Chapter 10 Flashcards
(23 cards)
It is the most important in defining the retailer in the customer’s eyes.
VARIETY
It helps the buyer determine the number of styles and color to purchase.
THE CORPORATE STRATEGY TOWARDS THE ASSORTMENTS
It is another issue on what particular merchandise category the firm the firm will attempt to build a sustainable competetive advantage.
TOP MANAGEMENT DECISION.
Defines the ratio of demand for a particular SKU that is satisfied.
PRODUCT AVAILABILITY
The fundamental strategic question faced by retailers is the type of retail format (or mix) to pursue in order to maintain a sustainable competitive advantage.
ASSORTMENT PLANNING PROCESS
This refers to the number of SKUs withina Category. Stores with large assortments are said to have good depth.
ASSORTMENTS.
This supplier forms an alliance with a retailer to help gain consumer insight, satisfy consumer needs, and improve the performance and profit potential across the entire category.
CATEGORY CAPTAIN
It is managed by the senior vice presidents of merchandise, also called general merchandise managers in GMMs. These merchandise managers are responsible for sevenl departments.
MERCHANDISE GROUP
Sets the overall merchandising objectives for the company.
TOP MANAGEMENT
Is an assortment of items that the customer sees as reasonable substitutes for each other.
CATEGORY
What are the three critical aspects of merchandise planning process?
- The objectives of the plan,
- Sales forecasting,
- The assortment plan.
The 5 standard merchandis classification scheme.
- Merchandising plan,
- Department,
- Classification,
- Categories,
- Stock- keeping units
Provide at least 2 advantages of rapid inventory turnover
- Less risk of absolence and markdowns
- Improved salespeople’s morale
As with stocks, the more diversified the portfolio the less risk of large losses; the same is true for assortments.
True
Variety defines its vendor structure.
True
A category is an assortment of items that the customer sees as reasonable substitutes for each other.
True
It is difficult to identify the source of a problem and solve it without category management.
True
Top management sets the overall merchandising objectives
for the company.
True
If they increase their sales forecast, they will get more money to spend on merchandise.
True
The other reason for using category management is that it is easier to manage especially in maximizing profits.
True
Merchandise Group is the largest classification level, the merchandise group.
True
Classification is the third level in the classification scheme.
True
Departments are managed by divisional merchandise managers who report to the vice presidents. Each divisional merchandise manager is responsible for a department.
True
