CH 12- Retail Merchandising

What is the formal definition of Merchandising?

Merchandising involves all the activities necessary to get goods and make them available to customers in the right locations, at the right times(e.g., seasonally), at the right prices, and in the right quantities to avoid stockouts

Which of the “Four Ps” of marketing is merchandising most closely associated with?

Merchandising is the “Product” piece of the four Ps because it focuses entirely on what the retailer is selling to the customer

What is Merchandising Philosophy?

A set of guiding principles, often in writing or “mood board”, that helps a retailer shape all decisions regarding the products they carry

How does Urban Outfitters company use merchandising philosophies to avoid cannibalism?

They differentiate their brands by target age and lifestyle: Urban Outfitters (18-28 years old), Free People (25-30 year-old contemporary women), and Anthropology (28-45 year old’s) . This ensures each brand has a distinct market position without stealing customers from the others

Define Micro merchandising

A strategy where a retailer adjusts shelf space and product assortment based on specific local customer segmentations

What is a classic example of Micro merchandising in Tallahassee?

Local retailers and grocery stores (like Public) dedicating entire aisles or sections to FSU merchandise because they know local customer base prioritizes those products

Define Cross-merchandising

When a retailer places complementary goods next to each other to encourage impulse buys based on how the products are used together.

What are two examples of Cross-merchandising mentioned in the text?

1. Placing marshmallows and chocolate next to graham crackers for s’mores

2. Placing first-aid kits in the bicycle section

What is the “Narrow” scope of a merchandising role?

This role is focused strictly on the buying function: choosing goods, going to market, and tracking trends

What is the “Broad” scope of a merchandising role?

This role involves total responsibility for a product line, including buying, pricing, advertising, store displays, and training employees on the product’s benefits

What is the role of a Buyer?

A buyer is responsible for selecting the specific goods sold by the retailer, whether it’s produce for Publix or the latest trends for a fashion boutique

Why should merchandising decisions be rooted in the customer’s “benefit” rather than just the product?

Retailers like Southwest succeed by viewing themselves as providing a service/experience rather than just a product; similarly, cross-merchandising works because it focuses on the experience (like making s/mores) rather than the individual items