The terms marketing and merchandising overlap and are sometimes used interchangeably. For those reselling the distinction between the two is important. Marketing refers to the positioning of a company’s products and overall brand in the local serviceable market, the Main Street equivalent of TMA (Discussed in: Market Addressability) Marketing includes your overall image, your message, your mission and the communication of this to people who what and are in the position to purchase your products. Merchandising should reflect your marketing efforts.
Merchandising refers to the strategic variety of products available for sale and merchandisers focus on the display of those products in such a way that it captivates interest and entices customers to make a purchase. For merchandising to be most effective it must communicate feedback consistently with both the customer and marketing, specifically the company’s Buyer All of this is transpiring within the framework of the four P’s of Marketing: Price, Place, Promotion and of course the particular Product (one that best reflects the company’s image and has the greatest potential margin for the area it will occupy).
Inventory Control Systems are effective only at showing what is actually purchased. So to have the best inventory turnover rate requires that you facilitate attentive sales people attuned to learn what customers are actually looking for which may not be reflected (certainly not for every item) in current sales reports, but that has the potential to be a good seller in future ones.
Basically those who are one step removed from the process (someone in an office playing Candy Crush) rely on the people walking the sales floor for actionable information. Because people make many impulse purchases, communication between salespeople and the customer is even more reliable than even the most sophisticated survey conducted too distant after the hunt. The best time to conduct a survey is right when the shopper is hunting for his prized item.
The best merchandisers are people with a flair for art and composition. Color coordination and creativity is essential to winning displays. Think Macy's. For thrift, you might be amazed at the talent of the merchandising team at Seattle Goodwill, the nation’s largest Goodwill store. Their Fashion Plus area as you enter the enormous showroom at S Dearborn Pl actually rivals Macy’s and Bloomingdales in its mojo and ability to captivate your attention. (Specialty Thrift store Buyers there is a clue in there just for you) .
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