What is Merchandising? Describe different types of Merchandising.

Merchandising

Merchandising is work that contributes to the sale of a product to a retail customer. At the retail in-store level, merchandise is meant to display products that persuade customers to buy more items or products in a creative way for sale. Visual display merchandising in retail means selling products using product design, selection, packaging, pricing, and displays that encourage customers to spend more. These include discipline and physical representation of products and displays and decisions about which products should be presented to customers and when. Often in a retail setting, creatively tied to related products or accessories is a great way to entice customers to buy more.

Merchandising

Merchandising description

Merchandising is the planning and development of a plan to enable an organization to sell a product that provides sales and profit goals. Ensuring that a merchant will work closely with the buyer will enable them to achieve a sales plan for the product they have purchased. It is often interpreted as buying the right product at the right time, in the right place, in the right quantity at the right price. Never just say it when someone asks you what merchandising is because it doesn’t take into account all the plans and strategies that are considered before getting stock in stores. You have to give one more considered answer and it will really provide in the interview.

The right product - style, brand, color, size, etc.

The right place - any store depending on their budget and location

The right time - at the right time of the season to store goods i.e. prepare for Christmas or 'back to school'

The right amount - enough for stores to create their budget but not have to stockpile markdowns at the end of the season

The right price - those who will attract customers despite the competition will still earn a reasonable return on investment for the retailer's money profit.

List of merchandising roles

A merchandising role involves the following processes-

i. Analyze past sales statistics/trends to estimate future product demand.

ii. Creating commodity plans using the above techniques.

iii. Releasing the merchandise plan to the buyer, who can buy any product, style, color, etc. instead and decide which supplier, at which price.

iv. Creating an agreement for suppliers with quality control, precision, and flexibility. This is done throughout the season.

v. A certain amount of stock is allocated to each outlet throughout the season. Retailers are now trying to reduce stockholdings and commitments to allow maximum flexibility.

vi. After all distribution and sale of products, a merchandiser can monitor stock movement, consider markdown, inter-branch transfer, promotion or cleanout, etc.

vii. Decisions on how much money should be spent on business decisions, how many separate lines should be purchased, and to what extent, involved in determining the selling price to control profits and when the shares should be delivered to the business, such as the merchandiser, play an important role in all business decisions.

viii. A merchandiser is effectively managing a field of business and will be responsible for a larger turnover than many managers in small public companies.

Types of Merchandising

There are different types of merchandise, such as below-

i. Visual Merchandising

While a person may wear multiple hats in visual studies, the general definition of visual merchandising is a marketing strategy that uses floor plans and three-dimensional displays to persuade customers, project positive store images, and maximize sales. Visual merchandising begins outside the store, often with attractive window displays to persuade customers to come in. Can be used to set the mood of the store's visual merchandising with interactive displays or alto decor and to introduce customers to new or featured products. Visual Merchandisers will also consider the types of in-store traffic flow to display and determine the best placement for new products.

Visual Merchandising

ii. Retail Merchandising

Shoppers who come to the Brick and Mortar Retail Store are at first a retailer of an attractive merchandise organization to be employed and motivated to purchase more products than they think. Retail marketing attracts customers in a variety of ways to specific products and services. It includes activities and strategies like in-store design, selection of specific products to match a target market, and physical and digital marketing of the product to customers. As a form of marketing, promotional merchandising includes programs like licensing agreements between retailers and entertainment companies that use attractive promotional displays featuring adult celebrities or animated children's movie characters.

Retail Merchandising

iii. Digital Merchandising

Digital merchandising is one of the most popular forms of merchandising in modern times where users get digital access to an online-based store to purchase products offered by digital merchandisers. But now there is a breakthrough in the merchandising process due to the digital communication system of modern technology for buying goods. It is also known as online merchandising or virtual merchandising. The person responsible for digital merchandising is known as a digital merchandiser. The demand for digital merchandisers is increasing day by day as customers get more access to digital devices. If you want to take a digital merchandising course, you can make many online-based platforms available for free and on a paid basis. Choose the right one for your study. Please do some study before choosing the learning platform.

Digital Merchandising

iv. Product Merchandising

Product merchandise is the process and business practice that displays its products to customers in-store or online. While this may seem like an acceptable step for the business, there are many factors that contribute to successful product placement and business acumen. In fact, retailers can use specific business strategies to influence a customer's buying habits and increase sales and revenue. Establishing the ideal merchandising strategy for your business is your goal audience, product sector needs, and whether you are displaying your items in a brick-and-mortar store or a retail website can vary for a variety of reasons. Strategies will also vary depending on what industry your business is in and what is the most effective way to reach your specific target audience and customer base.

Product Merchandising

v. Omnichannel Merchandising

Omnichannel merchandising refers to creating an integrated customer experience across all possible touchpoints of customer travel. For retailers, including physical and digital stores, Omnichannel merchandising involves creating a seamless customer experience even as the customer moves from one to another. The goal of successful universal merchandising should be personalization in a large industry. Smart retailers will integrate information across all channels so they can develop customer insights and transform those insights into growth strategies. A single master data management platform from which to plan and collaborate across all channels will enable retailers to accelerate their universal merchandising strategy.

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