BSM Performance Indicators

Describe the use of technology in the channel management function

Technological tools can be used to increase efficiency along a supply chain, but dedication and cooperation is required of all parties. Automatic order systems can instantly place orders along the supply chain when stock levels reach economic quantities. Picking, packing and shipping activities can be tied into automatic order systems to further improve efficiency and decrease delivery lead times. Order tracking technology can help individual companies to provide better customer service by knowing exactly when materials and other orders will arrive.

Identify the company's USP

USP is the unique selling proposition a marketing concept that differentiates the company from its competitors. The USP will attempt to convince consumers to switch over to the company's brand. The proposition must appeals to the consumer, be unique, and be strong enough to attract new customers.

Identify internal and external service standards

Service Standards are different. They are the non-negotiables in how an employee is to interact with a customer. They help employees know what they are to do and how to behave.

1. Each standard should be unique from every other standard

2. Each standard should be actionable and measurable.

3. The standards must focus on customer service.

Internal: The service standards that employees need to follow with each other in order to ensure good corporate culture

External: The service standards that employees need to follow when dealing with outside customers.

Describe the need for marketing information

Marketing information helps decide many questions such as Who are our customers? How do customers make buying decisions in our market? How well are our products selling? Have new products been introduced recently by competitors? How can we respond successfully to changes in the marketplace? Marketing can be used to garner information about industry, products, brand recognition, industry share, consumer habits, etc.

Identify information monitored for marketing decision making

Information monitored for marketing decision making first involves the demographics of the user. This includes the ethnicity, age, disposable income, education, etc. of users. Secondly buying behaviors, prefrences of age groups, and other intangible factors are considered and noted in order to help the company make better decisions about their actions.

Explain the nature and scope of the marketing information management function

Marketing information management: practice of monitoring the marketplace, organizing and analyzing the results of data collection, and developing strategies for future marketing activities.

It is used to

1. Determine consumers' attitudes and preferences

2. Test product features

3. Determine market size and growth potential

4. Learn about competitive products

5. Determine buying cycles

6. Understand how the company is perceived by the public

It determines competition, what consumers want and help businesses avoid marketing mistakes.

Describe methods used to design marketing research studies (ie descriptive, exploratory, and casual)

Exploratory: To gain background information, to define terms and to clarify problems and hypotheses, to establish research priorities. Unstructured informal research to gain background and is systematic and flexible. Ex. Go to library to read published secondary data

Descriptive: To describe and measure marketing phenomena at a point in time. Answers questions such as who what where and how as they are related to research problem. Cross-sectional and longitudinal studies. CS: Snapshot of pop. L: Repeatedly measure same pop over period of time.

Casual: To determine causality, to make if-then statements. Answers the why part of question. Explores effect of one thing on another. Experiments such as laboratory and field experiments. Ex.Blue denim jeans changing color to white. Way of seeing how actions now will affect business later.

Discuss the nature of sampling plans (ie who, how many, how chosen)

Determine sampling frame that shows who and where the sample will be selected from

Size: Must have representative sample of target pop - best attained through consideration of sample size, levels of confidence, and confidence intervals.

Sampling Procedure: Probabilistic sampling: probability sample taken from target population in order to reach certain statistical concerns.

Non probabilistic sampling: does not do the above.

Describe types of rating scales (including likert scales, semantic differential scales, behavior intention scales, etc)

Rating scales are sets of categories designed to elicit information about a quantitative or qualitative attribute.

Likert scale: Simply statement which respondent is asked to evaluate according to any kind of subjective or objective criteria. Circle line with sentiments such as agree and disagree

Semantic differential scales: shows knowledge or sentiment based on attributes: ex. strong and weak separated by boxes.

Behavior intention scales: Used to measure intentions of participants to implement the instructional strategies presented at the workshop to uncover the perceived enablers and barriers the participants faced in making the decision to incorporate the strategies and activities into curriculum.

Explain the concept of marketing strategies

Marketing strategies will focus on how you will increase sales by getting and keeping customers. It will help you tailor your messages and put in the right mix of marketing approaches in place so that you bring your sales and marketing activities together effectively in a marketing plan.

Firstly you must understand your customers, what they need, and how you can persuade them to buy from you. Use experience, two way communication, and targeted market research to find this stuff out. Finally marketing strategies will help you create your marketing plan and how you will talk to your target customers.

Explain the concept of market and market identification

The market is the place where you will do business. Market identification is identifying what market that you will sell to; it is targeting your market. These help to determine who your customers are so that the company can effectively market to them.

Explain the nature of marketing plans

A Marketing plan identifies who your target customers are, how you will reach them, and how you will retain them so they repeatedly buy from you. It should contain sections on target customers, USP, pricing and positioning, distribution, materials, promotion, online marketing, etc.

a) Explains how you will organize the new business.

b) Details pricing strategies and promotional plans.

c) SWOT Analysis: Identifies internal strengths & weaknesses and External Opportunities & Threats

Explain the nature and scope of the pricing function

Pricing is the process of determining what a company will receive for its product or service. Pricing must take into consideration all costs of goods and operations. Pricing also must take into consideration the competition, brand, quality of product and other things. Pricing directly affects the product due to it being the only revenue generating P of the 4 P's.

Return on investment - profitability of a product.

Market share - a firm's percentage of total sales volume

Describe the role of business ethics in pricing

Pricing is a very sensitive element that can be affected by malicious intentions and collusion among producers. Ethics in pricing means pricing to earn profits without defrauding competitors or consumers. This means fair pricing - covering costs and reasonable margin of profit. Having legal advertising schemes, and not monopolizing market

a) Price fixing- competitors agree on certain price ranges within which they set their own prices.

b) Price discrimination- a firm charges different prices to similar customers in similar situations.

c) Unit pricing- allows consumers to compare prices in relation to a standard unit or measure.

d) Price advertising- FTC's price advertising forbid a company to advertise a price reduction unless the original price was offered to the public on a regular basis.

Explain the use of technology in the pricing function

Allows us to more efficiently get information about consumer sentiment towards pricing.

It also allows us to effectively compare competitor prices. It also allows us to effectively see what price we could use in order to garner sales. Can see past items prices in order to compare and gain a better knowledge of how the product should be priced.

Identify product opportunities

Product opportunities can be identified using environmental scans. Good product opportunities fill product opportunity gaps and meets the conscious and unconscious expectations of customers and is perceived as useful, useable, and desirable. 3 considerations: social, economic, and technology.

Social: social and cultural trends and drivers

Economic: Satisfies state of economy and shift in focus on where to spend money

Technology: State of the art and emerging tech or reevaluating existing tech

Describe the Use of grades and standards in marketing and Explain warranties and guarantees

Grades: Rating assigned to products that tell what extent standards were met

Standards: Statements that specify a product's size, contents, and/or quality; used as a basis for comparing or judging goods or services.

Used in marketing to establish uniform, consistent products and aid in buying and selling by telling what kind of product it is without inspection.

Provides a great source of product information.

Warranties and guarantees are promises made by a seller to the consumer that the product is of a certain quality and will perform a certain function or money back.

Warranty types: Express, Implied, full, limited.

Effective guarantees are unconditional, understandable, easy to implement, and easy to collect.

Guarantees are used on both goods and services, while warranties usually apply to goods

W&G's reassure prospective customers, protect the producer and seller, help gain repeat customers, are promotional and competitive tools, help to increase sales.

W&Gs regulated by law.

Explain the role of promotion as a marketing function

Promotion is the advancement of a product, idea, or point of view through publicity and/or advertising. Promotion is very important to marketing because without getting the product out to the market, no one would ever know about it and so would never buy it.

Explain the types of promotion

a) The types of promotion in the promotional mix are 1. Personal Selling, 2. Advertising, 3. Direct Marketing, 4. Sales Promotion, and 5. Public Relations.

Personal selling: person to person selling

Advertising: marketing communication used to persuade audience to take or continue some action.

Direct Marketing: Communicate straight to the customer, with advertising techniques such as cell phone text messaging, email, fliers, catalogs,etc.

Sales promotion: media and nonmedia marketing communication used in limited time to increase customer demand, stimulate market demand, or improve product availability. Ex Contests, coupons.

Public relations: promotion designed to enhance a company's image.

Explain types of advertising media

Print media- includes newspaper advertising, magazine advertising, direct mail, directory advertising, outdoor advertising and transit advertising.

Broadcast media- television advertising and radio advertising.

Online advertising- this includes banner and pop up ads and social media.

Explain the components of advertisements

Attraction/Attention: What grabs customers attention

Interest: What engages the audience into focusing on the ad

Desire: Convince customers that they want and desire the product

Action: call to action. ex order today, call today, etc.

Explain the nature of a promotional plan

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

Firstly market research must be done in order to discover the most effective promotional tactic ex.email, social media, brochures, etc.

You might choose to include the following components in your promotion plan:

Description (or listing) of the promotional tactics you plan to use.

Projected costs for the year.

Explanation of how your promotion tactics will support your marketing objectives.

Description of promotional adjustments for cyclical businesses, if yours is indeed cyclical.

Explain the nature and scope of the selling function

Selling is a prominent business process whereby salespeople interact directly with your company's buyers and try to persuade them that the benefits offered by your solution are a good value for the money. Selling takes place in virtually all types of organizations. Within the distribution channel, selling takes place when manufacturers sell to wholesalers, wholesalers sell to retailers, and retailers sell to the end customer. At each of these sets in distribution, companies need salespeople to sell to buyers.

The different types of selling are personal selling, retail selling, business-to-business selling and telemarketing.

Explain the role of customer service as a component of selling relationships

Customer service is one of the most important factors in selling. Getting loyal customers is one of the most important items in creating a sustainable business. Only through quality customer service that understands the customer's issue and is flexible and can cooperate with the buyer, can the business garner the customer's support. Through this quality culture and dedication to a customer-service attitude can a business build a loyal customer base.

Explain company selling policies

Guidelines for selling that include service policies for servicing customers, methods of refunds, and deadlines for returning products.

Selling policies standardize sales and ensure that the company and customer understand how products are sold. It also proves that all customers are treated the same way and improves efficiency of salespeople.

Acquire product information for use in selling

Look at product itself in order to gain knowledge (personal use also gives knowledge)

Customer testimonials can be used

Manufacturer brochures and publications can be used.

Promotional materials even have product info

Includes: Construction, appearance and style, USP, durability, uses, service and warranty info.

Explain the selling process

1. Product knowledge: Know important features of product

2. Prospecting: Find new customers and know where to dig and what for.

3. The Approach: Approaching the customer in a manner that leads to relationship and intelligence gathering

4. The Needs Assessment: Determine how you can truly sell to the prospect's needs, understand those needs, and fulfill them.

5. The Presentation: Present why the product would be beneficial to the customer

6. The Close: Advance the sales process to ultimately get an order.

7. Follow-Up: Follow up to create a relationship and stay in the prospect's mind.

Apply ethics to online communications

Keep all communication within some sort of privacy as to create a comfortable space for the customer to express their opinions and for you to answer them. Cannot remove negative reviews without reason.

Create free and open communication with the customer and the business.

Verify accuracy of bills

The accuracy of bills can be verified by taking a holistic view of the costs that were incorporated. By keeping track of the money flow in and out, the financial status of the company can be determined and the accuracy of any expenditures can be looked at.

Differentiate between service marketing and product marketing

Creative, passionate marketing works well no matter what is promoted.

Goods have physical attributes and specifications that can be used to differentiate. With products, it is also much easier to get the customer to take a risk - they can return a product.

Services are not possible to compare directly in most scenarios. Plays up what the service provider offers that no one else does. Word-of-mouth and social proof such as testimonials are huge for services.

Discuss the relationship between promotion and marketing

Promotion is one of the marketing functions and plays a big role in whether the marketing is effective or not. Without getting the product into consumer awareness, there would be few sales and even fewer profits. Promoting creates brand loyalty, increased publicity, and an enhanced company image.

Explain security considerations in marketing communications

There is a lot of marketing information that contains a lot of sensitive info about many people. This info can include demographics, personal interests, personal behaviors, work places, etc. This info must be kept safe from external forces that may wish to use it in order to commit crimes such as identity theft or other things.

Describe traits important to the success of employees in marketing communications

Promotion part of the 4 p's.

Initiative, creativity, fearlessness, confidence, knowledgeable about target audience, enthusiastic, flexible, excellent oration/expression, knowledge of effective relationships in community, goal oriented.

Explain considerations affecting global promotion

Global promotion must consider the cultures and traditions of all places that they are promoting - they want the message to be the same throughout the world. Each must be localized.

Market segmentation must also be redone because the subset that may buy the product in one country may be different in another.

If doing some sort of global contest, the economic status and political statuses of each nation promoted in must also be taken into consideration. Pricing can vary in each country.

Determine advertising reach of media

Total number of people/household exposed at least once to a medium during given period. An advertisements reach can be determined by looking at the circulation of the media and the "pass-along rate" or sharing rate of the form of media in order to find the reach.

Acquire knowledge of client's products/brands

Look at the product info/ brand info of each.

Look for customer testimonials in order to determine public sentiment.

Look at sales data and other metrics

look at industry competition and market share.

Look at promotions in order to determine promotional strategy

etc. etc.

Analyze impact of technology on marketing

Technologies such as the web, mobile phones, social media, and customer relationship management systems greatly affect modern marketing.

Marketers must develop digital skills to communicate effectively with customers.

Three areas of marketing which have been transformed by digital are the speed, relevance and reach of campaigns.Speed : insanely fast, word spreads like wildfire. Relevance: able to target those who wish to see the information more effectively. Reach: Online means more traffic and in turn more people seeing the promotions. There are many ways for customers to access media - tremendous coverage.

Track invoices

Commercial document issued by a seller to a buyer regarding sale transactions and indicating products, quantities, and agreed prices.

Tracking invoices is all about tracking what has been paid and what hasn't.

Assess the impact of technology on marketing research

Technology has enhanced market research in a variety of ways.

1. Social media: market researchers can take advantage of the advanced capabilities inherent in social media; can garner a lot of information through action-gating.

2. Data collection improvements - technology enables more targeted data, can also learn much more about the customer.

3. Enhanced data analysis - can identify customer retention and improve long-term loyalty.

Role and responsibilities of marketing researchers

Market researchers collect and analyse data and information that is valuable to their clients who are made up of organisations, businesses and government departments. The information they provide helps their clients to make informed political, social and economic decisions.

In general marketing researchers must conduct research projects, formulate plan/proposal to present, conduct interviews, moderate focus groups, undertake ethnographic research, conduct surveys, use statistical software to manage and organise info, analyze and interpret data.

Analyze impact of technology on retailing

Technology has brought retailing out of mom and pop stores and into the world of eCommerce. For traditional retailers, they began to use integrated multichannel retail capabilities to use an omnichannel retail strategy in order to give customers a seamless, consistent experience, whether in store, online, or through a mobile device. The retail market has also been affected by the 1-click buying and online marketplaces that offer B2C and C2C selling.

Distinguish between retailing and marketing

Retailing is the selling of merchandise and certain services to a customer.

Marketing is the methodology of communicating the value of a product or service to customers, for the purpose of selling that product or service.

They differ in the fact that marketing concerns itself with the holistic creation of the product whearas retailing focuses on the sales promotion of merchandise.

Explain importance of merchandising to retailers

Merchandising is the activity of promoting the sales of goods especially by presentation. Through merchandising, a retailer can increase traffic (colorful exterior), increase sales (ambience), build loyalty (comfortable store), and have the proper arrangement of retail space.

Explain policies/procedures for handling shoplifters

Is your goal to prosecute or get the merchandise back?

Does your store have a zero tolerance policy for shoplifting?

Will you prosecute shoplifters under 18 or over 65?

Is there a minimum dollar amount before prosecuting?

How will you confront and detain the shoplifter?

What will you do if the shoplifter shows remorse or offers to pay?

Who is responsible for calling the police?

Consider a shoplifting policy that is fair but firm. If your store chooses not to prosecute shoplifters, word will get around and your store may become a target. If shoplifters know your store takes theft seriously and is not afraid to prosecute, many thieves will avoid stealing from your business.

Follow up orders

Once the negotiations are over and the order has been signed, make sure that you continue your professional approach by taking the client through the next steps - called consolidation. Remember to thank them for their business before you go any further.

Confirm what has been agreed, including delivery dates and times as well as payment procedures, where appropriate.

Once back at the office, confirm all the details in an email or letter. Avoid using standard templates for this communication - you need to maintain the friendly rapport generated in the meeting, and a standardised letter could appear too clinical.

Follow this up with a regular call at key stages to keep them informed as to progress, and once again after they have taken delivery. Check that they have received exactly what was agreed and on time. Be on hand to answer any queries once the client starts to use the product, perhaps offering to demonstrate it at their workplace.

Prepare cash drawers/banks

Cash drawers must be prepared with a change fund and money must be organized in terms of increasing monetary value from right to left.

During the day, change funds must be monitored in order to make sure that there is enough to pay out change.

Open/Close register/Terminal

Beginning of day -open

End of day - close

Explain evolution of retailing

Retail is evolving at a major rate now. First there were mom and pop stores, where everything was done by sole owners. Then retail moved into large department stores and greater venues, allowing it to more effectively target many people. Along the way, it develop delivering as a means to get a product: a customer sent a order form in, and the producer would ship the product to the customer's house. Multiple channel retailers had become commonplace. As retail continued to evolve, technology caught up to it. Retail is increasingly becoming e-commerce oriented. Even B2B commerce, which is traditionally done through much communication and dedicated organization, has begun to move towards the online frontier.

Describe the role of merchandisers in retailing

Merchandising is about planning and developing a strategy to enable a company to sell a range of products that delivers sales and profit targets.

Merchandisers contribute toward the sale of products to a retail customer. Merchandisers must find the right merchandise, right place, right time, right quantities, and right price for the retailer. The combination of the right things will achieve commercial success for the merchandiser and for the company.

Career opportunities in retailing and merchandising

There are many options to careers in marketing, but how do you know which one is right for you? Marketing can be defined as being the intermediary function between product development and sales. Think of it as the storehouse for such things as advertising, public relations, media planning, sales strategy, and more. It's the marketing professionals job to create, manage, and enhance brands.

For the job-seeking college graduate that retail companies covet, the industry offers a broad and exciting set of career possibilities. The industry seeks graduates who are passionate about merchandise, results oriented, can direct multiple responsibilities and energize others. Many new graduates start out in merchandising, see below a typical retail career path in merchandising. Retailing can also lead to product development, allocations, sourcing, and brand enhancement roles.

Explain relationship between customer service and distribution

The better a company is at distribution, usually the better the customer service and satisfaction becomes. When distribution works well, consumers are not really aware of its importance, but it is the opposite when distribution doesn't work well. Dissatisfied customers results from poor distribution. Supply and demand and economic utilty are big elements of distribution. The most important parts of economic utility to satisfy customers are time and place utility. Distribution has a good relationship with the consumer when the consumer can locate and purchase the products and services easily.

Use information system for order fulfillment

Order fulfillment = everything a company does between receiving an order from the customer to placing the product in the customer's hands. Using an information system, firms keep a fully stocked inventory of the company's products and fulfill all orders in a timely manner. The quicker an order can be delivered, the better. With information systems, order's can be processed faster and delivered quicker, fulfilling it faster.

Fulfill orders

Order fulfillment is the complete process from point of sales inquiry to delivery of a product to the customer. Sometimes Order Fulfillment is used to simply describe the act of distribution (logistics) or the shipping function, but in the broader sense it refers to the way firms respond to customer orders, and the process they take to move products from those orders, to the customer.

In simpler terms, Order Fulfillment is everything that a seller does from the moment an order for a product is received, to the customer having their purchase in their hands. Order Fulfillment also includes the processes involved in receiving products to sell, storing those products, and providing inventory control of those products.

The fulfillment process is what happens in a company when an order for a product is received -the "fulfillment" of the order. The process includes logical warehousing of products, receiving the order, "picking" (finding) the items ordered in the warehouse, "packing" (packaging) those items, "shipping" it to the right address, and notifying the customer that their order is on the way.

Explain receiving process

Purchases are delivered directly to the location specified by the buyer. Packaging is then carefully examined for any visible evidence of damage, particularly if the purchase is fragile or costly. Receiving then takes a note of the date the order was received, the name of the vendor, the quantity received, the purchase order number, serial number, manufacturer's model number, and back order number. The receiving and purchase order information are back checked to make sure quantities are correct.

Explain stock-handling techniques used in receiving deliveries

Stock handling: Receiving goods, checking goods, marking with info, delivering to selling location.

Receiving record describes goods received.

Checking the merchandies:

Blind check: writes description of merchandise and quantities on dummy invoice and compares to real

Direct Check: Merchandise checked directly against invoice/PO.

Spot Check: Checks just one carton in a shipment. If contents are as stated in invoice, rest is assumed to be the same.

Quality Check: A check to determine if the quality of the goods received matches the quality of the products ordered.

Marking with info: UPC, price marking

Process incoming merchandise

Orders are placed and the store manager/owner will be informed of shipping date and can prepare for receipt of merchandise. Stockrooms and storage areas should be organized in order to create room for the incoming merchandise (create bulk displays/add additional shelving).

Once merchandise arrives, the containers should be examined for damage, and then the shipment needs to be accepted. The purchase order should be compared against the vendors invoice to make sure that nothing is different.

Finally, the merchandise should be priced and displayed.

Resolve problems with incoming shipments

Problems with incoming shipments can be resolved through better routing, higher levels of communication with supplier, etc.

Attach source and anti-theft tags

Source tagging: the embedding of disposable RF security labels at either the point of manufacture or packaging. Source tagging has been highly successful in the packaged product industry. Source tags are paper thin and easily integrated into automated production process. ex. incorporated into garment tags/labels on bottles.

Antitheft tags: Attached to the merchandise. integration of these can be during packaging process. However, it can sometimes be removed by removing product from packaging and leaving packaging.

Both anti-theft and source tags greatly reduce shoplifting within a retailer.

Price mark merchandise

Merchandise can be price marked in a variety of ways.

Through source marking, the UPC and price is marked by the manufacturer before the product is even sent to the retailer.

With the preretailing marking method, pricing information is marked on the purchase order and merchandise can be priced as soon as it arrives

Merchandise can also be marked with manual pricing machines or price tickets: the ticket identifies the price but can also include other information helpful when tracking merchandise.

Route stock to sales floor

Stock should be moved from storage areas to the sales floor in order to get sales.

Stock should be moved to the sales floor in order to actually get sales - no one will buy it if they can't see it. The routing of this stock should coincide with the visual merchandising plan that has been developed - the store wants to give off the create perception and image.

Rotate stock

To rotate stock means to arrange the oldest units in inventory so they are sold before the newer units. For example, a grocery store will restock its shelves by putting the oldest units in the front part of the shelves. The newest units will be placed in the back of the shelves. The hope is that the customer will select the most convenient (older) units from the front of the shelf.

It is important to rotate stock in all areas: retail display area, warehouse, factory, etc. The reason to rotate stock is to reduce the losses from deterioration and obsolescence.

Process returned/damaged product

Damage claims should be available to those who the product is shipped to. To increase efficacy these products are dealt with together. The seller will sometimes pay shipping, when the products are shipped back. They then are separated into returned and damaged. Damaged returns are then dealt with through disposal or some other process such as refurbishment. Returned products are repackaged to be sold again.

Explain storing considerations

The product's characteristics must be looked at when deciding its storing situation. If the product is a perishable, it must be stored somewhere ideal.

The customer demand must also be looked at. In order to effectively meet demand, the storage should meet the regular customer demand - this is planned storage.

Also have some excess inventory in case of excess demand such as seasonal considerations, bulk quantities, sales promotions, etc.

Explain nature of warehousing

The basic function of a warehouse is the movement of goods, the storage of goods, and information management.

Storage of goods: Warehouse stores goods in planned storage (storage required to meed regular customer demand) and extended storage (inventory in excess of normal warehouse operation).

Movement of goods: Inbound activity (unloading of goods), transfer to storage (inbound to warehouse), order selecting (warehouse to shipment) and outbound activity (shipment to loading).

Information management: Keeping track of info regarding goods that have come in and out of warehouse.

Secondary functions: risk bearing, good protection, financing, processing, grading and branding.

Store merchandise

...

Explain shipping processes

B2B

1. Freight forwarders bring the product from a producer to a retailer

2. The freight forwarder loads the product and transfers it to another distribution center.

3. From this distribution center, the product is taken from inbound to the warehouse, where it is stored.

B2C

1. Order is accepted and routed to seller

2. Seller routs the order to a distribution center

3. Employees at the distribution center prepare the items and quantity that the customer ordered.

4. The order product is delivered to a shipper, who delivers the product to the customer.

Maintain inventory levels

Need to maintain proper stock levels based on demands of customers - there needs to be a a balance. Forecasting necessary inventory levels is achievable through projecting future sales based on current sales.

Many factors need to be considered when maintaining inventory. Lead time (time for supplier to get raw material to you) and sales forecasts all determine when inventory must be reordered again. By effectively planning inventory reorders and looking at levels of demand, inventory levels can be maintained.

Report out-of-stocks

Out-of-stocks should be reported and kept track of the product in order to restock it.

Retail out-of-stocks can be prevented through amending retail store practices (underestimating demand/having ordering processes/cycles that are too lengthy) or shelf-restocking practices (product is in store but not in shelf).

Complete inventory counts

Inventory counting methods include: count sheets - physical recording, bar-code readers, count cards/ tags, QR codes. The more electronic, the more expensive.

All transactions should be recorded before inventory counts are prepared

Inventory counts must be planned and scheduled and prepared for. All materials/products should be in their proper places and clearly identified.

Describe inventory control systems

Inventory control system: system that contains all aspects of managing company's inventories: tracking, warehousing, shipping receiving, storage, turnover, reordering, etc.

Computerized inventory control systems make it possible to integrate all these functions into a single cohesive statement. Automation in controlling inventory management has moved to warehousing as well. Automation in determining where things need to go and how much of everything is needed has greatly improved the efficiency of employees. The new trend is to label inventory and assets with QR codes and use smart phones in order to track count and movement. This system is useful for in the field operations, where inventory transaction/stock needs to be recorded away from computers and scanners.

Calculate open-to-buy

Open-to-buy uses planned sales forecasts and stock turn requirements to determine the optimum level of stock required. The stock turn requirement is normally expressed in terms of Weeks Forward Sales Cover. Weeks Forward Sales Cover means the number of weeks' future sales that we need to keep in stock. There is a direct link between Weeks Cover and Annual Stock-turn. For example 26 weeks cover is equal to an Annual Stock-turn of 2 in a 52 week year. As some systems are based on periodic or monthly data you may also see the terms Periods Cover or Months Cover used.

Planned Sales

+ Planned Markdowns

+ Planned End of Month Inventory

- Planned Beginning of Month Inventory

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= Open-To-Buy (retail)

Create/maintain daily sales plan

Set specific goals for the beginning of the workday.

Create a schedule or list of activities to perform to keep the day on track (finding prospects, calling, scheduling meetings)

Use a checklist to list when things have been completed

Qualify prospects

Keep a goal/performance record that reflects performance at end of each day.

Identify emerging trends

As technology develops one of the major emerging trends is the movement towards online b2b orders. With companies such as alibaba and other ecommerce websites that tailor to business to business connections, ecommerce is developing at a very fast rate.

Evaluate vendors' merchandise

Vendor's merchandise can be evaluated by comparing with other vendors. Can also talk to other customers. Hire experts to do quality inspections, etc.

Choose vendors

Vendors must be selected with the utmost precision. One must consider the quality of their products, their flexibility in determining the product, the availability of support, options in ordering, convenience, and price. Other special considerations such as online ordering and their reputation among the business community. Vendors must be talked to in person to see their offering and discuss how they will meet your needs.

Negotiate terms with vendors

Never compromise on communications and stay solid - be attentive and responsive to issues.

Research the actual costs of the item

Learn the jargon of the vendor's industry in order to effectively communicate

Quote multiple suppliers

Find areas of mutual gain: buy in bulk for discount/benefit for supplier

Reference their customers and talk to them about the prices that they have been given

Explain use of visual merchandising in retailing

Visual merchandising is an important aspect of retailing that can increase sales by over 70% with correct display. With the correct ambiance and displays, customers feel more inclined and more persuaded to purchase items that they would not in other cases-the atmosphere has a great effect.

4 major elements: Storefront, store layout, store interior, and interior displays

Visual merchandising must also focus on its target market and express an image that mirrors this target market's interests. Visual merchandising must also contain sound - the music that is played. Scent can also be used to sway people. If marketing food, taste can be very effective due to the ability to try and sample. Light can be used to evoke emotions, moods, and attentions.

Distinguish between visual merchandising and display

Visual merchandising is the activity and profession of developing floor plans and three-dimensional displays to maximize sales. Display is a public exhibition of a product or products and is an element of visual merchandising, which usually incorporates other senses as well. Display refers to the visual and artistic aspects of presenting a product to a target group of customers. Visual merchandising, by contrast, encompasses the visual and artistic aspects of the entire business environment.

Explain types of display arrangements

Point-of-purchase displays (POPs): are consumer sales promotion devices that hold, display, or dispense products. They promote impulse purchases. Examples include vending machines and racks holding candy at a checkout stand.

Closed Displays: Closed off items display the item in a container and are usually used with more expensive items. Ex. Jewelry.

Open Displays: Display items in a way that allows customers to pick them up and buy. Ex. Grocery

Architectural displays: Using a product to create a display that is awe inspiring or showcases a unique look. Ex. Shoes on architectural display.

Store Decorations: These can showcase a product's fashion and vivid color or other aspect in a way that the marketer wishes to.

Maintain displays

Displays must be rotated with some frequency, with an optimal turnover point being every other month. This allows for more flexibility when changing displays and can allow for more promotions such as specific holidays instead of just promoting months. The display is one aspect of visual merchandising and needs to be presented in the correct manner. Items put on display must be in a background of accentuation. Displays should usually be asymmetric due to it being more attractive to people (The Rule of 3).

Dismantle/Store displays/display fixtures/forms

Store displays and other fixtures are reusable and must be kept for storage for other times of display where they are appropriate. However, in the case that they are outmoded or not of sufficient quality, they may be disposed of with the correct procedures, ex. neon lights.

Explain use of brand names in marketing

Brand names provide assurance of quality and in some cases, prestige. Many brand names are well established or have a certain "style" that goes along with them. When a consumer considers purchasing it, they consider the same prestige or style that the brand name offers. If this brand name can help them perpetuate the image they want they will purchase the item. Customers always want an item that improves them or the way that others see them.

Determine customer/client needs

Market research is used to determine the needs of the customer/client.

In a face to face situation: the salesperson must listen to the customer in order to understand his /her wants. Use questions in order to elicit information, such as price range qs. Give customer range of products, eliminate products. Finally repeat info.

Recommend specific products

A salesperson must have an acute understanding of the products that he/she is selling to the customer. W/o this understanding, the salesperson will not be able to successfully promote or identify the product that is needed, leading to a failure to close the sale.

Support activities to facilitate selling process

Delivery: Getting the product to the customer on time

Packing and Wrapping: Delivering the product in a state that is fit for the customer

Special orders: special orders require a level of communication in order to work out exactly what they want. Special orders should be planned before hand - time to complete custom order, charge, quantity of special orders. Responses should be sent to customer confirming order.

Gift certificates: Gift certificates support the business in the long run by creating an obligation for the recipient of the gift card to come to the store. In this way, gift certificates can be used to increase traffic to the place of selling. Gift certificates also support the selling process by helping to garner a sale before product is given out.

Telephone orders: Telephone orders can be received by human or machine in order to get data. These orders are routed directly to the seller, where it is then routed to a distribution center, where the type and quantity of items requested by the customer is collected and prepared for shipping.

Returns/exchanges: Returns and exchanges should be dealt with in a way that is quick and convenient for the customer. This usually entails a information system that processes each request and send this information to employees who can act on it. By creating a system like this, the customer will more likely come back to the store increasing chances of getting sales.

Collect payment from customers to complete customer transactions

Miscellaneous charges:

Sales transactions:

Checks from customers:

Register/Terminal operation:

Establish relationship with client/customer

By constantly being available and sticking to certain customer service standards, a company can form a relationship with the client/customer. Customers must be valued highly - they are the source of business, and must be communicated with frequently (after business, before, during, quick informational updates). Loyal customers are the best thing for a business.

Key factors in building a clientele

Great customer service in order to build a following and establish a reputation. Each customer is worth money to the company and their continued business is in the company's best interest.

Develop relationship with your customers - emailing, social media, other forms of promotion - contact frequently in order to ensure memory and relationship maintaining.

Prospecting- process of looking for new customers

Methods of prospecting include employer leads, directories, newspapers, commercial lists, customer referrals and cold canvassing.

Identify communication channels used in sales promotion

This is how a business will get their product's message out to potential customers. These communication channels help the product garner attention and get product information into the customer's hands. They may also include an invitation for the customer to purchase the product (coupon)

Some examples of sales promotion communication includes coupons, contests, premiums, and the like.

Technology in the promotion function

Dramatically revolutionized. Technology has advanced to a point were many effective advertisements are no longer physical but completely online. It allows for communication with the customer in order to gain feedback. It makes it much easier to gain customer awareness of product.

New ways to advertise, two way communication on social media, company-related apps, etc.

Using color, Typefaces and sizes help make promotion easier. Being able to have everything done through computers is more efficient and not as time consuming.