merchandising and buying

MERCHANDISING AND BUYINGThe Sexy Marketers

Chua, RyanDe Luna, TyroneQuinio, Jonathan

See, JessicaSoon, Alexis

Tangtatco, Eunice

MERCHANDISE MANAGEMENT-the process by which a retailer attempts to offer the right quantity of the right merchandise in the right place at the right time and meet the company’s financial goals.

BUYING ORGANIZATION

Merchandise Group- managed by a general merchandise manager (GMM)- a general product sold by a retailer

BUYING ORGANIZATION

Department- managed by divisional merchandise managers (DMMs)- a more specific product in the merchandise group

BUYING ORGANIZATION

Classification- groups of items targeting the same customer type- process of grouping something according to shared characteristics

BUYING ORGANIZATION

Category

- next lower level in the classification scheme

- each buyer manages several merchandise categories

- a division of things regarded as having a particular shared interest

BUYING ORGANIZATION

SKU (Stock-Keeping Unit)- smallest unit available for inventory control

- usually means a particular size, color, and style

BUYING ORGANIZATION

MERCHANDISE CATEGORY - THE PLANNING UNIT

What is merchandise category?- It is the basic unit of analysis for making merchandising management decisions.- It is an assortment of items that customers see as substitutes for one another.

Retails also defines categories in terms of brands

- is an approach to managing merchandise assigns one buyer or category manager to oversee all merchandising activities for the entire category.

Category Management

Category Captain

It works with the retailer to develop a better understanding of shopping behavior, create assortments that satisfy consumer needs, and improve the profitability of the merchandise category.

MERCHANDISE MANAGEMENT PLANNING SYSTEM

1. Staple Merchandise Category

2. Fashion Merchandise Category

Staple Merchandise Category- continuous demand over an extended time period

Staple Merchandise Category

- Continuous replenishment

- Continuous monitoring of merchandise sale and generating replacement orders

Fashion Merchandise Category

- in demand for only a short period of time

Fashion Merchandise CategorySeasonal Merchandise

- Sales fluctuate depending on the time of the year

Forecasting Fashion Merchandise Category

1. Previous sales data

2. Market research

3. Fashion and trend services

4. Vendors

BUYING CYCLE

- before making any purchase of goods/services or ideas, customers typically go through a buying cycle, that are awareness, conducting research and then making a purchase decision

BUYING CYCLE