchandise, prices, delivery dates, and payment terms are specifiedFOB DestinationVendor pays transportation charge until merchandise reaches the retailerFloor Ready MerchandiseNegotiated agreement to packaging, folding, hanging, ticketing, merchandise, so that it is ready for the selling floorControlMeasuring actual performance against goals and reacting to any deviationsAnticipationAdditional discount for paying invoice prior to cash discount periodInitial MarkupMarkup added to the cost to establish the first retail priceCumulative DiscountDiscount that applies to orders placed over a period of timeMarkdownDownward adjustment in retail priceOpen-to-buyAmount of merchandise a buyer needs to order to support planned salesQuantity DiscountsDiscount on cost of goods based on the amount of merchandise orderedAssortment PlanningDetermining the right inventory through price, style, brands, and colourDistribution CentreExpedites and processes shipments to get merchandise to storesKeystoningDoubling an item's cost to establish a retail priceVendor PartnershipLong term relationship between the retailer and supplier to reduce distribution costs, control inventory, increase sales, and improve gross marginMaintained MarkupDifference between the cost of merchandise and actual selling price; indicator of how well merchandise sustains markupCooperative AdvertisingRetailer and vendor share advertising expensesMarket SegmentationProcess of identifying niche markets that are dissatisfied with current market offeringsFashionExpression widely accepted by a large group of people over timeTrendDirection or movement of fashionPositioningThe place a product occupies in the marketplace in relation to other products in the same categoryMicromerchandisingTailoring a stores product mix to a local market based on loyal tastes and demographicsFadTrends that rise and fall quickly in popularityIndependant Sales RepManufacturers contract services through these reps to sell their goodsClassicLong, enduring, timeless fashionDirect Sales ForceManufacturers internal sales staff to sell products to retailersLicensing AgreementOwner of property permits producer to use property for a free or royaltyManufacturerUses labor and machinery to convert raw materials into finished productsChain2 or more stores under the same ownership or identityBankruptcyoccurs when a company is unable to p its debtsConglomerateReferred to as a Parent Company of operating divisions called subsidiariesMerger2 or more companies combine to form a new companyOff Price DiscountersRetailer that buys irregulars, 2nds, overruns, closeouts, returns etc...CentralizationPerforming merchandising functions for a retailer from a single locationAcquisitionTakeover-One company purchases another companyDivisional Merchandise ManagerResponsible for a merchandise division; monitors sales and inventories; reports to the General Merchandise ManagerMallEnclosed shopping center where stores are located inside and parking surroundsGeneral Merchandise ManagerVice President level; manages group related divisionsShopping CentreCommercial complex with onsite parking; owned and managed as a unitDepartment ManagerResponsible for a department or division of a store. Reports to the Store ManagerStore ManagerResponsible for the merchandise and operation of a storeCategory KillerOffers a deep assortment of branded merchandise in a single categoryManufacturers OutletDiscount store operated by the producer