Marketing

Marketing, Market Research, and Merchandising

• Marketing: Selling goods/services by meeting consumers' wants and needs.
• Market research: Gathering information about consumers' likes, dislikes, needs, and habits.
• Merchandising: Techniques used by retailers to encourage shoppers to buy goods in-store.

Merchandising Techniques

1. Large trolleys or baskets on wheels:

• Allows shoppers to carry more items, encouraging larger purchases.

2. Fresh bread and cakes placed near entrances:

• The smell makes consumers feel hungry and more likely to buy food.

3. Background music:

• Creates a relaxed shopping atmosphere.
• Discount stores like Lidl and Aldi often avoid music – does it change your shopping experience?

4. Product placement:

• Items that go together (e.g. pizza and garlic bread) are placed side by side.
• Encourages consumers to buy both items.

5. Essential items placed at the back:

• Milk, eggs, and other essentials are far from the entrance.
• Shoppers must walk through the store, increasing impulse buys.

6. Stand-alone baskets for bargains:

• Placing items in baskets makes them look like special offers.

7. Luxury items at checkouts:

• Sweets, magazines, and beauty products encourage last-minute impulse buying.

8. Loss leaders:

• Shops sell certain items at or below cost price* to attract customers.
• Example: Heavily discounted bread or milk encourages shoppers to buy other full-price items. 📌 The cost price* is the amount of money spent to produce or buy something before selling it. It includes all the expenses, such as materials, labour, and transportation, needed to prepare the product for sale.

Why Merchandising Works

• It uses psychology (smells, sounds, and product placement) to influence buying habits.
• Makes shopping more convenient and tempting for consumers.