Buying and Merchandising DECA Vocab

Acquisition

Takeover-One company purchases another company

Anticipation

Additional discount for paying invoice prior to cash discount period

Artificial Intelligence (AI)

The ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings.

Assortment Planning

Determining the right inventory through price, style, brands, and colour

Augmented Reality (AR)

Is the integration of digital information with the user's environment in real time. Unlike virtual reality, which creates a totally artificial environment, augmented reality uses the existing environment and overlays new information on top of it.

Average Inventory

Average amount of inventory on hand within a given time period

Basic Goods

Functional goods that rarely change and are considered necessities

Bill of Lading

A document showing that a company received goods from the shipper.

Blanket Order

Blanket orders are placed for the quantity of an item (or group of items) that you expect to purchase over extended period of time (3 months, 6 months, a year, etc). Providing a blanket order to a supplier may reduce lead times and increase on-time shipments from the supplier and may provide a greater discount on purchases.

Brand Equity

The commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself.

Brand Extension

Producers add related products to existing line or develops a new product with same brand name

Branded Merchandise

Identified by a name or symbol associated with certain characteristics

Budget

An itemized summary of estimated expenditures and income for a specified period.

Buyer

Buys and prices merchandise; composes assortments for customer needs; prices goods to be competitive

Cash Discount

Discount on invoice when payment is made on or before a specific date

Cash Flow

Balance of cash going in and out of an organization

Category Killer

Offers a deep assortment of branded merchandise in a single category

Central Buying

Completing all purchases through a central or main office.

Centralization

Performing merchandising functions for a retailer from a single location

Chain

2 or more stores under the same ownership or identity

Classic

Long, enduring, timeless fashion

Classic Merchandise

Merchandise that is not based on style and for which a demand always exists. An example would be sheets or towels.

Complementary Stores

Stores that stimulate each other's sales

Conglomerate

Referred to as a Parent Company of operating divisions called subsidiaries

Contactless Shopping

Includes a shopping experience with no interaction with a sales associate or even a cashier.

Control

Measuring actual performance against goals and reacting to any deviations

Convenience Product

A good or service that is bought frequently and often low priced. Chewing gum would be an example.

Cooperative Advertising

Retailer and vendor share advertising expenses

Cross Merchandising

The practice of displaying complementary products from different categories together, cross merchandising technique is great in generating additional revenue.

Cumulative Discount

Discount that applies to orders placed over a period of time

Dating

Period allowed for payment of invoice

Department Manager

Responsible for a department or division of a store. Reports to the Store Manager

Department Store

Caters to needs of several groups of customers

Describe Factors Used by Businesses to Position Corporate Brands

Price, quality, features and benefits, and relationship to the competition (along with market profile, customer segments, competitive analysis, and method for delivering value).

Describe Factors Used by Marketers to Position Products

Price, quality, features, benefits, competition, and relation to another product.

Describe the Nature of Product Bundling

Marketers package two or more complementary goods and services together, usually for a lower price than had the products been purchased separately.

Describe the Role of Customer Voice in Branding

Creating your branding based on customers' likes and dislikes in order to best appeal to them, since they are the ones buying your product.

Describe the Use of Technology in the Promotion Function

Involves database marketing to create and maintain customer lists from face-to-face sales, direct mail responses, phone/email purchases, service requests, web visits, or third parties.

Direct Buyer

A buyer who places orders directly with a manufacturer and bypasses a wholesaler.

Direct Channel of Distribution

Model/method used to move products from production to buyer without the use of wholesalers and retailers, eliminating intermediate steps to realize savings.

Direct Competing Stores

Stores that offer same merchandise mix

Direct Sales Force

Manufacturers internal sales staff to sell products to retailers

Discounter

Retailer that sells goods at prices lower than other retailers

Discuss the Nature of Customer Relationship Management

Customer relationship management involves finding customers and keeping them satisfied through a variety of means, though the sharing of customer info has led to privacy issues.

Distribution

The process of making a product/service available for use or consumption by a consumer or business user using direct or indirect means.

Distribution Centre

Expedites and processes shipments to get merchandise to stores

Distribution Channel

A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors, and even the internet itself.

Divisional Merchandise Manager

Responsible for a merchandise division; monitors sales and inventories; reports to the General Merchandise Manager

EDI

An electronic data interchange allowing the communication of business transactions including invoices and orders.

Endless Aisle

The strategic in-store use of technology (e.g., kiosks) that allows shoppers to browse and even purchase products that are not in stock or not sold in the store. Endless aisles can help to diversify product portfolios and decrease abandonment rates when a customer is searching for only a single item.

Explain the Nature and Scope of the Product/Service Management Function

Any and all activities involving the obtaining, distribution, and development of products/services, including developing and maintaining a product mix throughout the product life cycle.

Explain the Nature of Channel-Member Relationships

The manufacturer-to-intermediary-to-consumer relationship chain that ensures products flow smoothly to the final destination.

Explain the Nature of Channels of Distribution

The path a product takes from its producer to the final destination, utilizing exclusive, selective, or intensive distribution through direct or indirect methods.

Explain the Nature of Corporate Branding

Corporate branding refers to the practice of promoting the brand name of a corporate entity, as opposed to specific products or services, typically with a much broader scope.

Explain the Nature of Product/Service Branding

It is how a product interacts with its consumer audience through design, logo, and messaging, and how it distinguishes itself from competitors.

Explain the Nature of Promotional Plan

A promotion plan outlines the promotional tools or tactics you plan to use to accomplish your marketing objectives.

Explain the Relationship Between Customer Service and Channel Management

Maintaining customer satisfaction and meeting needs/wants by delivering products at the right time and place through effective channel management and good customer service.

Explain the Role of Customer Service as a Component of Selling Relationships

Using customer relationship management as a method to develop customer loyalty and positively impact future sales.

External Brand Communications

The information about the company that is uncontrolled by the company itself (such as word-of-mouth or publicity).

Fad

Trends that rise and fall quickly in popularity

Fashion

Expression widely accepted by a large group of people over time

Fashion Goods

Have strong aesthetic qualities that change frequently

FIFO

Goods acquired at the 1st of the period and sold first

Floor Ready Merchandise

Negotiated agreement to packaging, folding, hanging, ticketing, merchandise, so that it is ready for the selling floor

FOB Destination

Vendor pays transportation charge until merchandise reaches the retailer

FOB Factory

Retailer pays transportation charges from supplier factory

Full line discounter

Carry low priced brands not found in Department stores; Wal Mart, Kmart

General Merchandise Manager

Vice President level; manages group related divisions

Global Trade

The exchange of capital, goods, and services across international borders.

GMROI

Measures the amount of gross margin dollars generated per average dollar of inventory invested

Gross Margin

Difference between sales and cost of goods sold

Horizontal Merchandising

The practice of placing products in a blocked horizontal manner - essentially ensuring that all your products are at eye level.

Independant Sales Rep

Manufacturers contract services through these reps to sell their goods

Indirect Competing Stores

Stores offer same type merchandise but with different assortments of brands and prices

Indirect Channel of Distribution

Relies on intermediaries (wholesalers, retailers) to perform most or all distribution functions, passing profit through additional steps before reaching the consumer.

Initial Markup

Markup added to the cost to establish the first retail price

Internet of Things (IoT)

The connection, via the Internet, of computing devices and "everyday objects".

Keystoning

Doubling an item's cost to establish a retail price

Licensing Agreement

Owner of property permits producer to use property for a free or royalty

LIFO

Goods acquired at the end of the period and sold before the goods purchased at the 1st of the period

Maintained Markup

Difference between the cost of merchandise and actual selling price; indicator of how well merchandise sustains markup

Manufacturer

Uses labor and machinery to convert raw materials into finished products

Manufacturers Outlet

Discount store operated by the producer

Marketing Mix

A combination of factors that can be controlled by a company to influence consumers to purchase its products.

Markup

A percentage or amount added to the cost to get the retail selling price.

Merchandising

The promotion of goods and services combined with the exchange of goods for an agreed sum of money.

Merger

2 or more companies combine to form a new company

Micromerchandising

Tailoring a stores product mix to a local market based on loyal tastes and demographics

Off Price Discounters

Retailer that buys irregulars, 2nds, overruns, closeouts, returns etc...

Omni-Channel Retailing

Is a fully-integrated approach to commerce that provides shoppers a unified experience across online and offline channels (e.g., touch points). True omni-channel shopping extends from brick-and-mortar locations to mobile-browsing, e-commerce marketplaces, onsite storefronts, social media, retargeting, and everything in between.

Open-to-Buy

A financial budget for retail merchandise.

Physical Inventory

Counting and evaluating an inventory item by item

Planner

Projects sales and inventories based on history and market trends

POS System

A point of sale system is a computerized network that manages sales.

Presented Brand

The company's presented brand is the communication that the company controls and that is intended for the customers to see.

Private Company

Few owners; stock is private; not traded on stock exchange

Product Assortment

The variety of product lines sold.

Product Developer

Determines which products will be developed for private label

Public Company

Many owners or shareholders; stock traded on stock exchange

Purchase Order

A written authorization including a number guaranteeing payment for products at a specified price.