C H A P T E R 11

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M HC ANDISINGERActivities involved in acquiring particular goods and/or services and making them available at the places,

times and prices and in the quantity that enable a retailer to reach its goals.

• MERCHANDISING PHILOSOPHY

Sets the guiding principles for all the merchandise decisions that a retailer makes.

Should Reflect:•Target market desires

• Retailer’s institutional type• Market-place positioning• Defined value chain• Supplier capabilities• Costs• Competitors• Product trends

SCOPE OF RESPONSIBILITY

1. Full array of merchandising functions

2. Focus on buying function only

MICROMERCHANDISINGVS.CROSS-

MERCHANDISING

THE MERCHANDISE BUYING AND HANDLING PROCESS

1.Formal Buying Organization.

2. Informal Buying Organization

3.Centralized Buying Organization

4.Decentralized Buying Organization

5.Inside Buying Organization

6.Outside Buying Organization

FUNCTIONS PERFORMED:1.MERCHANDISING VIEW

a. All buying and selling functions

• Assortments• Advertising pricing• Point-of-Sale displays• Employee utilization• Personal selling

approaches

2. BUYING VIEWa. Buyers manage buying functions

• Buying• Advertising• Pricing

b. In-store personnel manage other functions• Assortments• Point-of-Sale displays• Employee utilization• Personal selling approaches

c. Resident buying office- which can be inside or outside organization

d. Cooperative Buying

ForecastsAre

projections of expected retail sales for given periodComponents:

1. Overall company projections2. Product category projections3. Item-by-item projections4. Store-by-store projections

TYPES OF MERCHANDISE

1.STAPLE MERCHANDISE2. ASSORTMENT MERCHANDISE3. FASHION MERCHANDISE 4. SEASONAL MERCHANDISE 5. FAD MERCHANDISE