Term
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Definition
Traditional approach
Executive constituency driven
Sales goals=main focus (6mo. plan)
Merchandise $ allocated by dept. goals
Great number of markdowns taken |
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Term
| Merchandise Planning: Concepts and Processes |
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Definition
Need for data, accuracy, timely info
Merge traditional forecasting with technology based systems
Great need for product-class-specific merchandise plans, budgets |
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Term
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Definition
Looks backward; analysis of what was sold as basis for new plan.
Often used by smaller firms
Merchandise plans, $ investment based on LY
May or may not involve analysis of additional data…usually manager based decision |
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Term
| Traditional Planning Approach: 6 month Dollar Plan |
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Definition
Profit driven
Improvement focus (sales, turn, profit)
$ allotted per goals
No other strategies involved |
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Term
| Traditional Planning Approach: 6 month Unit Plan |
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Definition
Top down
Centralized management
$ allocation set
Efficiency distribution |
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Term
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Definition
| Unit plans may be developed to the ___ level to examine exactly how many styles, sizes, and colors could be made available in each classification. |
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Term
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Definition
| A combination of the top-down and bottom-up systems described above: a teamwork approach with input from all of the firm's constituencies. |
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Term
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Definition
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Term
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Definition
| Provides the foundation for pricing in the manufacturing sector. |
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Term
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Definition
| Basis of pricing in the retail sector. |
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Term
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Definition
| Range of choices offered for sale at a particular time. |
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Term
| Merchandising Classification System |
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Definition
| Consists of a set of names and code numbers that break down the total merchandise mix into consistent identifiable groups. |
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Term
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Definition
| Complete offering of a particular manufacturer or retailer. |
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Term
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Definition
| Has a well planned variety of styles, sizes, and colors for special appeal to a specific appeal to a specific market. |
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Term
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Definition
| characteristic or distinctive appearance of a product, the combination of features that makes it different from other products of the same type |
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Term
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Definition
| require frequent changes in styling in order to maintain acceptance from consumers. |
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Term
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Definition
| Require little change in style. |
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Term
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Definition
| Little change in demand in relation to the time of year |
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Term
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Definition
| change in demand depending on the time of year |
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Term
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Definition
| defined by an opening date, a closing date, and the overall selling trend. |
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Term
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Definition
| include communities in which the firm resides, competitors, customers, employees families, shareholders, and suppliers. |
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Term
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Definition
| total sales for the classification during the selling period being evaluated. |
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Term
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Definition
| the number of times average inventory on hand was sold. |
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Term
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Definition
| markdown dollars as a percent of net sales |
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Term
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Definition
| the difference between the cost of merchandise, including its transportation, and selling price. |
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Term
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Definition
| reflects the sales trend as compared to the same selling period last year. |
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Term
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Definition
| addresses short life-cycle merchandise and fashion/seasonal merchandise with relatively brief selling periods. |
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Term
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Definition
| (T/F) Top-down planning means the executive constituency develops the business plan |
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Term
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Definition
| (T/F) Bottom-up planning means that analysis begins with previous sales |
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Term
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Definition
| (T/F) Top-down planning’s focus is on sales goals |
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Term
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Definition
| (T/F) Bottom-op planning is particularly suitable for bigger firms |
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Term
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Definition
| (T/F) Dollar plans are usually based on the assumption of improved performance over the same period last year. |
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Term
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Definition
| is meant to prevent over-investment in merchandise |
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Term
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Definition
| (T/F) Related to the organizational pyramid, numbers of employees are typically fewer at the top and greater at the bottom. |
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Term
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Definition
| (T/F) Integrated Planning is a combination of top-down and bottom-up systems |
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Term
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Definition
| (T/F) Integrated Planning allows assortment plans to be reconciled with financial plans |
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Term
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Definition
| (T/F) With Integrated Planning, the plans proposed by individual constituency are negotiated into a company-wide plan |
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Term
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Definition
| (T/F) A primary goal of merchandise planning is offering maximum merchandise categories |
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Term
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Definition
| An opening data, a closing data, and the overall selling trend |
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Term
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Definition
| The difference between the cost of merchandise, including its transportation, and selling price. |
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Term
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Definition
| $ retail price - % markup |
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Term
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Definition
| (T/F) Wal-Mart, Toys “R” Us, and The Home Depot are good examples of retailers that are using primarily Everyday-low pricing. |
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Term
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Definition
| (T/F) Premium price refers to price set in the upper range of prices for a particular product type |
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Term
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Definition
A. they are calculated as percentage decrease in the first retail price
B. there are two types of mark-downs: temporary and permanent
C. they are calculated as percentage decrease in the merchandise cost |
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Term
| A complete pricing plan includes: |
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Definition
A. Planned merchandise cost, dollar and percent initial markup
B. First price, price promotions
C. Permanent markdowns, and clearance prices |
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Term
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Definition
| (T/F) First price is the base price for retail price planning |
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Term
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Definition
| (T/F) Every firm adopts the same pricing strategy |
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Term
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Definition
| ____refer to the specified prices within a price line. |
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Term
| common options used by retailers to handle unsold and distressed merchandise |
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Definition
A. A clearance sale toward the end of the selling period
B. To liquidate or job-off the leftover merchandiser to a diverter or wholesaler
C. Consolidation the merchandise in a few stores or into a single area of a store |
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Term
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Definition
| ____ pricing is also known as status, psychological, or above market pricing. |
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Term
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Definition
| Amount asked for or received in exchange for a product. |
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Term
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Definition
| Value given up to receive or produce goods. |
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Term
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Definition
The relationship between alternative prices (for a given product)
That might be charged in a current market environment
AND the resulting demand for the product |
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Term
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Definition
| Vary with level of production or salesIf make or sell more=requires more resourcesEx.Merchandise, service support, shipping |
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