Term
| What are a buyer's duties and responsibilities? |
|
Definition
| 1. follow market trends and economic conditions. 2. doing research and analyzing sales reports to better understand customers. 3. determining assortment of mdse. 4. selecting, contacting and working with vendors and sales reps. 5. negotiating terms/services. 6. working w/ mdse when it arrives. 7. pricing based on your profi plan. 8. maintaining balance(stockroom/floor). 9. promotion activities. 10. achieve quantitative goals for sales, markup and profit. |
|
|
Term
| What are an assistant buyer's duties and responsibilities? |
|
Definition
| 1. prepare reports/keep records of sales figures,markdowns, and inventory.2. contact vendors about delivery. 3. supervise pricing, sales clerk training. 4. write purchase orders. |
|
|
Term
| What are a merchandise managers' duties and responsibilities? |
|
Definition
| 1. planning. 2. directing. 3. coordinating. 4. controlling |
|
|
Term
| How do retail stores evaluate buying teams' performance? |
|
Definition
| 1. net sales.2. maintained markup %. 3. markdown %. 4. gross margin %. 5. stock turnover |
|
|
Term
| What factors can affect the scope of a buyers' job? And how do they affect a buyer's job? |
|
Definition
| A.Mdse carried: basic and fashion . B. Organizational structure : centralized buying, other stores and specialty stores, and small independent stores c. Size of the retial organizations: small (buy all mdse for for all depts) and larger (more specialized, buy product categories) |
|
|
Term
| What are the characteristics of being a buyer for a small independent store? |
|
Definition
| in charge of not only buying, but also other operations. you buy all mdse for all departments. buyer is the owner. knows customers well so it makes buying easier. knowledgeable and enthusiastic about mdse which makes selling easier. |
|
|
Term
| What are the characteristics of being a buyer for a multi unit store? |
|
Definition
| 1. dept stores may have branches. 2. buyer buys for the main store as well as the surrounding branches. 3. buyer may also need to manage the sales floor in main store. |
|
|
Term
| What are the characteristics for buying for a chain store? |
|
Definition
| 1. 2 or more stores with single ownership. 2. buying from headquarters for all stores. 3. buyers concentrate on mdse planning. |
|
|
Term
| What are the 3 types of central buying strategies? |
|
Definition
| 1. Central merchandising plan. 2. Warehouse requisition plan. 3. Price Agreement plan |
|
|
Term
| What are the internal sources? |
|
Definition
| A. store records. B. Management C. Salespeople. |
|
|
Term
| What are the external sources? |
|
Definition
A.Customers and trade publications. B. Magazines. C. Vendors. D. Trades Associations:business organizations.E. Comcarison shoppers:watch out for your competitors F. Fashion forecasters
G. Reporting services ( independent org that watches and reports on trends). H. Resident buying offices |
|
|
Term
| What is RBO? What kind of services do they provide? |
|
Definition
| Resident Buying Offices. 1. RBO is marketing/research consulting firm that serves as advisor to group of memebers, client stores. Located in market centers, provide market info, mdse guidance etc.2. Services provides (similar to buyers) |
|
|
Term
| What are the different types of RBO? |
|
Definition
| a. independent offices. b. store owned-buying office |
|
|
Term
| What are the different types of store owned buying offices? |
|
Definition
| 1. private office. 2. cooperative or associated office. 3. corporate buying office |
|
|
Term
|
Definition
| smaller group of potential customers with similar needs or other characteristics. |
|
|
Term
| What are the 4 types of data used to segment a market? |
|
Definition
| 1. demogaphics data 2. geographic data. 3. behavioristic data. 4. psychographic data |
|
|
Term
| What is product life cycle? |
|
Definition
| A. Introduction B. Growth C. Maturity D. Decline |
|
|
Term
| What product life cycle is important to buyer? |
|
Definition
|
|
Term
| What factors can affect the forecasting decisions? |
|
Definition
| a. past sales figures. b. promotions/sales. c. holidays. d. changes in store hrs. E. changes in amount of selling space. F. new competition moving into the area. G. selling days. |
|
|
Term
| Why is planned inventory level important? |
|
Definition
| A. be sufficient to meet customers demands. B. be small enough to ensure a reasonable return on the stores investment is inventory. |
|
|
Term
|
Definition
| 1. the stock turnover rate is the # of times the average stock is sold during a given period. |
|
|
Term
| what are the benefits of high stock turnover? |
|
Definition
| a. stimulates sales-fresh merchandise. b. reduce markdown. c. reduce inventory. d. lower expenses (interest, warehousing) |
|
|
Term
| What factors can affect stock turnover? |
|
Definition
| a. product type (women's clothing vs. men's clothing)b. price c. season d. promotion e. others (location, etc) |
|
|
Term
| what are the common causes of low stock turnover? |
|
Definition
| a. too wide assortment. b. wrong mdse. c. mdse too late. d. mdse priced too high. e. ineffective promotion |
|
|
Term
| What are some high stock turnover dangers? |
|
Definition
| a. losing sales due to stock out. b. failure to take advantage of quantity discount. c. placing too small orders thereby increasing transportation, handling and processing costs. |
|
|
Term
| what are the 6 components of the six-month merchandise planning? |
|
Definition
| 1. plannes sales. 2. planned BOM inventory 3. planned EOM inventory . 4. planned reductions . 5. planned purchases at retail. 6. planned purchases at cost |
|
|
Term
| What is basic stock plan? |
|
Definition
| determine the amount of merchandise a retailer must have on hand or on order to have a sufficient amount of mdse available during period. |
|
|
Term
|
Definition
| the units of the items that will be sold during the period, say a week. |
|
|
Term
|
Definition
| amount of time between orders for mdse |
|
|
Term
|
Definition
| time between placement of the order and time mdse is on the floor. |
|
|
Term
|
Definition
| amount of mdse to meet unanticipated sales. it is additional mdse used by retailers to cover unanticipated sales to prevent customers from being lost to competition. |
|
|
Term
|
Definition
| amount of mdse that must be on hand or an order at any reordering point. |
|
|
Term
|
Definition
| point at which reorders should be placed. |
|
|
Term
|
Definition
| the amount the buyer has left to spend for a period, and it is reduced each time as purchas is made. |
|
|
Term
| What are the purposes of open to buy? |
|
Definition
| 1. limit overbuying and underbuying. 2. prevent loss of sales. 3. maintain purchases within budgeted limits. 4. reduce markdowns. 5. improve stock turnover. |
|
|
Term
| How do you calculate open to buy? |
|
Definition
| PPR, PPC and Open to buy formulas |
|
|
Term
| What is assortment planning? |
|
Definition
| translating the planned purchases into assortments of prices, styles, brands, sizes, colors, and other factors, that will meet customers expectations |
|
|
Term
| why is assortment planning important? |
|
Definition
| buy and maintain a balanced assortment that meets the needs of the majority of your customers without having excess inventory. |
|
|
Term
|
Definition
| a broad category of products having similar characteristics and similar uses |
|
|
Term
|
Definition
| the #of product lines carried or the # of brands carried within a product classification |
|
|
Term
|
Definition
| the # of choices offered to customers within each brand or product classification |
|
|
Term
| What are the differences between a narrow and deep assortment plan and a broad and shallow assortment plan? |
|
Definition
| Narrow and deep: (e.g. old navy) one brand, but many assortments and options. Broad and shallow: (macy's) many brands, limited options and assortments |
|
|
