What is Merchandising


What is Merchandising? Merchandising simply is any activity that leads to the sale of goods to a retail consumer. From a marketing point of view, merchandising actually refers to showing products to consumers that are in a creative manner that encourages them to buy more goods or items. Basically, merchandising definition would include the selling of a product to a customer. For any kind of business, merchandising plays an important role.

Definition of Merchandising

  • Merchandising is just the process by which products are presented to customers to encourage them to buy more products or goods.
  • Merchandising usually involves displaying goods that are on sale in a way that encourages consumers to purchase more. Merchandising is any process that leads to the sale of goods to a retail buyer.
  • Merchandising is the process of planning, buying and presenting goods to customers in order to sell them. Merchandising uses both product design and advertising techniques to influence buyers’ decisions at the point of purchase.

For any type of business, the selling of a product to a consumer calls for creativity on the part of the company or business that is selling the product. Now, when talking about a product, the meaning of merchandising does not only refer to selling a product. More than anything else, merchandising in essence means packaging a product for its commercialization. As such, merchandising definition refers to the designing and the creating of promotional items, promotional containers, and the like for the purpose of commercializing a certain product. Thus, merchandising in more practical sense would mean the creation of promotional items, the like, for the purpose of selling to consumers.

In addition to the creation of promotional items for the purpose of commercializing a certain product, a merchandiser also has to do some advertising. In effect, merchandising simply refers to the promotion of a particular product by means of mass marketing. Now, this aspect of merchandising is often not dealt with by people who are just entering the merchandising industry. But, in fact, the merchandising field has lots of specialized terms, one of which is marketing, which simply means the act of introducing a product or service to the general public.

Marketing can be done in so many different ways. It can be through distribution, where the merchandiser sells the products to retailers. Or it can also be done on a merchandising-directly to the consumer, where the merchandiser directly deals with the consumer by distributing the product. It should be noted that in both cases, merchandising involves the distribution of the product to clients. The distribution of the product helps in bringing in more customers for the business.

Another type of merchandising is that of merchandising that deals with the manufacturing and the assembly of the product. Here, the merchandiser is in charge of all the tasks that have something to do with making and assembling the product. Here, the merchandiser is responsible for the creation of the finished product, including all the activities involved in the creation and testing of the product. Basically, anything that has to do with the making and assembling of a product forms the core of the merchandising business.

The third type of merchandising, also known as retailing, is the most common type of selling. This type of selling involves a company to sell its merchandise to customers on the basis of contracts. Basically, in this case, a company hires another company to manufacture and assemble the merchandise for them and then resells them to consumers. This, however, involves a much higher level of skill and professionalism. Therefore, it is not an easy thing to do.

One type of merchandising that involves the manufacturers of the merchandise is the manufacturer-merchant relationship. In this case, there is a wholesaler, who manufactures the product and sells it to retailers at a profit. In turn, the retailers buy the product from the manufacturer and resell it to the end user or customer. Basically, this is the middleman between the manufacturer and the end user or customer.

What is merchandising, after all, is a way of earning a living by doing a business. It is not just enough that you sell products; you also have to be able to dole out value for what you sell. And with merchandising, you will dole out more than value because you will also be the middleman. That, plus the fact that you will get to earn money in a lot of different ways, makes merchandising in the best sense possible.