The merchandising. Emergence and evolution.
According to Barrionuevo & Asociados (1992), Merchandising is merchandise sold inward, but it is also merchandise sold outward to the consumer, since through its techniques an approach of the client to the point of sale is achieved, the most appropriate presentation and exposure of the products, the best techniques to increase the sales and profitability of the establishment and to sell more and better.
It is necessary to bear in mind the assessment that he makes when highlighting the principles of merchandising. These principles are summarized in a very novel way by stating them as follows:
- ProfitabilityLocationImpactAvailabilityPriceDisplay
According to Alejos and Chico (1997), in consumers, 80% of their purchases are planned and the other 20% are by impulse, for this reason merchandising is increasingly important in Supermarkets and Department Stores.
If through Marketing the policy to be followed in sales management is elaborated, Morea (1997) points out, through the application of Merchandising this policy is executed, putting the goods in motion, displaying them, promoting them with appropriate techniques, using elements psychological that allow impact, interest customers and induce them to buy, and while the investigation creates questions; advertising informs, attracts the public; promotion motivates the customer, encourages him to buy; Merchandising moves the merchandise towards the customer.
Starting in the 19th century, with the appearance of department stores, there was an important change in the conditions of sale because the product is made available to the consumer by eliminating the counter and the clerk, the seller acts as a mere consultant so his participation it is not essential and the free movement of goods and large stores is generalized.
- 1852: the department store is born in France. 1928: the popular stores are born in the United States. 1930: the supermarket is born in the United States.
In 1934 the birth of popular stores took place in France, which were characterized by the sale of fewer references of basic products at reduced prices. As the customer has to choose the product directly from the shelf, it is necessary to increase its attractiveness through its graphic and structural design. In 1958 the first supermarket was born and in 1963 the first hypermarket was created in the United States.
From these dates on, the establishment gained prominence as the customer was able to wander through it and freely select the products.
Morea (1997) continues to propose, which is at this time where the origin of Merchandising is located, with the birth of modern points of sale that develop the techniques of visualization, empowerment and rotation of merchandise. Self-service appears and later the supermarket, which brought the new sales methods, the big markets begin to take hold, with strong competition between thousands of brands, references, sizes and capacities and the “silent sellers” of marketing enter the scene at the point of sale (packaging, price, offers, advertising, etc.)
All this can be derived in: « optimal exploitation of the point of sale, the shelf and the base of the performance, both in sales volume and in profit margin «.
As stated by Morea (1997), in these modern times, the sales process has developed in such a way that it can be said that it has almost become a science. This is due to the fact that a series of psychological, scientific and commercial studies come into play in the Merchandising process, which seek to know the tastes, customs, needs and way of thinking of consumers.
He argues that the term "merchandising" is the result of joining the noun "merchandise", which means "merchandise" and the radical "ing", which expresses the action, that is, the action by which the product is put into power of the consumer, that is why "merchandising" is defined by saying that:
"It is the set of techniques aimed at making the products available to the consumer, obtaining a return on the investment made in the establishment." It means that, whenever there is retail sales, in order to obtain certain benefits, there is merchandising.
For this reason, the author of this work considers that in these times of ruthless commercial competition it is an excellent idea to have a tool such as Merchandising, which allows merchants to "anticipate" market needs, tastes and fluctuations.
Based on what has been studied in classes, for the manufacturer, Merchandising is one of the most important elements of its marketing, placing it together with the variables of reinforcing the offer and establishing the pricing policy, whose fundamental objective is to obtain the highest profitability of the products displayed at the place of sale, giving good customer service.
In the text Basic Elements of Merchandising (1999), different concepts about Merchandising appear, which I list below.
According to the French Merchandising Institute it is defined:
«Set of studies and application techniques carried out, jointly or separately, by distributors and manufacturers in order to increase the profitability of the point of sale and give greater output to the products, through a permanent adaptation of the assortment to the needs of the market and the appropriate presentation of the goods. "
According to the French Academy of Commercial Sciences:
«It is a part of Marketing that encompasses commercial techniques that allow the potential buyer to present the product or service in the best conditions. Merchandising tends to replace the passive presentation of the product or service with an active presentation, appealing to what can make it more attractive: placement, division, packaging, presentation, display, installation ”.
According to the American Marketing Association:
"Merchandising is the planning and necessary control of the commercialization of goods or services, in the places, at the times, in the prices and in the quantities likely to facilitate the achievement of the company's objectives."
According to Kepner:
“Merchandising is the right merchandise, in the right place, at the right time, in the right quantities and at the right price”.
In the referenced text itself, it states that the fundamental objective of Merchandising is that by giving good customer service and raising the image of the point of sale, the highest profitability of the products displayed in the areas can be obtained. Merchandising is a permanent action on the shelf, and is, in turn, a creative action in the store, which closely follows the product or service from the moment it reaches the market. It is a new form of sales technique, where the main axes are the presentation, the rotation and the benefit of the products, replacing the passive presentation of these and is a projection of the marketing to the point of sale. In addition, it is the set of actions that allows a better evaluation of the product towards the distributor and the consumer and the help that is given to a product that is sold in free service, that is,that should be sold alone.
Types of Merchandising. Mechandising in business management.
As Leal (2000) explains, its origin can be located in the birth of modern points of sale that develop the techniques of display, empowerment and rotation of merchandise and in the history of large stores, where development begins of new methods of marketing products and has gone through three stages, which have defined the three existing types:
- Presentation and organization merchandising Management merchandising Seduction merchandising
Presentation and organization merchandising.
- Determination of the most suitable and appropriate place at the point of sale Structuring of space by product families It is practiced mainly in Latin countries and is dominated by the manufacturer.
Management Merchandising.
- Determination of the linear size of each section Linear distribution into families Know the product rotation Know the profitability of the linear meter Carry out comparative analysis between brands and product families.
It is a merchandising of negotiation between the manufacturer and the distributor. Here the Pareto theory of 20/80 is applied, which states that only 20% of the merchandise is the one who guarantees 80% of the income.
Seduction merchandising.
- Create attractive sections Look for perfectly conceived furniture to present (gondolas). In order to identify - inform - decorate and gain space.
For his part, Pereira (2002) argues that it is practically impossible to elaborate a perfect definition, since it is the simplification of a generally complex process. Like marketing, of which merchandising is an integral part, it is not a science but an art. As such it does not obey fixed and determined rules.
According to Coso, Paula-Irigoyen; Sánchez Miren, María de los Angeles (2004), argues that merchandising is:
- Approach the customer to the point of sale. Presentation and exhibition of products. Technique to increase the sale of products. Technique to increase the profitability of the establishment. Techniques to sell more and better.
Traditionally and popularly, merchandising is always associated with the product in relation to the shelf. It is also usually applied to the sales area. Few technicians, especially theorists, are aware of the true needs of commerce, as there is a great difference between books and everyday life, but in a generic way I will say that merchandising can be applied to every interior and exterior corner from the establishment, to each space where the customer's eye reaches.
They continue to emphasize that the purpose of merchandising techniques is to be able to continue arguing and influencing the public, constantly even if the seller is not present or does not exist. The current social circles of medium and high level, increasingly like independence and freedom at the time of purchase and especially at the time of the purchase decision.
The author of this work considers that Merchandising is a set of techniques for attracting the customer at the point of sale through the distribution of sections and the placement of products in the establishment. Its final objective is to increase the profitability of the business, seeking optimization through an increase in sales, an increase in the average commercial margin and the improvement of stock turnover.and it appears because the consumer has changed, is increasingly demanding, has more education, reads more newspapers and magazines, watches more television and movies, listens to the radio more and travels more than previous generations. It also has more social relationships, its demands are therefore more demanding and its tastes vary more quickly and each market segment requires that the characteristics of the product are adapted to their tastes.
The consumer wants more, knows more, criticizes more, but also buys more, has more free time and becomes a guest in the store. Now shopping is not boring, buying more and more is a party and it is the responsibility of the store to organize the show.
Merchandising is applied fundamentally to promote impulsive buying, that is, it is aimed at seducing the buyer at the point of sale, therefore, it is imperative that the seller have recognized professional prestige, which allows him a broader knowledge of his products and consumer behavior. This would preserve and promote the good image of the entity.
According to Benavent (2004), Merchandising is a complementary seller, it is the best teammate, since it works all year round, staying 24 hours at the point of sale, every day, in support of the seller.
To achieve that this provides positive results, a constant creative action is needed at the point of sale, a permanent action and a deep analysis of the shelf, with good knowledge of the profitability of the same and of all the factors that affect it, such as They are, the rotation of the products, the attractive presentation, the type of consumer and the display furniture of the products.
In general, Merchandising guarantees the proper management of all image-bearing elements in the points of sale, where the assortment is the fundamental weapon of image and competitiveness, it allows us to know the shelves, optimize sales and improve the level of service to consumers, achieving customer loyalty and increasing the profitability of the store, always taking into account the preparation and behavior of the personnel in contact and the quality of the physical support.
Merchandising is worked from two points of view: outside and inside the point of sale.
Merchandising outside the point of sale.
Exterior merchandising consists of managing the store environment. We have to manage the outside area of the store. Sometimes it is possible to carry out a certain management of the external environment of the store, managing the parking lots and the rest of the urban furniture, as well as the lighting, plants and urban planning of the store environment.
A fundamental aspect for the success of a store is accessibility. The ease of accessing a store is an aspect that influences sales. You can distinguish between physical accessibility and psychological accessibility.
- Physical accessibility is the ease of entering the establishment. A store with many steps and far from the parking lot has low physical accessibility. The crucially important psychological accessibility is revealed by asking the question: does the store invite you to enter?
Merchandising inside the point of sale.
Most of the merchandising is precisely inside the establishment. Merchandising is a very broad field of management. It is necessary to summarize some of the fundamental sections and the decisions to be taken.
Other elements included in the Merchandising study are related to the so-called hot and cold spots, the level of display of the products (horizontal (see annex 4), vertical (see annex 5), in blocks, etc.) and the aspects related to decoration such as: colors, smells, etc.).
Undoubtedly, Merchandising represents a set of techniques that decisively influence the result of the sales force, from the simplest image that a seller projects, to the aesthetics offered by the premises where the goods that are shipped to the vendor are located. consumer are specified in forms of manifestation of Merchandising. These actions ensure the efficiency of a good sale, and the pleasant state of satisfaction to the customer who decides once and for all the loyalty to this seller.
Bibliography
- Leal Jiménez, Dr A. 2000. “Distribution and Merchandising” Salen, H. «The secrets of active Merchandising» Coso, Paula-Irigoyen; Ma. De los Ángeles- Sánchez Miren. Merchandising: the seller of today ”. ESIC, Higher School of Commercial Management and Marketing, 5/5/2004 Benavent, Lic. Juan Manuel. "How to be number one at the point of sale". Rebollo, Alfonso. 1999. ¨Classification of commercial forms: the product-establishment¨, published in Distribution and Consumption No. 10.Alejos, D and Chico Y. (1997). Merchandising, the role it plays in impulse buying. Faculty of Economic Sciences of the Rafael Landivar University. Guatemala, Barrionuevo. Leopoldo & Asociados (1992). Dynamic Merchandising. Ediciones Superior.Morea, L (1997). Merchandising - Monographs. Available at: http: //www.monogramas.com/contacto.shtml (Accessed September 30, 2005).
