Scribd
Upload
115 views26 pages

Merchandising Business: Prepared By: Janica C. Reyes BSBA 1-2B Prepared To: Mr. Romancito Sanchez GE-Elec Instructor

This document discusses merchandising businesses. It defines merchandising businesses as firms that buy finished goods from suppliers and resell them to customers without changing their form. Examples include grocery stores, bookstores, and department stores. The document outlines the advantages and disadvantages of merchandising businesses, such as bringing in customers but also demanding more staff. It explains the importance of merchandising for influencing sales, creating product awareness, and manipulating customers psychologically. The roles and responsibilities of merchandising buyers are also defined.

Uploaded by

Janica Reyes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
115 views26 pages

Merchandising Business: Prepared By: Janica C. Reyes BSBA 1-2B Prepared To: Mr. Romancito Sanchez GE-Elec Instructor

This document discusses merchandising businesses. It defines merchandising businesses as firms that buy finished goods from suppliers and resell them to customers without changing their form. Examples include grocery stores, bookstores, and department stores. The document outlines the advantages and disadvantages of merchandising businesses, such as bringing in customers but also demanding more staff. It explains the importance of merchandising for influencing sales, creating product awareness, and manipulating customers psychologically. The roles and responsibilities of merchandising buyers are also defined.

Uploaded by

Janica Reyes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 26

MERCHANDISING

BUSINESS

Prepared by: Prepared to:


Janica C. Reyes Mr. Romancito Sanchez
BSBA 1-2B GE- Elec Instructor
 Firms that buy finished or almost finished
goods from their suppliers and re-sell the
same to customers.

 This business goods or commodities and


sell them at a profit ( Sales of GOODS )
(Buy => Sell )
A merchandising business sells a product
without changing its forms.

Examples are::

Grocery stores, Convenience stores, and distributors, Supermarkets,


bookstores, department stores, and other resellers.

Merchandising is the arrangement and design of


goods and retail space to make the
buying experience more attractive and fun
for the consumer.
It consists of product display, pricing , store
layout, signage and promotional events and all
manner of sales-driving techniques aimed at
raising the profile and the profit of
your small retail business.

 Business that sell Merchandise are known as


Merchandising companies.
 Since they sell products, we now must
track the purchase, cost and sales of
these goods.

 This is done through tracking the Merchandising


Inventory Account.

 Earns net income by buying and selling


merchandise.
2 Types of Merchandising Business

Retail merchandising business – sells to those who


use or consume goods.

Wholesale merchandising business – buys and sells


merchandise to retail merchandising business.
ADVANTAGES AND DISADVANTAGES
OF MERCHANDISING BUSINESS
ADVANTAGES

1. Brings Customers In

Bright signage and manicured grounds, a clean


parking lot and well-kept retail structure
are all factors that help shoppers to
determine if a trip inside is warranted
or if the store does not look like somewhere they
would prefer to be.
2. Increased Sales

Pricing, displays, product packaging and arrangement sale


signs and promotional marketing can all drive
sales upward while improving the shopping experience
for your customers.
3. Attractive Spaces

Proper merchandising may require the rearrangement of


aisles, shelves, display fixtures and the general
layout of the interior retail space.

It will also help to create an


environment that can handle more people, more
efficiently and makes the overall shopping experience
less of a chore.
DISADVANTAGES

1. Demands on Staff

An increase in customers often translates to


a necessary increase in payroll.

With more people coming in on a


daily basis, more sales and more deliveries
comes more customer service issues, longer hours
and a need for more bodies to
do the work.
2. Once is Not Enough

The greatest disadvantage of successful


merchandising may be the need to keep
at it to meet the expectations of
your client and to keep a steady
stream of new customers coming in.
3. Expense

The expense of installing new fixtures, creating


new signage and improving the overall appearance
of your retail space inside and out
can add up quickly.

Although good merchandising can result in an


increase in profitability over the long haul,
it will likely cost you time, effort
and money in the short run.
IMPORTANCE OF MERCHANDISING

Merchandising and its various applications help shape


the world around us and our perception
of that world as much as advertising
and the media.

Simply put, merchandising constitutes the manner in


which retail outlets and marketers present products
for sale to the consumer, both in
form and content.
On the most basic level, the importance
of merchandising is reflected in sales.
Retail stores must make a certain amount
of money each day, week, month and
year in order to stay in business.

According to R. Srinivasan, author of “Case


Studies In Marketing,” merchandising directly
influences approximately two-thirds of all sales.
Merchandising impacts a business and, thereby, its
employees. Poor merchandising means poor sales, which
impacts retailers and manufacturers. This changes the
nature of the economy through potential job
loss.
Customer Awareness

Merchandising within a retail outlet creates product


awareness and works to associate products with one
another. For instance, a customer shopping for
a new computer may want speakers to
connect to that computer.

Successful merchandising places speakers in visual


range of the computers, raising customer awareness
of the product and potentially increasing sales.
Visual Merchandising

Visual merchandising constitutes a special branch of


merchandising concerned with creating the look of
merchandise within a store.

The role of the visual merchandiser entails


creating an aesthetically pleasing interior space
and a logical flow of products. of products.
Psychological Importance

In many respects, the importance of merchandising


lies in its ability to psychologically manipulate
the customer.

When successful, the psychological impact of


merchandising drives up sales, generates product
awareness, creates a comfortable visual environment for
the customer and pumps money into the
retail outlet.
THE ROLE AND RESPONSIBILITY OF BUYER

 Developing merchandise strategies for product line store,


he/she is responsible for.

 Planning and selecting merchandise assortments.

 Vendor selection, development and management.

Inventory management
How to Start a Merchandising Business?

One of the most successful forms of


businesses today is no other than the
merchandising business because this brings lots of
profit to a certain businessman.

Today, there are lots of opportunities when


it comes to a merchandising business.

One of the ways on how to


venture in the merchandising business with
less competition is to merchandise model
homes.
MERCHANDISE BUSINESS

- can be termed as the analysis, planning,


acquisition, handling and control of the merchandise
investments of a retail operation.

1) Analysis— because retailers must be able to


correctly identify their customers before they can
ascertain consumer desires and their needs /
requirements to make a good buying decision.
2) Planning – is important because merchandise to be
sold in the future must be bought now.

3) Acquisition – because the merchandise needs to be


procured from others – either distributors or
manufacturers.

4) Handling – involves seeing that the merchandise is


where it is needed and in the
proper condition to be sold.
5) Control – As the function of merchandising involves
spending money for acquiring products, it is
necessary to control the amount of money
spent on buying.
Thank You! &
GOD Bless

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy