CH14 Developing Merchandise Plans Flashcards
merchandising (p. 339)
activities involved in acquiring particular goods/ services and making them available at the places, times, prices, and quantities that enable a retailer to reach its goals
merchandising philosophy (p. 339)
sets the guiding principles for all the merchandise decisions that a retailer makes
micromerchandising (p. 340)
retailers adjust shelf-space allocations to respond to customer differences and other differences among local markets
cross-merchandising (p. 341)
when a retailer carries complementary goods and services to encourage shoppers to buy more
eg. starbucks and their to-go cups
resident buying office (p. 343)
an organization, either internal or external, that retailers use to stay closely connected with key market trends when their headquarters buying staff cannot manage it alone
cooperative buying (p. 344)
a gr of retailers gets tgt to make qty purchases from suppliers and obtain volume discounts
buyer (p. 344)
the person responsible for selecting the merch to be carried by a retailer and setting a strategy to market that merch
sales manager (p. 344)
the manager who supervises the on-floor selling and operational activities for a specific retail department (think co lieu)
forecasts (p. 344)
projections of expected retail sales for given period
staple merchandise (p. 346)
regular products carried by a retailer
eg. fruits and vegetables in a grocery store
basic stock list (p. 346)
specifies the inventory level, color, brand, style category, size, package, and so on for every staple item carried by the retailer (think of an excel sheet with all the info)
assortment merchandise (p. 346)
consists of apparel, furniture, autos, and other products for which the retailer must carry a variety of products in order to give customers a proper selection
eg. CT being an asian grocery store has food items, household products, and skincare
model stock plan (p. 346)
used to project specific items
many items are ordered for popular sizes and colors, and small amounts of less popular sizes and colors fill out the assortment
fashion merchandise (p. 346)
products that may have cyclical sales due to changing tastes and lifestyles
eg. 4 seasons vs. 52 seasons in fashion
seasonal merchandise (p. 346)
products that sell well over nonconsecutive time periods
eg. air conditioners in the summer time, ski equipment in the winter
fad merchandise (p. 346)
high sales are generated for a short time (think “it went viral on tiktok!”)
never-out list (p. 346)
used to determine the amount of merchandise to purchase for resale
the goal is to always purchase these items so that they’re always in stock
product life cycle (p. 348)
shows the expected behaviour of a good or service over its life
intro, growth, maturity, and decline
assortment (p. 349)
the selection of merch a retailer carries
width of assortment (p. 350)
the number of distinct goods/service categories (product lines) a retailer carries
think how wide is the number of product lines
depth of assortment (p. 350)
the variety in any one good/service category (product line) a retailer carries
think how deep does the product line go
manufacturer (national) brands (p. 352)
brands produced and controlled by manufacturers
eg. Apple, Coke, Levi’s, Nike, Revlon, etc.
private (dealer or store) brands (p. 352)
brands that contain names designated by wholesalers or retailers
eg. Kirkland by Costco, AmazonBasics by Amazon, President’s Choice by Loblaw
generic brands (p. 354)
feature products’ generic name as brands
eg. ginger Gravol vs. ‘ginger capsules’ by Equate
battle of the brands (p. 355)
when manufacturer, private, and generic brands fight each other for more space and control
category management (p. 356)
a systematic approach that groups similar products into discrete categories, managing them as strategic business units to maximize sales, profitability, and customer satisfaction while improving overall productivity
eg. pharmacy categorizes things by purpose (eg. digestion, first-aid, vitamins, kids section, etc.)
