Merchandise

Types of Merchandise
p Staple Goods – items that are constantly in demand by
customers. Examples are toothpaste, milk, or bread.
n Used consistently and replaced on a regular basis
n Sales are easily predictable because they are bought
on a consistent basis.
p Convenience Goods – small, inexpensive items that
customers purchase frequently. Examples are gum,
bottled water, or magazines.
n Found in convenience stores, grocery stores or gas
stations.
p Fashion Goods – items that are popular at a certain
time. An example is clothing.
n Includes any item that comes in or out of style
n Retailer will maximize sales by acquiring the product
as it is gaining popularity
p Seasonal Goods – products that are popular only at a
certain time of year. Examples are swimsuits, boxed
chocolates, or snow skis.
The Merchandise Mix
p Businesses must pay close attention to their target market and
must obtain, develop, maintain, and continually improve upon
their merchandise mix.
n Components of the Mix
p Merchandise Mix – made up of all the products that a
business sells
p Product Line – a group of closely related products that a
business sells
p Product Items – the products that make up a product
line. A specific model or brand
Types of Merchandise
p Merchandise Mix Strategies
n Development – develop new products to bolster the
company’s image or to expand their market share.
n Expansion – businesses can choose to add either new
product items or new product lines.
n Modification – altering a company’s existing product.
n Deletion – may occur when a product is no longer
useful, obsolete, not fashionable, or room is needed
for another product.
Definition

p AMA (Apparel Manufacturing Architecture) defines as

“The planning involved in marketing the right
merchandise at the right place at the right time in the
right quantities at the right price.”

p Merchandising management can be termed as

“Planning, analysis, acquisition, handling and control of
the merchandise investments of a retail operation”
Mantra of Merchandising
p Achieving the five Right is the key to
successful merchandising and many a times,
this remains an elusive goal for most retailers.
Explanation of the Definition

p Analysis: because retailers must be able to correctly

identify their customers before they can ascertain
consumer desires and their needs/requirements for
making a good buying decision.

p Planning is important because merchandise to be sold

in the future must be bought now.
p Acquisitions because the merchandise needs to be
procured from others, either distributors or
manufactures.
p Handling involves seeing that the merchandise is
where it is needed and in the proper condition to be
sold.
p Control is required since the function of merchandise
involves spending money for acquiring products it is
necessary to control the amount of money spent on
buying
Merchandise Planning
Elements of Customer Demand

TARGET MARKET

BUYING MOTIVATIONS
Identifying Target Market

Demographic

Market
Behavioral Psychographic
Segmentation

Geographic
Demographic Segmentation
Mainly grouped on the basis of:-
p Population
p Age
p Income
p Sex
p Occupation
p Education
Geographic Segmentation
Mainly grouped on the basis of:-
p Cities
p States
p Regions

p Climate
Psychographic Segmentation
Grouped on the basis of the lifestyle-
n Social activities
n Interests
n leisure pursuits
n needs and wants

People having similar lifestyles can make up a target market group.

Behavioural Segmentation

Grouped on the basis of opinion on specific products or

services-

p Rating of usage of products & services.

Help in improving the service/product and make it different

from others.
 DETERMINING WHY CUSTOMERS BUY

BUYING MOTIVATIONS

RATIONAL MOTIVATIONS EMOTIONAL MOTIVATIONS

•Durability •Imitation
•Dependability •Emulation
•Comfort •Prestige
•Economy of Operation •Pride of Appearance
•Price •Distinctiveness
FASHION PURCHASESSPECIFIC SELECTION FACTORS

q Silhouette- Degree to which an item is considered moderate

or extreme in form in relation to the currently popular shape
or form of such products.

q Decoration or trim- Presence or absence of all types of

ornamentation

q Material/Fabric-Quality of fabric

q Surface interest- Texture, Hand feel

q Color-Actual hues used

q Workmanship- construction, stitching, finishing

q Size- Preciseness of Fit

q Sensory factors- Touch, Taste, Smell, etc.

q Ease and cost of care

q Brand- Identity of manufacturer or distributor of an item

q Utility- Extent of usefulness and service

q Appropriateness-Degree of suitability and acceptability

q Price- Value placed by individual customer

The Uniqueness of Fashion Merchandising

p Obsolescence factor.
p Higher markdowns
p Faster turnover
p Seasonal factor
p Sales promotion.