Merchandising Strategies

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Anonymous
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3294
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Merchandising Strategies
Updated:
2009-12-17 01:00:03
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Final
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Final Study..
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  1. Buyer
    • Develops the assortment plan by selecting the suppliers, selects the
    • merchandise to be purchased, as well as negotiates the terms of the purchase.
  2. Planer
    • Analyze sales results, performance, create new financial plans, and new
    • merchandise plans.
  3. Merchandise Management
    • The process of having the right product, at the right place, and at the
    • right time. While meeting the company’s financial goals.
  4. Customer Relationship Management
    • Business philosophy and a set of strategies, programs and systems that
    • focuses on identifying and building loyalty with a retailer’s most valued
    • customer.
  5. Customer Service
    • Set of activities and programs undertaken by retailers to make the
    • shopping experience more rewarding for their customer.
  6. High/Low
    • Sell at high price to customers who aren’t price sensitive, and low
    • price to those customers who are looking for value.
  7. Everyday Low Price (EDLP)
    guaranteed, same price everyday.
  8. Cost Oriented Pricing
    • A pricing method for pricing for determining the retail price by adding
    • a fixed percentage to the cost of the merchandise.
  9. Demand Oriented Pricing
    A pricing method of setting prices based on what the customer would expect or be willing to pay.
  10. Competition Oriented Pricing
    • A pricing method in which a retailer uses competitors’ prices, rather
    • than demand or cost considerations, as guides.
  11. Price Bundling
    The practice of offering two or more different products or services for sale at one price.
  12. Multiple Unit Pricing
    • Practice of offering two or more similar products or services for sale
    • at one price.
  13. Coupons
    • Documents that entitle the holder to a reduced price or X cents off the
    • actual price of a product.
  14. Rebates
    • Money returned to the buyer in the form of cash based on a portion of
    • the purchase price.
  15. Leader Pricing
    • A pricing strategy in which certain items are priced lower than normal to
    • increase the traffic flow of customers or to increase the sale of complementary
    • products.
  16. Value
    Ratio of what customer perceives they receive vs. what that it costs.
  17. Markdown
    Permanent Price Reduction
  18. Promotion
    Temporary price adjustment for a limited period of time.
  19. Price Descrimination
    • Charge different prices for same product to different individual.
    • (legal)
  20. Horizontal Price Fixing
    Two retailers collaborate to set retail price that cuts out all other competition, so they can control that market. (Illegal)
  21. Bait and Switch
    When a customer is baited with a special offer, and when they get to the store it doesn’t exist, and switched unto a higher price product. (illegal)
  22. Predatory Pricing
    • A dominant retailer prices products to put others out of business.
    • (Illegal)
  23. Keystone Method
    A method of setting retail prices in which retailers simply double the cost of the merchandise to obtain the original retail selling price.
  24. Percentage Markup
    Using a predetermined mark up percentage to calculate the retail price.
  25. Competitive Retail Pricing
    Based on your competitors price.
  26. Maintained Markup (MMU)
    Average retail price markup.
  27. 1st Degree of Variable Pricing
    Customer Negotiates the price.
  28. 2nd Degree of Variable Pricing
    Customer has to do something to get a better price.
  29. Price Bundle
    2 or more items purchased, complimentary, used together that are purchased together.
  30. Multi Unit Pricing
    Buying more than 1 of the same item to get a special price.
  31. 3rd Degree of Variable Pricing
    Zone pricing- Market Pricing- Prices assigned to location or target market in order to be competitive.
  32. Private Brand
    Products sold exclusively by one retailer only.
  33. National Brand
    Products sold at multiple retailers.
  34. Licensed Brand
    Contracts between the owner of the of the name or company (licensor) and a manufacturer (licensee) to manufacture products using the name or image.
  35. Exclusive Brand
    Collaboration between a designer/company and retailer to carry products exclusively made for the retailer.
  36. Robinson/Patman Act
    The retailers must be offered the same price – list price.
  37. Resale Price Maintenance
    Manufacturer cannot dictate the retail price.
  38. Commercial Bribary
    “Gifts” that are personal and are given in trade for doing business.
  39. Charge Beds
    "Fines” on manufacturer for not following the rules.
  40. Buyback
    Retailer forces vendor to buy back another vendor’s product to get an order. vise-versa.
  41. Counterfeit
    Products that are purchased that have not been authorized by the owner of the of the name or company.
  42. Grey Market/Overload Goods
    Products that are produced for distribution in a specific country at lower costs and intended to be sold in that area.
  43. Exclusive Arrangement
    Vendor forces the retailer to only buy their products.
  44. Legal & Ethical Issues:
    Terms & Conditions of Purchase, Resale Price Maintenance, Commercial Bribery, Charge Beds, Buyback- Stock lift, lift out, Counterfeit, Grey Market/Overload Goods, Exclusive Agreement
  45. Trademark
    Name, symbol, icon that identifies the brand or business concept.
  46. Copyright
    art, graphics, movies, and books.
  47. Patent
    protection on inventions.
  48. Tariff
    Taxes on imported products.
  49. World Trade Organization
    Goal was to eliminate Quotas, Teriffs, & Taxes.
  50. North American Trade Agreement (NAFTA)
    No taxes or limits of imports from US, Canada, or Mexico
  51. Global Sourcing
    When retailers consider sources across the globe.
  52. Exchange Rate
    the charge for exchanging currency of one country for currency of another.
  53. Foreign Trade Zone
    An area within a country where imported goods can be stored or processed without being subject to import duty.
  54. Strategic Relationship
    Goal is to establish and create opportunities for mutual growth.
  55. Slotting Allowance
    Fee paid by a vendor for space in a retail store.
  56. Store Design
    Exploration and facilitate traffic flow.
  57. Grid
    Parallel & Perpendicular Lines. Grocery Store
  58. Racetrack
    Department Store.
  59. Free Form
    The Boutique.
  60. Atmospherics
    Lighting, Sound/Music, Scent/Aroma
  61. Space Allocation
    Productivity, Inventory Turnover, Impact on Store, Display Consideration
  62. Location Management
    Demand/Destination, Impulse, Adjacent, Special Merchandise
  63. Planogram
    Used to map out where the merchandise is to be places. Store Layout.
  64. Visual Merchandise
    Fixturing, Product layout, Doors, Displays.

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