DECA Apparel and Accessories Marketing Glossary– Merchandising

Benchmark
A measurement which is used as a point of comparison. Commom benchmark measurements used to compare one industry/organization to the other are: customer satisfaction, cost of goods sold, sales per square foot, repeat customer sales, employee turnover percentage, employee satisfaction, and customer acquisition.
Budget
An itemized summary of estimated expenditures and income for a specified period.
Central buying
Completing all purchases through a central or main office.
Charge back
A return of funds to another company. When a company issues you a chargeback, they are requesting payment from you.

Most commonly, a charge back occurs from a retailer to a wholesaler.

Cooperative Advertising
An arrangement between a manufacturer and a retailer whereby the manufacturer will reimburse the retailer in part or full for advertising expenditures. Ads and commercials are usually produced by the manufacturer and placed by the local retailer, using the store’s name. It enables the manufacturer to advertise at the local rate for media, since all advertising is placed by the local retailer. This is usually cheaper than the national rate, and thus the manufacturer can buy more time and space for less money.
E commerce
The buying and selling of products and services by businesses and consumers over the internet
EDI
Electronic Data Interchange; allows the communication of business transactions, including invoices and orders.
Finished goods
Goods that have completed the manufacturing process, but have not yet been sold or distributed to the end user.
Global trade
The exchange of capital, goods, and services across international borders.
Inventory shrinkage
An unknown reason for a reduction in inventory
Loss leader
are goods or services offered at steep discounts (generally below cost) in order to attract new customers to a store. It is a time-honored practice that has been met with much success, especially by large discount retailers. The intent of this strategy is to not only have the customer buy the (loss leader) sale item, but other products which are not discounted.
Mail order
a form of retail sales in which a customer places a remote order via mail, telephone, or website, and then receives the ordered merchandise at a designated address by way of a package delivery service.
Marketing
The process of promoting, selling, and distributing a product/service.
Merchandising
Sales promotion as a comprehensive function including: market research, development of new products, coordination of manufacuturers and marketing, and effective advertising and selling
Open to buy
A financial budget for retail merchandise.

Merchandise budgeted for purchase during a certain time period that has not yet been ordered.

Out shopping
Occurs when a household travels outside their community of residence or uses the Internet to shop in another community.
POS System
Point of Sale System. May also be refered to as Electronic Point of Sale (EPOS).

A system whereby electronic tills are used to process customer transactions in a retail outlet. Local POS systems are usually connected to a central computer system, so that financial and inventory-related data can be exchanged between the store and head office, allowing automatic accounting and replenishment.

Product assortment
The variety of product lines sold.
Purchase order
A written authorization including a number guaranteeing payment for products at a specified price.
Retailing
The activites involved in selling products or services directly to consumers.
Sell through velocity
The rate at which inventory is being consumed as it relates to sales.
Visual merchandising
Promoting the sale of goods through an effective floor design and layout.
Wholesale
The sale of items in quantity, usually for resale.