intro to retail & merchandising

Wholesale

Large number of goods from manufacturing get sold to retail

Retail

Sells goods/services to final customers/ doesn’t get resold

Manufacturing

Transforms raw materials/parts into finished tangible products

Drop-shipping

And e commerce retail business that accepts a customers order then gives shipping details to 3rd party, manufacturer or wholesaler

Breadth

Number of different product lines or categories

Depth

Number of variation;

Distribution channels

Network of business that products/ services travel through to go from producer to final consumer

Procurement matrix

Strategic management tool that categorizes companies purchasing portfolio based on supply risk and profit impact

Segmentation pipeline

Structured workflow that divides broad market into managed subgroups based on shared traits

Merchandising hubs

Centralized operation center/area that manages promotions, distribution and selling of physical/ digital products

Horizontal integration

Growth strategy to acquire, merge or expand into another business operating at the same stage of value chain

Vertical integration

Single company that owns/controls multiple stages of value chain instead of relying on outside suppliers or 3rd party distributors

Multi-level marketing

Company sells products/services through network of independent non-started participants

Intensive distribution

Manufacturer places products in as many retail, wholesale and online sellers as possible