Chapter10: Fashion Distribution—fill out using notes from top of class in pb works. Place in your notebook to study for quiz

Chapter Overview

Section 10.1
  • The ______is responsible for making sure the merchandise that consumers want is available in stores.
The ______is the buyer for a small store.
For a ______store, it might be called the buyers, or there may even be a buying staff.
1. Buyers purchase goods from______
2. They must predict what consumers want ______before goods reach the stores.
3. Buyers monitor the latest ______
There are three steps to the buying process, also known as the merchandising cycle:
  1. merchandise planning,
  1. ______are the main resource.
  2. ______
c.______– buyers attend these.
2. merchandise buying,
3. merchandise selling.
Sales training is important, depending on specialty of the merchandise. Seminars may be conducted by the vendors. Training class sessions – example: fitting techniques
Section 10.2
Buying behavior can be either rational or emotional.
1. ______ behavior involves logical thinking and decision making. Consider price, warranties, size
2. ______behavior is based on feelings.
May make you feel success, prestige, fitting in
Successful sales associates use the steps of selling, or the basic selling process that includes seven steps:
  1. ______the customer-- meet and greet, acknowledge their presence
  2. ______—learn about customer preference. Use open ended questions. Let the customer talk, and LISTEN
  3. ______the product--present the product features (physical characteristics of items) and benefits (what product will do for the customer—comfort, saves money, safety, ease of care.
  4. ______--concerns or objections about product, price, timing, or even the sales associate. Then give additional information to overcome the objection
  5. ______--customer agrees to buy—summarize the benefits and complete the contract
  6. perform ______—could be an add on (related item), trading up to a higher priced item, buy another item, or give them a special offer.
  7. ______—this builds a relationship—credit card, reward program, guarantees, keep record of purchases, email information, Facebook, contacts
Mathematical calculations are used in all segments of the fashion industry to determine the cost, the markup or markdown, and the final selling price of fashion products.
Department store – example: Macy’s
  • Different kinds of merchandise
  • Separate sections
  • Employs at least 25 people
  • 3 groups of general merchandise

Boutique
Small specialty store
Smaller target market
Limited selection
Focus on few of a kind
Carries more trendy items
Outlet
Owned by manufacturers or department store chains

Goods may be overruns, damaged, leftovers

Mail order catalog

Business sells merchandise in a catalog and sends it by mail

Offers convenience

Specialty store – Gap, Pacsun

Offers one category

Focus on particular segment

Emphasizes certain styles

Target specific age groups, etc.

Designer store-Guess

Owns and operates the retail store/carries only

Its own lines

Manufacturer controls the line from beginning to end

Sells directly to the customer—more profit

Discount store – Walmart

Volume merchandise and limited service

Sells items below usual retail prices

Offer private label and national brands

Online store

Fastest growing

Any type of store can offer online services

Anytime shopping

Merchandise shipped directly

DepaDepart