Merchandising SS1 Marketing Lesson Note

Merchandising is a company activity that involves gathering the right product or service to the market at the right time, at the right price and in the right colour and size.

Merchandizing can also be described as an activity of selling and promoting particular goods.

A merchandiser is a trader who presents the product in such a way as to capture the consumer’s attention.

FEATURES OF MERCHANDISING

1. Packaging- These are the activities involved in designing and producing the container and wrapper for a product.

Importance Of Packaging

1. Attraction.
2. Promotion.
3. Facilities purchase decision.
4. Differentiation.
5. Physical protection.
6. Information transmission.
7. Branding- This is a term, sign, name, symbol, design or a combination of any of these used to identify the product or service of a producer, seller or group of sellers. Eg. Nike, Coca-Cola etc.

Benefits Of Branding

1. Recognition and loyalty.
2. Image of size.
3. Image of quality.
4. Image of experience and reliability.
5. Multiple product

3. Labeling: This is a carrier of information about the product labels attached to the product package to prove information about the product such as the manufacturer of the product, date of manufacture, expiry date, its ingredients, and how to use and handle the product.

CONDITIONS IN MERCHANDISING

1. Warehousing Cost- This is the cost incurred to store goods eg. Rent, utilities, salaries, insurance etc.
2. Transportation Cost- These are costs internally assumed by the producer of transport services eg. Fuel, gas etc.

FUNCTIONS OF MERCHANDISING

1. Storing: It involves the holding of goods in proper condition from the time they are produced until the consumers need them.
2. Transportation- Helps in the physical movement of goods from places where they are produced to the place where they are demanded.
3. Product Differentiation- Branding makes it easy for products to be easily differentiated from other products.
4. Advertising-Packaging contributes to the firm’s promotional strategy.
5. Market research sales depend on maintaining a stable relationship between supply and demand.

SCRAMBLED MERCHANDISING

This is a situation when a retail business offers a mix of unrelated products that do not reflect the company’s original focus. Eg. The combination of groceries and a drug store [H- medix].