Type Here to Get Search Results !

BRL-010 UNIT-1 The Process of Retail Merchandising| IGNOU BBARL Notes

brl 010 unit 1 the process of retail merchandising

UNIT 1 THE PROCESS OF RETAIL MERCHANDISING

* TOPICS IN THIS CHAPTER :-

  1. INTRODUCTION
    2.
  2. CONCEPT OF MERCHANDISING

  3. KEY ELEMENTS OF MERCHANDISING

  4. PROCESS OF MERCHANDISING

  5. ROLES OF MERCHANDISERS

  6. MERCHANDISING PHILOSOPHY

  7. MERCHANDISE TYPES

  8. MERCHANDISE CLASSIFICATIO/HIERARCHY
    9.
  9. SUMMARY OF THIS CHAPTER

  10. VERY VERY IMPORTANT QUESTIONS



1.1 INTRODUCTION :-

  • In this unit, You will learn about the principles and concept of merchandising, roles played by the merchandisers and the merchandising philosophy.
  • You will also learn about different types of merchandising and its classification.


1.2 CONCEPT OF MERCHANDISING :-

  • Merchandising is the planning involved in marketing the right merchandise at the right place at the right time in the right quantities at the right price.
  • The merchandise word has been coined from the old French word, ‘merchant’ which means goods.
  • Merchandising means the buying and selling of goods with a motive to earn profit.
  • This includes all related activities such as advertising, display, and promotion of merchandise involving the retail customers.
  • In the present scenario consumer is the king, as he/she is in the buyer’s market.
  • In the present scenario consumer is deciding about what he/she wants.
  • Consumer has the wide choices available from innumerable suppliers/vendors.
  • The merchandiser has to constantly be on the watch of his/her consumers’ needs and their complete satisfaction, so as to maximize the sales and profitability of the Retail Store.
  • Merchandising is not a synonym for the buying function, it is an integrated, end-to-end business process that runs from planning the assortment, to sourcing, to distribution, to allocation of the goods to the stores, to promoting and selling the assortment to the customers and finally to replenishing inventory as necessary.
  • The other activities that make merchandising effective, such as advertising, displaying, creating an attractive ambience, harmonious reception of the visitors i.e. prospective customers.
  • The success of the merchandising lies in these five ‘Rights’
    1. Marketing the right merchandise .
    2. At the right place .
    3. At the right time .
    4. In the right quantity .
    5. At the right price .


1.3 KEY ELEMENTS OF MERCHANDISING :-

  • The Retailer must take strategic direction in the four key elements
    1. Merchandise Strategy,
    2. Communication Strategy,
    3. Customer Service Strategy,
    4. Format and Environment Strategy.

    1. MERCHANDISE STRATEGY :-

    • A merchandise strategy is based on the concept of targeting the right people with the right merchandise at the right time at the right place.
    • Here the right people mean the right customers the retailer wishes to target.
    • The right place implies that the store should have sufficient floor space and an appropriate ambience.
    • Depending on the location of the store and the inhabitants, the retailer will offer the appropriate quality and the pricing of the merchandise.

    2. COMMUNICATION STRATEGY :-

    • Effective communication is very important for a successful merchandising.
    • It requires an effective strategy – a coherent plan of action.
    • It should take into account the goals and objectives of Retail Firm.
    • The features of the Products and Services and the environmental condition.

    3. CUSTOMER STRATEGY :-

    • A high-quality customer service must be provided on the reception desk itself.
    • It requires excellent communication skills of the Retail staff.
    • The employees must be patient while dealing with the customers.
    • They should have excellent listening and telephone skills.
    • They should be able to solve and prevent problems of the customers soft skills.

    4. FORMAT AND ENVIRONMENT STRATEGY

    • Retailers are making use of customer creativity, technology and processes to develop new strategies for store format.
    • They are focusing to delight customers by ensuring that the right products are delivered to store shelves.
    • They are making effort in such a way that, the space is being managed well.
    • At the same time, they should possess adequate right staff is deployed to provide an appropriate level of customer service.


1.4 PROCESS OF MERCHANDISING :-

  • The process of merchandising involves :-
    1. understanding consumer needs,
    2. identifying & sourcing of right merchandise,
    3. deciding the right assortment,
    4. planning distribution of merchandise to different locations in the right quantities,
    5. deciding on the pricing,
    6. communicating merchandise offerings to the target customers,
    7. taking feedback of consumers.

    1. UNDERSTANDING CONSUMER NEEDS :-

    • The merchandiser should understand the different ways in which the consumer presently satisfies the need.
    • Let us assume that the consumer has need for hair care.
    • Based on the study the merchandiser may find that there are various ways in which the need is being satisfied.
    • These may be hair soap, oil, lotion, shampoo, cream and dye.
    • With the help of consumer survey the method/ product which is most in demand for satisfying the need is ‘shampoo’.

    2. IDENTIFYING AND SOURCING OF THE RIGHT MERCHANDISE :-

    • Further, the merchandiser may need to identify the right merchandise for shampoo.
    • For example, in shampoo the merchandiser may find that there are three variants – herbal, medicinal, and regular.
    • The merchandiser based on the study of consumer feedback would like to know, which one is most in demand, or will help the retailer to serve the consumer needs.
    • Suppose the merchandiser decides for ‘medicinal shampoo’.
    • For medicinal shampoo, the merchandiser needs to identify the right suppliers/sources of this type of shampoo.
    • He /she may like to analyse the brands like Vatika, Sunsilk, Pantene, Head & Shoulder, and Palmolive which can supply the medicinal shampoo.

    3. PLANNING THE RIGHT ASSORTMENT :-

    • Next the merchandiser has to decide on the different sub-categorization.
    • The sub-categorization can be made, based on the consumer need for medicinal shampoo.
    • The shampoo may be used to treat different kinds of hair condition i.e. dull, oily, dry, normal, straight, and curly.
    • Thus, the merchandiser must know based on past trend, experience or survey, the right quantities to be maintained under each sub-categorization.
    • In other words, the assortment should cover needs of different hair conditions.

    4. PLANNING DISTRIBUTION TO DIFFERENT LOCATIONS :-

    • Once the assortment is cleared then the merchandiser needs to work out the quantities to be dispatched to different distribution centres.
    • The quantity dispatched should be based on the number of outlets in each location, the minimum stocks to be maintained, turnover ratio, the replenishment time, etc.
    • The logistics for delivery of goods should also be taken into account.

    5. PROVIDING RIGHT QUANTITIES :-

    • Once the goods reach the different distribution points, the goods further needs to be sent to each of the outlets in the region.
    • For this the retailer will take into account the consumer requirement in each of the stores based on previous sales trends or its own study of consumer needs.
    • Thus, for each store its requirement in terms of different assortment is worked out and the goods are dispatched.

    6. DECIDING THE PRICE :-

    • Once the goods reach the store, the merchandiser needs to decide on the pricing of each of the products/items.
    • Normally, the pricing is decided at the time of assortment stage itself.
    • In case of certain retail chains the pricing may be left to the respective store managers also,
    • The manager will work upon prices as per the guidelines from the chief merchandiser for the product category.
    • The prices are decided based on the gross margin policy for each of the products.

    7. COMMUNICATING OFFERINGS TO TARGET CONSUMERS :-

    • Once, the goods are on the floor of the shop, the merchandiser will work out the visual merchandising.
    • He/she will communicate such strategy for the given store or group of stores.
    • The merchandiser may provide certain props and signages to each of the store to communication right messages and offerings to consumers.
    • The merchandiser may provide certain props and signages to each of the store to communication right messages and offerings to consumers.

    8. TAKING/UNDERSTANDING FEEDBACK OF CONSUMERS :-

    • The merchandising team may decide to take feedback on different brands/items to know consumers reaction to pricing, quality, availability, display, after use effect etc.
    • The feedback acts as a guideline for improving sourcing and assortment, so as to provide maximum satisfaction to consumers.


1.5 ROLES OF MERCHANDISERS :-

  1. ROLE OF MERCHANDISER IN HISTORICAL TIMES :-
    • He/she was more a trader of goods.
    • He/she used to move from place to place.
    • He/she was not restricted to any single product or merchandise.
    • He/she had to carry the whole lot of goods in all the categories of products.
    • The trade was done either with exchange of money or bartering of merchandise.
    • He/she must have had a good knowledge of the trends in purchases and taste of customers.
    • He/she must have been a good manager of men and materials.
    • He/she need not carry/take goods to a market place for sale.
    • He/she need not perform many of the roles discussed in the earlier part.
    • He/she has specialized himself into a particular product category and prefers to mainly deal in that.
    • He has his own specialist team of merchandisers to take on the myriad tasks of order receiving, manufacturing or procuring follow-up, and finally ensuring timely supplies to the buyer.
  2. ROLE OF MERCHANDISER IN AN EXPORT BUSINESS :-
    • THE FIRST CONTACT PERSON :-
      1. He/she is the first contact person in an organization with whom the buyer (the buyer as a representative of the buying organization from another country) comes in contact after the top level contact has been established.
      2. He/she is also the first person in any manufacturing/ marketing organization with whom the merchandiser/buyer from the buying organization gets in touch for making preliminary enquiries.
    • STORE HOUSE OF INFORMATION :-
      1. He/she is expected to be a store-house of all the information that will help him/her to provide quick and prompt details during the meetings with the buyers.
    • CUSTOMER'S FRIEND/ADVISOR :-
      1. Merchandiser should also be able to suggest a suitable quality to the buyer based on his requirement.
      2. For example, if the buyer enquires that he is looking for a medium weight quality in Knitted T-Shirt Garment, say for a summer season.
      3. The merchandiser should be in a position to suggest to the buyer a suitable quality say in single jersey or pique or any other suitable knit fabric in 200/250 GSM or something similar or suitable.
      4. Merchandiser should have good knowledge about his buyers’ requirements, particularly about the buyers who are the regular ones.
      5. This helps him to make new and varied offerings to his buyers during the buying season.
    • BOSS 'MAN-FRIDAY :-
      1. Merchandiser is the owner’s or boss’ confidante and a ManFriday in many different ways.
      2. He/she is like an errand runner and must supply the boss with many varied kind of materials.
      3. For example, in case of garment export right from fabric cuttings/samples, accessories, garment samples to costing information should be provided immediately.
      4. Many a times he must arrange for samples and make other arrangements at the last moment in an unexpected meeting with an unexpected buyer.
    • PRODUCTION/ORDER CO-ORDINATOR :-
      1. The merchandiser must constantly remain in touch with the production unit to keep himself/herself updated with latest position on the production front.
      2. He/she must keep the production unit constantly updated with buyer’s requirements.
      3. . In fact, right from the point of receipt of an order till its dispatch, the merchandiser must be aware of every move or action on this front.
    • NEW PRODUCT AND SAMPLE DEVELOPER :-
      1. This is one of the most important roles to be played by a merchandiser.
      2. This activity forms the basis of securing new business and hence, assumes very important role.
      3. The merchandiser needs to understand his customers’ requirements during various seasons as well as know the forecast for the season.
      4. Besides, he is expected to keep in touch with local vendors /suppliers about the latest developments taking place in the local arena so as to use them in his new developments or offerings.
    • VENDOR DEVELOPER :-
      1. In order to perform this role effectively, it becomes pertinent for the merchandiser to have an array of vendors/suppliers for various items of raw materials and accessories as well as for processes.
      2. For example, in the garment export business – a merchandiser needs to be well aware of new developments taking place in yarns, fabrics, accessories and new processes.
      3. These will provide him/her new ideas on new developments as well as keep him/her updated on the new trends, etc.
    • PURCHASER OF RAW MATERIALS AND ACCESSORIES :-
      1. Merchandiser must arrange for purchases of materials at the best prices and of best quality and that too at right time and of right quantity.
      2. His expertise in the above role as vendor developer comes handy in performing this role most effectively.
      3. To perform this role effectively, he must have a good knack of negotiation and in-depth understanding of quality parameters of materials to be bought.
    • ORDER AND CUSTOMER UPDATER :-
      1. This is again a part of co-ordination activity but identified separately as it is more relevant from customer service point of view.
      2. There is a need to keep the customer constantly updated about the order position.
      3. This necessitates that the merchandiser must keep himself updated on various stages of order completion and fulfillment of customer’s requirements on sampling and approvals.
  3. ROLE OF MERCHANDISER IN A RETAIL BUSINESS :-
    • RESEARCHER :-
      1. The merchandiser needs to study buying behavior of the targeted consumers.
      2. The buying behaviour helps to understand their peculiarities in buying, the frequency of purchase for a given product, the place from where they prefer to buy, the occasions for which they buy, the preferred price-ranges, the special or salient features of the product they look for, quantities bought in a single purchase, and so on.
      3. The in-depth understanding of the target consumers and their peculiarities does help the merchandiser in determining the range of merchandise for the concerned target segment.
    • PLANNER :-
      1. Once the type of merchandise or range of products is determined then the next task of the merchandiser is to plan the correct assortment.
      2. He/she may forecast the quantities necessary for the given selling season or period and finalize the budgets.
      3. This involves estimating demand of the consumer by each product type, while taking into account the economics, trend and changes expected in the competitive and retailing environment.
      4. These requirements are transmitted to buyers of each product type for working out their individual buying strategies.
    • CO-ORDINATOR :-
      1. The merchandiser is responsible for a particular product category/line and hence, he/she will be supervising the buying activities of many of the buyers working on different products under the category.
      2. Merchandiser needs to co-ordinate for ensuring timely supplies in right quantities as budgeted and in right price and to right place.
    • CONTROLLER :-
      1. The merchandiser needs to control the performance of each of the selling locations, in order to maximize sales & profitability of the retail channel.
      2. . For this purpose, he/she will have to monitor performance of each of the product type under the category controlled by him/her.
      3. He/she will also monitor sales to stock turnover ratios, markdowns, and gross profitability.
      4. The merchandiser will also need to assess the performance of the buyers responsible for the purchasing of these products.
      5. The assessment may be done on the aspects of quality of supplies, timeliness, supplies in the right quantity, price competitiveness, and service from suppliers to various stores.
    • VISUAL DISPLAYS :-
      1. The merchandiser will have to ensure that the product display is most effective in terms of their pick-ups by consumers.
      2. For this, he may use services of a professional visual merchandiser (VM).
      3. In many organizations, merchandisers work out the week-wise/fortnightly/monthly display plans along with their VM personnel.
    • SALES PROMOTION :-
      1. This is another crucial function of the merchandiser. For this, he will have to work very closely with the marketing and buying departments for working out annual promotional calendar.
      2. He/she may carry out implementation of different promotion schemes like special festive promotions during major festivals of the particular region or back to school in case of kids products or end of season sales and so on.
      3. Sales promotions are the essential activities in the merchandiser roles as he/she has to be constantly aware about the sales trends and to ward off any expected and unexpected dips in sales.
      4. This may facilitate maximization of profitability and return on investment for the store as well as for the organization.
    • TRAINER :-
      1. Another very important role the merchandiser needs to perform is that of a trainer.
      2. He/she needs to train their assisting staff and buyers on many aspects like imparting product knowledge, knowledge about consumer tastes and buying patterns, working of price, working of markdowns, maintained mark-ups, actual mark-ups, and so on.
      3. At the store level, the merchandiser needs to interact with counter sales representatives, department managers and store managers whenever any new product is to be launched or any special promotion schemes are to be run on the floor.
    • MOTIVATOR :-
      1. The merchandiser needs to manage a team of people who work under his supervision.
      2. Generally, the personnel that report to him/her are buyers, assistant merchandisers, and visual merchandisers.
      3. Merchandiser needs to constantly be in touch with his team and guide them in various functional matters besides facilitating their operational efficiency in various merchandising related matters.
      4. Besides his team mates, he/she needs to liaise with store managers, departmental managers and vendors.
      5. He/she makes an effort on integrating all the related activities of all the personnel for achieving optimum profitability for the store and the organization.


1.6 MERCHANDISING PHILOSOPHY :-

  • It is important to understand the philosophy of the company when it has to finalize its merchandising plan.
  • Every Retailer or Retail Organization necessarily has to work with a certain philosophy for its merchandising operation.
  • The philosophy is determined by the strategic route the Company decides to take, or it could be the philosophy the Organization decides to work with.
  • Let us take the example of an Organization which wants to take the ‘mass market route’, like say in case of Big Bazaar, the hyper super market.
  • Naturally, the company will have to make a choice between marketing or merchandising philosophy- affordable but with reasonably good quality – and low priced.
  • Suppose the Company decides to go by the philosophy of affordability with reasonable quality.
  • The merchandiser of a particular product line, say clothing for men, would naturally first of all have to decide on its target consumers, that will suit to the mass market strategy.
  • The philosophy of affordability with reasonable quality may consider age group, income group, socio-economic segment, consumers’ level of preferences for different product categories in men’s clothing – shirts, trousers, jeans, T-shirts, etc.
  • The price range in which each of these products are most preferred by the target consumers, the type of products preferred by the target consumers – in terms of styling designs, etc.
  • Many a times the vision of the Company too may determine the merchandising philosophy of the company.
  • For example, Raymond’s brand vision is - brand that projects a complete man or meant for man of achievements.
  • Thus, the whole buying and merchandising team of Raymond would now work on understanding every aspect of its target consumers.
  • Thus, the whole buying and merchandising team of Raymond would now work on understanding every aspect of its target consumers.
  • The merchandising philosophy may also help in determining the clear cut profiles of the buyers and merchandisers in a team.
  • For example, Debenhams is a leading department store group with a strong presence in women’s wear, menswear, homeware, health and beauty, lingerie and children-wear.
  • The aim or philosophy of the buying and merchandising team is to source future best selling lines, be it ranges of home products or designer clothing.
  • In case of Debenhams, the Buyer plays a crucial role. Let us look at the profiles of a buyer and a merchandiser which translate its philosophy into a reality :-
    1. BUYER :-
      • They take charge of the overall style and direction of their respective departments and work closely with merchandisers and designers and Quality Assurance teams so that all elements of the product make them irresistible to customers.
      • They must be numerate – as it is all about making money for Debenhams.
      • They should possess outstanding people management and negotiating skills, along with an instinctive sense of fashion.
      • Apart from operations based at the UK store, they also have roles working in the Direct Division, sourcing stock for internet customers.
      • In International activities, developing ranges suitable for the Company’s overseas franchise partners.
    2. MERCHANDISING :-
      • It works closely with the buying teams as these teams use their commercial acumen to select the product and ranges with the biggest selling potential.
      • Merchandisers achieve the desired bottom-line results through crucial and tactical decisions about positioning and quantities.
      • Their financial expertise, ability to interpret data, and close interaction with stores, suppliers, and distribution teams ensure that the Company gets the best sales results.
      • Merchandisers have a business to run with a portfolio that extends across an entire range and insome instances even influence designer products.
      • They are free to make business transforming decision.


1.7 MERCHANDISE TYPES :-

Consumer goods/merchandise fall into four subgroups as explained here below:

  1. ROUTINE OR CONVENIENCE PRODUCTS :-
    • These are routine products like daily use items – which are bought and used in a routine manner.
    • These products are purchased with a little effort as possible, frequently, and in small quantities.
    • These are not high priced products but generally low priced ones.
    • These products are purchased for their functional purpose.
    • These products are available at numerable locations in variety of outlets.
  2. CONVENIENCE PRODUCTS :-
    - Convenience products can be further divided into staple goods, impulse goods, and emergency goods.
    1. STAPLE GOODS/MERCHANDISE :-
      • Staple goods/merchandise are purchased on a regular basis and will include most food and grocery items.
    2. IMPULSE GOODS :-
      • Impulse goods are purchased out of impulse without any prior plan before entering the store.
      • The product itself, its display, its packaging, and price are important elements in the sale of such merchandise.
    3. EMERGENCY GOODS :-
      • Emergency goods are the items or merchandise that are needed due to certain emergency or unexpected need, and needed immediately.
      • These items may be purchased at a higher price or at whatever available price.
      • For example, a pain reliever or a headache relieving pill.
  3. SHOPPING PRODUCTS :-
    - The features of shopping products are as follows:-
    • These are the products for which the consumer spends considerable time and effort to buy.
    • Consumers are ready to shop around to compare features and prices of competing products before making a purchase.
    • These are bought less frequently.
    • These products are more expensive and are available at few select stores.
    • These products need more of personal selling on the part of the store sales representative.
    • These merchandise include TV, cars, home appliances, homes, etc.
  4. SPECIALTY PRODUCTS :-
    - The features of specialty products are as follows :-
    • These products are very much important to consumers due to certain emotional associations with such products, and hence, they make special effort to find them.
    • The consumers are unwilling to accept a substitute for the preferred product.
    • Retailers play very important role in the sales of these products as they need to have sales representatives who have good product knowledge.
    • They are ready to take certain extra efforts to understand the needs of its consumers.
    • Thus, the marketers of these goods limit their distribution in order to ensure strong sales support at the store level.
    • These include stereo equipments, large digital TV, musical instruments, some branded men’s clothing.
  5. UNSOUGHT GOODS :-
    - The features of unsought goods are as follows :-
    • These are the merchandise that consumers are not much aware of, and even if they are aware of have not considered buying them.
    • For example, certain medical services or accident insurances, which are known to many consumers but are not sought for.
    • Similar is the case with encyclopedias, which are known but not so much sought after.
    • These goods need lot of publicity of convincing nature and good effort at personal selling level, as one generally finds with insurance selling agents.


1.8 MERCHANDISE CLASSIFICATION/HIERARCHY :-

  • This is the method followed by big Retailers to classify the products.
  • It is a logical way in which the products are classified, based on the manner in which the consumers are likely to buy the products.
  • The merchandise classification may be carried out on the following levels:
    1. FIRST LEVEL OF CLASSIFICATION :-
      • It is the Company or the Retail store at which the first stage of classification takes place.
      • Each Retailer or Retail Organization will have its own method of classifying its product range based on the definition or classification factors it may use.
    2. SECOND LEVEL OF CLASSIFICATION :-
      • The second level of classification happens at the department level.
      • For example the departments could be Apparels or Leather or Perfumes or Beauty care Products, etc.
    3. THIRD LEVEL OF CLASSIFICATION :-
      • The third level of classification is on the basis of Merchandise Classification.
      • Example, Men’s or Women’s or Kid’s in the Apparel section.
    4. FOURTH LEVEL OF CLASSIFICATION :-
      • The fourth level of classification is at the level of Merchandise Category.
      • Example for Men’s Apparel we can have categories like Shirts, Trousers, Denims, Jackets, kurtas, etc.
    5. FIFTH LEVEL OF CLASSIFICATION :-
      • The fifth level of classification could be at the level of Merchandise SubCategory.
      • Example, the sub-category in the Shirt could be formal and casual.
    6. SIXTH LEVEL OF CLASSIFICATION :-
      • The sixth level of classification is in terms of style in formal sub-category .
      • Example, buttoned-down and stand-up collar.
    7. SEVENTH AND FINAL LEVEL OF CLASSIFICATION :-
      • Finally the classification could be at the size level.
      • Which is the SKU for the Men’s Apparel section.
  • Classification level offers certain specific benefits to the consumer segment which is looking for the said benefit.
  • The classification or categorization is done on the basis of consumer need.
  • While doing this classification, you must take care to see that the sub-group or sub-category is preferred by a substantial section or segment of the consumers in order to justify the said grouping .
  • Merchandise hierarchy helps not only in classification of a product class but in also grouping of benefits offered by various sub-groups.
  • The company may design certain schemes for improving sales of the particular group of products falling under the given sub-group based on various subgroups.
  • The classification also helps the head of the merchandising line or Product Category to determine on the manning of each of the classification, including the buying.
  • Thus, Head Merchandiser or Vice-President Merchandising of Apparel section may decide to have separate Senior Merchandisers to handle Men’s, Women’s, and Kid’s wear sections.
  • If he thinks each of these sections are very large in terms of their individual business and consumer interest.
  • He may decide to have separate team of merchandisers and buyers to look after each of the product categories like shirt, trouser and suits.
  • Further, within a category like shirt itself, we can have next level of bifurcation on the basis of occasion to wear – formal, casual, and party-wear.
  • Hence, the Head of the merchandising department needs to be very much analytical and research minded to understand the groupings.
  • He/she may make effective use of promotional resources to promote each classification group successfully to earn best returns for the division and thereby to the company.


1.9 SUMMARY OF THIS CHAPTER :-

  • Retailers are required to take strategic direction in the four key elements, namely the merchandise strategy, communication strategy, customer service strategy and the format and environment strategy.
  • The merchandise strategy is going to be the most crucial one, as this one element will substantially influence the other three elements.
  • The retailers would vouch for achieving the perfect balance among the right merchandise, right place, right time, right quantity and right price.
  • Retailers who can achieve this are successful in their venture.
  • The role of the merchandiser has changed remarkably from the historical time when merchandisers were really performing more a role of a merchant.
  • They were selling different kinds of merchandise to different towns and villages in the home country or in another country.
  • Now the merchandiser’s role has become more specialized. He/ she assists the businessman or the corporations who are dealing in the export business.
  • The merchandiser’s role in the retail business involves research, planning, co-ordination, control, visual-display, sales promotion, training motivation, etc.
  • Every retailer or retail organization has to evolve a certain philosophy for its merchandising operation.
  • The philosophy is determined by the strategic route the company decides to take.
  • For example, if the company decides to go by the philosophy of affordability with reasonable quality, the merchandiser first of all will have to decide on its target consumers.
  • There are various types of merchandise or consumer goods used by the end consumers.
  • Understanding these types will greatly help in determining the strategies that are suitable for selling each of these types.
  • Consumer goods merchandise fall broadly into four groups, namely routine or convenience products, shopping products, specialty products and unsought goods.
  • The companies classify the merchandise in a logical way, based on the manner in which the consumers are likely to buy the products.
  • The first classification is done at the company or retail store level.
  • The next level of classification occurs at the department level.
  • It is followed by the classification on the basis of merchandise classes.
  • The next level of classification is done at the level of merchandise category followed by classification at the sub-category.
  • Finally, the classification could be at the size level.


1.10 VERY VERY IMPORTANT QUESTIONS

  1. Explain the concept of merchandising?
  2. discuss the key elements of merchandising?
  3. explain the process of merchandising?
  4. discuss different roles played by the merchandisers?
  5. describe the philosophy of merchandising?
  6. describe different types of merchandise?
  7. discuss the classification of merchandise?
  8. What do you mean by merchandising? Describe its key elements.
  9. How has the role of the merchandiser changed from the historical time? Explain how it has broadened his areas of activities.
  10. Describe different roles of the merchandiser in the retail business.
  11. What do you mean by merchandising philosophy? Giving the example of a super store, explain how is it developed for the mass market.
  12. Describe different types of merchandise giving the examples of each type.
Tags

You may like these posts

Post a Comment

0 Comments
* Please Don't Spam Here. All the Comments are Reviewed by Admin.