Final Exam Study guide COSTING 1 Pre costing initial cost Direct costs materials labor other 2 Final costing Manufacturer s Cost total real Direct costs materials labor other Indirect costs design merchandising salaries administration rent ins etc Retailer s Cost Manufacturer s Wholesale cost Retail consumer s price Cost markup Usually cost is about retail keystone Retail math concept to set retail price BEAUTY SPA WELLNESS This consists of Cosmetics fragrances hair and skin spas and centers It is all about the Mass and prestige MERCHANDISING Merchandising and Marketing Account rep coordinator Involved with special events Promotions Traveling to sites Sales Account executive Sells products to retailers Manages the accounts inventory and merchandises Public relations account executive Works with media contacts Promotes Retail counter line management Sell manages Coordinates events and promotions Works with product and people Wellness Massages facials fitness nutrition centers spas Esthetics Makeovers and beauty enhancement RETAILING is the Distribution of Goods Services to the Consumer Last step in the marketing pipeline from concept to consumer in the T A Industry All the activities involved int the selling of goods or services to the final consumer OPERATIONS AT THE RETAIL LEVEL Overall duty is Managing sales and merchandising to obtain a profit Store Support Human Resources Visual Display Security Receiving dock Tasks of Store Operations Recruiting and training employees Supervising employees Organizing traffic flow Merchandising the store Perform customer service Ensuring store security Planning and implementing informations systems Driving sales and profitability Works with all other departments and divisions in the company to ensure sales profit Organization Store Manager Assistant s Store Manager Area Manager Department Manager Assistant Manager Other Staff Sales Staff Key Competencies Characteristics for Management Self motivated Leadership ability Goal results oriented Multi tasker People lover Lifelong learner 2 major types Stored bricks mortar traditional store front Non stored catalogs on line etailing TV parties door to door etc 4 major divisions Plus HR Every retailer MUST have operations merchandising Four major Fashion Capitals Paris France Haute Couture Milan Italy Fine fabrics and knitwear mens an womenswear London England Woolens menswear NYC NY A mix of all Others Hong Kong China Spain Germany Canada Scandinavia Taiwan etc CAREER OPPORTUNITIES VENDOR WHOLESALE Definitions Vendor resource manufacturer Product to distribution International global industry Organization Set up as any other business with officers divisions departments and staff Top Executives VICE PRESIDENT OF WHOLESALE SALES Develops the strategies leads staffs controls budgets and has overall sales responsibilities NATIONAL SALES MANAER Manages sales orders distribution for a family of business EXS Girls BCBG MANAGER OF INTERNATIONAL LOGISTICS Responsible for foreign accounts responsible for trade issues Sales Executives ACCOUNT EXECUTIVE SOURCES AND MEETS WITH ACCOUNTS AND NEW AC COUNTS EXECUTIVE SALES ASSISTANT SCHEDULES APPOINTMENTS BOOKINGS RE SPONSIBLE FOR LINE ADDITIONS AND CANCELLATIONS VENDOR SELLING STAFF Sales Representatives Given a territory region 2 MAJOR TYPES OF REPS Corporate Company on their payroll In house showroom Traveling Independent paid on a commission basis Customer Service Representative Sales Reps analyze selling tracks delivery takes orders works with retail buyers communi cate and visit buyers attend markets may have showroom responsibilities also SHOWROOM REP Responsible for merchandising maintenance and image Prepare for business market week appointments Know current lines clientele and have strong selling skills Prepare for appointments Merchandising Review selling history and various buying traits Assure purchase orders are set up along with look books line books swatches etc Review deliveries and follow and check for reorders Know sales goals usually commission status Monitor deliveries Marketing Promotion Publicity Promotes business press releases brochures special events shows movies celebrities working with stylists Develops advertising promotional materials create and execute special events etc MERCHANDISING Analyze records visit stores and merchandise analyze as sortments markdowns presentation and visual Work closely with store management WHOLESALE VISUAL MANAGER Maintains brand image in stores and at shows Creates directives for store merchandising teams to follow Distributes visual collateral to store merchandising teams ASSISTANTS MERCHANDISER STYLIST Makes decisions concerning the company s line and sourcing marketing research projecting sales working with the mills reviewing production considerations and costing the merchandise May work with staff to schedule samples for promotional events ASSISTANT BUYERS PRIMARY SOURCES FOR BUYING Market Visiting sales reps Catalogs RBO S Wholesaler s Store owned resources Selecting Resources THE MERCHANDISE Basics Fashion Exclusives Quantities etc VENDOR POLICIES Distribution Services Performance The market trip WHEN Market week new offerings promotional buying issues HOW OFTEN depends on business PREPARATION Primary purpose is to manage the buy well Research review analyses buying plan Vendors classifications quantities price lines sizes etc Travel resource appointments plan Meet with key resources Visit established an new resources Meet with key executives Shop competition Completion of market trip Don t comment until entire line has been viewed DON T OVERBUY SAVE Check orders vs plans VISUAL MERCHANDISING is Show Sell Display Atmospherics Promotion the process of promoting the sale of products by producing mental images that urge cus tomers to make purchases Pegler Show sell Communicates an image Carries out a design concept plans by atmosphere 4 Functions of Display Promotion Attract the customer Inspire the customer Persuade the customer Convince the customer Display is used to Establish promote and enhance store image To sell by showing promoting Entertain Educate 1 2 3 4 I II 1 2 3 4 Introduce and explain new products IMAGE Facilities and atmosphere contribute to image The company s personality ATMOSPHERE I The emotional affects of the environment Visual Components Merchandise Fixtures Props Arrangement merchandising Message theme Lighting Signage Space Visual Personnel Corporate or at a selling site Visual