(a) What is merchandising? (b) Mention following merchandising activities. (c) State seven functions of merchandising.

Answer Details

(a) What is merchandising?

Merchandising is the range of activities carried out at the point of sale to present, display and promote goods attractively so as to encourage customers to buy. It involves having the right goods, in the right quantity, at the right place, at the right time and at the right price, well displayed to stimulate purchase.

(b) Merchandising activities

1. Displaying goods attractively on shelves and stands.
2. Arranging and re-stocking (facing/replenishing) goods.
3. Price tagging/labelling of goods.
4. Setting up point-of-sale promotional materials (posters, banners, special-offer signs).
5. Checking stock levels and removing expired or damaged goods.
6. Keeping the display area clean and orderly.

(c) Seven functions of merchandising

1. Attracting customers: Good display and arrangement draw shoppers' attention to the goods.
2. Stimulating impulse buying: Well-positioned goods encourage unplanned purchases and increase sales.
3. Providing product information: Labels, tags and displays inform customers about price, use and benefits.
4. Ensuring availability of goods: It keeps shelves stocked so that goods are always available when wanted.
5. Promoting sales: It supports advertising and promotions right where the buying decision is made.
6. Stock control/checking: It monitors stock, detects fast- and slow-moving items and prevents stock-outs and expiry.
7. Building brand image and loyalty: Neat, consistent display creates a good impression and keeps customers returning.
8. Providing feedback: It reports customer reactions and sales patterns to management.