Merchandising in Retail Marketing. MBA Marketing study material.

From at the beginning of choosing specific products to sell, buying it in wholesale till the end of the process by resale it to the end users and make a profit is a model of merchandising in the retail marketing environment.  Merchandising is a common practice of every set of business where products are displaying and selling to the end users. To influence the consumers and increase the sales volume is the main function of merchandising, whether it’s digital or in-store.

Merchandising:

“It is a process of offering a right product, with a right quantity, in right place, at right time to the right person to meet the organization’s financial goal”

Merchandiser:

“A person whether a wholesaler or a retailer, who buy the products or goods from the several sources for resale to the end users to make a profit is called as a merchandiser”.

Merchandiser always bond to a higher standard of duty of care as he supposed to have expert knowledge about products he engaged in.

Role of Merchandiser:

A merchandiser typically responsible for-

Planning and Forecasting:

Selecting a product category and Forecasting the budget and sales in the selected area.

Leading and Sourcing:

Leading and guiding the team and searching for various appropriate sources to purchase the products. Making a purchase order with suppliers.

Maintaining budget:

Making sure about the cost of products and budget planned. Work on the cost of the products

Co-ordinating and Controlling:

Co-ordinating with the suppliers about the shipment and controlling the stock or inventory purchase.

Evaluating Sales:

Analysing the performance of product and process and evaluating sales and profit margin.

Retail Merchandising Management Process:

·         Analysis:

It is vital to understand the needs or wants of consumers to the retailer. A retailer needs to identify and analyze target audience before pitching the products.

·         Planning:

Planning involves the process of selecting the right product, from the right supplier and sells it at the right price, in right place and at right time and quantity.

·         Acquisition:

Retailers need to take a lead to purchase the selected products in the estimated budget by appropriate suppliers. Retailers can purchase the goods from one or more than one suppliers.

·         Pricing:

In this step, retailers need to make a decision on the pricing structure of the products which are going to sell. It’s important making sure about the profit margin considered while making a price structure.

·         Handling and Control:

Maintaining a stock of goods is very important and costly process for every retailer. This is a process of spending money on maintaining a stock of goods at right time and in a right condition.

As we can see in this post, merchandising is a routine activity of every retailer. In retail, no one can avoid the merchandising.