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LIS Team

Category: Store Merchandising

MERCHANDISING-An Essential Tool of Marketing

Merchandising is a key sales promotion tool that enhances product appeal and drives customer purchases. Understanding the various types of merchandising is essential for retail success.

Every year, we see a lot of new products and brands trying to fit in the market and make their place in retail stores and on customers’ shopping lists. In the dynamic world of retail, merchandising is a powerful tool that aims to create a captivating and seamless shopping experience for customers while maximizing sales for the brands. Merchandising is a crucial tactic of product marketing and is much more than just displaying products on shelves. 

What is merchandising?

Merchandising is a strategic practice of placing products on the shelves that attract eyeballs of the consumers and influence purchases at the point of sale. This practice contributes to the marketing of brands and products through displaying, promotions, advertising, etc. It is an amalgamation of product placement, visual merchandising displays, and effective communication to create a fascinating narrative around the brand and its offerings.  

Types of Merchandising

Merchandising is a multifaceted discipline with various categories that cater to the different aspects of retail and marketing. 

Types Of Merchandising

Here are five types of merchandising: 

Product Merchandising- Product merchandising revolves around individual products or product lines. It involves showcasing products in a way that highlights their features, benefits, and unique selling points. Activities like banners describing product features and their specialty written on them come under this category.

Visual Merchandising-  Visual merchandising focuses on the visual appeal of products within a retail space. It includes the strategic arrangement of the products to create a visually appealing shopping experience. The goal of Visual Merchandising display is to capture the attention of customers and encourage purchases.

Retail Merchandising- Retail merchandising is specific to retail products, where the products are promoted and sold in an actual physical store. It involves selecting the right mix of products, determining pricing strategies, managing inventory, and creating a conducive environment for sales.

Digital Merchandising- Digital merchandising involves the online presentation of products, optimizing product listings, enhancing the user interface and experience, and strategically promoting products on various digital platforms. 

Omnichannel Merchandising- Omnichannel merchandising includes selling products through online platforms and offline stores. This type of merchandising involves strategically promoting products via shops, mobile apps, and websites.

4 P’s of Merchandising!

For successful merchandising, one should understand the dynamic framework that empowers retailers to captivate their audience, drive sales, and foster brand loyalty. Here are the 4Ps that form the structure of merchandising.

4 P’s of Merchandising 

Product- The core of any merchandising strategy is the product itself. The product here refers to the item or service that a brand sells to its customers. It includes the physical product and its packaging, branding, design, quality, features, and benefits that meet the needs and wants of the target market.

Placement- Proper visibility is crucial for any product to sell. The Placement refers to the location where the product is easily accessible. One critical requirement of Placement is to ensure that the product is available at the right place, at the right time, and for the right target customers.  

Promotion- To create awareness and persuade customers to buy the product, the brand uses various promotional marketing tactics that promote its products or services. Effective promotion attracts customers, communicates the unique selling propositions of products, and encourages impulse purchases.

Pricing- Pricing is the amount of money a customer has to pay while buying a product. It comprehends the cost of goods, profit margins, pricing strategy, discounts, and promotional offers. A brand needs to strike a balance between offering value to customers and ensuring profitability for the business.

Importance of Merchandising

In the ever-evolving world of retail, merchandising plays a vital role in the growth of the business. Merchandising is a powerful tool that shapes brand identity, influences consumer behavior, and ultimately drives business success.

Importance of Merchandising

Let’s delve into the importance of merchandising- 

  • Captivating Shopping Experience
    Effective merchandising makes the shopping experience memorable for the customers. It makes shopping hassle-free and gives them reasons to come back often and spend more money. The strategic arrangement of products, enticing displays, and visually appealing aesthetics help to captivate the attention and create loyalty toward the brand. 
  • Enhancing Brand Identity
    The shelves and displays in the store are not only the art of the product but also the showcases to present the brand story. Through thoughtful product presentation, color schemes, and overall aesthetics, merchandising communicates a brand's identity and forges a connection with consumers on a deeper level. 
  • Driving Sales 
    Merchandising is about influencing consumer behavior to drive sales. Whether through the artful arrangement of products in a physical store or the optimization of digital displays in e-commerce, merchandising strategies entice customers to make purchases.
  • Fostering Customer Engagement
    Through interactive displays, product demonstrations, and well-curated online experiences, merchandising invites customers to explore, discover, and interact with products. This engagement goes beyond the transaction, fostering brand loyalty and turning one-time buyers into repeat customers.

FAQ - What are the different types of merchandising in retail?

Answer: The primary types of merchandising in retail include visual merchandising, which focuses on product presentation; retail merchandising, involving in-store product placement; digital merchandising, optimizing online product displays; and omnichannel merchandising, integrating both in-store and online strategies. Effective merchandising relies on the 4Ps: Product, Price, Place, and Promotion.

As much as Merchandising is important for the brands, it can be equally difficult to manage such a diversified staff across multiple locations. At Love in Store, our professionals are well-learned and trained in merchandising to get the maximum returns. If you are looking for an efficient guide, and services for merchandising, reach out to us @

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