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The key elements of Merchandising



Kirjoittanut: Sunita Kumar - tiimistä Crevio.

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INTRODUCTION

Merchandise is a broader concept than a product. It includes promoting of the product with adjustments with prices to receive profits with products and selling locations and designing displays at the store. Merchandising is the process to promote products which increases sales in a physical space and on a digital platform. Then Marketing Association has defined merchandising.  “Planning involved in are different opinions and definitions on marketing right merchandise, at right place at right time with the right price”.

For example:

  • Amazon(dot)com, promises to deliver around 1 crore products within 24 hours and payment.
  • Quicker(dot)com promises to sell anytime for a right price quickly.
  • Similarly Big Bazar Easy day More etc.

Make ‘attractive offer of wide variety of the product that are categorized and displayed in their store. They are offered with attractive prices and other benefits that all can be summarized merchandising Merchandising can be defined as “Planning, Buying, Assorting, Promoting Placing, Setting and Replenishing the Goods”, Goods bought must be sold or replenished the unsold stock will be a burden on finance. So planning need to be made what kind of product is to be brought and how it should be priced, promoted and placed so that customer is attracted towards the product. Grace Kunz has defined it as the planning developing and presenting of product lines for identified target markets with regard to pricing, assorting, styling and timing. Identify the customers, understand their need, buy those goods, categories and place them in a style that appeals to visiting customer.

It is said a customer who makes his final decision of buying or going for alternative when he visits the shop. If the “offer” at the counter pleases he may decide to buy, that is what is merchandising such ‘offer’ is a bundle of expectations that a customer expects to be delivered to him. It is basically product itself that should be of customers liking. Along with this display of product, its price, discount, service and other features are taken as ‘offer’ that must appeal and attract a customer.

What must be sold with the offer or the package i.e., product, price, place and promotion must appeal the visitor, to ensure sale. Merchandising is planning and control of merchandise inventory of the retail form in a manner which balances between expectation of target customer and strategy of the firm.

Merchandising has two broad objectives: Buy and store the inventory or product that is expected or needed by the people. Achieve the objective of the business i.e., Growth, profit etc., that is possible when inventory is sold. It means store or buy that product that be sold is the basic philosophy of merchandising, which benefits both the customer and also the businessmen. That is customer is pleased as he gets product of his desire and retailer gets profit as merchandise is sold.

 

Types of Merchandise:

Merchandise can be broadly classified under following heads:

  • Staple: Cosmetics, toiletries etc.These are necessaries of life that are used everyday. E.g. – Food, Clothing, Stationery, They have regular and stable demand. Fluctuation in demand supply and price is minimum.
  • Fashion: Consumption of these goods is dependent on current fashion. Demand lasts until its fashion. Depending on nature of goods, fashion may be for seasons or years. Retailer has to stocks the product until the fashion lasts. If the stock remains unsold as goods become out of fashion, has he has to adopt marketing strategy like discount, ‘buy one get one offer’ to clear stock.
  • Fads: Goods that are in demand for a very short period of time. It can be said as fashion which lasts for a very short period of time. It is risky to store such goods in bulk quantity as there is no guarantee regarding duration of demand.
  • Seasonal: Goods that are demand in particular seasons. Based on weather features, we can classify seasons as Monsoon, Summer, Winter accordingly specific products like, Umbrella, Sweaters, Cool Goggles, soft drinks, Ice creams etc., are demanded accordingly the product is to be stored. Similarly season of festivals, marriage have its own demand for sweets, Jewelry, Clothes, cosmetics and more.

 

SOURCE

Fundamentals of the Merchandising by J. Wild

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