Merchandising is the process by which the sales of items are maximized using methods such as product pricing, product packaging, product display, product design, and product selection all geared towards luring clients to buy things and spend as much money as they can. The procedures used apply pricing and discounting strategies, physical displays and presentation methods on items and making the right decisions to present the right products to the ideal clients.
Merchandising is a rather old practice that is used by retail stores in increasing sales. Some of the renowned examples of traditional merchandising are placing and promoting. Merchandising is still evolving and has embraced electric transactions in e-commerce websites. Just like the traditional methods, electronic procedures are about increasing the rate of conversion by using the right ways of displaying items and using the right and improved techniques and things to sell things to the intended people.
As stated earlier, retail merchandising is the art of increasing sales; maximizing sales revenue from a particular group of visitors to one particular retail outlet. To understand what role is played by merchandising, you must realize advertising. Advertising is the process and art of driving the visitors to an outlet. Most retail outlets will wish to spend a particular amount of money on advertising and attract the required crowd to their end and maximize performance. Retailers will do everything within their power to transform visitors to buyers. The goal is making all those who visit the store to purchase products from the store. Such processes will maximize the profit level of the retailers as merchandising, advertising and buying.
Some of the electronic merchandising techniques are personalized mass and segmented merchandising. The processes mentioned above can also be got offline. In many stores the mode of merchandising used is mass. Segmented merchandising entails targeting a specific demography such as gender, region, age and product needs. Personalized merchandising, on the other hand, entails the shopping assistants guiding visitors through the store recommending and highlighting the items depending on their understanding of the needs and profile of the users. The segmented and mass approaches are usually handled by a small group of people like the employees who create and manually administrate the process. It is not easy for a small group to handle personalized merchandising.
Behavioral merchandising entails using the customer contributed behavioral data to automatically get an efficient and credible merchandising. This is a method that is improved from the olden ways. One might refer this form of merchandising as a mixture of social networks and retail merchandising. Effectually, BEM means the turning of an e-commerce website to a social network that is focused on creating an interesting socially interactive personal and pleasant shopping experience for the visitors.