Effective Merchandising and Distribution Strategies
Merchandising Strategies
Merchandising: A set of media that helps to showcase a product at the point of sale.
Key Merchandising Elements:
- Posters
- Product status displays
- Battery product presentations
- Product variety
- Decorations
- Movement and lighting
- Competitions
- Demonstrations and tastings
Distribution Functions
Transportation
Transportation: Decisions affecting the most appropriate means of transport, batch size, and frequency.
Storage
Storage: Can occur at various stores involving intermediaries in the distribution chain.
Customer Information and Support
Customer Information and Support: Important for launching a product, explaining its features effectively.
Distribution Channels
Distribution channels utilize various means to ensure products reach consumers from producers.
Direct Channel
Direct Channel: Production goes directly to the customer.
External Channel
External Channel: Distribution is handled by companies different from the producer.
Intermediaries
Intermediaries: Individuals or institutions facilitating product transfer.
Wholesalers
Wholesalers: Purchase from producers or other wholesalers, selling to other wholesalers or retailers.
Retailers
Retailers: Intermediaries who sell products to consumers.
Segmentation Criteria
Sociodemographic Criteria
Sociodemographic Criteria: Grouping individuals based on variables like sex, age, education, habitat, and household position.
Socioeconomic Criteria
Socioeconomic Criteria: Dividing individuals based on income, consumption possibilities, or social class.
Psychographic Criteria
Psychographic Criteria: Factors based on individual behavior and personality.
Key Marketing Vocabulary
Depreciation
Depreciation: Loss of value due to wear or use.
Obsolescence
Obsolescence: Loss of economic value.
Marketing
Marketing: Activities aimed at satisfying consumer needs and desires to achieve company benefits.
Product
Product: A unit or set of goods or services with a high degree of substitutability.
Differentiated Product
Differentiated Product: Goods resulting from variations in attributes, perceived as new and different by consumers.
Product Line
Product Line: A company’s entire range of articles in the market for all consumers. Characteristics: Number of lines, products per line, and total products.
Price
Price: The amount of money a buyer gives a seller in exchange for a product or service.
Sales Promotion
Sales Promotion: Activities aimed at increasing product sales for a short period.
Franchise
Franchise: A contract where a franchisor grants a franchisee a trademark license in exchange for fees. Characteristics: Cooperation established by contract, the franchisor provides the trademark, and the franchisee pays royalties for its use.