Marketing Strategies & Merchandising Process Merchandising Process

Retail merchandising is the process used in order to conduct retail sales. As part of the process, the merchandiser pays close attention to the types of products offered for sale, how to best present those products to consumers, and determining what is a reasonable retail price for each unit sold. While retailers have traditionally engaged in the task of retail merchandising in a physical location, the Internet has now made it possible to apply these same basic principles in a virtual setting. 

The first important step in retail merchandising is establishing working relationships with manufacturers who will provide the goods or services that are ultimately sold by the retailer. This type of retail buying involves determining what products will be carried in the retail establishment, negotiating the unit price that will be charged by the manufacturer, and arranging for the delivery of those goods. Depending on the number of units the retailer can afford to purchase at a given time, it may be relatively easy to obtain a discounted unit price, making it easier for the retailer to be competitive in the local marketplace.  

Process flow chart of merchandising:

1.  Receive product package form buyer 

2.  Sample development 

3.  Price negotiation 

4.  Order confirmation and receive order sheet. 

5.  Sourcing low good quality right time 

6.  Material collection and receive it  in factory 

7.  Check and listing 

8.  Swart card making and approval 

9.  Pre production meeting 

10 .Daily collect daily production report and daily quality report 

11. Arrange final inspection 

12. Shipment

 

 

The role of the marketing division:

Marketing is a part of a firm’s strategic plan.

To market product successfully;

 

 

The role of the marketing division

Market segmentation and Target markets

Target markets

Described in demographic characteristics (See Table 2-1, p. 34)

1) Core customers

(the foundation of their business)

2) Fringe customers (potential for business growth)

Market segmentation

Mass market strategies

Middle income class, large portion of the U.S. population (about 80%)

Multiple-segment strategies

Two or more marketing, Examples: men’s sport shirt + a line for women’s shirts

Niche marketing (or Micromarketing)

Narrowly defined target market (gender, price range, size range, life style)

A firm may change its conception of target market;

1) Distribution changes among age groups (Example: Y Generation)

2) Population shift to the south and west.

3) Needs of special market segments: petite, plus, tall, and large size.

 

 

Strategic marketing processes

Marketing strategy considers;

<> Marketing objectives

<> Analysis of the competition

<> Market positioning and product differentiation

<> Product sell-through

Marketing objectives

<> Expends sales of current products in current markets

<> Achieved through__

      #  Price promotion/ Low pricing

      #  Brand/ Store loyalty

      #  Convenience/ Accessibility /Internet

<> Market development

      #  Seek new markets or new uses for products (Example: Nylon)

<> Diversification

  #  Develop new products aimed at new markets 

      (Example: Liz Claiborne’s diversification Elizabeth for large sizes, Liz sport for casual market,Claiborne for men’s wear)