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What is Merchandising – Benefits, strategies, And More

What is Merchandising

What is Merchandising: Originally, merchandising focused on the point of sale of the product or service; however, with the arrival of the internet and the increase in the supply of services, this strategy has already been extended beyond the point of sale. As a result of this change, merchandising has two essential objectives: guaranteeing the product’s sale and attracting new customers.

Importance Of Merchandising

Merchandising plays a vital role in the consumer’s purchase decision since a good appearance directly influences this decision as it captures the user’s attention compared to competing products.

Benefits Of Merchandising

  • One of the benefits of merchandising is influencing the presence of the brand and its reputation, as specific positive attributes related to the consumer experience at the point of sale will attribute to it.
  • It increases sales as it influences the consumer’s purchasing decision.
  • Merchandising helps dispel past seasons’ stock or products with good placement at the point of sale.
  • Build customer loyalty by guaranteeing a good experience and some additional benefits.
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Types Of Merchandise

Currently, three types of merchandising are recognized based on their application or the strategies it employs:

Outside The Point Of Sale

Here are all the strategies that the branch or the point of sale will not contemplate, such as the participation of the company or brand in a fair or exhibition where it promotes its products or services through a stand or space.

However, the best example of merchandising of this type is what sizeable soft drink companies do with the placement of tables, chairs, umbrellas and other elements with the company’s image at events or other establishments such as restaurants, hotels, etc.

Also, within this merchandising is the use of material or products for daily use with the company logo, whose objective is to will distribute free of charge to expand the brand’s presence. These products can be pens, caps, pencils, t-shirts, etc.

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Similarly, the following subtypes fall within this merchandising:

Seduction or visual merchandising is the setting of the product; that is, the modification of sensory characteristics such as colour, smell or taste to attract more consumers. Here are also actions such as exhibitions or events where consumers can interact with the product or service. It can also do seduction merchandising within the point of sale.

  • Editorial Merchandising

can also be known as product placement and refers to the presence of brands within a film, article or other editorial space that is not considered promotion or advertising.

  • Retail Merchandising

refers to the actions used to influence the user’s purchase decision through additional benefits to the product or service. For example, when you are going to pay for a product or service and a discount is offered.

  • Inside The Point Of Sale

As its name indicates, this merchandising is the strategy carry out within the branch. Here the location of the point of sale will consider, how accessible and attractive it will compar to the competition and other factors such as the aromas and colours uses in the branch.

For example, Starbucks has a specific type of music within its branches, the lighting is dimmer to give a more bohemian experience, and the smell of coffee is found in all establishments to attract the user’s attention.

Within The Point Of Sale Merchandising Are The Following Subtypes:

  • Display Merchandising

refers to the placement of products in such a way as to capture the user’s attention. It is also related to the shelves and shelves that will use, as well as how to order the products or services according to colours, sizes, models, etc.

  • Vitrinismo

it is how will exhibit the products or services in the showcases; that is to say, the manakins, the chosen garments, the theme that will  treat, the lighting, etc.

  • Virtual Or Digital

This most recent merchandising will apply to digital products or services. They are all the strategies will use to make the product or service look attractive on a Sales Page or Sales Letter.

For this reason, their efforts will concentrate on applying background colours, button colours, calls to action and other elements that can directly influence the consumer’s purchase decision.

Similarly, this merchandising includes collaborations with influencers and social networks.

  • Merchandising Strategies

Creating an atmosphere that suits the product or service through adequate lighting. For example, dim light can illuminate a restaurant to give a feeling of romance and elegance.


The implementation of tight spots on social networks. Create spaces where the user can take photographs (selfies) within the establishment to influence the consumer’s purchase decision. This strategy has its peak with the arrival of new social networks such as TikTok or Instagram.

Digital experiences at points of sale. Screens, intelligent mirrors and other innovations can attract the user to enter the point of purchase and buy the product or service.

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