Professional Documents
Culture Documents
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Merchandising
Origin:
12501300; Middle English marchandise <
Old French. See merchant, -ice
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Merchandising
Activities involved in:
acquiring particular goods /services
make available at the:
* places,
* times,
* prices
* quantity
that enable a retailer to reach its goals.
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Merchandising Philosophy
Sets the guiding principles for all the merchandise
decisions that a retailer makes
Should reflect
* Target market desires
* Retailers institutional type
* Market-place positioning
* Defined value chain
* Supplier capabilities
* Costs
* Competitors
* Product trends
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Scope of Responsibility
Full array of merchandising functions
* Buying and selling
* Selection, pricing, display, customer
transactions
Focus on buying function only
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Merchandising Philosophy
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Micromerchandising
Retailer adjusts shelf-space
allocations to respond to customer
and other differences among local
markets
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Cross-merchandising
Retailers carry complementary
goods and services to encourage
shoppers to buy more
Tea-Milk-Sugar-Cup-Disposable Cup
Coffee maker near Coffee
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Buying Organization
Formats & Process
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Men/Women/Kids
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Functions Performed
Merchandising view
* All buying and selling functions
Assortments
Advertising pricing
Point-of-sale displays
Employee utilization
Personal selling approaches
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Functions Performed
Buying view
* Buyers manage buying functions
Buying
Advertising
Pricing
* In-store personnel manage other functions
Assortments
Point-of-sale displays
Employee utilization
Personal selling approaches
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Devising Merchandising
Plan
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Considerations in Devising
Merchandise Plans
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Forecasts
Forecasts are projections of expected retail
sales for given periods
* Components:
Overall company projections
Product category projections
Item-by-item projections
Store-by-store projections (if a chain)
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Types of Merchandise
Staple merchandise
Assortment merchandise
Fashion merchandise
Seasonal merchandise
Fad merchandise
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Staple Merchandise
Regular products carried by a retailer
* Grocery store staple examples
Milk
Bread
Canned soup
Basic stock lists specify inventory level,
color, brand, style, category, size, package,
etc.
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Assortment Merchandise
Apparel, furniture, auto, and other products
for which the retailer must carry a variety of
products in order to give customers a
proper selection
Decisions on Assortment
* Product lines, styles, designs, and colors
are projected
* Model stock plan
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Retail
Assortment
Strategies
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Brands
Manufacturer
(national)
Private
(dealer or store brand)
Generic
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2.
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Category Management
is a retailing concept in which the range of products sold
by a retailer is broken down into discrete groups of similar
or related products;
these groups are known as product categories (examples
of grocery categories might be: tinned fish, washing
detergent, toothpastes).
it is a systematic, disciplined approach to managing a
product category as a strategic business unit.
each category is run as a "mini business" (business unit)
in its own right, with its own set of turnover and/or
profitability targets and strategies.
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Applying
Category
Management
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Merchandising Software
General Merchandise Planning Software
Forecasting Software
Innovativeness Software
Assortment Software
Allocation Software
Category Management Software
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