Standard

MKT 107 - Buying

Course Description

Introduces the fundamental principles of buying, merchandising, and accounting for products and services. Topics include: assortment planning; locating resources; ordering merchandise; just-in-time or quick response inventory control; pricing for profit; and financial statements, ratios, and accounting vocabulary.

Competency Areas	Hours
Assortment Planning	Class	5
Locating Resources	D. Lab	0
Ordering Merchandise	P. Lab/O.B.I.	0
Just-in-Time or Quick Response Inventory Control	Credit	5
Pricing for Profit
Financial Statements, Ratios, and Accounting Vocabulary

Prerequisite:	Program admission level math achievement
Corequisite:

Course Guide

Competency	After completing this section, the student will:	Hours
		Class	D.Lab	P.Lab/ O.B.I.
ASSORTMENT PLANNING		17	0	0
Unit planning decision factors	Describe factors affecting unit (assortment) planning decisions
Model stock	Analyze model stock.
Quantity of merchandise purchasing factors	Identify important factors to consider when determining the quantity of merchandise to purchase.
Assortment plan	Analyze an assortment plan.
Buying budget terminology	Define terminology associated with the buying budget.
Purchase quantities and budgets	Compute purchase quantities and budgets (such as open to buy).
Domestic and foreign market resources	Interpret the importance of locating resources in domestic and foreign markets.
Resources selection factors	Identify factors affecting the selection of resources.
Buyer-vendor relations	Cite the need for developing good buyer-vendor relations.
Vendor file	Organize information for a vendor file.
ORDERING MERCHANDISE		17	0	0
Negotiation techniques	Identify negotiation techniques used with vendors.
	Recognize negotiation techniques used by vendors.
Terms to be negotiated	Identify terms to be negotiated when placing an order.
Ordering responsibilities	Define ordering responsibilities for buyers and assistant buyers.
Order placement/follow-up	Identify techniques used in placing the order and following up the order.
Legal and ethical aspects of the buyer's order	Define the legal and ethical aspects of the buyer's order.
JUST IN-TIME OR QUICK RESPONSE INVENTORY CONTROL
Note: The IFCC Executive Board for the Marketing Management Program has not provided the material for this competency.
PRICING FOR PROFIT		4	0	0
Pricing techniques	Recall techniques used by a buyer to develop a thorough knowledge of prices.
Discounts	List types of discounts.
Retail pricing	Identify the major factors to consider when determining the retail price.
Pricing policies	Describe various pricing policies.
Price computation	Compute prices using various techniques.
Legal aspects of pricing	Cite legal aspects of pricing.
Pricing effects	Describe the effect of pricing on sales.
FINANCIAL STATEMENTS, RATIOS, AND ACCOUNTING VOCABULARY		4	0	0
Ratios	Calculate financial ratios (i.e., stockturn).
Merchandise management	Explain the importance of merchandise management accounting.
Income statement and balance sheet	Analyze income statement and balance sheet.
Accounting terminology	Define terms associated with accounting vocabulary.

Suggested Resources

Books

Bohlinger, M. S. (1990). Merchandise buying: A practical guide (3rd ed.). Boston: Allyn & Bacon.

Cash, R. P. (Ed.). (1979). Buyer's manual. New York: National Retail Merchants Assn.

Gillespie, K. R., & Hecht, J. C. (1983). Retail business management (rev ed.). New York: McGraw-Hill.

Audiovisuals

Consumer buying behavior [Videotape]. RMI Media.

A retailer visits the market [Videotape]. New York: Fairchild Visuals.

Computer Simulation

Managing your money. CUNA Mutual Insurance Society.

Money management game. Credit Union Association.

Retail strategic management. Cincinnati: South-Western.