Final Exam Study guide.COSTING:1. Pre costing (initial cost) Direct costs= materials, labor, other2. 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) costRetail (consumer’s) price = Cost + markupUsually cost is about ½ retail (keystone)(Retail math concept to set retail price)BEAUTY, SPA, WELLNESS:This consists of Cosmetics, fragrances, hair and skin, spas, and centersIt is all about the Mass and prestige.MERCHANDISING: Merchandising and MarketingAccount rep/coordinator- • Involved with special events, • Promotions, • Traveling to sitesSales/Account executive-• Sells products to retailers, • Manages the accounts (inventory),• and merchandises.Public relations account executive• Works with media contacts, • PromotesRetail counter, line management• Sell, manages, • Coordinates events • and promotionsWorks with product and people•Wellness Massages, facials, fitness, nutrition centers, spas•Esthetics Makeovers and beauty-enhancementRETAILING: is the Distribution of Goods &Services to the ConsumerLast 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 consumerOPERATIONS- AT THE RETAIL LEVELOverall duty is : Managing sales and merchandising to obtain a profitStore Support Human Resources Visual/ Display Security Receiving/dockTasks 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 & profitOrganization Store ManagerAssistant(s) Store ManagerArea ManagerDepartment ManagerAssistant ManagerOther Staff Sales StaffKey Competencies/Characteristics for Management Self motivated Leadership ability Goal/results oriented Multi tasker People lover Lifelong learner2 major types-Stored = “bricks & mortar”, traditional store frontNon-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 industryOrganization•Set up as any other business with officers, divisions, departments, and staffTop 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 ExecutivesACCOUNT 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 REPSCorporate/Company – on their payrollIn house/showroom , Traveling Independent – paid on a commission basisCustomer Service RepresentativeSales 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 deliveriesMarketing/ 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 ASSISTANTSMERCHANDISER/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 ResourcesTHE MERCHANDISE Basics, Fashion, Exclusives, Quantities, etcVENDOR POLICIES •Distribution•Services•Performance•The market tripWHENMarket week, new offerings, promotional buying, issuesHOW OFTEN- depends on businessPREPARATIONPrimary purpose is to manage the buy wellResearch, 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. plansVISUAL 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 atmosphere4