What is merchandising? Three important steps

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

What is merchandising? The direct translation of this word from English sounds like “the art of trading”, that is, to do everything possible to make it easier for the buyer to select and purchase goods. In other words, merchandising is a system of procedures. They take place in the store and provide the customer with convenience and comfort while shopping. The shortest answer to the question of what is merchandising is selling without the participation of the seller. The goods must be displayed in such a way that trade is possible either without the seller at all, or with his minimum participation. The fact that merchandising is necessary was proven after conducting market research. It turned out that approximately 66% of purchasing decisions are made by customers while at the counter. Consider the three stages of merchandising in a store.

Organizational

1. An important point in revealing the question of what merchandising is is that a particular product must occupy a certain place on the shelves so that the buyer,being in front of the shop window, he could easily orient himself. For example, if this is an auto parts store, then the steering should be in one place, and the braking system in another. Or on one side of the rack there are spare parts for Toyota, and on the other - for Mazda.
2. Incentivizing unplanned and repeat purchases by expanding selling space for seasonal products or product groups that are in high demand. And do not forget about placing accessories next to the main product.

Managed

1. Providing an offer that will meet customer expectations. If buyers expect to see a product or accessory in a certain place, then it should be there, and not somewhere else.
2. Providing a financial return on every space occupied by a product. Profit should bring every centimeter of retail space. In this regard, the goods in demand are determined to the best place.
3. A logical and well-thought-out sequence is needed when placing goods. Imagine that the store is a guide book to the country of products. And you are the author of this book. The buyer will understand or not understand you, it will depend on the quality of writing the book. The simpler and clearer the guide, the more willingly and faster purchases will be made.

Seductive

1. Non-stop development. To survive in today's competitive environment, any store must constantly evolve. This is an expansion of the range, andretraining of personnel, and organization of parking, and improvement of service, and a system of discounts, etc.
2. Each customer must be treated kindly. Information on price tags and displays should be easy to read. Pay more attention to the placement of goods. Are there any new items? Draw attention to them with promotional materials and place them in the most visible place. Customers will be very grateful!

Some people are unable to understand what merchandising is and apply its principles in practice. In this case, you should contact the professionals. And more specifically, to a merchandising agency. Cooperation with such a company will allow you to increase sales without significant spending on your budget.