Merchandising is a marketing technique that encompasses a set of actions or activities used to present and promote products and/or services at the point of sale. Its main objective is the presentation of the product to the shopper. The aim is to influence the customer to increase their purchase impulse and achieve a sales boost.
When we talk about merchandising, we refer to a strategy based on placing the right products and/or services in the correct location, with the goal of increasing visits and sales. This includes the design of your store, the products you choose to sell, how you organize them, and even your pricing strategy. Retailers use merchandising in their stores to cultivate their image, enhance the customer experience, and drive sales.
"82% of brands believe they are offering an optimal experience, while 72% of consumers have found inconsistencies in the same experience at some touchpoints."
What Types of Merchandising Exist?
There are different types of merchandising, depending on their specific objectives. Companies can use one or more of these types to be effective in their marketing strategies.
Next we will explain the ones we consider to be the most important:
Promotional merchandising strategies aim to directly influence shoppers through a specific product that usually contains the company's logo (advertising or promotional item).
The goal of this type of merchandising is to increase the company's visibility. Common examples of promotional items include thermoses, pens, USB drives, agendas, etc., intended to enhance brand recall and ensure potential customers reach out to the company when needed. These items can be given away directly at fairs or activations or included as gifts or incentives with the purchase of products or services ("hook item," etc.).
This strategy involves using merchandising to rotate and renew the company’s inventory. This is done by strategically placing products in high-visibility areas within the point of sale. In physical stores, this might be end caps or aisle fronts; in online stores, it might be the homepage or highlighted category pages.
This is sometimes referred to as visual merchandising, as it’s a technique to influence product sales without being invasive, simply by placing the product where the shopper can see it more easily.
This strategy focuses on creating spaces that foster relationships with customers — for example, by participating in trade shows or events with a booth or by conducting a product demo.
The goal is to establish relationships, facilitate communication, and better understand the target audience.
This includes various elements that together form a complete merchandising image, especially in window displays. It’s about creating an experience in the sales space that evokes a positive emotional state and drives the purchase decision.
This takes into account visual elements like lighting and decoration, as well as human elements such as sales techniques. An example of seduction merchandising is inviting customers into a store to sample a product as a way to initiate a commercial relationship.
There are multiple factors that influence the customer’s purchasing decision. Among the most important merchandising elements are:
Some of the benefits companies gain from implementing a merchandising strategy include:
Merchandising is an essential tool that allows companies to differentiate themselves and connect with their target audience. By properly planning product presentation and customer experience, brands can achieve more effective positioning and business results.
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