Posted in Marketing and Strategy Terms, Total Reads: 1872

Definition: Merchandising

Merchandising includes all the promotions done at a retail store to make the consumers buy the products at the store. In other words, merchandising is planning the marketing of products at the right place and right time in the right quantities to help the retailer reach his goals.

Activities that fall under merchandising are display techniques, spot demos, free samples, point-of-sale methods, product design, packaging, etc.

Types of merchandising:

• Micro merchandising is a form of merchandising where the retailer modifies the arrangement of various products in shelves in accordance with the customers’ needs and the local markets.

• Cross merchandising involves combining complementary products in the store placement in order to boost sales.

• Visual Merchandising is presenting the store in such a way that it will attract the consumers. It includes decorating the store, floor and wall displays, three dimensional plans, window displays etc.

• Digital merchandising is making use of digital displays to attract customers to buy the products in a store.

• Promotional merchandising is where stores make use of occasions like New Year, Christmas, festivals etc. to increase their footfalls and sales.

Factors affecting the merchandising function:

• Size of retail: Whether it is very small, small, medium, large, very large

• Type of store

• Organisational Structure

• Merchandise to be carried

Examples of brands using good in-store merchandising is Mom & Me, Lego, which use a variety of displays and three dimensional plans to attract kids. Another example is the placement of items like chocolates, lip balms, accessories near the billing counter so that the customer makes an impulse purchase. This is an example of point-of-sale merchandising which increases sales.



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