Why is it Important to Understand the Retail Marketing Merchandising Definition?

What is the retail marketing merchandising definition and why is it important for every professional retailer to be familiar with it? Understanding the concepts of retail marketing and retail merchandising is vital to ensure the success of any retail business since it involves not only choosing the right types of products to sell but also how to promote them to your customers.

Retail merchandising involves the whole process of conducting retail sales, starting from choosing which products will appear on your store’s shelves, deciding how best to market these to consumers as well as pricing decisions. Retail marketing, on the other hand, focuses only on how best to reach the target customers in order to interest them in buying your products and can involve processes such as product promotion.

Once you have a clear idea of what is the retail marketing merchandising definition, you can start applying your understanding of these concepts to create specific plans to achieve your retail goals. For example, you can draw up a merchandising plan by first doing a study of what products are available on the market that may be appropriate to be sold in your store and then establishing relationships with the suppliers of these products to get the most favorable price based on the volume of goods you will buy. Once you have arranged a regular supply of products to sell, you will have to determine the unit price you will sell them for that will ensure that your store makes a profit. There are a number of ways of setting unit prices, including adding a certain percentage above the unit acquisition price to looking at the demand for the product vs. the supply in the immediate area and setting the price accordingly.

Once you have determined the unit selling price and have the products on your shelves, it is time to promote them to your customers. This can involve moves such as initially offering the product at a lower price as an incentive for people to try it out, setting up attractive displays in the stores to make people aware of the new product and its benefits and favorable placement within the store. An example is if the product may be placed near the checkout counters so that people would impulsively add it to their purchases as they are checking out. All of these plans are an important part of the concrete application of the retail marketing merchandising definition in a real-world retail setting.

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