FBLA Intro to Retail & Merchandising

1–70 Retail Industry Fundamentals

Retail – selling goods or services directly to final consumers

Wholesaler – business that sells products to retailers rather than consumers

Manufacturer – company that produces goods from raw materials

Supply chain – network moving products from producer to customer

Distribution channel – path products take to reach customers

Direct channel – manufacturer sells directly to consumer

Indirect channel – product passes through wholesalers/retailers before consumers

Retailer – business that sells goods to end users

Target market – specific group a business aims to sell to

Market segmentation – dividing customers into groups with similar traits

Demographics – statistical characteristics such as age, income, gender

Psychographics – lifestyle, interests, and attitudes of consumers

Geographic segmentation – dividing markets by location

Behavioral segmentation – grouping customers by purchasing behavior

Retail format – type of retail business structure

Brick-and-mortar – physical retail store location

E-commerce – buying and selling products online

Omnichannel retailing – seamless integration of online and physical shopping

Multichannel retailing – selling through multiple platforms separately

Retail lifecycle – stages of retail development from growth to decline

Mass merchandising – selling large quantities at low prices

Category killer – large store dominating a product category

Specialty store – retailer focusing on a specific product category

Department store – large store with multiple product departments

Discount store – retailer offering products at lower prices

Warehouse club – membership-based store selling products in bulk

Outlet store – retailer selling manufacturer overstock at discounted prices

Convenience store – small store offering quick purchases

Pop-up store – temporary retail store in a short-term location

Franchise – business operating under another company’s brand and system

Independent retailer – store owned by a single individual or company

Chain retailer – multiple stores operating under the same brand

Retail cooperative – group of retailers working together to increase buying power

Brand – unique name or symbol identifying a product

Private label – product branded by the retailer instead of manufacturer

National brand – product brand owned by manufacturer

Generic brand – basic product with minimal branding

Retail positioning – how customers perceive a store compared to competitors

Competitive advantage – feature making a business better than competitors

Customer value – benefits customers receive compared to price paid

Customer satisfaction – level of customer happiness with product or service

Customer loyalty – tendency of customers to repeatedly buy from a brand

Foot traffic – number of people entering a store

Conversion rate – percentage of visitors who make a purchase

Average transaction value – average amount spent per purchase

Basket size – number of items purchased in a single transaction

Retail analytics – analyzing retail data to improve performance

Retail trend – general direction of change in retail industry

Retail innovation – introduction of new retail technologies or methods

Consumer demand – quantity customers want to buy

Market share – percentage of industry sales a company controls

Value proposition – reason customers choose a business over competitors

Brand loyalty – customer preference for one brand repeatedly

Brand recognition – ability of customers to identify a brand

Customer experience – total interaction a consumer has with a brand

Retail environment – physical and emotional store atmosphere

Point of sale – location where a transaction occurs

Consumer behavior – study of how customers make buying decisions

Buying motive – reason a customer purchases a product

Need – essential requirement for survival

Want – nonessential product desired by consumers

Impulse purchase – unplanned purchase made quickly

Planned purchase – purchase decision made before entering store

Customer journey – process a consumer goes through before buying

Value pricing – offering good quality at a reasonable price

Premium retail – store selling high-end expensive products

Budget retail – store focusing on low-cost products

Store image – overall impression customers have of a store

71–140 Merchandising

Merchandising – planning and promoting product sales in retail

Product assortment – total selection of products offered

Product mix – combination of product lines sold by a retailer

Product line – group of related products sold together

SKU (Stock Keeping Unit) – unique code identifying each product item

Assortment width – number of product categories sold

Assortment depth – number of variations within a product category

Category management – managing product groups to maximize sales

Product lifecycle – stages of a product from introduction to decline

Product differentiation – making a product unique from competitors

Brand equity – value gained from strong brand reputation

Product bundling – selling multiple products together as a package

Cross-merchandising – displaying related products near each other

Visual merchandising – presenting products visually to attract customers

Planogram – diagram showing product placement on shelves

Endcap – display located at the end of store aisles

Point-of-purchase display – promotional display near checkout area

Window display – display placed in store window to attract customers

Store layout – arrangement of aisles and departments

Grid layout – straight aisle design common in grocery stores

Racetrack layout – circular path guiding customers through store

Free-flow layout – open layout used in boutiques

Shelf positioning – placement of products on store shelves

Eye-level placement – placing products at eye level to increase sales

Feature display – display highlighting specific products

Product signage – signs providing product information or promotion

Product labeling – printed information attached to product packaging

Packaging – materials used to contain and protect products

Brand storytelling – communicating brand identity through marketing narrative

Seasonal merchandise – products associated with particular seasons

Merchandising calendar – schedule planning seasonal promotions

Display rotation – changing displays to maintain interest

Store atmosphere – environment created through lighting, music, and design

Experiential retail – creating engaging shopping experiences

Retailtainment – combining entertainment with shopping

Category signage – signs labeling store sections

Shelf talker – small sign attached to shelf highlighting a product

Visual hierarchy – arranging displays to emphasize key products

Promotional display – temporary display promoting specific products

Store zoning – dividing store into product areas

Lighting display – using lighting to highlight merchandise

Impulse display – product placement encouraging impulse purchases

Front-of-store display – display placed near store entrance

Thematic display – display based on a consistent theme

Product placement strategy – arranging products to maximize visibility

Feature area – section highlighting promotional items

Brand display – area dedicated to one brand

Retail display fixture – equipment used to display products

Display balance – visual symmetry in store displays

Color blocking – grouping products by color for visual impact

Merchandising audit – evaluation of store displays

Retail presentation – visual presentation of merchandise

Store refresh – updating store layout or displays

Visual impact – ability of display to attract attention

Customer flow – movement pattern of shoppers inside store

Traffic pattern – direction customers move in store

Hot spot – high-traffic area inside store

Cold spot – low-traffic area inside store

Shelf space allocation – assigning space to products based on sales

Product facing – number of items displayed facing customers

Merchandising effectiveness – success of displays in increasing sales

Product accessibility – ease with which customers reach items

141–200 Pricing and Retail Math

Pricing strategy – method used to determine product prices

Cost-plus pricing – price determined by adding markup to cost

Keystone pricing – doubling the wholesale cost to determine price

Competitive pricing – setting prices based on competitors

Penetration pricing – low price used to enter market quickly

Price skimming – high initial price gradually lowered over time

Psychological pricing – pricing designed to influence perception

Charm pricing – pricing ending in .99 to appear cheaper

Prestige pricing – setting high prices to signal high quality

Bundle pricing – selling several products together at reduced price

Dynamic pricing – adjusting prices based on demand or time

Discount pricing – reducing prices to attract buyers

Promotional pricing – temporary price reduction

Clearance pricing – deep discounts to remove excess inventory

Loss leader pricing – selling product below cost to attract customers

Price lining – offering products within set price categories

Odd-even pricing – pricing using odd numbers to appear cheaper

Multiple pricing – selling several items for one combined price

Unit pricing – price per single unit of measurement

Price elasticity – responsiveness of demand to price change

Break-even point – sales level where revenue equals costs

Gross margin – difference between sales revenue and cost of goods sold

Markup – difference between product cost and selling price

Markdown – reduction from original selling price

Initial markup – first markup added to product cost

Maintained markup – markup after markdown adjustments

Cost of goods sold – cost of products sold during a period

Profit margin – percentage of revenue that is profit

Revenue – total income from sales

Net profit – revenue remaining after expenses

Fixed costs – costs that remain constant regardless of sales

Variable costs – costs that change with sales volume

Operating expenses – costs of running the business

Price floor – lowest price legally or economically allowed

Price ceiling – highest price allowed by law or regulation

Demand curve – graph showing relationship between price and demand

Supply curve – graph showing relationship between price and supply

Market equilibrium – point where supply equals demand

Price war – competition where businesses repeatedly lower prices

Discount rate – percentage reduction applied to a price

Rebate – refund given after purchase

Coupon – certificate giving discount on purchase

Flash sale – very short promotional sale

Price anchoring – using higher price to make another price seem lower

Reference price – price customers expect to pay

Competitive benchmark – comparing prices with competitors

Trade discount – discount offered by supplier to retailer

Promotional allowance – manufacturer payment to retailer for promotion

Retail margin – profit percentage for retailer

Selling price – price customers pay

Cost price – amount retailer paid for product

Net sales – total sales minus returns and discounts

201–260 Inventory Management

Inventory – goods a business has available for sale

Inventory control – system managing stock levels

Inventory turnover – number of times inventory sells in a period

Stockout – running out of inventory

Overstock – holding more inventory than needed

Shrinkage – loss of inventory due to theft or error

Shoplifting – theft by customers

Employee theft – theft by employees

Damaged goods – products unsellable due to damage

Administrative error – mistakes in records causing inventory loss

FIFO – first items purchased are sold first

LIFO – last items purchased are sold first

Just-in-time inventory – ordering inventory only when needed

Safety stock – extra inventory kept to prevent stockouts

Reorder point – inventory level triggering reorder

Lead time – time between ordering and receiving inventory

Inventory audit – examination of inventory accuracy

Physical inventory – manual counting of all items

Perpetual inventory system – continuous electronic tracking of stock

Barcode – machine-readable code identifying product

RFID – radio technology used to track inventory automatically

Dead stock – inventory that cannot be sold

Slow-moving inventory – items selling slowly

Fast-moving inventory – items selling quickly

Inventory aging – tracking how long items remain in stock

Demand forecasting – predicting customer demand

Inventory forecasting – predicting inventory needs

Vendor-managed inventory – supplier manages retailer inventory

Consignment inventory – supplier owns inventory until sold

Inventory carrying cost – cost of storing inventory

Order quantity – amount of product ordered

Economic order quantity – ideal order amount minimizing costs

Backorder – customer order delayed due to stock shortage

Inventory replenishment – restocking inventory

Stock rotation – moving older inventory to sell first

Warehouse – facility used to store goods

Distribution center – hub where products are sorted and shipped

Inventory shrinkage rate – percentage of inventory lost

Loss prevention – strategies preventing theft or loss

Inventory reconciliation – comparing physical counts with records

Cycle counting – counting small inventory portions regularly

Inventory variance – difference between recorded and actual inventory

Demand variability – fluctuations in customer demand

Inventory optimization – balancing inventory levels efficiently

Safety inventory – backup inventory for emergencies

Inventory tracking software – system used to monitor inventory

261–310 Sales and Customer Service

Sales associate – employee responsible for selling products

Sales process – steps taken to complete a sale

Greeting – welcoming the customer

Needs assessment – identifying customer requirements

Product presentation – explaining product features and benefits

Handling objections – addressing customer concerns

Closing the sale – final step of completing purchase

Suggestive selling – recommending additional items

Cross-selling – suggesting related products

Upselling – encouraging purchase of higher-priced item

Customer relationship management (CRM) – system managing customer interactions

Customer retention – keeping customers returning

Customer acquisition – gaining new customers

Customer lifetime value – total profit expected from a customer

Customer feedback – opinions from customers about products or service

Customer satisfaction survey – tool measuring customer happiness

Complaint handling – addressing customer problems

Service recovery – resolving issues to restore satisfaction

Refund policy – rules for returning products

Warranty – guarantee covering product defects

Exchange policy – allowing replacement of products

Loyalty program – rewards system for repeat customers

Membership program – paid program offering exclusive benefits

Gift card – prepaid card used to buy products

Customer database – stored information about customers

Personalization – tailoring experience to individual customers

Retail etiquette – professional behavior toward customers

Active listening – focusing fully on what customer says

Empathy – understanding customer feelings

Queue management – managing lines efficiently

Checkout efficiency – speed and accuracy during checkout

Self-checkout – system where customers scan their own items

Mobile checkout – handheld device used to process payments

Digital receipt – electronic purchase confirmation

In-store pickup – customer collects online order in store

Curbside pickup – order delivered to customer outside store

Delivery service – shipping product directly to customer

Customer experience (CX) – total experience interacting with brand

Brand ambassador – loyal customer promoting brand

Customer engagement – interaction between brand and customers

Word-of-mouth marketing – customers recommending products to others

311–350 Marketing and Promotion

Marketing mix – combination of product, price, place, promotion

Advertising – paid communication promoting a product

Public relations – managing company reputation

Sales promotion – short-term incentives encouraging purchase

Digital marketing – promotion using internet channels

Social media marketing – promoting products through social platforms

Influencer marketing – using influencers to promote products

Email marketing – sending promotional messages through email

SMS marketing – sending promotions through text messages

Search engine optimization (SEO) – improving website ranking in search results

Pay-per-click advertising – paying for each click on an online ad

Display advertising – banner ads shown on websites

Affiliate marketing – partners earn commission for promoting products

Referral marketing – rewarding customers for referring others

Content marketing – creating valuable content to attract customers

Brand awareness – recognition of brand by consumers

Market research – collecting information about customers and markets

Focus group – small group discussion about products

Survey research – collecting data through questionnaires

A/B testing – comparing two marketing versions to see which works better

Marketing analytics – analyzing marketing performance data

Conversion tracking – measuring how many viewers become buyers

Customer segmentation – dividing customers into groups for marketing

Targeted advertising – ads directed to specific audiences

Geotargeting – delivering ads based on location

Retargeting – advertising again to previous website visitors

Marketing funnel – stages customers go through before buying

Lead generation – attracting potential customers

Brand positioning – creating a unique place for brand in market

Competitive analysis – evaluating competitors

SWOT analysis – analyzing strengths, weaknesses, opportunities, threats

Promotional campaign – coordinated marketing effort

Product promotion – activities encouraging product purchase

Sampling – giving free product samples to customers

Limited-time offer – promotion available for short period

Scarcity marketing – creating demand by limiting product availability

Event marketing – promoting products through events

Co-branding – partnership between two brands on a product

Sponsorship – financial support for event or organization for promotion

Product placement – featuring product within media content

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