Types of Merchandising

3084 WordsNov 13, 200913 Pages
Chapter I Merchandising –Introduction, role, functions, types Mrs. Manju is on a visit to the neighborhood store. It sells a variety of daily essentials. She asked for jam. The merchant in the store brought it to her from the shelf at the back of the counter. She paid the bill and left the store with the bottle of jam. We notice that the merchant sold merchandise – “jam” to Mrs. Manju. If the jam is in the store, Mrs. Manju will not know of its existence. She is aware of it only when the merchant showed it personally. Consider also that as the bottle of jam is on display on the shelf at the back of the counter, when Mrs. Manju entered the store she saw it from a distance. When she asked for it, the merchant readily brought the…show more content…
In Delhi woolens come on for display in the month of November in stores. Merchandising is finding the right product to display at the right time and right place with right price. We considered above merchandising situations in retail stores. But how are the products brought to the store? What do we call the activities before they reach the store? Who buys them for the store? Where do the products come from? What did they cost? How are they made and moved to the store location? And, finally who prices these products? All these activities are called merchandising. If you look in the Merriam – Webster dictionary, it tells us that the word was coined in 1932, and defines it as, “sales promotion as a comprehensive function including market research, development of new products, coordination of manufacture and marketing, and effective advertising and selling.” Merchandising as an activity starts with market research and ends with sale of merchandise. The chain of intermediate activities between these forms the functions of merchandising. Some of these activities are store space – buy – price – display – sale, while others are source – sample – cost – production – quality – packing – delivery. We can thus attribute these activities to two segments of the chain. The Retail segment and the Vendor segment. We have thus two functions of merchandising – Retail – Vendor (Production) – that we will discuss

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