DECA Buying and Merchandising

Direct Competing Stores

Stores that offer same merchandise mix

Planner

Projects sales and inventories based on history and market trends

Discounter

Retailer that sells goods at prices lower than other retailers

Distributor

Allocates orders to stores

Specialty Store

Caters to needs of narrow group; limited number of merchandise categories

Indirect Competing Stores

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

Product Developer

Determines which products will be developed for private label

Department Store

Caters to needs of several groups of customers

Complementary Stores

Stores that stimulate each other's sales

Public Company

Many owners or shareholders; stock traded on stock exchange

Market

Group of customers with potential to buy

Target Marketing

Responding to wants and needs of niche markets with a marketing strategy including a mix of products

Basic Goods

Functional goods that rarely change and are considered necessities

Tariff

Taxes by government on imported merchandise

Wholesaler

Facilitates distribution of goods from producer to retailer

Fashion Goods

Have strong aesthetic qualities that change frequently

Branded Merchandise

Identified by a name or symbol associated with certain characteristics

Brand Extension

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

Trade Show

Temporary exhibits of vendor's merchandise usually in convention centre or hotel; few days to a week

Advertising

Conveys message to mass consumers through newspaper

Mass Market

Large group of customers with similar characteristics

Brand Loyal

Consumer consistently purchases same brand

Niche Market

Smaller group of consumers with wants that differ from the mass market

Cash Flow

Balance of cash going in and out of an organization

Gross Margin

Difference between sales and cost of goods sold

Turnover

Number of times an average inventory is sold within a time period

Balance Sheet

Statement of assets

Average Inventory

Average amount of inventory on hand within a given time period

Stock to Sales Ratio

Relationship between BOM and sales for the same month

Sales per Square Foot

Measures the amount of sales generated relative to the amount of space dedicated to presenting the goods

LIFO

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

FIFO

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

Income Statement

Statement of an organizations profit performance for a specific period

GMROI

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

Physical Inventory

Counting and evaluating an inventory item by item

Cost

Price retailer pays

FOB Factory

Retailer pays transportation charges from supplier factory

Markup

Amount added to the cost to establish a retail price

Cash Discount

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

Promotional Pricing

Discounted price that is less than the regular price

Dating

Period allowed for payment of invoice

4-5-4 Calendar

Accounting calendar used by retailers to structure their fiscal year

Invoice

Vendor's itemized statement of merchandise shipped

Purchase Order

Agreement between retailer and vendor in which terms of merchandise

FOB Destination

Vendor pays transportation charge until merchandise reaches the retailer

Floor Ready Merchandise

Negotiated agreement to packaging

Control

Measuring actual performance against goals and reacting to any deviations

Anticipation

Additional discount for paying invoice prior to cash discount period

Initial Markup

Markup added to the cost to establish the first retail price

Cumulative Discount

Discount that applies to orders placed over a period of time

Markdown

Downward adjustment in retail price

Open-to-buy

Amount of merchandise a buyer needs to order to support planned sales

Quantity Discounts

Discount on cost of goods based on the amount of merchandise ordered

Assortment Planning

Determining the right inventory through price

Distribution Centre

Expedites and processes shipments to get merchandise to stores

Keystoning

Doubling an item's cost to establish a retail price

Vendor Partnership

Long term relationship between the retailer and supplier to reduce distribution costs

Maintained Markup

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

Cooperative Advertising

Retailer and vendor share advertising expenses

Market Segmentation

Process of identifying niche markets that are dissatisfied with current market offerings

Fashion

Expression widely accepted by a large group of people over time

Trend

Direction or movement of fashion

Positioning

The place a product occupies in the marketplace in relation to other products in the same category

Micromerchandising

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

Fad

Trends that rise and fall quickly in popularity

Independant Sales Rep

Manufacturers contract services through these reps to sell their goods

Classic

Long

Direct Sales Force

Manufacturers internal sales staff to sell products to retailers

Licensing Agreement

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

Manufacturer

Uses labor and machinery to convert raw materials into finished products

Chain

2 or more stores under the same ownership or identity

Bankruptcy

occurs when a company is unable to pay its debts

Conglomerate

Referred to as a Parent Company of operating divisions called subsidiaries

Merger

2 or more companies combine to form a new company

Off Price Discounters

Retailer that buys irregulars

Centralization

Performing merchandising functions for a retailer from a single location

Acquisition

Takeover-One company purchases another company

Divisional Merchandise Manager

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

Mall

Enclosed shopping center where stores are located inside and parking surrounds

General Merchandise Manager

Vice President level; manages group related divisions

Shopping Centre

Commercial complex with onsite parking; owned and managed as a unit

Department Manager

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

Store Manager

Responsible for the merchandise and operation of a store

Category Killer

Offers a deep assortment of branded merchandise in a single category

Manufacturers Outlet

Discount store operated by the producer

Vertical Integration

Performing more than one marketing channel function

Organizational chart

Diagram that depicts a company's corporate structure

Full line discounter

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

Kmart

Buyer

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

Private Company

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