Posted in Marketing and Strategy Terms, Total Reads: 386
Any end product which is being traded or which is stored for future trade can be termed as merchandise. Merchandise varies widely from commodities to specialised and customised products which are sold or stored for future transaction when needed.
By the term merchandising, we mean that any practice that is adopted which contributes to the sales of the products to an individual or retail consumer. For instance, at a retail store level, merchandising means the variety display of products available for sale so that it might generate stimulus and interest in the customers’ minds which may lead to purchase. Merchandise management may lead a firm to integrate its core retailing.
The major challenges faced in merchandise management are:
1. Inconsistent pricing strategy,
2. Difficulty in increasing suppliers’ incentives,
3. Difficulties in reducing labour costs and,
4. Difficulties in maintaining product catalogues.