FSE 2201 FHM Lesson 3.1 Study Questions
Define Merchandising
The purchasing|pricing|display and sale of merchandise
Define the economic base of a community
The wealth produced in or near a community that provides employment and income to the local population
The merchandising agreement whereby merchandise is given to the funeral director to sell but the funeral director does not have to pay for the merchandise that will be displayed until it is sold.
consignment
What 2 buying motives influence most funeral home purchases
convience | economy
The statistical study of human populations with respect to their size and density distribution, composition, and income
demographics
Those goods or stock which are held for resale
inventory
The number of times the average inventory has been sold or used up during a period
inventory turnover
A group of potential customers possessing purchasing power and unsatisfied needs
market
The process of planning and executing the development pricing, promotion, and distribution of an organization's goods or services
marketing
A return of a portion of a payment
rebates
What is meant on a invoice that says 3/15 n/45 as the terms of a credit sale
3% discount if paid in 15 days and the entire bill is due in 45 days
Define Trade Credit
A form of credit that is extended by one business to another business to help finance distribution of producer's goods
Define a sales promotion
A plan which provides inducements to potential purchases of products and/or services
A method of classifying inventory items with categories which are of high-value less costly, and/or low-cost items. The funeral director will have a large quantity of low-cost items on hand, very few high-cost items and a moderate number of the middle items
ABC Method of Inventory Control
Making the public aware of services or a commodity that a business has for sale.
Advertising
What does the credit / sales term CWO mean
Cash With Order - Payable at the time of the order
What does the credit / sales term CBD mean
Cash before delivery - payable prior to delivery
A reduction of the price given for payment of an account within the time limits established by the sales contract
Cash discount
What does the credit / sales term COD mean
Cash on Delivery - payable at the time the consumer receives goods.
List some sources of secondary market data
Chamber of Commerce|Census Bureau|local demographics
List and describe the 6 consumer buying motives
Comfort | security|prestige|health|convience|economy(cost)
The quantity to be purchased which minimizes total cost
Economic Order Quantity (EOQ)
What is the instructor's opinion of what merchandising includes
Educating the consumer on the products which are available
What are the 4 steps to developing sales objectives
Evaluate the market | evaluate the sales history | develop a proposed plan for inventory items | integrate the inventory products with the services offered
What is usually done with those slow moving items which do not sell in a reasonable amount of time
Lower the price until it is perceived value to the customer
What does the credit term EOM mean
Payable at the End of Month
What does the credit term MOM mean
Payable at the Middle of Month
What are 5 of the factors in determining inventory to be offered
Product availability | price | quality | eye appeal | supplier recommendations
Inducing the public to have a positive feeling about a particular business
Public relations
Reduction in the amount of a bill when a minimum quantity of merchandise has been ordered
Quantity discount
List some public relations Ideas that are listed in the notes which will help the funeral director to better educate his/her community
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Why is advertising important to a funeral home
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