What is the meaning of Merchandising? Concept, Definition of Merchandising


Concepts and meanings of Merchandising

Definition of Merchandising

Merchandising is an English word that is not part of the dictionary of the Real Academia Española (RAE). The concept is used to appoint the licensed product that is typically sold with the support of a brand, a logo or an image.
The merchandising is the product that represents the degree element or that uses images subject to license with the aim that the attraction that generates brand or character in question impulse sales.
A white t-shirt with the face of Mickey Mouse will sell much more than a smooth white shirt of the same quality. Similarly, Ferrari fans will buy all kinds of merchandising of the Italian company for the purpose of collection.
For example: "In the Mall they installed a store that sells official merchandise from Harry Potter," "pop idols from Disney are the perfect business since they collect millions of dollars a year from the sale of merchandising", "I would like to acquire the license of the products of the NBA to offer merchandising in the city".
The notion of merchandising is also used to denote the branch of marketing whose objective is to increase profitability at the point of sale from the stimulation of demand.
Merchandising, in that sense, includes various techniques which aim to present products or services in the best conditions to ensure that they are attractive to the potential buyer. The intention is to capture attention and influencing the conduct of purchase in favour of certain articles.


Meaning of Merchandising

Merchandising (term Anglo-Saxon composed the word merchandise, meaning goods and the ending - ing, which means Thanksgiving) or micro-mercadotecnia is the part of the marketing that aims to increase profitability at the point of sale. They are activities that stimulate the purchase at the point of sale. It is the set of studies and business techniques that allow you to present the product or service in the best conditions, both physical and psychological, to the final consumer. As opposed to the passive presentation, an active presentation of the product or service is performed using a variety of mechanisms that make it more attractive: placement, presentation, etc.
The merchandising includes all activity carried out at a point of sale, which aims to reaffirm or change the purchasing behavior, in favour of more profitable items for the establishment. The basic objectives of the merchandising are: the attention, direct customer to the product, facilitate the action of purchase.
Moreover, the AMA, American Marketing Association, in his dictionary recalls that this word has two different meanings:
You can (1) refer to the promotional activities manufacturers in stores, such as specific exhibitors for their articles, or you can (2) identify management and decision-making of retailers with respect to an article or line item.
While the manufacturer sells a product or set of products that are relatively small, the dealer sells a full range of products, called «assortment».
Moreover, when the manufacturer designed your product you have in mind a very large potential market, spanning several countries. However, the Distributor is oriented to its area of influence, where they come from their current and potential clients.
This establishes the difference between:
• Merchandising of the manufacturer: shares in the manufacturer of a product at the point of sale, both those geared to the purchaser such as those aimed at the establishment itself or its staff, to achieve an adequate presence of their products at the point of sale.
Currently the merchandising objects are used by countless companies to achieve the attraction of new clients and buyers talking about a commercial environment that delivers a good product or service. Companies are seeking the attention of buyers with products from merchandinsing innovative, so to speak, out of the ordinary, so spending fortunes on creations, to sell, as to give to prominent clients. To give specific examples of merchandising products include: pens, key chains, hats and countless very expensive products for the purposes of pamper to their traditional customers, as well as sell to them those things that yearn for with the brand of the company to which they represent
• Merchandising of Distributor: shares of the retailer in its establishment, seeks to not only sell items of his assortment but also optimize the profitability of the surface dedicated to selling.


Definition of Merchandising

The term "merchandising", is the result of joining the substantive "merchandise", which means "merchandise" and radical "ing", which expresses action, i.e. action whereby puts the power of the consumer product, therefore we can define the "merchandising" by saying that:
"It is the set of techniques aimed at putting the products available to the consumer, obtaining a return on the investment made in the establishment".
This means that, whenever there is retail, in order to obtain certain benefits, there is a "merchandising".
The purpose of merchandising techniques are those in power continue arguing and influence on the public, in a consistent manner even if this seller is not or does not exists. Current social circles of medium and medium-high level, increasingly like more independence and freedom at the time of purchase, and especially at the time of the purchase decision.
Morning trades will tend to replace on sales by the visual verbal argumentation. A good plan of "merchandising" allows that the product itself is present, and provides the customer with better. You can say, "merchandising" serves to sell more and better in a direct way.
This proven scientifically, that the sales process is not more than a process of visual communication, since the view represents 80% of human perception, the ear implies 10% and the rest of the senses touch, smell and taste, the other 10%. This means that the visual is fundamental to sell, as well as the involvement of the client in the purchase process. Merchandising provides the possibility to bring the goods to the eyes and the hands of buyers.
If through Marketing is elaborated policy to be followed in the management of sale, through the Merchandising application runs this policy, putting the goods moving, exhibiting them, promoting them with appropriate techniques, using psychological elements that allow impact, interest to customers and induce them to buy, and while research creates questions; advertising informs, attracts the public; the promotion motivates customer, incites him to buy; the Merchandising moves the merchandise to the customer.
Principles of Merchandising:
• Profitability
• Location
• Impact
• Availability
• Price
• Display

Implementation of Merchandising

The "merchandising" is traditional and popularly always associated with the product in relation to the linear. It is also often applied to the area of sale. A few technicians, especially the theorists, who know the real needs of trade, because there is a big difference between books and everyday life, but generically we can say that "merchandising" can be applied to every interior and exterior corner of the establishment, each space reaches the eye of the customer. In graphic art, in color, value, location of doors and corridors, situation of the departments or group of products, product exhibition, exhibitions and decorative elements, presentation of the product, treatment to the public, rest areas, levels of sales, business cards, letters, promotional printed products, etc., tags must be mentalized that everything has its value and must be profitable.
Unfortunately not always applies the Merchandising, especially in businesses of a certain age, but it is more regrettable that their owners, to report on the subject, often lack interest and almost never applied.
That trade has or lacks personality, will depend largely on that is applied or not a proper Marketing Plan, vocabulary, the presence of the seller, ambient light, zone of rest, ambient sound and PA system, and decorative elements. These are some of the examples of elements where the "merchandising" does not apply.

Sales systems used:

Traditional selling system: the goods are situated on shelves and counters, where the client does not have access.
Semi-autoservicio: Goods are placed on shelves, furniture Center salon, hangers, etc., with free access for customers, applicants for the attention of the seller once they selected goods.
Self-service: It is similar to the previous, but in this case the customer has greater freedom, because personally takes the goods to box so they earn it.
The main effect being pursued to obtain sales, is the sell more with less expenses. All the "merchandising" technique, is based on psychology and achieved that the visitor becomes a customer.
All the elements of a trade have their own individual message; for example:
• Red: Force, passion, heat, etc.
• Horizontal lines: Peace, relaxation, smoothness, etc.
• Marbles: Coldness, hardness, etc.
• Wood: Home, heat, etc.
• Light intensity: confidence, freedom, etc.
• Correct vocabulary: Attention, flattery, courtesy, etc.
If these elements are combined properly, the message will be clean and discernible, if on the contrary, each element transmit different sensations, the message will be incomprehensible. Societies today, like every day more caring for your image and feel special, without taking into account the economic levels. If you are able to show a proper atmosphere, which'm flattered the ego of the client achieved fidelity to the accommodation phenomenon which, as almost everyone knows, has no cost.

Types of Merchandising:

1. Merchandising organization:
• Determination of the place indicated and more appropriate at the point of sale.
• Structuring of space by families of products.
2 Merchandising by management:
• Determination of the linear size of each section.
• Linear distribution in families.
• Know the rotation of the product.
• Know the profitability of the linear meter.
• Comparative analysis between brands and product families.
3 Merchandising of seduction and animation:
• Create attractive sections.
• Look for furniture perfectly designed to present (gondolas). To thus identify - inform - decorate and save space.
Consumers, 80% of purchases are unplanned and the other 20% are on impulse, for this reason the merchandising is becoming increasingly important in supermarkets and in department stores.


Merchandising concept

What does the term 'merchandising' mean?

The term "merchandising", is the result of joining the substantive "merchandise", which means "merchandise" and radical "ing", which expresses action, i.e. action whereby puts the power of the consumer product, therefore we can define the "merchandising" by saying that:

"It is the set of techniques aimed at putting the products available to the consumer, obtaining a return on the investment made in the establishment".

This means that, whenever there is retail, in order to obtain certain benefits, there is a "merchandising".

What does the 'merchandising'?

To be able to continue arguing and influence on the constant public although this seller is not or it does not exist. Current social circles of medium and medium-high level, increasingly like more independence and freedom at the time of purchase, and especially at the time of the purchase decision.

Morning trades will tend to replace on sales by the visual verbal argumentation. A good Plan of "merchandising" allows that the product itself is present and offer better customer, in conclusion, the "merchandising" serves to sell more and better in a direct way.

Where is the 'merchandising' applied?

The "merchandising" is traditional and popularly always associated with the product in relation to the linear. It is also often applied to the area of sale (P.L.V). A few technicians, especially the theorists, who know the real needs of trade, because there is a big difference between books and life, but generically I will say that the "merchandising" can be applied to every interior and exterior corner of the establishment, each space reaches the eye of the customer.

In graphic art, in color, value of the surface, the situation of doors and corridors, situation of the departments or group of products, exposure of the product, exhibitions and decorative elements, product presentation, treatment to the public, rest areas, levels of sales, business cards, letters, promotional printed labels on products, etc... There mentalizing that everything has its value and must be profitable.

Always apply the 'merchandising'?

Unfortunately not, especially in businesses of a certain age, but it is more regrettable that their owners, when you report on the topic, they often lack interest and almost never applied.

As I say above, should be applied in all elements of the establishment, not only in the theorists. Unfortunately very important elements of trade remain untapped and this very directly affects the sale.

That trade has or lacks personality, will depend in large part that is applied or not a proper Marketing Plan. Vocabulary, presence of the seller, ambient light, zone of rest, ambient sound and PA system, decorative elements, are some of the examples of elements where the "merchandising" does not apply.
How will the 'merchandising' influences the sale? Sell more, with less expenses. All the "merchandising" technique, is based on psychology and achieved that the visitor becomes a customer.

All the elements of a trade have their own individual message; for example: red, strength, passion, heat, etc.; Horizontal lines, peace, relaxation, smoothness, etc.; Marbles, hardness, coldness, etc.; Wood, home, heat, etc.; Intensity of light, confidence, freedom, etc.; Correct vocabulary, care, education, flattery, courtesy, etc.

If these elements are combined properly, message will be clean and discernible, if on the contrary, each element transmit different sensations, the message will be incomprehensible. Societies today, like every day more caring for your image and feel special, without taking into account the economic levels. If we are able to show a proper atmosphere, which'm flattered the ego of the client, we will have succeeded in fidelity to our establishment, phenomenon which, as almost everyone knows, has no cost.

** Is a new formula of sales techniques, whose main pillars are the presentation, rotation and the
benefit.
** It is the set of actions that tend to the best valuation possible product to the Distributor
and the consumer.
** It is presented aid for a product that is sold in supermarkets and which must be defended completely
only.
It is a Word, an evolution of business methods. In parallel and in front of the revolution
fast techniques of modern distribution, well prepared to accept a real support.
Citing the same publication, the French Academy of Sciences trade gives the following definition: "Merchandising is a part of Marketing which encompasses commercial techniques that allow you to submit to the prospective buyer the product or service in the best material and psychological conditions. The Merchandising tends to replace the passive presentation of product or service by an active presentation, appealing to all that can make it more attractive: placement, performance, packaging and presentation, display, installation...
The French Institute of Merchandising adds: "Set of studies and techniques of sunsets in practice of form if the joint, by distributors and manufacturers with a view to increasing profitability point of sale and the introduction of products, through a constant adaptation of the assortment to the needs of the market and by presenting proper goods."
In summary and with minimum words, one can say that the Merchandising is the Marketing of the point of sale.
In the field of trade to the wholesale, economic growth is manifested in Europe at the end of the second world war. It is, then, when they begin to develop free-service establishments.
This type of sales is characterized by:
-Presentation to view and access the client.
-Free customer's access to the product.
-Free choice of the products by the buyer, without having to intervene the figure of the seller.
-Centralisation of payment of the products in a few specific places: boxes.
-Putting at the disposal of the clientele of the necessary material (basket or cart) to enable him collect and transport the goods from the interior of the establishment to boxes.
The utility of this selling technique is manifested by the creation of new establishments of all kinds: specialized shops, franchises, superettes, supermarket chains and hypermarkets, among others. All of them aims to reduce the costs of distribution of products, in order to increase the profitability of the capital invested in this branch of economic activity. Items that are sold in shops in free service do not have the presence of vendors for their promotion. All of them are in competition in front of the consumer and must be autovenderse.
Visibility for manufacturer, its advertising and promotional activity and a good exposure at the point of sale will help this autoargumentacion.
From the point of view of the manufacturer, the Merchandising is regarded as all operations that have intended promote a product. This conception has been developed much in the United States. In a broad sense, the Merchandising starts with the design of the product and ends with all the actions aimed at the presentation of the product at the point of sale.
The concept takes a much more important sense for the Distributor. This includes all the techniques whose objective is to monetize as much as possible every square metre of sales area (implementation in the establishment, the provision of the products, their place in the section...).
We call linear the stocks and surface exposure of the products at the place of sale. The shelves on which the products are presented typically have an approximate height of 1.80 metres with five shelves and a very uneven commercial value; higher and lower shelves are those with lower value (which held fewer sales). In the environment, being the best are and, above all, the more acsesibles at the hand of the homemaker, are by far the best situation of almost all products. Once rinsing this, is easy to understand the interest of many manufacturers to place their products on the best shelves, trying to prevent being the Distributor which place them according to their criteria of profitability or, as does sometimes randomly.
The lowest shelf serves, above all, for daily consumption products, easily identifiable by the housewife (detergent barrels, bags of potatoes, table wines...). The disposal of products on the shelves must comply with the fundamental principle of the Merchandising, which reads as follows:
"What you see is sold, everything you take purchase."
The headwaters of gondola, i.e. limbs located at junctions of movement inside the establishment, tend to be used with great results in items that cross a particular promotional action.
The second principle of the Merchandising also reveals the importance of the visual factor in selling: "Is the mass which makes sell." Indeed, the presentation in mass draws the attention of the buyer, giving rise to a feeling of abundance, of power and, to some extent, buying euphoria. This type of presentation can be done outside of the gondolas. A presentation of mass horizontal to keeping the entire length of a bookshelf for the same product or to several of the same family can be on the shelves. The presentation can be vertical, and in this case, the products are presented at different levels.
The "facing" of products in its exhibition on the gondolas that is visible by the consumer. The Distributor has a tendency to grant more "facing" most sold and products that are more profitable. These interests do not always coincide with those of the producer.
Another rule of the Merchandising consists of observing how a few products can help the sale of others and help each other. It is necessary to alternate them in such a way that the best-selling products support of minor, and that the purchase of one gives rise to the purchase of the other. From this approach, is organized the exhibition in such a way that rotation and high margin products alternate with those sold with more difficulty. This type of presentation is much more profitable that try to regroup all very marketable products, leaving aside those who are not. In the same order of ideas are frequently grouped products whose use is complementary. Thus, you can place condiments, prepared sauces, etc., near the meat section and not with other products of its kind.
Manufacturers cannot ignore all of these techniques. The implementation and status of their products at the point of sale largely determines the success or failure of the same. You must also bear in mind that the distribution of an increasingly high percentage of FMCG products, passes today by establishments in regime of free service.
As said Robert F. Werner (Membre de L' Académie des Sciences commercial et President du Groupe des Experts de l'Association lnternationale Distribution Alimentaire et de Produits de Consomation.Administrador de L'Institut Frangaise rande du free-Service):
"Merchandising techniques allow the merchant to remain the pattern of your business, guiandole in striving to improve the results. This lets you exit a passive function where is satisfied with follow the instructions of its clients".
"In a period of difficult economic juncture, Merchandising can be one of the routes that will pass an extensive type development to intensive growth, that it may be the real way to improve productivity and the work of men."


What is Merchandising

Faced with the new reality in which customer has total freedom of product choice and also brings mutual benefits (store and client), there is a negative aspect: consumer - interaction is lost seller. Traders arise new forms suggest that you buy your product and thus begins to appear the merchandising, a part of the marketing that is applied at the point of sale through commercial techniques that allow you to present the product in a manner attractive (extolling its qualities to incite the purchase).
The store, point of solidarity, with patience and waiting the decision of supermarket customer crushes rivals in short is a form of "bargaining at a distance". As the seller already not can convince directly the customer, it's playing with the psychological aspects and stimulate unconscious buying. The evolution of the supermarket offers another new aspect the consumer desire that joins the constant race towards the lowest prices. Evolution of the merchandising can be divided in 3 consecutive times in time: ‐ presentation. It focused on exposing the product of the most suggestive way. ‐ Management. The trader tries to maximising the surface of the tent in an increasingly competitive world (benefit analysis, product profitability by m2 rotation...). ‐ Seduction. The consumer is much more selective and demanding, the purchase has become a place of leisure and must seduce the client. As a result, commercial techniques have tuned increasingly since the first ads in 1940 a Big Bear supermarket until our days, "the primitive self-service shop" has been transformed to accommodate a higher volume of sales.
Today, supermarket extension to housing, through the magazine or internet in most supermarkets, the customer won't have no choice but to enter through the right of cash registers, since the tendency for people is to turn your head to the right. Almost the entire surface shall extend to the left and the right side is a space designed to hold things that the merchant wants to sell (clothing, Cologne...) The height of the shelves is the maximum sales area useful, allowing the permeability by top that avoids the feeling of enclosure. The halls measured maximum three carts of width, just enough to stop long enough and see products on both sides. Distribution of exhibitors is labyrinthine and very studied, forcing go you throughout the establishment. They have no Windows, so the client focuses only on purchase, but instead in the area of cash registers, they are Windows to make the waiting consumer more enjoyable. Today, more than half of the sales of products in a supermarket are impulsive, reaching the end of the customer cards that allow to analyze the habits of shopping, according to age or area of residence. The user control characterizes this new space, which has evolved comprehensively in that field, and ratifies it its spatial form.