Shared Flashcard Set

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Apparel Merchandising
amt 108
65
Marketing
Undergraduate 1
12/13/2010

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Cards

Term
Soucring
Definition
to obtain materials from another country, business or location
Term

outsourcing

(advantages)

Definition

  • abundance of workers
  • cheaper cost of labor
  • working conditions = less stringent
  • health care, social security, payroll taxes all cheaper or nonexistant

Term

Outsourcing

(disadvantages)

Definition

  • loss of local jobs -> ripple effect
  • loss of brand image
  • designers cant stop by factory=need good communication skills

Term

product facilities:

wholly owned factory

Definition

retailer that is manufacturing ownsfactory in which they are produced

->vertical production: retailer owns store and all of production facilities to make clothing go into a store

  • allows retailer to control
  • retailers dont do this method bc of hastle

Term
wholly owned factory advantages
Definition

  • more control of quality
  • better timing of the goods

Term

wholly owned factory

disadvantages

Definition
espensive
Term

Production facilities:

Joint Venture

Definition

retailer or designer contracts w. factory and works w/ owners to produce product

-> factory owner also works w/ other retailers

Term
Steps in Production Process
Definition

  1. estimate quantity required to meet needs of retail stores
    1. costing sheets & spec package used to estimate cost
  2. factory makes pattern
    1. pattern grading: makes dif sizes by CAD or hand
  3. factory  cust samples of fabric
  4. designer agree produce #of garments requested
  5. sewing trimmings/buttons
  6. tag w. retailer tag, sku # and price

Term

Market Intermediaries

or

Selling Agents

Definition

broker: brings buyers/sellers together

wholesaler: take possession of inv.

dropshipper: recieves order, selects manufactures, ensure arrival of goods -> used to save time

Term

market intermediaries

(advantages)

Definition

  • designer can work w. 1 person for needs
  • helps w/ import laws

Term

market intermediaries

(disadvantages)

Definition

  • cost
  • ex: wholesaler -> agent -> retailer -> customer (higher COG to increase profit)

Term
importing and exporting
Definition

  • quotas: limit on amt. of goods brought into the country
  • tariffs: tax charged on imported goods
  • customs: inspections occur w/ every shipment into a country

Term
protectionist policies
Definition

  1. used by us and others who use tariffs and quotas to carry out policies to protect own economies by making imported products more expensive
  2. ->ex: embargo: country refused to trade w/ another country in order to get opposing country to change their govt

Term
Trade Agreements
Definition

WTO: Coordinate trade btw countries

  1. NAFTA: mexico, canada and US
  2. CAFTA: Central American Free Trade agreement- costa rica, dominican repub, el salvador, guatamala, honduras, nicaragua and US
  3. CBTPA: caribbean basintrade partnership agreement- haiti, belize and jamaica
  4. EU: European Union- 25 countries
  5. APEC: Asian Pacific Economic Corp- 21 countires + US

Term
over seas cultural differences
Definition

social structure: ex- social stratification in India (ppl in categories ie birth)

*collective custom vs indivisualism

  • language: communication dif. ex: rude to say no in Japan say "i understand what your saying"
  • non-verbal comm: body lang. puncutuality of country, eye contact, gestures
  • religion: ex: appropriate roles for women
  • valued + attitudes: related age, status + education

Term

Contemporary Issues in Sourcing"

Social Responsibility 

Definition

businesses should not function immorally, but contribute to welfare of community

->factory overseas should neg. impact communities in which they operate

Term

contemporary issues:

 in sourcing Child Labor

Definition

  • child labor concerns heightened in 80s
    • ex: kids are 5-12 full time jobs
  • child labor: refers to the direct use of children to produce goods made for resale thus unable to obtain an education = low par for rest of life w/o ed
  • bonded/enslaved children: "agents" come to poverty areas buy children in promise for better life but becomes domestic servant to "pay $ used to care for kid" which cant be paid off

Term

Contemporary Issues In Sourcing:

Wages + working conditions

Definition

  • Living wage: compensation for work= enough to cover living expenses
  • fair trade: promos responsible social standards in production of goods.. ex: starbucks coffee
    • no laws (internationally for wages)
  • sweatshops: factory emploes for low wage work long hrs in poor conditions
  • associations who help w/ int. laws: unite here, UNITE, AAMA, NRF

Term

Contemporary issues in sourcing:

Dependence of factory

Definition

ex: sri lanka: 450,000 ppl in textile industry

also china India and Pakistan

  • when jobs are removed support for local business is removed = 

Term

Leasing

(advantages)

Definition

  • retailer can invest in inv. not in building
  • may lack capital to purchase building
  • location in mall=provides, ads, customers and marketing
  • can focus on running business

Term

leasing

(disadvantages)

Definition

  • lease=expensive
  • landlords may charge payment and % of sales on monthly basis
  • restrictions in lease must be followed

Term

Buying

(advantages)

Definition

  • property could increase in value
  • retailer can alter visual look of store
  • no lease expiration or terms
  • some space can be leased to other retailers

Term

Buying

(disadvantages)

Definition

  • cost is expensive
  • must pay taxes and all maintenance
  • may want to focus on running business not being landlord

Term

Contemporary Issues in Sourcing:

Natural Disaster

Definition

  • tsunamis and earthquakes in developing regions
    • detrimental consequences for ppl who live there for industry
    • delayed shipments, stopping of production
      • ex. struggle to rebuild factory

Term
retailing
Definition

the process of selling goods directly to customers through various retail channels

  •  
    • research and marketing through store sales

Term
retail utility
Definition
measure of ability of a product to satisfy customer needs
Term
time utility
Definition
availability of product exactly when customer wants it
Term
place utility
Definition

retailers location

ex. online or bricks and mortar

Term
Firm Utility
Definition

actual production in store

various colors, sizes, features available

Term
possession utility
Definition

ease of ownership of a product

ex. transferring possession from seller to buyer

(wal-mart uses all four types)

Term
retail site selection
Definition

-most important decision retailer will make

*central business district: downtown commercial area= high visibility, high cost

*Freestanding store: self contatined building usually on outskirts or suburbs or city

->variety of free standing stores could be located in one area called Power Node

Term
Factors to consider when choosing a location
Definition

  • pedestrain traffic
  • vehicular traffic
  • parking, distance from store, cost, lighting and security
  • infrastructure: facilities and transportation systerm in area that promote commerce
  • placement and visibility: actual location street vs shopping center - rent concerns - type of stores near location- category kills -> depth of merch

Term
Trading Area Segments
Definition

-geographic area which retailer draw its customer

  1. primary trading areas: 50-80% of customers live
  2. secondary trading areas: 20-25% of customers live
  3. tertiarty trading area: 5-25% of customers llive
  4. wide area outside others... ex:outlet malls

Term

Tangible/intanglibe

attributes of visual merchandising

Definition

intangible: those aspects that cant be seen or touched

ex. smell or organization

Tangible: physical elements

ex: types of fixtures, dressing rooms, signage

*ambiance: mood evoked by use of elements

Term
Store Image
Definition

-includes all elements of retail store (store atmosphere)

*need distinct identity, matching good sold

-employee attitude/appearance impressions made by sales associates & managers reflect store image

*way employees dress

Floor Plans: creates image retailer wants 

-grid: maximize space, smaller items, aisties

*freeform: racks/shelves strategically placed w/ pathways to lead customer to certain merch.

*racerback: spanentire store w/ aisle ways

Term
Visual Merchandising
Definition

  • precise placement of goods signages window displays and mannequins in store
  • goal = to create story

Term
design principles of visual merch
Definition

  1. color
  2. balance
  3. texture
  4. line
  5. rythym
  6. fixtures, lighting, window displays

Term
Color Wheel
Definition
based on primary colors (red, yellow, blue) is traditional in art/fashion
Term
hue
Definition
actual color, brightness of color (light reflection) 
Term
saturation
Definition
depth of color
Term
color harmony
Definition
how well colors put together to produce attractive scheme
Term
analogous colors
Definition
2-3 colors next to each other on the wheel
Term
complimentary colors
Definition
across from each other on the wheel
Term
monochromatic color scheme
Definition
utilize 1 color and its lighter/darker variations
Term
warm color schemes
Definition
red, yellow, orange
Term
cool color schemes
Definition
blue, green, purple
Term

Retail Management / HR

Hiring

Definition

-want customer-service oriented person who is dependable and flexible

-process: resume app. interview, testing, red checks

-interviews: obtain feel for person w/ open ended Qs

Role Play: ask what they would so in hypotheticals

-situational interview: candidate gives ex of how he/she has dealt with situations in past

-cant ask: age, marital status, race or religion

Term
Orientational
Definition
learn about job, company, policies/ videos/ manuals/ paperwork, new employee "shadow" with seasonal employee
Term
Sales Training
Definition

important for new employee to gain sales knowledge

-product knowledge (imported, how to wash, sizing etc)

Term
5 steps for personal selling
Definition

  1. greet customer
  2. start a converstation
  3. be helpful
  4. use suggestive selling
  5. thank the customer

Term
motivation
Definition
keeps employees productive like cpmensation
Term
straight salary
Definition
set dollar amount per hour, week, mo may not motivate employees to sell
Term
Straight Commission
Definition
employee earns commision on what he/she actually sells = unpredictable
Term
Salary Plus Commission
Definition
gives employee salary to depend on, but person can earn more by selling well
Term
push money
Definition
bonus for selling particular item
Term
spiffs
Definition

competition based, short-term motivational tools for employees

EX: rewarded w/ $ or merch. for winning contest selling most in 1 day

Term
Evaluation
Definition

should receive formal, written performance review at least once a year (discuss issues/goals)

manager should give constant feedback

Term
elements of performance review
Definition

criteria: usually echo items that appear injob description, only be relevent to job

rating systerm: how employer rate the performance

#scale (1-10)

word-based rating (good, excellent, satisfactory)

Term
e-commerce general
Definition

retailing on internet in last 10 years= popular and lucrative way to expand retail sales

e-commerce: internet facilitated commerce

-use of electraince means for promotion, selling disturbing and servicing products

e-tailing: actual process of retailing online through use of 'virtual storefronts serving as catalog of products"

-includes shopping cart systerm + enable purchases w/ credit cards

Term
fire types of retail found on web
Definition

1- pure-play retailer:business online

2-channel-retailer: operates bricks and mortar and online

3-multichannel retailer: goods in more than two pieces

4- Electronic Spinoffs: includes retailers that sold good in other ways than bricks and mortar

5- nontransactional sites: for info purposes only; not used to actually sell goods online

Term
four main components to a good e-tailing website
Definition

usability

design

personalization

content

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