Merchandising, Point of

purchase, E-marketing and customer service

Amity Global Business School

Prepared By:- Anusha Adhikar

DEFINATION OF MERCHNDISING

According to the American Marketing Association

“Merchandising is the Planning involved in the Marketing in the right merchandise in right Place at the right time in the right quantities at the right prices. ”

“Planning and implementing of the acquisition, handling and monitoring of merchandise categories for an identified retail organization”

Merchandising In 2005, marketing trends in retail environments will continue to focus on point-of-purchase displays for attracting new and expanding existing markets.

In this day & age of self service stores, displays are absolutely essential as they serve as the “salesperson.” Your display MUST sell the product or service. How do you sell - satisfy the customer’s want or need & solve their problems

What is POP?

Point – Of – Purchase is the most critical component of any successful marketing campaign because it exist at the point of ‘convergence’.

At no other instance are people, products and $$ in the same place….

A consumer sales promotion device with bold graphics and signage that hold, display, or dispense products.

The Big Three!

Retail stores have 3 distinct aspects:

Design (meaning the premises)

Merchandising (whatever you put in them)

Operations (whatever employees do)

They are all connected…

Making a decision or change to one of these aspects; you’ve automatically made a change to the other two as well.

Example: Gap Stores trademark is intimate contact between shopper

and goods. That merchandising policy dictates that the displays are

wide, flat tabletops; not racks and shelves. The display policy dictates that significant staff (operations)

is needed on the floor to fold and keep clothing areas neat.

Display Function

Reinforce the store’s image

Generate a promotional atmosphere

Speeding up a sales transaction

Protecting the store’s merchandise

Think Like Your Customer

Spend half an hour standing in one place…observe!

How do people move?

How are people reacting to your displays? Is it how you thought they would?

Shopping has become the museum of the 21st century…it is a social, not business phenomenon.

Start with the Front

Stand half a block away. You can see the building but can you identify what’s

inside? Does your signage reach people at that distance? Is the lighting for window displays effective at

various times during the day? It takes time for people to acclimate to a retail

environment, so don’t try to achieve something critical in the immediate area by the door. They will blow right by, hence the term “decompression zone”.

More On The Front End

Greet customers, don’t steer them! This will start the seduction…

A simple hello will also reduce theft.

Create a “Power” display that will act as a speed bump and also a billboard. It doesn’t have to say “shop me”, but rather “take a

look at what your walking in on”.

Don’t forget the sidewalk…clearance items create excitement.

Shopping Baskets & Human Anatomy

Shoppers only have 2 hands – those who use baskets buy more – period!Shoppers don’t necessarily need a basket at the front of the store.They should be spread around, available without stooping.Consumers don’t seriously consider purchasing until they have browsed a bit.Make sure your baskets are appropriate for the merchandise going in them.

Shelf Stalkers

Research has shown that allocating more shelf space to memorable brands is not as effective as better visual presence – even for less noticeable brands.

Product placement on a shelf has shown to be more effective sales tool than the actual numbers of product packages.

Merchandising by Category

Commodity products with similar package sizes are best displayed in one, easy shop category.

Merchandising by Brand; Custom P.O.P.

Industry leading brands spend considerable dollars promoting their products. Good store merchandising takes advantage by reinforcing this message in store.

Merchandising by Theme

Modular display components allow retailers the flexibility to merchandise many different products in one, easy-to-shop area. This leads to complimentary (and profitable) sales.

Men Are From Lowes…Woman Are From Nordstrom

For men – have seating and food.

Women aren’t just shopping, they are searching for authentic, emotional expression.

Women need to feel comfortable before they buy, so be sure to give them enough room.

Women need to test, ponder, try, then buy.

Keep as much information available as possible.

So Now What?

Understand your POP needs, including look and feel.

Take a fresh look at your store layout and how it can change.

Decide on a level of functionality and flexibility for your displays.

Reinvest in signage and shelf talkers – that can update a section in minutes.

What Type of Displays Should I Invest In?

Review many merchandising systems in the market.Initially, don’t let cost discourage you.Find a look that compliments your store (and products).Feel comfortable communicating a preferred look to prospective vendors.Be clear about your store’s physical attributes (limitations).Use digital photography – picture tells a thousand words.

Point-of-Purchase Options…

Create “focal points” with moveable, modular island displays.

Use rotating displays to maximize product offerings in tight spaces – against walls, corners.

Implement waterfall displays for SKU intensive product categories.

Feature popular and new products with signage at the front of the store. Reproduce similar signage within specific departments to reinforce signage at the front.

What Have We Learned….

Customers want a relaxing and fun shopping experience – Good POP design and layout allow them to enjoy the process.

Be thoughtful about your space and don’t be afraid to try something new.

Variety may not be the spice of life.

Think modular, moveable.

Sign language; create visual attention with signs and shelf talkers.

If at first you don’t succeed try, try again – Modular displays will allow you the flexibility to move displays (product) is customers don’t seem interested.

E- Marketing

Marketing: Use of 4 “P’s” to meet customer’s needs

E-Marketing: Use of technology to increase efficiency of

marketing Increases company profitability and adds

customer value

Continued……

E-marketing is the use of electronic data and applications for planning and executing the conception, distribution, promotion, and pricing of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. It affects traditional marketing by increasing efficiency in traditional marketing functions, and the technology of e-marketing transforms many marketing strategies.

E-Marketing Challenges and Opportunities

Markets

Revenge of the Consumer

Businesses

Technology

Revenge of the Consumer

2000s: Consumers have control

What consumers want: Privacy To safeguard their children Permission before being sent commercial email

Businesses

Challenges: Quality customer service Information overload

Opportunities: Ways of generating revenue Greater interdependence in their value chain

Exhibit 1 - 5 Amazon.com Uses Mass Customization to Personalize Web Pages

Source: www.amazon.com Amazon.com is a registered trademark or trademark of Amazon.com, Inc. in the United States and/or other countries. © 2000 by Amazon.com. All rights reserved.

E-Marketing DeliversValue = Benefits – Costs

Value - customer perceptions of the product’s benefits

Benefits - attributes, brand name, etc… Add benefits through mass customization and

personalization

Costs - time, money, energy Lower costs through 24/7 convenience and one-stop

shopping

Customer service

It is a interaction with a consumer while conducting business

Key things of customer wants- Quick results

Personal attention

simple – fast transaction

friendly – caring service

problem resolution

Service can be Divided into two main types:

MATERIAL:• Price, Quantity, Quality, Type of equipment,

Routines, Working method, Manning etc.

PERSONAL:• It is personal service which upgrades a neutral

impression about a service to a good impression.• A honest smile & full personal attention will work

wonders even if material service breaks down.

Queries ………..?