HECOL 493 Study Guide - Spring 2018, Comprehensive Midterm Notes - United States Dollar, National Retail Federation, Fashion Show
12 Oct 2018
School
Department
Course
Professor
HECOL 493
MIDTERM EXAM
STUDY GUIDE
Fall 2018
HECOL 493: FASHION BUYING
LECTURE 1 - THE FASHION BUYER
the fashion buyer satisfies the wants and needs of the consumer
requires analysis, understand market, interpretation of trend, understand the competition and
consumers, not simply buying for themselves
very complex industry - changes season to season. buyers have to be diligent in finding trends,
establishing relationships with vendors
selection for different stores, catalogues
may be working closely with fashion designers on developing range
basically want to attract customers and bring in money
some details and responsibilities are the same
details and responsibilities
develop merchandising strategies - department, store, entire organization
develop awareness of trends -
understand and identify customer needs and wants
make regular market trips - actually going to buy or going to locations to see what is happening
in individual markets
analyze and interpret data reports
plan and select merchandizing assortments
represent the store organization to vendors
negotiate
price merchandise to generate profits
identify fast and slow selling products
maintain a well balanced stock
review and revise basic stock programs
coordinate promotion activités
maintain contact with stores regularly
shop and analyze competing stores
achieve goals in sales
successful buyer - gets product first, turns it around the fastest, and keeps it at a price that
consumers want to pay (see textbook)
key skills needed
fashion - fashion awareness, range coordination
product
physical - mental agility, stamina, colour vision
management - decisive, leadership skills, assertive, negotiate, good communication skills
(written and verbal), organized, mathematically competent, customer centred
personal - customer centred, enthusiasm, motivated to succeed, forward thinking, visionary
factors that affect the buyer’s job
merchandise carried
-basic merchandise - stuff that is stable, doesn't require a lot of forward thinking, buying based
off of last years sales, not a lot of unknowns, auto replenishments
-others require relying on forecasting and market trends
organizational structure:
-small locale retailer, for example - might be doing more than just buying
find more resources at oneclass.com
find more resources at oneclass.com
-large chain stores may be centralized - out of head office
size of the retail organization
-smaller store - maybe buying for all departments
-larger stores - buying just for one specific product category
The Buying Team
buyer and merchandiser can work in tandem
buyer oversees - buying and allocation of products as well as visual merchandising
Marketing Concept
idea that all business activities should be geared to satisfying the wants and needs of
consumers
need to have a well defined market, and know what their needs, wants, desires are
need to meet the needs through products and services
if these are met, the customers will be satisfied through value and satisfaction
creates exchange, transactions, relationships
retail environments and the buyers
need to understand the retail typology
haute couture
luxury brands
designers
designer brands
depatments stores
specialiiity retaie
(see textbook for pyramid)
when positioning self - identify all potential markets, all potential customers. hard to please
everyone so try to segment the market into smaller markets, which all share similar
characteristics
identify all the segments - can tailor the buying, merchandizing, etc, to all the little segments
market segmentation
five areas of market segmentation:
1. demographic data - age, sex, gender, ethnicity, family size, household income
2. geographic data - where consumers live, different geographic with different demographics in
a small area may exist
3. behaviouristic data - what is the average amount of the purchase, time of day they make
purchases, how long it takes them to complete the buying cycle
4. psychographic data - lifestyle, interest, opinions
usually use one or two of these areas to get the market segment
each mar get segment may have different consumption patterns
target marketing
tend not to mass market anymore - going after everyone. conventional supermarkets
targeting broadly (undifferentiated mass) —> multi-segment (differentiated) —> concentrated
(niche) —> targeting narrowly (micro; local or individual)
emerging retail formats
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Basic merchandise - stuff that is stable, doesn"t require a lot of forward thinking, buying based off of last years sales, not a lot of unknowns, auto replenishments. Others require relying on forecasting and market trends organizational structure: Small locale retailer, for example - might be doing more than just buying. Large chain stores may be centralized - out of head of ce size of the retail organization. Smaller store - maybe buying for all departments. Larger stores - buying just for one speci c product category. The buying team buyer and merchandiser can work in tandem buyer oversees - buying and allocation of products as well as visual merchandising. Central of ce completely responsible for selection and purchase. Stores receive whatever corporate of ce deems appropriate: warehouse requisition plan: Not very good for fashion items because they have a shorter selling life: price agreement plan: Buyer selects assortment and vendors and negotiates prices and terms.
