Chapter 13 - Buying Merchandise

exclusive brand

A brand developed by a national brand vendor, often in conjunction with a retailer, and sold exclusively by the retailer.

copycat branding

A branding strategy that imitates the manufacturer brand in appearance and trade dress but generally is perceived as lower quality and is offered at a lower price.

premium store brand

A branding strategy that offers the consumer a private label at a comparable manufacturer-brand quality, usually with a modest price savings.

national brands or manufacturer's brand

A line of products designed, produced, and marketed by a vendor.

chargeback

A practice used by retailers in which they deduct money from the amount they owe a vendor.

umbrella or family brand

A product's brand name associated with the company's name.

copyright

A regulation that protects original works of authors, painters, sculptors, musicians, and others who produce works of artistic or intellectual merit.

markdown money

Funds provided by a vendor to a retailer to cover decreased gross margin from markdowns and other merchandising issues.

subbrand

Part of a branding strategy in which a product's brand name is associated with the description of the product, such as Frosted Flakes, where the family brand is Kellogg's.

market weeks or trade shows

A temporary concentration of vendors that provides retailers opportunities to place orders and view what is available in the marketplace

trademark

Any mark, work, picture, or design associated with a particular line of merchandise or product.

reverse auction

Auction conducted by retailer buyers. Known as a reverse auction because there is one buyer and many potential sellers. In reverse auctions, retail buyers provide a specification for what they want to a group of potential vendors. The competing vendors then bid down the price at which they are willing to sell until the buyer accepts a bid.

counterfeit merchandise

Goods that are made and sold without permission of the owner of a trademark, a copyright, or a patented invention that is legally protected in the country where it is marketed.

strategic relationship or partnering relationship

Long-term relationship in which partners make significant investments to improve both parties' profitability.

Store Brand

Products developed and marketed by a retailer and only available for sale by that retailer. Also called private-label brands, house brands, or own brands.

intellectual property

Property that is intangible and created by intellectual (mental) effort as opposed to physical effort.

generic brand

Unbranded, unadvertised merchandise found mainly in drug, grocery, and discount stores.

black market

The availability of merchandise at a high price when it is difficult or impossible to purchase under normal market circumstances; commonly involves illegal transactions.